What are the different types of contractors

Contractor (PM)

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1 definition (Kowarschick[1])

The contractor of a project is one of the project participants. The implementation of the project is entrusted to him by a client.

There are two types of contractors: an internal contractor belongs to the same company as the client, while an external contractor belongs to a different company. There is a legally regulated contractual relationship between an external contractor and his client, for which the relevant laws such as BGB and HGB apply in full.

1.1 Course of the project

The contractor uses a suitable project team and other suitable resources for the implementation. He finances these resources with the help of the money that the client makes available to him for the project implementation.

The goals of the project are generally set out in writing between the client and the contractor (e.g. with the help of a specification sheet).

In the course of the project, interim results are generally assessed and, in some cases, also accepted by the client. Additional documents (such as a specification sheet) can document agreements between both contracting parties or even make them contractually binding.

Unless the project was canceled unsuccessfully, the project result will be accepted by the client in any case. In general, this acceptance is recorded in writing in an acceptance report.

2 Definition (project management lexicon[2])

The contractor is the seller of a product or service. He is the contractual partner of the client who buys the service specified in the specification sheet.

The person responsible for the project is in the role of the contractor vis-à-vis the client of the project. At the same time, he is the client for service providers and suppliers who work on the project. Contract management and procurement deal with the relationship between client and contractor roles in project management.

3 remark

The client's activities play an essential role in the successful completion of a project. Therefore, especially in projects that are implemented according to the V-Modell XT, a project is generally divided into two parts with well-defined interfaces: one Project from the client's point of view and one Project from the perspective of the contractor.

4 sources

  1. Kowarschick (PM): Wolfgang Kowarschick; Lecture "Project Management"; University: Augsburg University of Applied Sciences; Address: Augsburg; Web link; 2014; Source quality: 3 (lecture)
  2. ftp://ftp.heise.de/pub/ix/projektmanagement/vmodell/V-Modell-XT-Gesamt-Deutsch-V1.3.pdf