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Project Management Contract Template

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Project Management Contract Template

Projects have always been part of our lives; in schools, workplaces, and even at homes. Projects are unique, and they are meant to be completed within specific constraints. These constraints include budget, resources, time, among other factors. Hence, the reason for a project management professional is to initiate, plan, control, monitor, and close a project successfully in the business world. In that case, nothing happens if you have not signed a contract.

Else, you may carry on with the project at a cost should anything go wrong in the course of execution. Every manager needs a solid project management contract template to work with customers. 

A project management contract is an agreement between a project manager and an employer or owner. You don't want to be involved in managing a project that would cost you a fortune because you sealed the agreement with a handshake rather than a written contract. A project management contract template is useful because you don’t have to start crafting one at the eleventh hour of sealing a contract.

You want to ensure there's a solid template on the ground that you can always edit to make a particular need. If you have none, there's no need to worry. You can either download a ready template from our gallery or get quick tips to create your own.

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Read on to find out about the basic information in a project management contract, writing a project management contract template and what information to include.

A robust project management agreement captures major information needed for decision making regarding the project. These include the deliverable, scope and strategies, compensation, performance measure, timeframe, authorization, among others. Let’s see the information in each section of a project management contract template.

1. Introduction

Include a title page that identifies the document as a project management contract, then identify the parties involved in the agreement. Add personal information of parties, including name, contact and mailing address, and phone number.

2. Executive summary

Just like the name, summarize the problem, goal, and objective of the project so that a ready can rapidly grasp what the document is all about without going through the entire write up.

3. Detailed project scope

The project's purpose is to achieve a planned functionality in carrying out the project within its constraints. Hence, the need for a comprehensive definition of functions and deliverables.

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4. Schedule

The contract has to specify the project start and completion date. It is advisable to break down the project into manageable bits and assign milestones to them. A better schedule gives room for effective tracking and monitoring of delays.  

5. Compensation

A project management contract must include payment and other expenses associated with the project. It includes project management fees and pricing models. Settlement may take into account whether the project is an on-time activity or recurring type.

6. Limitation of liability

This is the section of the project management contract template where you add a clause that limits the amount of exposure you face or liability in cases of damages or loss when performing your duty. As a project manager, you want to know if the project has insurance cover for personnel and resources before agreeing to take up the job.

7. Performance measure

A good project management contract gives room for rewarding superior performance. Hence, define indexes to measure performance and to track the progress of work. Your performance index may also be useful to the client in measuring profitability or carrying out a cost-benefit analysis.

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Project Management Contract Template
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Project Management Contract Template

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