Project management
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Project Management. Contractors & contracts. [email protected] Project life cycle. Advisability study. Feasibility study. Business case. Planning. Execution. Closure. Charter. Budget. Project supervision. Schedule. Project plan. Plan implementation. Scope. Requirements.

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Project Management

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Project management

Project Management

Contractors & contracts

[email protected]


Project life cycle

Project life cycle

Advisability study

Feasibility study

Business

case

Planning

Execution

Closure

Charter

Budget

Project supervision

Schedule

Project plan

Plan implementation

Scope

Requirements

Product creation

Product launch


Project plan contractors

Project plan > Contractors

Advisability study

Feasibility study

Business

case

Planning

Execution

Closure

Charter

Budget

Project supervision

Schedule

Project plan

Plan implementation

Scope

Requirements

Product creation

Contractors

Product launch

Statements of Work (SOWs)

Selection

Contracts


Contractors 1

Contractors (1)

  • In-house resources may be insufficient

  • Specific competencies may be unavailable

  • Using contractors may be cost-effective

  • Company policy may dictate use of contractors

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Contractors 2

Contractors (2)

  • Areas of activity for contractors:

    • writing, proofreading, translation

    • art direction, graphic design, UI design

    • animation development

    • software development

    • testing

    • website hosting

    • online payment system

    • etc.

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Client contractor

Client & contractor

CLIENT

Advisability study

Feasibility study

Business

case

Charter

RFP

Requirements /

Statement of Work (SOW)

CONTRACTOR

Requirements analysis

Project plan

Project Quality Review

Response to RFP

Scope

Scope

Schedule

Schedule

Cost

Price


Statement of work sow 1

Statement of Work (SOW) (1)

  • Describes project and work to be done

  • Detailed, exhaustive and unambiguous

  • May reuse all or part of the overall requirements specification

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Statement of work sow 2

Statement of Work (SOW) (2)

  • Should be the same for all candidates for a given contract

  • Should contain project context information

  • May require a non-disclosure agreement (“NDA”)

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Response from candidates

Response from candidates

  • Should be detailed, exhaustive and unambiguous

  • A fixed format may be imposed

  • Pricing should be broken down by work packages

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Identifying candidates

Identifying candidates

  • Sources:

    • known/approved contractors

    • intra-company contractors

    • networking

    • the web

    • the “Yellow Pages”

  • Avoid candidates that don’t meet basic requirements

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Selection process 1

Selection process (1)

  • Read each proposal and check whether it is complete and complies with requirements in terms of content and format

  • If not, contact the respondent and ask for new version of proposal

  • After reviewing all proposals, meet with each of the respondents retained in short list

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Selection process 2

Selection process (2)

  • Meet at the respondent’s offices

  • Respondent’s staff should attend the meeting

  • Meet the “boss”

  • Don’t believe what the salesperson says!

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Selection criteria 1

Selection criteria (1)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

Selection

Contracts


Selection criteria 2

Selection criteria (2)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

Selection

  • Candidates should describe…

  • the tools they intend to use, and justify their choice

  • possible constraints and dependencies, and indicate how they would deal with related risks

Contracts


Selection criteria 3

Selection criteria (3)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

Selection

  • Candidates should mention…

  • the number and profiles of persons to be assigned to the project

  • other projects that would be executed at the same time as “your project”

Contracts


Selection criteria 4

Selection criteria (4)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

Selection

Achievements & references

Contracts


Selection criteria 5

Selection criteria (5)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

Selection

Achievements & references

Contracts

Company size

Financial situation


Selection criteria 6

Selection criteria (6)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

  • Perform a due-diligence investigation!

Selection

Achievements & references

Contracts

Company size

Financial situation


Selection criteria 7

Selection criteria (7)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

Selection

Achievements & references

Contracts

Company size

Financial situation

Geographical location


Selection criteria 8

Selection criteria (8)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

  • Proximity vs distance

  • Avoid potential disaster areas!

Selection

Achievements & references

Contracts

Company size

Financial situation

Geographical location


Selection criteria 9

Selection criteria (9)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

Selection

Achievements & references

Contracts

Company size

Financial situation

Geographical location

Price


Selection criteria 10

Selection criteria (10)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

  • Detailed pricing

  • Pricing for multiple product versions and/or maintenance

  • Profit margin = room for negotiation?

Selection

Achievements & references

Contracts

Company size

Financial situation

Geographical location

Price


Reminder margin mark up

Reminder: margin & mark-up

100

20

80

  • Margin (profit) = 20

  • Margin% = 20/100 = 20%

  • Mark-up% = 20/80 = 25%

Cost of project for the contractor

Price paid by the client


Selection criteria 11

Selection criteria (11)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

  • Beware of “low-bidding”

  • The lowest price should not systematically determine the choice of a contractor!

Selection

Achievements & references

Contracts

Company size

Financial situation

Geographical location

Price


Selection criteria 12

Selection criteria (12)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

Selection

Achievements & references

Contracts

Company size

Financial situation

Geographical location

Price


Selection criteria 13

Selection criteria (13)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

Selection

Achievements & references

Contracts

Impression given by company’s personnel

Company size

Work atmosphere in company’s offices

Financial situation

Degree of confidence displayed

Geographical location

Questions asked / not asked

Price


Selection criteria 14

Selection criteria (14)

?

Project plan

Requirements

Contractors

SOWs

Detailed proposal

Selection

Achievements & references

Contracts

Impression given by company’s personnel

Company size

Work atmosphere in company’s offices

Financial situation

Degree of confidence displayed

Geographical location

Questions asked / not asked

Price


Selection process 3

Selection process (3)

  • Prepare summary table comparing the candidates with respect to the main objective and subjective criteria

  • Weigh “pros and cons”

  • Eliminate candidates one after the other until there’s only one left

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Selection process 4

Selection process (4)

  • The final choice, proposed by the PM, may need to be approved by his/her management

  • Once the choice has been made and validated, the PM takes responsibility for it!

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Questions

Questions?


Contracts

Contracts

A “procurement contract” is awarded to each of the contractors selected for the project

Project plan

Requirements

Contractors

SOWs

Selection

Contracts


Contract 1

Contract (1)

Contract

Statement of work & deliverables

Procurement schedule

Pricing

Payment schedule, terms & conditions

  • Mutually binding legal agreement that obligates…

    • the “seller” to provide specified deliverables in compliance with terms & conditions

    • the “buyer” to compensate the seller for said deliverables


Contract 2

Contract (2)

Contract

Statement of work & deliverables

Procurement schedule

Pricing

Payment schedule, terms & conditions

  • Generally drafted by Legal (department or adviser)

  • Agreement often involves negotiations

  • The PM should participate in negotiations, but does not necessarily lead them


Contract 3

Contract (3)

Contract

Statement of work & deliverables

Procurement schedule

Pricing

Payment schedule, terms & conditions

  • Compensation for the work done:

    • flat fee, possibly paid in several instalments

    • proportional fee, maybe with advance payment

    • licence fee

    • a combination of the above

    • maintenance fee


Contract 4

Contract (4)

Contract

Statement of work & deliverables

Procurement schedule

Pricing

Payment schedule, terms & conditions

  • Should provide for all contingencies such as the contractor’s failure to:

    • complete execution of the work

    • comply with the schedule

    • meet the quality requirements

    • etc.


Contract 41

Contract (4)

Contract

Statement of work & deliverables

Procurement schedule

Pricing

Payment schedule, terms & conditions

  • Throughout the execution of a contract, minutes of important meetings should be taken and decisions confirmed in writing

    • These documents should be filed for reference in case of a dispute or litigation


Contract main sections

Contract: main sections

Contract

Project plan

Statement of work & deliverables

Requirements

Procurement schedule

Contractors

Pricing

Payment schedule, terms & conditions

SOWs

Roles and responsibilities

Selection

  • Subordinate subcontractor approval

Transfer of rights & ownership

Contracts

  • Inspection and acceptance criteria

  • Warranty, maintenance & support

  • Change request handling

  • Penalties & damages

  • Limitation of liability

Insurance

Confidentiality

Termination and dispute resolution


Questions1

Questions?


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