Payment System - a doubt

Submitted by sspawar on Wed, 09/12/2012 - 01:10

I have a little doubt with Payment system.


 

In PROCUREMENT there is tool/system/arrangement of payment.


 

Like wise what is for project work - in cost control only control on cost and its reporting / documenting described but how the work /labor payment will be disbursed, not described.


 

Accounting part is mostly absent from PMBOK.


 

Though this question is not relevant to EXAM, 

Just a thought, if you have any clarification please explain.


 

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Wed, 09/12/2012 - 03:45

Good question Pawar. Actually PMBoK assumes that sponsor has funded the project and budget is available to the PM while the project is being executed. However in real life scenario, we generally have fixed price contracts and we are supposed to raise monthly invoices for the work we are doing and tracking payments is also part of PM's job.


Even in cost control the PM gives the Budget forcast and it assumes that forcasted budget will be made available. It does not take into account the conflicts that arise when budget is increased and how to handle the same, also many times there is delayed payment or no payment scenarios in real life which is again not part of PMP curriculam.