合同是指双方或多方之间具有法律约束力的口头或书面协议。合同是在双方当事人自愿的基础上达成的。合同是项目管理的重要内容。项目管理要求对时间敏感;要求其他外部公司高效运作以完成要求(Marotta‐Wurgler, 2007)。合同有助于不同公司之间的过程的问责性和透明度。有效的合同管理是项目管理的一个重要方面。合同管理是与供应商、员工、合作伙伴和客户的合同组织(Marotta‐Wurgler, 2007)。这是一个有助于风险管理的系统过程。合同的范围和条款可以是广泛和复杂的。这方面在下面的报告中作了详细的探讨。
激励合同是在合同中存在一定程度的不确定性时，当事人之间订立的。本合同是在为公司开发新技术时签订的(Vogenauer, 2013)。在IT发展中，不断有新的项目被提出。除此之外，还需要根据可能开发的技术开发相应的合同。然而，这只是一个项目前期的猜测，实际的产品开发结果会有所不同(Dietz, 2012)。正是由于这个原因，才制定了激励合同。这是为了合同当事人的利益。
A contract is defined as verbal or written agreement between two or more parties that is legally binding. Contract is agreed based on the deliberate volition of the parties. Contract is an important element in project management. Project management requirements are time sensitive; require efficient functioning of other outside companies for completion of the requirements (Marotta‐Wurgler, 2007). Contract helps in accountability and transparency of the process between the different companies. Effective Contract management is a vital aspect of project management. Contract management is the organization of contract with vendors, employees, partners and clients (Marotta‐Wurgler, 2007). It is a systematic process that aids in management of risk. Scope of the contract and the terms of the contract can be wide-ranging and complex. This aspect has been probed in detail in the report below.
Background of the case
It is a type of flexible contract that is drawn to overcome some of the stringent mandates of the fixed price contract. Based on the dynamic requirements of the software project, the contracts are drawn. Some contracts drawn are for the individual services or use of machinery for the project life cycle. Detailed scheduling and resource allocation is made possible in this contract. The company has to pay for certain services or usage of products draws this kind of contract.
Incentive contracts are drawn between parties when there is a certain level of uncertainty prevailing in the contract. This contract is drawn when new technology is developed for the company (Vogenauer, 2013). In the IT development, there are constantly new projects that are proposed. Apart from this there is a need to develop corresponding contract based on the probable technology are developed. Nevertheless, this is a pre project speculation and the actual product development results will vary (Dietz, 2012). It is for this reason that incentive contract is drawn. This is for the benefit of the parties involved in the contract.
Retainer contract is another kind of contract where the contractor only knows about the time and material required for the specific contract that is drawn. This contract is drawn for short delivery time and cycle. This kind of contracts finds a lot of relevance in the IT development arena (Vogenauer, 2013). There are separate estimates and details that are drawn for each party of the contract.
It is the duty of the contract manager to ensure that contracts are developed based on the exacting requirements of the company.