Question

What are project contracts and its types in project management?

Answer 1

As a project manager, you should be aware of the different types of contracts and the legal aspects of projects. Imagine having to outsource a process or product to third-party subcontractors or vendors in the middle of your project. What type of contract would you use for the third-party service provider? Situations like this are why project managers need to have a good understanding of a variety of contract types so that they can handle contract negotiations effortlessly.

In this article, we’ll define the three basic contract types and provide examples to help you understand when you’d use each of them