PMP Course day 5

1. 1
https://www.magenium.com

2. Resources
 PMBoK6
 Long Island PMI Chapter
 Mohamed ElSaadany lecture notes
 Rita 8
 Agile Training, Iad Saadah
 Others shown on slides 2

3. Course structure
Day Topics
1 Introduction, Certification, Basics, Processes
2 Integration, Stakeholders, Scope
3 Schedule, Cost
4 Quality, Resources, Communications
5 Risk, Procurement
6 Ethics, Agile, MS Project, Exam, Tips, Real Exam
3

4. Day 5
# Time (min) Topic
1 120 Risk
2 90 Procurement
3 120 Project
4

5. Definitions
RISK - an occurrence that may affect the project for good or bad.
UNCERTAINTY - the absence of any information related to a desired outcome.
RISK APPETITE - the degree of uncertainty an entity is willing to accept in anticipation of a
reward
RISK TOLERANCES - the degree, amount, or volume of risk that an organization or
individual will withstand
RISK THRESHOLD - a measure of uncertainty or impact at which a stakeholder may have
an interest
CONTINGENCY RESERVES - time or money added to the plan to handle “known
unknowns”
MANAGEMENT RESERVES - time or money added to the plan to handle “unknown
unknowns”
5

6. Project Risk Management Objectives
 Increase the probability & impact of opportunities
 Decrease the probability & impact of threats
Simple & Clear-cut goals!
6

7. Why is Risk Management Necessary?
Projects are:
 New, Unique
 Under Time Pressures
 Uncertain
 Under Budget Constraints
7

8. Six Step Approach to Handling
Project Risk
1. Make a plan
2. Identify – Create a comprehensive list of risks
3. Screen or Qualify risks
4. Analyze only the screened risks and the overall project
5. Plan individual responses
6. Monitor the risks that have response plans and execute the responses.
8

9. Knowledge Area
Project Management Process Groups
Initiating Planning Executing Controlling Closing
11. Project Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6
Implement
Risk
Responses
11.7 Monitor Risks
Plan Risk Management Process
9

10. 11.1
10

11. Example Set of Risk Categories
Technical/Quality/Performance
Unproven or complex technology
Expected changes (standards, technology)
Project Management
Poor allocation of time and resources
Inadequate project plan quality
Organizational
Inconsistent objectives (scope, cost, time)
Lack of prioritization
Inadequacy/Interruption of funding
Resource conflicts
External
Shifting legal, regulatory, environmental requirements
Labor issues
Force Majeure (natural disasters, war, LOTTO)
11

12. 11.1 Plan Risk Management Facts
Fact:
The Risk Management Plan does not address responses to
individual risks – that is done in the Risk Response Plan.
Fact:
Organizational assets are improved by lessons learned
updates.
Fact: Good Risk Management depends on good communications.
12

13. 13
• Risk strategy.
• Methodology.
• Roles & Responsibilites.
• Funding.
• Timing.
• Risk categories.

14. 14

15. 15

16. 16

17. Identify Risks Process
Knowledge Area
Project Management Process Groups
Initiating Planning Executing Controlling Closing
11. Project Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6
Implement
Risk
Responses
11.7 Monitor Risks
17

18. 11.2
18

19. Risk Types
Business
Normal risk of doing business. Includes threats and
opportunities.
Threat Risk that presents a possible loss.
Opportunity Risk that presents a possible gain.
Pure (Insurable) Risk Risk that presents a possible loss & no possible gain!
Known Risk
Risks that were identified. Can be handled in a variety of
ways, including contingency reserve
Unknown Risk
Risks that were not identified
These can not be handled proactively
It is prudent to allocate management reserves for these
risks
19

20. Initiate Risk Register
Identify Risks Perform Risk Analysis Plan Risk Responses Control Risks
# Category Risk
Potential
Result
Defined
By
Date Impact Prob Score
Qualtve
Impact
Risk
Strat
Notes Owner Status Date Notes
1 Tech
IT
Resource
Availabilit
y
Unable to
meet
project
schedule
Brian 15-Jun
2 Contracts
Project
contract
negotiate
Inability to
complete
project
goals
Wendy
22-
Jun
3 Cost
Scope
Creep
Project
Budget
Overrun
Jeff
30-
Jun
Note: Register Updates in Amber
20

21. Perform Qualitative Risk Analysis Process
Knowledge Area
Project Management Process Groups
Initiating Planning Executing Controlling Closing
11. Project Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6
Implement
Risk
Responses
11.7 Monitor Risks
21

22. 11.3
22

23. 11.3 Perform Qualitative Risk
Analysis Definitions
EVENT – Something that happens, an occurrence, an outcome.
PROBABILITY – How likely the event is to occur?
IMPACT – The event’s impact on objectives should it occur.
“POP QUIZ”
Project Risk is greatest in the _____ phase of the project & why?
Amount at stake is greater in the _____ phase of the project & why?
23

24. 11.3 Perform Qualitative Risk
Analysis Commentary
QUALITATIVE approach expresses probability and/or impact using an
ordinal rating system to denote order.
Adjectives: high, medium, low
Colors: red, yellow, green
Ranking 1-10
Qualitative Approach: The Good, The Bad & The Ugly
Good – it’s fast and easy to administer & understand
Bad – it’s subjective, “invites” bias
Ugly – it requires definitions, rules, standards, and process
24

25. Example of Ordinal Scale
Rank Probability Impact
High
Risk event is very likely to occur,
high probability
If risk occurs, a significant impact to
cost, schedule, quality, or customer
satisfaction will occur
Medium
Risk event is likely to occur,
medium probability
If risk event occurs, a moderate
impact to cost, schedule, quality or
customer satisfaction will occur
Low
Risk event is unlikely to occur,
low probability
If risk event occurs, a small impact to
cost, schedule, quality, or customer
satisfaction will occur
25

26. Update Risk Register
Identify Risks Perform Risk Analysis Plan Risk Responses Control Risks
# Category Risk
Potential
Result
Defined
By
Date Impact Prob Score
Qualtve
Impact
Risk
Strat
Notes Owner Status Date Notes
1 Tech
IT
Resource
Availabilit
y
Unable to
meet
project
schedule
Brian 15-Jun
Mod
impact to
sched
2 Contracts
Project
contract
negotiate
Inability to
complete
project
goals
Wendy
22-
Jun
Mod
impact to
goals
3 Cost
Scope
Creep
Project
Budget
Overrun
Jeff
30-
Jun
Signif
impact to
cost
Note: Register Updates in Amber
26

27. Perform Quantitative Risk Analysis
Knowledge Area
Project Management Process Groups
Initiating Planning Executing Controlling Closing
11. Project Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6
Implement
Risk
Responses
11.7 Monitor Risks
27

28. 11.4
28

29. 11.4 Perform Quantitative Risk
Analysis
QUANTITATIVE risk analysis is a numerical analysis of the
probability and/or impact of the highest risks. e.g.:
 80% probability of occurrence
 $10,000 impact or three week delay
Helps to determine the most critical risks
Less subjective than qualitative
More time consuming; requires estimation
Substantially more valuable in developing risk response
strategies and reserves
29

30. The probability of Task E starting on time decreases as the
number of parallel predecessors increases.
Task A
Start
Task B
Task C
Task D
Task E
Finish
Sensitivity Analysis
Shows which risks have the most impact.
30

31. Risk Probability of X Impact = Expected Value
Event Occurrence
1 10% $500,000 overrun $50,000
10 week delay 1 week delay
2 50% $100,000 overrun $50,000
16 week delay 8 week delay
3 75% $10,000 overrun $7,500
2 week delay 1.5 week delay
EMV = Probability x Impact
Expected Monetary Value (EMV) Analysis
31

32. Probability x Outcome = EMV
Aggressive Uncertain P = .20 +100,000 = + $20,000
Schedule Outcome
(EMV = $4,000)
Decision
P = .80 x - $20,000 = - $16,000
Uncertain P = .30 x - $20,000 = - $6,000
Outcome
Conservative
Schedule
(EMV = $1,000)
P = .70 x + $10,000 = + $7,000
X
x
Decision Tree Example
32

33. 33

34. Identify Risks Perform Risk Analysis Plan Risk Responses Control Risks
# Category Risk
Potential
Result
Defined
By
Date Impact Prob Score
Qualtve
Impact
Risk
Strat
Notes Owner Status Date Notes
1 Tech
IT
Resource
Availability
Unable to
meet
project
schedule
Brian
15-
Jun
0.4 Y 0.6 0.24 Y
Mod
impact to
sched
2 Contracts
Project
contract
negotiate
Inability to
complete
project
goals
Wendy
22-
Jun
0.3 M 0.9 0.27 M
Mod
impact to
goals
3 Cost
Scope
Creep
Project
Budget
Overrun
Jeff
30-
Jun
0.8 M 0.7 0.56 M
Signif
impact to
cost
Note: Register Updates in Amber
Update Risk Register
34

35. Plan Risk Responses Process
Knowledge Area
Project Management Process Groups
Initiating Planning Executing Controlling Closing
11. Project Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6
Implement
Risk
Responses
11.7 Monitor Risks
35

36. 11.5
36

37. Secondary and Residual Risks
Secondary Risks
Risks that arise as a direct result of implementing a risk response.
Example: Request new project resources to replace poor performers –
what can happen?
Residual Risks
Risks that remain after risk responses have been implemented.
Example: You execute a risk response strategy for a project during
hurricane season but a hurricane may still occur.
37

38. Avoidance:
Transference:
Mitigation:
Acceptance:
Situation: Company’s data center is in a hurricane zone.
Risk: Loss of data center after major storm.
Options: What are they?
Strategies for Negative Risks (Threats)
38

39. Avoidance:
Move data center
Secondary Risk: longer response times
Transference:
Insurance is only monetary it wont keep the data center up
Outsource the data center & hold the contractor responsible
Residual Risk: Outsourcer’s disaster recovery plan does not work
Mitigation:
Create disaster recovery plans (e.g.: spare hardware for the most critical elements
of the data center, or backup data center located elsewhere)
Acceptance:
Passive: Do nothing now. Develop a workaround on the fly if it happens.
Active: Do nothing now but have a contingency plan and the funding to implement it
Situation: Company’s data center is in a hurricane zone.
Risk: Loss of data center after major storm.
Options:
Strategies for Negative Risks (Threats)
39

40. Exploit:
Share:
Enhance:
Accept:
Situation: Define a situation
Risk: Define Positive Risks (Opportunities)
Options: Think about it - what are they?
Strategies for Positive Risks or Opportunities
Homework / Self Study
40

41. Update Risk Register
Identify Risks Perform Risk Analysis Plan Risk Responses Control Risks
# Category Risk
Potential
Result
Defined
By
Date Impact Prob Score
Qualtve
Impact
Risk
Strat
Notes Owner Status Date Notes
1 Tech
IT
Resource
Availability
Unable to
meet
project
schedule
Brian
15-
Jun
0.4 Y 0.6 0.24 Y
Mod
impact to
sched
Avoid,
extend
sched
With
Apprvd
Sponsor
Chg
Rqst
PM
Jeff
2 Contracts
Project
contract
negotiate
Inability to
complete
project
goals
Wendy
22-
Jun
0.3 M 0.9 0.27 M
Mod
impact to
goals
Transf
er risk
with
contrct
Fixed
Price
Cont
Limits
Addtl
Risk
PM
Jeff
3 Cost
Scope
Creep
Project
Budget
Overrun
Jeff
30-
Jun
0.8 M 0.7 0.56 M
Signf
impact to
cost
Accept
use
Cont
Resrv
With
Apprvd
Sponsor
Chg
Rqst
PM
Jeff
Note: Register Updates in Amber
41

42. Control Risks Process
Knowledge Area
Project Management Process Groups
Initiating Planning Executing Controlling Closing
11. Project Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6
Implement
Risk
Responses
11.7 Monitor Risks
42

43. 43
11.6

44. Monitor Risks Process
Knowledge Area
Project Management Process Groups
Initiating Planning Executing Controlling Closing
11. Project Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6
Implement
Risk
Responses
11.7 Monitor Risks
44

45. 11.7
45

46. Update Risk Register
Identify Risks Perform Risk Analysis Plan Risk Responses Control Risks
# Category Risk
Potential
Result
Defined
By
Date Impact Prob Score
Qualtve
Impact
Risk
Strat
Notes Owner Status Date Notes
1 Tech
IT
Resource
Availability
Unable to
meet
project
schedule
Brian
15-
Jun
0.4 Y 0.6 0.24 Y
Mod
impact to
sched
Avoid,
extend
sched
With
Apprvd
Sponsor
Chg
Rqst
PM
Jeff
Projct
on
sched
Risk
Closed
31 -
Oct
Tech
Tasks
Cmplt
2 Contracts
Project
contract
negotiate
Inability to
complete
project
goals
Wendy
22-
Jun
0.3 M 0.9 0.27 M
Mod
impact to
goals
Transf
er risk
with
contrct
Fixed
Price
Cont
Limits
Addtl
Risk
PM
Jeff
Cont
Cmplt
Risk
Closed
16 -
Aug
Cont
Cmplt
3 Cost
Scope
Creep
Project
Budget
Overrun
Jeff
30-
Jun
0.8 M 0.7 0.56 M
Signf
impact to
cost
Accept
use
Cont
Resrv
With
Apprvd
Sponsor
Chg
Rqst
PM
Jeff
No
Chg
25 -
Nov
Proj
within
revised
budget
Note: Register Updates in Amber
46

47. Risk Fact Review
Risk The most important item to cover at team meetings.
Project Risk
Response Audits
Risk auditors examine and document the effectiveness of the risk response in
avoiding, transferring, or mitigating risk occurrence as well as the effectiveness of
the risk owner. Done throughout project life cycle.
Earned Value
Analysis
Used for monitoring overall project performance against a baseline plan.
Deviations from the project baseline may be risk triggers.
Contingency
Reserves
Time and money for known unknowns.
Added on top of the estimate.
Made part of the cost baseline.
Management
Reserves
Time and money for unknown unknowns.
Added on top of the estimate.
Made part of the project budget, not the baseline.
Some organizations have policies on management reserves.
Fallback Plans A plan of action if contingency plans are not effective. “Plan C”
Workarounds
Unplanned responses to emerging project risks that were previously accepted
(passively) or unidentified. Must be documented and incorporated into the project
plan and risk response plan.
47

48. When should risk management first take place?
When is corrective action most costly?
When is “scope” risk highest?
When is “cost” risk highest?
Are product defects a project risk?
Who is responsible for risk?
Who is accountable for risk?
Risk Question Review
48

49. Sample Risk Documents
49

50. Cause & Effect Diagram
50

51. Risk Breakdown Structure (RBS) -
Sample
IT Project
Business
Competitors
Suppliers
Cash flow
Technical
Hardware
Software
Network
Organizational
Executive
support
User support
Team support
Project
Management
Estimates
Communication
Resources
51

52. 52
Probability Impact Matrix - Sample
52

53. Expected Monetary Value (EMV) - Example
53

54. Risk Register Sample
54

55. 55

56. 56
Project
Charter
SH s
Requiremen
ts
Scope
Statement
WBS
Risk
Identificatio
n
Risk analysis
Risk
Responses
Activities
Resources
CP
Procuremen
t
Quality
SH s/Comm.
plan
Cost
Budget

57. Initiate Risk Register
Identify Risks Perform Risk Analysis Plan Risk Responses Control Risks
# Category Risk
Potential
Result
Defined
By
Date Impact Prob Score
Qualtve
Impact
Risk
Strat
Notes Owner Status Date Notes
1 Tech
IT
Resource
Availabilit
y
Unable to
meet
project
schedule
Brian 15-Jun
2 Contracts
Project
contract
negotiate
Inability to
complete
project
goals
Wendy
22-
Jun
3 Cost
Scope
Creep
Project
Budget
Overrun
Jeff
30-
Jun
Note: Register Updates in Amber
57

58. Update Risk Register
Identify Risks Perform Risk Analysis Plan Risk Responses Control Risks
# Category Risk
Potential
Result
Defined
By
Date Impact Prob Score
Qualtve
Impact
Risk
Strat
Notes Owner Status Date Notes
1 Tech
IT
Resource
Availabilit
y
Unable to
meet
project
schedule
Brian 15-Jun
Mod
impact to
sched
2 Contracts
Project
contract
negotiate
Inability to
complete
project
goals
Wendy
22-
Jun
Mod
impact to
goals
3 Cost
Scope
Creep
Project
Budget
Overrun
Jeff
30-
Jun
Signif
impact to
cost
Note: Register Updates in Amber
58

59. Identify Risks Perform Risk Analysis Plan Risk Responses Control Risks
# Category Risk
Potential
Result
Defined
By
Date Impact Prob Score
Qualtve
Impact
Risk
Strat
Notes Owner Status Date Notes
1 Tech
IT
Resource
Availability
Unable to
meet
project
schedule
Brian
15-
Jun
0.4 Y 0.6 0.24 Y
Mod
impact to
sched
2 Contracts
Project
contract
negotiate
Inability to
complete
project
goals
Wendy
22-
Jun
0.3 M 0.9 0.27 M
Mod
impact to
goals
3 Cost
Scope
Creep
Project
Budget
Overrun
Jeff
30-
Jun
0.8 M 0.7 0.56 M
Signif
impact to
cost
Note: Register Updates in Amber
Update Risk Register
59

60. Update Risk Register
Identify Risks Perform Risk Analysis Plan Risk Responses Control Risks
# Category Risk
Potential
Result
Defined
By
Date Impact Prob Score
Qualtve
Impact
Risk
Strat
Notes Owner Status Date Notes
1 Tech
IT
Resource
Availability
Unable to
meet
project
schedule
Brian
15-
Jun
0.4 Y 0.6 0.24 Y
Mod
impact to
sched
Avoid,
extend
sched
With
Apprvd
Sponsor
Chg
Rqst
PM
Jeff
2 Contracts
Project
contract
negotiate
Inability to
complete
project
goals
Wendy
22-
Jun
0.3 M 0.9 0.27 M
Mod
impact to
goals
Transf
er risk
with
contrct
Fixed
Price
Cont
Limits
Addtl
Risk
PM
Jeff
3 Cost
Scope
Creep
Project
Budget
Overrun
Jeff
30-
Jun
0.8 M 0.7 0.56 M
Signf
impact to
cost
Accept
use
Cont
Resrv
With
Apprvd
Sponsor
Chg
Rqst
PM
Jeff
Note: Register Updates in Amber
60

61. Update Risk Register
Identify Risks Perform Risk Analysis Plan Risk Responses Control Risks
# Category Risk
Potential
Result
Defined
By
Date Impact Prob Score
Qualtve
Impact
Risk
Strat
Notes Owner Status Date Notes
1 Tech
IT
Resource
Availability
Unable to
meet
project
schedule
Brian
15-
Jun
0.4 Y 0.6 0.24 Y
Mod
impact to
sched
Avoid,
extend
sched
With
Apprvd
Sponsor
Chg
Rqst
PM
Jeff
Projct
on
sched
Risk
Closed
31 -
Oct
Tech
Tasks
Cmplt
2 Contracts
Project
contract
negotiate
Inability to
complete
project
goals
Wendy
22-
Jun
0.3 M 0.9 0.27 M
Mod
impact to
goals
Transf
er risk
with
contrct
Fixed
Price
Cont
Limits
Addtl
Risk
PM
Jeff
Cont
Cmplt
Risk
Closed
16 -
Aug
Cont
Cmplt
3 Cost
Scope
Creep
Project
Budget
Overrun
Jeff
30-
Jun
0.8 M 0.7 0.56 M
Signf
impact to
cost
Accept
use
Cont
Resrv
With
Apprvd
Sponsor
Chg
Rqst
PM
Jeff
No
Chg
25 -
Nov
Proj
within
revised
budget
Note: Register Updates in Amber
61

62. 0. Introduction
1. Plan Procurement Management
2. Conduct Procurements
3. Control Procurements
62

63.  Centralized Contracting:
 Decentralized Contracting:
 PM Roles:
 Nondisclosure Agreement
 Special Provisions:
 Assignment:
 Dispute resolution:
 Indemnification ‫التعويض‬:
 Breach :
 Material Breach :
 Intellectual Property:
 Time is of the essence:
 Waiver:
 Privity :
 Non competitive Procurement:
 Seller Proposals:
 Bidder Conferences:
 Proposal Evaluation Techniques :
 Independent Estimate :
 Advertisement:
63
Terms
 Contract Change Control System:
 Procurement Performance Review:
 Payment System:
 Claims Administration:
 Records Management System:
 Procurement audits:

64. Contract Types
1- Fixed Price (FP)
1.1 Firm Fixed Price (FFP):
1.2 Fixed Price Incentive Fee (FPIF):
1.3 Fixed Price Economic Price Adjustment (FP-EPA)
2- Cost Reimbursable Contracts (CR)
2.1 Cost Plus Fixed Fee (CPFF):
2.2 Cost Plus Incentive Fee (CPIF):
2.3 Cost Plus Award Fee (CPAF)
3- Time and Material Contracts (T&M)
64

65. 65

66. TT Make-or-Buy Analysis:
Reasons for Making:
• Need of direct control over the product
• Intellectual property concerns
• Cost considerations
• You have idle plant or workforce
Reasons for Buying:
• Lack of technical experience
• Supplier's expertise on technical area
• Cost considerations
• Brand preferences
66

67. O Procurement Management Plan:
• Types of contract to be used
• Risk issues that need to be transferred or mitigated
• Required performance bonds and insurance
• Constrains and assumptions that could affect procurement
• Time schedules and long lead times
• Prequalified sellers
O Source Selection Criteria:
• Financial stability
• Understanding needs
• Technical ability
• Price / lifecycle cost
• Past performance
• Ability to finish on time
67

68. O Procurement Statement of Work:
Describes the work the seller is required to do. It must be clear & complete
Procurement Statement of Work Types:
1. Performance: What the final product should be able to accomplish
‫مثال‬
:
‫يعيش‬ ‫مبنى‬
100
‫سنة‬
–
‫ل‬ ‫سرعتها‬ ‫تصل‬ ‫سيارة‬
300
‫كم‬
/
‫س‬
2. Functional: Convey the end purpose / result
‫مثال‬
:
‫مبنى‬
30
‫دور‬
–
‫يسع‬ ‫مبنى‬
250
‫موظف‬
–
‫تنقل‬ ‫حافلة‬
65
‫راكب‬
3. Design: Convey precisely what work is to be done
‫مثال‬
:
‫المخططات‬ ‫و‬ ‫المواصفات‬ ‫و‬ ‫بالتصميم‬ ‫مبنى‬
Note: Procurement statement of work can include drawings, specs, wording,
quantities, quality level, work location, … etc.
68

69. O Procurement Documents:
Request for Proposal (RFP):
Invitation for bidding (IFB):
Request for Quotation (RFQ):
Other documents:
• Terms & Conditions
• Procurement statement of work
• Instructions for sellers
69

70. 70

71. 71

72. Negotiation:
• Attack,
• Personal insults ‫اهانة‬
‫بأدب‬
• Good guy / bad guy,
• Deadline ‫عندي‬
‫موعد‬
‫و‬
‫ضروري‬
‫ننهي‬
‫التفاوض‬
‫سريعا‬
‫مثل‬
‫موعد‬
‫طائرة‬
• Limited authority ‫ال‬
‫املك‬
‫صالحية‬
‫لذلك‬
• Missing man ‫هو‬
‫غير‬
‫موجود‬
‫اآلن‬ ,
• Let’s be fair and reasonable ‫هذه‬
‫الجملة‬
‫مؤثرة‬
• Delay ‫دعنا‬
‫نؤجل‬
‫لالجتماع‬
‫القادم‬
• Withdrawal emotional or physical (show less interest)
• Extreme demand ‫تعلية‬
‫سقف‬
‫المطالب‬
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• Agreement document may include the following:
• Statement of work or deliverables, Place of delivery
• Roles and responsibilities, Limitation of liability
• Inspection and acceptance criteria
• Schedule baseline, Performance reporting, Period of performance
• Pricing, Payment terms, Fees, Penalties, Incentives
• Warranty, Insurance and performance bonds
• Change request handling
• Termination clause
• Alternative dispute resolution (ADR) mechanisms

73. 73

74. 1. For Fixed Price Contract:
• Seller may cut scope or quality
• Seller may overpriced change orders
• check scope misunderstanding
2. For Time & Material Contract:
• Provide day-to-day direction to seller
• Be careful that project length not extended
• No. of hours spent in work is reasonable
3. For Cost Reimbursable Contracts:
• Audit each invoice
• ensure that all costs are applicable and chargeable to your
project.
• Seller may bring less experienced resources
• verify that work is progressing efficiently
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75. Notes:
• Closing procurements involves finalizing open claims, updating records to
reflect final results, and archiving such information for future use.
• Procurements are closed when completed or terminated.
• Administrative closure (close project or phase) differs from procurement
closure. There may be many procurements in one project.
• All procurements must be closed before closing the project.
• Procurement closing activities:
• product verification, procurement audit
• settlement of all negotiations and final payments
• archiving procurement documents such as contract, changes, submittals,
reports, inspection reports, …etc.
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76. 76

77. Questions
77