Title "Project and Contract Formats" by Abkar Bannayan

Abstract:

A project can be defined as an item of work that requires planning, organizing, dedication of resources and expenditure of funds to produce a concept, a product or a facility.

A contract is a mutual business agreement recognized by law under which one party undertakes to do work (or provide service) for another party for a consideration.

A written contract is the document by which risk, obligations, and relationships of all parties are established.

For the client, the contract is the means by which the contractor can be controlled, and ensures that the work and end product meets their requirements.

For the contractor, the contract specifies risks, liabilities, and performance criteria, and outlines the terms and conditions of payment. There are the following two contract categories:

• Prime Contracts
• Sub Contracts

Although the Contract and Project Management practices offer various, but similar definitions to explain the difference between these two contract categories, it is still used in many different ways by different people.