First, Lets Clarify a Few Terms

First, Let s Clarify a Few Terms

For the sake of clarity and brevity, let's review a few terms and touch on the focus on this chapter. By vendor, I mean the seller organizationthe organization that is contracted to provide product or services. I will generally refer to the client organizationthe organization purchasing the servicesas the buyer. The use of buyer and seller terms here is consistent with the current PMI standards on procurement management.

In addition, we will focus on arrangements that involve the outsourcing of entire projects, project phases, or specific project deliverables to external entities. Thus, this would exclude "staff augmentation" arrangements where a vendor is contracted to provide a resource to fill a role on your project team.

With these clarifications, we're now ready to take a look at the principles that provide the foundation for effective management of the buyer-seller project relationship.