AgreementAn agreement is an arrangement between two or more parties, in which they agree to do something and/or abide by certain conditions. This can be in the form of a verbal understanding or a written contract. Agreements are very important for managing expectations and ensuring that everyone involved understands their responsibilities.
Project management also involves entering into various types of agreements with stakeholders such as customers, suppliers and subcontractors. These agreements may cover areas such as scope of work, timelines, costs and quality control. For example, a Statement of Work (SOW) defines the services that a contractor is responsible for, as well as any deliverables. A Service Level Agreement (SLA) defines the service levels that a customer can expect from a vendor. Finally, a Memorandum of Understanding (MOU) outlines the understanding between two parties and serves to document their intentions regarding cooperation or collaboration on a project.
Agreements are also used to define the parameters of a project or business relationship and help ensure that everyone is on the same page. By entering into agreements, organizations can maintain good working relationships with stakeholders and protect their interests. Agreements also help to ensure deadlines are met, tasks are completed on time and within budget, and expectations for quality are maintained.
In conclusion, agreements are an important part of both business and project management as they provide clarity in terms of responsibilities and expectations between all involved parties. They help to ensure that projects run smoothly and efficiently while protecting the interests of all those involved.
See all project management words
Methodology specific dictionaries / glossaries
- View the Agile Dictionary
- Managing Successful Programmes (MSP) Dictionary
- Prince 2 glossary of terms
- Full ITIL glossary of terms
- See also Risk Management Dictionary.