Department of Project Management

Masters of Science in Project Management

Article Review Title: Contract Administration Strategies for Successful Project Management.

Course: Project Procurement and Contract Administration

Reviewed by: - Fuad Kasim

Id.No: -

Summited To: -Getinet G (Phd Candidate)

March, 2024

Jimma,Ethiopia

1
Title: Project Procurement Management for Project Managers"
Author: Dr. T D Jainendra kumar
Year of Publication: 2022
Publisher: IEEE Transactions on Information Technology Applications
Abstract
Project Procurement Management involves the processes essential for obtaining goods or services
from external sources, encompassing Contract Management and Change Control Processes.
Contracts are legally binding documents that outline agreements between parties, with all terms
needing fulfillment for validity. This article delves into the various types of contracts in project
procurement, such as Fixed Price (including FFP, FPIF, and FP-EPA) and Cost Reimbursable
(including CPFF, CPIF, and CPAF), discussing the risks and implications for both buyers and sellers
in each contract type.
Introduction:
Project Procurement Management plays a pivotal role in project execution, involving activities
related to sourcing goods or services externally. Contracts are fundamental in formalizing
agreements between parties, ensuring adherence to specified terms and conditions. Understanding
the intricacies of different contract types is crucial for project managers to navigate the complexities
of procurement processes effectively. The delineation of Fixed Price and Cost Reimbursable
contracts provides insights into the risk allocation between buyers and sellers, highlighting the
importance of clarity in scope definition for successful contract performance.
Main Body:
Fixed Price contracts, comprising Firm Fixed Price, Fixed Price Incentive Fees, and Fixed Price with
Economic Price Adjustment, offer distinct risk profiles for buyers and sellers based on scope clarity
and cost variability. Conversely, Cost Reimbursable contracts, including Cost plus Fixed Fees, Cost
plus Incentive Fees, and Cost plus Award Fee contracts, shift the risk towards buyers due to
uncertain scopes and variable costs. Project managers must carefully evaluate the suitability of each
contract type based on project requirements, risk tolerance, and cost predictability to ensure
successful procurement outcomes. Effective contract management hinges on aligning contract types
with project needs and fostering collaborative relationships with suppliers and vendors.

2
 Objectives of the Article Review:
The primary objective of this article review is to analyze Dr. T D Jainendrakumar's discourse on
Project Procurement Management, specifically focusing on the classification and implications of
different contract types in project procurement. The review aims to elucidate the critical
considerations for project managers in selecting and managing contracts effectively to mitigate risks
and enhance project efficiency.
Significance of the Article Review:
This article review is significant in providing insights into Project Procurement Management
principles and contract types, offering guidance to project managers on navigating procurement
processes successfully. By examining the nuances of Fixed Price and Cost Reimbursable contracts,
the review aims to enhance understanding of risk allocation, cost control mechanisms, and strategic
decision-making in project procurement.
Theoretical Framework:
The theoretical framework underpinning Project Procurement Management revolves around contract
theory, risk management, and cost control principles. By delving into the characteristics of Fixed
Price and Cost Reimbursable contracts, the framework emphasizes the importance of aligning
contract types with project scopes, risk profiles, and cost structures to optimize procurement
outcomes and mitigate uncertainties effectively.
Methodology Used in the Article Review:
The article review employs a critical analysis methodology to assess Dr. T D Jainendrakumar's
discourse on Project Procurement Management, focusing on the classification and implications of
various contract types. Drawing on empirical evidence, industry best practices, and theoretical
insights, the review aims to provide a comprehensive evaluation of contract management strategies
and their impact on project success.
Critique of the Article Review:
One potential critique of the article review could be the need for a more detailed discussion on the
practical applications of Fixed Price and Cost Reimbursable contracts in diverse project scenarios.
Additionally, a deeper exploration of the challenges and opportunities associated with each contract
type could enrich the review and provide more actionable insights for project managers.
Contribution or Findings of the Article Review:
This article review contributes by shedding light on the nuances of Project Procurement
Management and the implications of different contract types for project managers. By synthesizing
3
the key principles, risk considerations, and strategic implications of Fixed Price and Cost
Reimbursable contracts, the review offers valuable insights for enhancing procurement efficiency,
managing risks, and optimizing project outcomes.
Strengths:
- Comprehensive analysis of Project Procurement Management principles and contract types
- Integration of theoretical frameworks, industry insights, and practical examples to illustrate key
concepts
- Contribution to enhancing project managers' understanding of risk management, cost control, and
contract selection in procurement processes
- Relevance to project management professionals, stakeholders, and researchers in the field
- Emphasis on strategic decision-making, risk mitigation, and cost-effective procurement strategies
in project environments
Weaknesses:
- Limited exploration of practical case studies or applications of Fixed Price and Cost Reimbursable
contracts in diverse project contexts
- Opportunity for a more detailed discussion on the challenges and opportunities associated with
different contract types in project procurement
- Scope for further examination of the interplay between contract types, project scopes, and vendor
management practices in Project Procurement Management
Conclusion:
In conclusion, this article review provides a critical analysis of Dr. T D Jainendrakumar's insights on
Project Procurement Management, focusing on the classification and implications of Fixed Price and
Cost Reimbursable contracts. By evaluating the strategic considerations, risk implications, and
practical implications of different contract types, this review aims to enhance project managers'
understanding of procurement processes and contract management strategies. The review
underscores the importance of aligning contract types with project requirements, risk profiles, and
cost predictability to drive successful project outcomes in diverse project environments.

4
 References
I. Alghamdi, M. A., & Elhajjamal, M. A. (2021). Risk management in procurement processes for
infrastructure projects. International Journal of Engineering Research and Applications.
II. Bhati, S. A., & Gupta, P. R. (2021). Effective procurement management in construction projects: A
case study. International Journal of Engineering Research and Applications.
III. Chakrabarty, K. S., & Das, N. C. (2021). Procurement management practices in infrastructure
development. International Journal of Contemporary Hospitality Management.
IV. Chen, H. F., & Lin, Y.-C. (2021). A comparative analysis of procurement management systems
used in large-scale construction projects. Computers & Industrial Engineering.
V. Khaled, R. A., & Khan, M. M. (2021). Supply chain performance evaluation for construction
projects: A literature review. Journal of Cleaner Production.
VI. Park, J. Y., & Jeong, S. H. (2021). Sustainable procurement management for green building
construction. Green Building Materials.
VII. Patel, V. R., & Patel, R. K. (2021). The impact of supply chain disruptions on project procurement
management. Journal of Business Economics.
VIII. Zhang, E., Liang, X., & Zhou, W. (2021). Efficient procurement management using blockchain
technology. Blockchain Research.