Chapter 19: VendorContractor Relationships

Overview

The management of external resources working on projects or otherwise influencing project performance is the focus of the "vendor/contractor relationships" function. These resources represent valuable contributions to a wide range of projects across many industries. Vendors and contractors bring specialized skill, knowledge, and capability to the technical nature of project work. They also fill temporary professional resource and skilled-laborer gaps; serve as advisors to the project manager and project team members; and provide supplies, equipment, and materials needed to accomplish the project effort.

There are as many combinations of names for these resources as there are industries. This includes such descriptions as "supplier and provider," "consultant and advisor," "distributor and manufacturer representative," and "subcontractor and partner." This PMO function captures the essence of all such resources under the term "vendor/contractor," indicating that they provide a product or service in support of the project effort, per an established contract or agreement, and undoubtedly for some remuneration.

The PMO's interest in vendor/contractor relationships is one that endeavors to maximize their value on projects and optimize their availability and use within the project management environment. The PMO can provide oversight and guidance that includes vendor/contractor performance management as an inherent component of project management.

This "vendor/consultant relationships" function enables the PMO to:

• Identify and qualify vendors and contractors who add value to project efforts

• Develop guidance for managing vendor/contractor participation on projects

• Develop guidance for managing vendor/contractor contracts within the relevant organization

The PMO is generally recognized as having oversight responsibility for project performance, and vendor/contractor participation represents a critical performance component — sometimes even as a member of the project team — that warrants appropriate attention.