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APMP Section 12


Contract An agreement made between two or more parties that creates legally binding obligations between them.
Law The relevant legal duties, rights and processes that should be applied to projects, programmes and portfolios.
Procurement The process by which products and services are acquired from an external provider for incorporation into the project, programme or portfolio.
Subcontract A contractual document that legally transfers the responsibility and effort of providing goods, services, data or other hardware from one firm to another.
Provider selection and management The processes of identifying and selecting management providers through the P3 life cycle.
Fixed price contracts A generic category of contracts where the contractor is legally obligated to finish the job, no matter how much it costs to complete.
Cost plus fixed fee contract A type of contract where the buyer reimburses the seller for the seller's allowable costs plus a fixed fee.
Cost plus incentive fee contract A type of contract where the buyer reimburses the seller for the seller's allowable costs and the seller earns a profit if defined criteria are met.
Partnering An arrangement between two or more organisations to manage a contract between them cooperatively, as distinct from a legally established relationship.
Alliancing An arrangement whereby two or more organisations agree to manage a contract or range of contracts between them jointly.
Prime contractor A main supplier who has a contract for much or all of the work on a contract.
Created by: lworsley
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