This study has been conducted to evaluate the effect of project management on performance of the firms in the region of Indonesia. To develop a structural questionnaire, various items reflecting the contract management and firm performance were extracted from existing literature with the demographic factors. A sample of 70 respondents has been collected through physical delivery of the questionnaire. Various factors like contract length, satisfaction with project goals, dispute resolution and acceptance criteria for the product/services were added in the model to cover the concept of contract management. For the firm performance 9 items have been finalized covering the dispute resolution with the customer, cost benefit analysis, project delivery, project quality, on time delivery, budgetary compliance and customer satisfaction. Findings of the study have indicated that contract length was positively associated with nature of the solution, cost benefit analysis, and support for the solution. While satisfaction with the project goals was significantly and positively related to cost benefit analysis of the project. Acceptance criteria for the product/service was significantly and positively linked to effectiveness of the solution and cost benefit analysis. Both the factor of project quality and on time delivery were negatively associated with the contract length. Resolution of dispute was positively associated with project quality. These findings are providing enough evidence for the various firms, working on various private and public sector contracts. Meanwhile, contact management covering the title of conflict resolution with the customer is of significant interest for those firms dealing with the project management. This study has successfully interlinked the various topics for the business performance, which are not under significant attention in earlier research. Limitations of the study covers the concept like limited sample size, limited consideration of the variables. Future studies can be conducted while covering these limitations with better sample.

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Subject : Contract mangement