Intro to Project Management: Project Procurement Management - Contract Administration, Change Control Performance Reviews Inspections

What This Is

Contract Administration is the process of managing changes, monitoring performance, and conducting inspections to ensure the project meets its objectives. This involves controlling changes to the scope, schedule, and budget, as well as ensuring that the project deliverables meet the required quality standards. For example, when building a bridge, contract administration involves managing changes to the design, materials, and construction schedule, while also conducting regular inspections to ensure the bridge meets the required safety and quality standards.

Key Terms & Formulas

• Change Control Board (CCB): A group responsible for reviewing and approving changes to the project scope, schedule, and budget.
• Earned Value (EV): A measure of project performance that takes into account the work completed and the budget allocated to that work (EV = % complete × BAC).
• Cost Performance Index (CPI): A measure of project performance that compares the actual cost to the budgeted cost (CPI = AC / EV).
• Schedule Performance Index (SPI): A measure of project performance that compares the actual schedule to the planned schedule (SPI = EV / PV).
• Inspection: A review of the project deliverables to ensure they meet the required quality standards.
• Acceptance Criteria: The standards against which the project deliverables are evaluated for acceptance.
• Defect Density: The number of defects per unit of work (e.g., defects per 1000 lines of code).
• Root Cause Analysis (RCA): A method for identifying the underlying causes of problems or defects.
• Corrective Action: A plan to address a problem or defect that has already occurred.
• Preventive Action: A plan to prevent a problem or defect from occurring in the future.
• Performance Review: A regular review of project performance to identify areas for improvement.

Step-by-Step / Process Flow

1. Identify Changes: Identify potential changes to the project scope, schedule, and budget.
2. Assess Impact: Assess the impact of the change on the project scope, schedule, and budget.
3. Develop Change Request: Develop a change request that includes the proposed change, the impact on the project, and the proposed solution.
4. Submit Change Request: Submit the change request to the Change Control Board (CCB) for review and approval.
5. Implement Change: Implement the approved change and update the project plan accordingly.
6. Monitor Performance: Monitor project performance to ensure that the changes have not had an adverse impact on the project.

Common Mistakes

• Mistake: Not involving the Change Control Board (CCB) in the change control process.
• Correction: Involve the CCB in the change control process to ensure that changes are properly assessed and approved.

• Why: This helps to ensure that changes are properly managed and do not have an adverse impact on the project.

• Mistake: Not conducting regular inspections to ensure that project deliverables meet the required quality standards.

• Correction: Conduct regular inspections to ensure that project deliverables meet the required quality standards.

• Why: This helps to identify and address problems or defects early, reducing the risk of rework and improving overall project quality.

• Mistake: Not developing a corrective action plan to address problems or defects that have already occurred.

• Correction: Develop a corrective action plan to address problems or defects that have already occurred.
• Why: This helps to ensure that problems or defects are properly addressed and do not have an adverse impact on the project.

Exam Tips

• Tip: Be able to explain the difference between corrective and preventive actions.

• Why: This is a common question on the CAPM/PMP exam.

• Tip: Be able to explain the purpose of the Change Control Board (CCB).

• Why: This is a key concept in contract administration.

• Tip: Be able to explain the difference between earned value and actual cost.

• Why: This is a key concept in project performance measurement.

Quick Practice Questions

1. If the CPI is 0.8, is the project under or over budget? Answer: Over budget. Explanation: A CPI of 0.8 means that the actual cost is 20% higher than the budgeted cost.

2. What is the purpose of a performance review? Answer: To identify areas for improvement. Explanation: Performance reviews are used to assess project performance and identify areas for improvement.

3. What is the difference between corrective and preventive actions? Answer: Corrective actions address problems or defects that have already occurred, while preventive actions prevent problems or defects from occurring in the future. Explanation: This is a key concept in contract administration.

Last-Minute Cram Sheet

• Change Control Board (CCB): A group responsible for reviewing and approving changes to the project scope, schedule, and budget.
• Earned Value (EV): A measure of project performance that takes into account the work completed and the budget allocated to that work (EV = % complete × BAC).
• Cost Performance Index (CPI): A measure of project performance that compares the actual cost to the budgeted cost (CPI = AC / EV).
• Schedule Performance Index (SPI): A measure of project performance that compares the actual schedule to the planned schedule (SPI = EV / PV).
• Inspection: A review of the project deliverables to ensure they meet the required quality standards.
• Acceptance Criteria: The standards against which the project deliverables are evaluated for acceptance.
• Defect Density: The number of defects per unit of work (e.g., defects per 1000 lines of code).
• Root Cause Analysis (RCA): A method for identifying the underlying causes of problems or defects.
• Corrective Action: A plan to address a problem or defect that has already occurred.
• Preventive Action: A plan to prevent a problem or defect from occurring in the future.
• Performance Review: A regular review of project performance to identify areas for improvement.
• Change Control is not just about approving changes – it's also about managing the impact of those changes on the project.