Difference Between The Role of Sponsor And Customer

The Customer

  • will pay for the project’s product. 
  • will give the products’ requirements and reap benefit from the product (usually long after the project is over). 
  • may or may not be part of the Performing Organization.

The Sponsor

  • is usually part of the Performing Organization. 
  • will decide how much funds will be used for the project. She/he will take budgetary decisions. 
  • will appoint the Project Manager and provide necessary support to her/him.

Comments

  1. Examples
    Let us consider 2 different projects that are done by a PO under a contract from an external CO.

    A project done for profit – The Client agrees to pay $100K for a fixed price project. The Sponsor from the PO decides to do the project for $80K and rest will be deemed as profit.

    A project done for a social cause – A Donor Agency (Client) initiates a disaster management project. It contracts an independent non-profit organization (PO) to meet project’s objectives. The Sponsor from the Donor Agency will take decisions about the project budget and disburse the funds as needed to manage the costs.

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