A contract is a legal relationship subject to remedy in the courts that is awarded to each selected seller. It can be in the form of a complex document or a simple purchase order. Regardless of the documents complexity, a contract is a mutually binding legal agreement that obligates the seller to provide the specified products, services, or results and obligates the buyer to pay seller.

The major components in a contract document generally include section headings, statement of work, schedule period of performance bonds, subcontractor approval, change request handling and a termination and disputes mechanism.

Contract Management Plan

Each contract management plan is a subset of the project management plan. A plan to administer the contract for significant purchases or acquisitions is prepared based upon the specific buyer, specified items within the contract, such as documentation and delivery, and performance requirements that the buyers and sellers must meet. The plan covers the contract administration activities throughout the life of the contact.

Resource Availability

The quantity and availability of resources and those dates on which each specific resource can be active or idle are documented.

Procurement Management Plan

It is updated to reflect any approved change requests that are procurement management.