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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.
Examples
ReplyDeleteLet 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.