This article is written by Divya Kathuria, a student of Raffles University.

What is project management?

When one reads this term, the first question that generally comes into everyone’s mind is why we are talking specifically about the management of project. The answer is even simpler than the question. Project can be defined as a venture being carried on by any enterprise which has a particular aim and it starts with keeping the aim in mind and ends as soon as the goal is accomplished. So, as the project is specific and special, its management needs to be done by skilled professionals and experts of the particular field.

Project management is the process through which a particular activity under the project is initiated, planned, organized and achieved in order to finally reach the goal or aim for which the project was ventured. It includes initiation, execution, monitoring & controlling (how it is being executed) and in turn, also executing the monitoring and controlling of all activities and finally, closing the project after the goal has been reached. Project management is actually very necessary to let the project reach its end, it would not be wrong if I say, it is necessary to turn the dream into reality. It is needed for both temporary as well as unique kind of projects.

Management is simply the technique of understanding the shortcomings of a thing; needs and controlling the use of resources, saving time and costs, scope and quality. The same is for project management. Application of the skills and knowledge of a project manager in project activities in order to meet the needs of stakeholders and expectations from project is nothing but the duty of a project manager. It is also necessary for the completion of project within the decided time limit without compromising on the quality of output.

Need of project management and role of project manager

1. To define the project and agree with the customer: – it is the responsibility of a project manager to define the project and its benefits to the interested parties that is, clients or customers. It is his duty to ensure whatever the customer wants or needs or expects through project gets it at the end of the deadline for closing of project.
2. Control scope creep and manage change: – in every kind of project, there are always possibilities involved that some of the other terms of the project are changed or need to be changed may be sometimes, due to unavoidable situations and sometimes, on the insistence of parties. To manage such changes and to ensure if they need to be done and how much, project managers play their part. He needs to deeply access that such changes do not prove fatal to the enterprise anyway.
3. Deliver project results on time and on budget: – Project manager has to ensure that the team works properly for the project and the project is not just finished within time but also, it is completed within the given budget. Otherwise, the company may have to suffer losses.
4. Provide a process for estimating project resources, costs and time: – this is one of the most important tasks handled by project managers and requires skill and expertise. Before deciding whether to undertake a particular project or not as to if it’ll be beneficial or not, it is always upon project managers to estimate the cost and time project will take and decide if it will help the organization or not. Also, after estimating if the enterprise has particular resources to attain the goal only, the institution can go for the project.
5. Communicate project accomplishments, risks and changes: – as the project goes further, the stakeholders must be informed about each and everything regarding it like progress, any losses, any changes, requirements, resources used, etc.
6. Prepare for unexpected issues: – everything will never run as smooth as it is estimated by the project manager. So, it is his responsibility to consider some extra space for such situations that can arise anytime and can’t be estimated beforehand such as changes in business cycle, sudden changes in market forces, even natural calamities, etc. need to be taken into account by an efficient manager of projects.
7. Reviewing: – after the last stage of project is accomplished, an efficient project manager would access how well they had done on each stage of project and what were the drawbacks and would generally record them and try to avoid them in his further projects that he undertakes.

The negative side of project management

1. Micromanagement: – it usually happens that with all the focus of product managers on completing the work before deadline given and within particular resources, the quality is overlooked. The whole project manager team and manager himself focus themselves only on a preset outcome with quite strict parameters.
2. Miscommunication costs: – even a little miscommunication can lead to great losses. For example, if one phase of workflow development is misconstrued and sends a portion of the team down the wrong path, not only does the team have to reverse direction, but they halt progress in subsequent phases of the project as well. Clear communication guidelines should be issued to ensure timely and accurate transmission of new, information and project updates to protect against missteps.[1]
3. Lacks creativity: – sometimes, strict project management with strict policies and guidelines can lack an innovative thinking which can even be better for completing the project may be with lesser efforts and costs. It is often observed that because of being struck to particular norms of accomplishing the project, people involved stop thinking out of the box that can even be faster too. However, this is not the case every time.

Legal issues with Project management:

1. Risk Insurance: – When a project is initiated, there are obviously certain risks involved. Not only accessing these risks is important, but creating ways to overcome these risks while incorporating them in contract is equally important.
2. Project contract: – A project will always include numerous contracts. The drafting of the project contract includes the most of lawyer’s contribution. While contracting, he would have to go through the nature of obligations that would arise from the contract and also, the evolution of agreements whilst making business-related decisions. After he is done with the contractual phase, the lawyer needs to deal with the post-contractual phase as well. The post contractual phase will include his’ and party’s hidden obligations which he needs to analyze and perform.
3. Change control: – A contract for project when proposed must also include a procedure for change in the contract including the conditions of change and sometimes, listing of the situations only in which the changes can be made. However, any kind of change in the contract terms is highly discouraged. After the changes are made, they must be documented concretely and also numbered for future needs that may arise.
4. Imposing restrictions: – In a project contract between two parties, it is common that the restrictions would be imposed on party by another. It is the duty of the lawyer to check that the restrictions are in consonance with Section 27 of the Indian Contract Act, 1872 which states that “Every agreement by which anyone is restrained from exercising lawful profession, trade or business of any kind, is to that extent void”. However, exception to this can be like not revealing secrets of the company to prevent exercise of insider trading, etc. and to preserve the goodwill of the Company.
5. Interpretation of Contract: – Any law would include the interpretation part as it is the only way to understand it. The very first part of interpreting any contract is its recitals. The introductory part of a contract is usually referred to as ‘recitals’. Further, in a contract, there are certain things which are explicitly provided while certain are implied. Certain terms of contract are clear while certain are tacit and it requires legal expertise to understand the tacit terms and work as per those. Thus, the interpretation of contract is as important as making the contract itself.

1. Reprisal of issues by Arbitration or mediation: – It is quite important to include arbitration or mediation clause in the project contract. In case of small disputes between contracting parties, one cannot always approach the Court for that, then the cases would last till eternity and it would become impossible to accomplish the project. Also, it must be added that which law would govern either parties in cases like, if both the contracting parties are foreign entities or either of them is and such other cases. It is also vital to decide the jurisdiction beforehand in case anyone approaches the Court.

Conclusion

Project management is an excellent method to deal with the different tasks in an organization. We don’t realize but, even in our everyday tasks, we use the skills of project manager depending upon what we are dealing with. It is nothing, but a framework to reach a particular aim which may include, studying for your exams or managing the project of an MNC. All the projects are different in entirety but, all will start with an idea. Starting, analyzing, executing, controlling and concluding any type of project includes the knowledge and expertise in that particular field. However, in case of companies, one man that is must in project management is a legal expert.

[1] http://www.ehow.com/info_8774906_describe-advantages-disadvantages-project-management.html last visited on 22nd July, 2015