The project is in house when Developers and other stakeholders work for same organization. Many organization contract out development to outside developers.
In contract case there are 2 project managers one on the client side and another on the supplier/vendor side. In this case Project Manager on client side delegate many authorities to project Manager on vendor side and he more act like a supervisor. As long as project is on time and within budget Project Manager from client need not worry about efforts estimation for Software Component.
Contract management is a specialized competency within the procurement profession, but it has very broad perspective in terms of the responsibilities assigned to a contract manager.
Contract management impacts many areas within the organization and can significantly influence its budget, operations, customer service and public image. Procurement and contract management are actually mirror images of each other. Both contract management and procurement professions describe the broader process of sales or acquisition between two parties.
Common Attributes of Contract and Project
- both have stakeholders
- both require authorization or agreement before they can begin
- both have sponsors, managers and teams responsible for their performance
- both have associations with operational guides dedicated to their management
- both use a standard methodology and discipline for management
- both are related and usually interdependent on each other
- both are critical to accomplishing the business’ objective (mission)