Execute the Contract - Choose a Process Step
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introduction commercial plan manage acceptance wind up folders
Introductiontop
A Project will always have commercial and "political" features. The key ones will be what the Project is to achieve commercially: for the End User or the Customer, and for your organisation. The criteria for success will be defined in the Project's Business Case, in the Proposal, and particularly in the Contract with the Customer (or the agreement with the End User).
Ensuring that these criteria are met is a key responsibility of the Project Manager. He/she will need to be fully aware of the criteria, and will be expected to provide clear and accurate commercial feedback, ensure that the work is done properly, and that the necessary formal steps (e.g. Acceptance) are taken, to confirm and record that the Contract has been fulfilled. This Sub-process covers planning for this, taking the actions needed to achieve it, and keeping proper records (in the Project Control Folders) to show it has been done.
Produce a Commercial Plantop
When a Project is launched the Project Executive and Project Manager will work with the financial and legal/commercial departments to give the Project a commercial "presence". They will set up the Project Control Folders, and produce a document summarising the commercial rules for the conduct of the Project.
In addition to the requirements specific to the Customer Contract or End User Agreement (delivery schedule, payment, Acceptance), these rules will include standard commercial practices such as time recording, recognising revenue and taking profit. The Commercial Plan places on the Project Manager a variety of important obligations and constraints, including updating the Project Control Folders.
Manage Customer Acceptancetop
The key event showing completion of a Project will be Customer Acceptance. Typically this will occur incrementally. The development of each item of the proposed solution, will be based on earlier items which have already been Accepted. As each item is developed and delivered to the End User or the Customer, a signature is obtained to show that it has been delivered and Accepted. Records of Customer Acceptance will be placed in the Project Control Folders.
Wind up Project Control Folderstop
When a Project ends the Project Control Folders must be closed. Any outstanding records, for example final Acceptance Certificates and Invoices will be put into the Project Control Folders. Closure of the Project Control Folders prevents any further charges being made or invoices issued.