contracts
E723: Contract Deliverables Tracking
Make sure you meet your contract requirements with a deliverables matrix.
E571: Ask Coach – Good Project Scopes
Complete comprehensive “scopes of work” for your projects to avoid disputes.
Q: What’s the best way to make sure my project scope is clear?
A: Write a detailed scope during estimating, review your contract, and have a scope review meeting with your client.
- Project scope can be very complex
- Not everything is clear in the contract documents
- Our client may have a different interpretation of something
- Prime contractors often rely on catch-all phrases to make us perform things
- We need to protect ourselves with a clear scope of work
- Include a detailed scope of work with your estimate
- List your inclusions and exclusions
- Review you contract to make sure it matches your scope of work
- Have a scope meeting with your client prior to signing the contract
- Review line by line and make sure you both agree on what each line means
- Make all adjustments before signing the contract
- Include a detailed scope of work with your estimate
E542: Scope Clarifications In Contract
Review your contracts with estimating to clarify the scopes.
- Most estimates have them
- Clarifications to the bid
- Exclusions and inclusions
- Discussion items in negotiations
- Problems arise if not in contract
- Often happens when the project is on-going
- The project team is expected to perform per contract but contract is wrong
- Items are missed in the scope and now there is a cost gap
- Establish procedures to protect yourself
- Contract review procedures with estimating involved
- Check the proposal versus the contract and construction documents
- If there are questions or interpretations get them clarified
E522: Estimating The Contract
Review your contracts carefully during the estimating process.
- Contracts are the basis of all projects
- Contracts = risks / deliverables = cost
- Contracts can be simple or complex
- Review the clauses and account for them in your estimates
- Risks & deliverables cost money
- Depending on the risk / deliverable the value will fluctuate
- You can break them into Actual and Potential
- Actual: reporting, scheduling, manpower, supervision, security, etc.
- Potential: Acceleration, change order mark-ups, delays, hold harmless, etc.
- Account for them in the estimate
- Depending on the risk / deliverable the value will fluctuate
- Review and add to your estimate
- Treat like a contingency – have adds/deducts
- Review each clause to determine what time / effort is required
- What are the possibilities on the project
E433: Contract Deliverables Review
Do a thorough review of your contract deliverables before starting work.
- Contract deliverables are the requirements established in the contract
- Everything outside of the project itself – items not in the contract documents
- The requirements for daily reporting, insurance, change notices, payroll reports, etc.
- Special instructions in the contract like maintaining records and document security
- The project manager or key person should conduct a review
- Review each section/clause in the contract
- Note what the requirements are for your company in each instance
- Who it is sent to and who is responsible for sending
- Example: Change Notice clause may state changes must be noted in daily reports and written notification must be submitted within 24 hours.
- Establish a deliverables matrix – I recommend 2 different ones
- The first is for all deliverables
- Provide Clause / Deliverable / Notice Type / Sent To / Responsible Person / Notes
- The second one is for all the recurring requirements like invoices, payroll reports, etc.
- Provide Deliverable / Due Date / Sent To / Responsible Person / Notes / Check Box for completion tracking
- The first is for all deliverables
Here is a sample of a Deliverable Matrix from my contract in the US Virgin Islands. Sample