Contracts are made up of a set of deliverables that are organized into a contract work breakdown structure (CWBS). The contract program manager creates the CWBS based on the hierarchy of the deliverables. Often the CWBS hierarchy is created as part of the contract negotiation process.
A CWBS consists of one CWBS root node element and a user-defined hierarchy of CWBS elements below it. You define the nodes down to the level of the lowest deliverable. The CWBS elements appear on the hierarchy in the order you create them. Each CWBS branch can have different node levels. Levels are automatically assigned to CWBS elements based on their position in the CWBS hierarchy. The order indicates their relationship with each other. Level 1 is reserved for the CWBS root node element.
Part of building the CWBS hierarchy is identifying which CWBS elements will have control accounts and summary level planning packages.
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