My Project Management Lessons » Contract

Clarify Terms and Conditions

michael — Tue, 25 Nov 2008 10:31:55 +0000

Clarify the terms and conditions with the new project manager.

If the client changes during a project (or the client project manager changes), then you as the project manager should make sure to clarify all the contract terms and conditions, deliverables, and scope with the new client or client’s project manager.

Obviously the scope will need to be clarified, but it is also important to go over with the new client or project manager all the finer details of the contract to avoid any uncertainty or surprises on their part.

It is not ideal just to let them read the contract. Good communication is important and a proper discussion of the existing terms will make a smoother business relationship.

Clarify Ownership Of Drawings

michael — Mon, 24 Nov 2008 09:52:48 +0000

It is important to clarify the ownership of drawings your company produces.
Make sure the contract or agreements clarify the ownership of drawings and documents.

Some clients may expect the drawings or designs to be their property once a project is delivered. If your company’s drawings or designs are proprietary or are designs you use on other projects you will need to state that your company keeps the ownership in the contract.

If you don’t have this in the contract, it can make a difficult sticking point with the client at a later stage in the project.

Get a Signed Contract Before Starting Work

michael — Thu, 20 Nov 2008 10:31:15 +0000

Make sure you get a signed agreement before work is started on the project.

This is important both from getting the signed contract from the client, but also to do the same if you are using subcontractors.

Make sure the agreement allows you to terminate the subcontractor

Get written agreement to all terms and conditions.

If agreement is a long process and you have to instruct the subcontractor to start some work, make a written authorization and get it signed and set a cost limit to that work.

If your company decides to begin work before getting formal written approval to proceed you must get approval from management as high up as possible in your company. You must also be aware that the risks on the project have substantially increased by not having a written contract.

Know the Scope of Your Project

michael — Wed, 19 Nov 2008 11:15:40 +0000

Know the scope of your contract. Read it often. As a project manager it rules your role on that project. Make sure you clarify the scope with all stakeholders to be sure you all understand it the same way. (Client, designers, drafters, managers, contractors, etc). Related Posts Clarify Terms and Conditions Scope Creep Document Changes [...]

Clear Duties in Contract

michael — Tue, 18 Nov 2008 10:22:12 +0000

Make strong, clear language in the contract documents so that your company’s duties are very clear.

This avoids problems later on in the project.
By making the duties clear (the scope) you avoid the problem of extra duties being added to the project that are not paid for.

A clear scope should be clear, and understood by both parties in the contract.

Client or Contractor Track Record

michael — Sat, 01 Nov 2008 07:19:38 +0000

When preparing a tender, signing a contract, or making a purchase order, be careful to check a potential client’s or contractor’s track record. They may be a known litigator.

Your company may keep a record of problem companies.

Preference would be to find an alternative supplier/contractor, or to not pursue the project.

If there is no alternative then you must be extra careful with the wording of the contract. You should also have senoir management review and approve the contract before signing it.