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Effective Subcontractor Management
Effective Subcontractor ManagementEffective Subcontractor Management
21 July 2011
John Lake, Project Manager – Subcontracts (Roke Manor Research)
Dr. Jon Broome, chair, APM Contracts & Procurement SIG.managing consultant, leading edge projects consulting ltd
1
A dAgenda
Housekeeping
Intro to the C&P SIG
The main eventThe main event.
Housekeeping
Fire proceduresp
ToiletsToilets
Focus : mobiles off etc.
One of the first SIGsFlourished and then declined.A conference some 3 ¾ years ago :A conference some 3 ¾ years ago : members wanted the basics of contracts & procurement.pWe run a combination of basic training events called “seminars” (always booked upevents called seminars (always booked up well in advance) & more leading edgeevents.
Aim of the C&P SIG :The Contracts & Procurement Specific Interest Group :The Contracts & Procurement Specific Interest Group :
Exists to promote and disseminate knowledge, understanding and best practice of contracts and u de sta d g a d best p act ce o co t acts a dprocurement in a project environment. Aims is to become a lively and constructive debating f hi h t k i ti b t ti d h lforum which takes existing best practice and helps make it better. Wants to be disseminating this knowledgeWants to be disseminating this knowledge, understanding and better than best practice through a variety of accessible means.Has a long term aspiration to become recognised as an international forum at the leading edge of excellence in contracts & procurement for projects.excellence in contracts & procurement for projects.
2011 Contracts & Procurement SIG StructureThe Bulls Eye : Committee membersThe Bulls Eye : Committee members & those who want to initiate ‘projects’ & pro-actively contribute. Copied in on most emails wrt SIG initiatives.Bi monthly web / tele conference
The Inner Circle Circle : Those who
Bi-monthly web / tele-conference meetings.
are willing to contribute when asked e.g. Talks, contributing & reviewing documents. Limited direct emails.
The Middle Circle : Those on the C&P web mailing list.
The Outer Circle (& beyond) : Receive Information via general APM publicity.
Future EventsBasic Contract Law for Successful Projects – VWV – Newcastle –Basic Contract Law for Successful Projects VWV Newcastle 14th September (day)What is NEC3 ? – Me - Newcastle – 14th September (evening)Annual Conference : How to write winning bids – Various –London – early October.The Top Ten Mistakes in Contracts & Procurement andThe Top Ten Mistakes in Contracts & Procurement … … and what to do about them – David Beare – Leeds 24th November.
We are also developing a Procurement Guide & discussing an event on Agile Procurement some time in late October.
Effective Subcontractor Management
About Roke
R&D t f ll
Roke snapshot
› R&D centre of excellence
› Situated in Hampshire, UK
› Trusted List X site
Some of the world class test facilities at Roke:
› Turnover in excess of £50M
› Over 350 world class scientists & engineersengineers
› Specialise in ‘First, Fast, Difficult’
› Delivers technological advantage to G t C i l & Si
› CTIA Chamber › High Voltage Chamber
› EMC Chamber
8
Government, Commercial & Siemens organisations
Effective Subcontractor Management
Objectivesj
Mission Statement for today:
To enhance your skills and capabilities in the management of subcontractors during the delivery phase.
● Focus on pitfalls and gotchas
● Review actions that can help to address or avoid costly pitfalls
● Gather your inputs and create a Working ● Gather your inputs and create a Working Paper
● Provide some example management tools p g
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Effective Subcontractor Management
Agendag
1. Setting the scene:• Project Life Cycle• Key Issues
b d d• Subcontractor types – Management demand• Some common “Gotchas”• Typical Scenario
2. Break-out Scenarios – Covering some difficult points in the delivery Life Cycle
3. Break-out Reports
4. Primary findings/discussion
5. Summary and close
10
Effective Subcontractor Management
Project Life Cycle (APM) j y ( )
X
X
Concept
Definition
Implementation Handover &
X X X
Design Build ●
O O O O
& closeout
Operations
TerminationBusiness
XBusiness
Case
Project Management
Plan
Integration
Strategy
X
X
Strategy
SelectionContract Award
Handover &
X
X
Implementation
Subcontractor X
Closeout
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Effective Subcontractor Management
Key Issuesy
● One throat to choke: No matter how many subcontractors areused the customer will consider you liable as prime (its your
t ti )reputation)● Subcontractor failures: Failure by a subcontractor may have
onerous knock-on consequences on the overall project
● Timing is everything: Contract Negotiation times are oftenli ti S b t t t b d l d ft
● Legal recourse: Legal recourse is generally impractical as thecosts and consequences are excessive
● Negotiating strategy: Agreements made at the core negotiationtable need to be underpinned by the subcontractor(s)
unrealistic. Subcontractors must be engaged early and often
● Out-of-the-woodwork issues: Unforeseen issues may stress theprime/subcontractor relationship and dealing with these matters requires calm and open-minded thinking
These issues emphasise why subcontractor management is so important and a key skill that is required on projects.
q p g
12
Effective Subcontractor Management
Subcontracting “Boston Matrix”g
What is your typical type of subcontractor?
Project percentage
StarQuestion Mark
*Complexity
Dog Cash Cow
Subcontractor’s Validated Experience
13
Effective Subcontractor Management
Supplier Management Risks – Some Gotchas!pp g
Things to watch out for:
● Single source dependency
● Re-assignment of risk during the contract
• Always have an alternative (selection process)
● Acceptance ambiguity
Di i i hi R P i it
• Ground rules for meeting/communications control
• State Acceptance criteria in SoW – allow for integration● Diminishing Resource Priority
● Excessive and unreasonable Change Requests• Obtain CVs of key personnel – specify approval of changes
S if b li i il• Specify a baseline setting milestone
• Include formal CCR procedure in your SoW
Schedule reviews of performance against risks regularly and at key milestones
14
Workshop (part 1)O b i fl thi k b t h t hOn your own, briefly think about what, when you come away from this evening, answered question or “tips about how to … …” would make it really worthwhile having y gattended. Come up with one *.* This could be going down a level of detail wrt what John has
id “h t ” ti / ti thi t ti d t llsaid, a “how to” question / tip or something not mentioned at all.
Have chat around the table around these.
A bl i h N 1 h i d i hAs a table, come up with your No.1 choice and write on the BIG Post-It.
Have two in reserve and write each on a large’ish Post ItHave two in reserve and write each on a large ish Post-It.
Name your table and just record on bottom of each Post-It before bringing upbefore bringing up.
Workshop bit (Part 2) - ProcessI th BIG P t It i l i l d f J hI arrange the BIG Post-Its in a logical order for John to answer. I arrange the large’ish ones around these so if easy to easy ‘cos related can be ticked of as wellso if easy to easy cos related can be ticked of as well.
I hand them to John in logical order one-by-one.
John (mainly) or I attempt to at least answer all BIGPost-Its by end.
After answering one, John & I check in that answered and we (i.e. including you) attempt to address if not.
After end of evening, any slides, tools etc. that John demonstrates are distributed to participants.
Effective Subcontractor Management
Scenario Exercise
● Summary of analysis of the risks considered
● Documentation Tools - Overview
● Q & A● Q & A
● Summary of follow-on actions
17
Effective Subcontractor Management
Scenario Exercise
Thank You
for
your questions and inputs!
18
Effective Subcontractor Management
Contact Details
For John Lake :
Tel: +44 (0)1794 833781 Tel: +44 (0)1794 833781 Fax: +44 (0)1794 526914
Mob: +44 (0) 7872 407570john lake@roke co ukjohn.lake@roke.co.uk
For Jon Broome
Tel : +44 (0) 1179 09 3297 Mob: +44 (0) 7970 428 929
Email : jon@leadingedgeprojects co ukEmail : jon@leadingedgeprojects.co.uksetting | your | projects | up for | success
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Effective Subcontractor Management
Extended Slide Set
N t t f th t ti 21 J l 2011Not part of the presentation on 21-Jul-2011
but some used in the interactive sessions - may be useful for explanationuseful for explanation
Contact John Lake (john.lake@roke,co.uk) with any questions
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Effective Subcontractor Management
How do we manage subcontractors?g
Prime
Controlling Designated S b t t Communications Issues/Crises Soft/Personal Controlling
Documents Subcontract Manager
Communications Plan
Issues/Crises Management
Soft/Personal Skills
e.g. Contract, Ts & Cs, SoW, Requirements Specification, Quality Plan, Config Management Plan
SubcontractorConfig. Management Plan , Change Control Procedure, Risk Management Plan, Schedule, Milestones, etc.
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Effective Subcontractor Management
What is Supplier Relationship Management (SRM)?pp p g ( )
There is still some confusion about what SRM is:There is still some confusion about what SRM is:
1. SRM is the process that defines how a company interacts with its suppliers.
2. SRM is the mirror image of “Customer Relationship Management” (CRM). Just as a company needs to develop relationships with its customers, it also needs to foster relationship with its suppliersalso needs to foster relationship with its suppliers.
3. The immediate objective of SRM is to streamline and make more effective the sourcing process between an enterprise and its suppliers (via the sourcing process between an enterprise and its suppliers (via technology).
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Effective Subcontractor Management
What is Supplier Relationship Management (SRM)?pp p g ( )
SRM should be a collaboration of several disciplines:SRM should be a collaboration of several disciplines:
● Account Management
● Supply Chain Management (Procurement Specialists)
● Commercial Management
● Supplier Performance Management (programme Management Project ● Supplier Performance Management (programme Management, Project Management)
Th i d h SRM b hi d id f h d j b f There is a danger that SRM may be something done outside of the day-job of Programme and Project Managers (where dedicated roles and responsibilities are not fully defined)
23
Effective Subcontractor Management
What is Supplier Relationship Management (SRM)?pp p g ( )
Getting the Relationship right at the outset and understanding both sides of Getting the Relationship right at the outset and understanding both sides of the equation is the most effective way of obtaining excellence in performance. This will involve several factors:
● Segmentation/categorisation: Commodity, Performance monitor only, Development potential, Strategic partnership
● Accountability: Executive involvement● Accountability: Executive involvement
● Process and Governance: Tailoring/developing internal processes
● Technology: Implementing tools
● Resourcing: Who manages?
What other factors are important in a supplier relationship?What other factors are important in a supplier relationship?
The desired outcome is a win-win relationship where all parties benefit.
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Effective Subcontractor Management
Relationships & Collaborationp
Community
EnterpriseSupplier Customerppp
Pre-Supplier Competitor Intermediary
SRM is not isolated to Supplier-Enterprise
25
Effective Subcontractor Management
Scenarios: SRM in practice p
The “standard” contract delivery process - C&P Procurement Guide:
1.Concept&
2.DevelopProject
3.Develop Contract
4.DraftContract
5.SelectContractor
6.Delivery of Require-
7.Operate :Deliver
8.Disposalor
Feasibility Procure-mentStrategy& DeliveryOptions
Procure-mentStrategy
& DetailRequire-ments
& EnterContract
ment& ManageContract
Outcomes& ReceiveBenefits
Upgrade
Boundaries?
The gateways or boundaries may be blurred in practice
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Effective Subcontractor Management
Scenario 1: Clarifying the Relationship and the Solutiony g p
Concept Feasibility Select Suppliers
Bid Deliver
Intensive Activity
Community
EnterpriseSupplier Customer
Pre-Supplier Competitor Intermediary
Short cuts at the bid stage can lead to incorrect assumptions
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Effective Subcontractor Management
Rebuilding the Relationshipg p
1. Contact: Escalate the issue and arrangeassignment Project Managers/Commercial Team
2. Awareness: Review what has happened
3. Understanding: Define the System Specification for the Productg y p
4. Engagement: Produce full Statement of Work and review
5. Acceptance: Reach agreement by iteration of the SoW
6. Commitment: Delivery teams engage to work closely to monitor the solution
7. Internalisation: Strong relationship developed with collaborative bids in progress
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Effective Subcontractor Management
Lesson Learned
EnterpriseSupplier Customer
● Collaboration: Involve suppliers in the bid process appropriately (key stakeholders)
● Document any high-level agreements
● Prioritise the level of engagement by Risk Analysis
● Get buy-in from the appropriate stakeholders ● Get buy-in from the appropriate stakeholders
● Agree an appropriate Statement of Work – including critical parameters
● Put in place appropriate Communications Channels to review progress, i k d irisks and issues
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Effective Subcontractor Management
Scenario 2: SRM involves the customer
Concept Feasibility Select Suppliers
Bid Deliver
Intensive Activity
Community
EnterpriseSupplier Customer
Pre-Supplier Competitor Intermediary
Choice of supplier can be critical to customer satisfaction
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Effective Subcontractor Management
Supplier Management Risks – Some Gotchas!pp g
Things to watch out for:
● AOC Slip
● Re-assignment of Risk● Re-assignment of Risk
● Acceptance Ambiguity
● Dependency Linkage
● Review Cycles
● Requirements Creep
● Diminishing Resource Priority
● Single Source Dependency
● Levels of Authority
● Differences in Process, Terminology & Culture● Differences in Process, Terminology & Culture
Avoidance requires constant vigilence!
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Effective Subcontractor Management
2 Subcontract Initiation2. Subcontract Initiation
● Commercial Relationships (Partnerships!)
● Project Life Cycle – Impacts - Toolkit● Project Life Cycle Impacts Toolkit
● Procurement strategy
● Subcontractor selection
B ilding a S bcont act● Building a Subcontract
● Statement of Work (SoW)
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Effective Subcontractor Management
Subcontract Initiation
Commercial Relationships- Formal Partnerships
ProfitPartner A
x%
Risk
Revenue Input Partnership Agreement
y%
Costs
g
Partner B
Partner responsibilities need to be assigned.
33
Effective Subcontractor Management
Subcontract Initiation
Commercial RelationshipsPrime - Subcontractor Consultation:
Involve Subcontractors in
Prime Contract
Subcontractors in Risk Planning to identify risk dependencies
Profit
Profit
Ri k
Subcontractor B
RiskRisk
Costs
Subcontractor A
Sub A Dependencies
Contract Price
Sub BDependencies
Costs
Profit
Risk
Price
Risk
CostsSub B
Sub A
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Effective Subcontractor Management
Subcontract Initiation
Commercial RelationshipsPrime – Subcontract (Partnership)
Project 1
Programme of Projects
Project 2 Opportunity A Opportunity B
Profit
Risk
Costs
Profit
Risk
Costs
Profit
Risk
Costs
Profit
Risk
Costs
Existing Business New Business
Subcontractor MotivationSuccess in the current project leads to:
• Profit in the short term
Prime MotivationSuccess in the current project leads to:
• Profit in the short term• Profit in the short term• Retention in the “Programme”• Opportunities to bid for future work
• Profit in the short term• Known relationship• Easier bidding in the future
35
Effective Subcontractor Management
Subcontract Initiation
Procurement StrategyImpact
ACTIVITIESINPUTS OUTPUTS
1. Develop inclusive Project Breakdown St t (P BS)
FBCProjectScope St t t
Project Procurement Strategy Document,Structure (ProBS)
3. Identify ‘Make or Buy’ Criteria
4. Packaging to give Package Breakdown Structure (PaBS),
Statement
Refined SBC
Document,giving overall approach & summarising for each major package or
t f
Internal
Buy’ Criteria.( )
(with interactions & dependencies stated).
Project Brief
category of packages :
Package Scope
Inter-capacity
External Potential
2. Understanding of Supply Possibilities for Project
Internal & External Market Consultation
Inter-actions & depend-encies + proposed responses
RISKS
● Technical Risks specific to the work 5. Recommendationson the ‘Nature of the Relationship’ for each Package/Contract.
responses
The Nature of Relation -ship sought
● Technical Risks specific to the work being undertaken by the subcontractor
● Technical risks owned by the Prime associated with the dependencies on the success of the subcontractor in containing its risks.
36
g
● Risks associated with the subcontracting itself.
Effective Subcontractor Management
Subcontract Initiation
Subcontractor SelectionProcess
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• Formal Selection Process• Selection Governance
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Effective Subcontractor Management
Subcontract Initiation
Subcontractor SelectionRisks
• First time use of a subcontractor – Performance may be unsatisfactory (cost, time, quality).
• Subcontractor may leave the consortium - Bankruptcy, change of management, loss of personnel resources.
• Incompatible working practices – Methods, standards and p g p ,cultural differences may differ from expectations and cause friction in communications or make it difficult to gauge progress.
• Poor progress/financial reporting – The subcontractor may not give sufficient information to allow progress between milestones to be gauged or cost-to-complete to be gauged in T&M contractsT&M contracts.
• Poor Change Control – The subcontractor may initiate uncontrolled changes (e.g. add/remove functionality through ad-hoc communications)
38
ad hoc communications).
Effective Subcontractor Management
Subcontract Initiation
Subcontractor SelectionRisks
• Poaching of work or personnel – Subcontractors may campaign to work directly with your customer or recruit your key personnel.
• Export control issues – Where export licences are required work/communications may be delayed until all licences are
t d granted.
• IPR issues – There may be misunderstanding of the ownership of Intellectual Property Rights between customer, prime and subcontractorsubcontractor.
• Conflicts in division of work – Subcontractors may duplicate work being done by the prime or others.
• Poor support provision – Subcontractors may not provide the appropriate level of support for related tasks in the project or for post-delivery support.
39
Effective Subcontractor Management
Subcontract Initiation
Subcontractor SelectionFormal Selection Process
•Overall Advantages:
● Emphasises competitive status (to
Vendor Long List (VLL)
Vendor Pre-Qualification Form
Long List Vendors are issued
Interim
Down select
● Emphasises competitive status (to vendors)
● Explores/identifies shortcomings early
Sh Li
Interim List Extended Vendor Pre-Qualification Form
List Vendors are issued
Down select
● Can be used to demonstrate best practice (governance)
Vendor Short List (VSL) Evaluation Requirements (Vendor Questions)
Short List Vendors are issued
Short Listed Vendors are asked to conduct
Responses
Analysis of Evaluation Requirement Responses
Vendor Presentations & Demonstrations
+
Scored EvaluationInforms
Informs
Weighted Evaluation Criteria
40
Evaluation Report
Effective Subcontractor Management
Subcontract Initiation
Subcontractor SelectionGovernance
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PSB Product Selection Board
S SSu Su
PST Product Selection Team
SMEsSubject Matter experts
41
p
Effective Subcontractor Management
Subcontract Initiation
Building a Subcontract
C i l S b Selection Process
Commercial Subcontract (T’s & C’s) – Negotiated Terms
T d S l i
Project Context
Annexes:•DEFCONs (MOD)•Dependencies (CFx)
ITTTender Response
Capabilities
P j
Selection
Compliance Matrix
Detailed Statement of Work
Draft SOW
Draft Schedule
Draft T’s & C’s (Flow-Down)
Projects History
Technical Response
Matrix
Scoring
Credit Check
QA Audit
Payment Milestones
Subcontractor Costed Proposal
P h O d
Draft T s & C s (Flow Down) p
ROM Price Framework Agreement
QA Audit
Purchase Order
Ch /A d
PO Acknowledgement
42
Changes/Amendments
Effective Subcontractor Management
Subcontract Initiation
Building a SubcontractEssential Documents - Ownership
D t O hi /A th hiDocument Ownership/Authorship
NDA Commercial Manager (CM)
Statement of Work Project/ProcurementStatement of Work Project/ProcurementManager (PM)
Costed Proposal Subcontractor
Commercial Subcontract (T’s& C’s)
CM
Instruction to Proceed (ITP) CM( )
Purchase Order PM (with Finance Approval)
Export Documents CM
Framework Agreement CMThe form of these documents is tailored to the project requirements (contract size, risk category, geography, classification)
43
Effective Subcontractor Management
Selection of Subcontractor(s) and Entry of Contract Selection of Subcontractor(s) and Entry of Contract
- Statement of Work (SOW)•Your SOW supplies the framework against which the Subcontractor can bid against which the Subcontractor can bid effectively and understand the controlling documents.
Description and Scope of Work
Requirements and Use Cases
Schedule (WBS)
Key Milestones P j t C t lli •Key Milestones
Deliverables List
Acceptance Criteria
Quality Requirements
Project Controlling Documents
Sub-project PlanProvisions for Change Control Management
Provisions for Configuration Management
Quality Plan
Project Management Requirements
Communications Provisions
Acceptance Plan
Risk Management PlanCo u ca o s o s o s
Security Requirements
Commercial Management Provisions ….etc…….
44
Warranty and Support
Effective Subcontractor Management
Selection of Subcontractor(s) and Entry of Contract Selection of Subcontractor(s) and Entry of Contract
- Statement of Work (SOW)•Your SOW is the seed document supplying the
b “DNA”subcontract “DNA”.
It should supply a description of:
● The job to be done,
● How you are going to manage and control the subcontractor,
● Your expectations of performance and● Your expectations of performance and
● Your Acceptance Criteria.
•This underlines the disciplined approach expected from the subcontractorsubcontractor.
•If you produce a poor SOW (incomplete, vague, poorly drafted) then it may cause:
● A bad initial impression● A bad initial impression
● Many questions (wasted time)
● Incomplete response
45
● Ambiguity.
Effective Subcontractor Management
Subcontract Initiation
Statement of Work (SoW)Your SOW supplies the framework against which the Subcontractor can bid effectively and understand the controlling documents.
Description and Scope of Work
Requirements and Use Cases
Schedule (WBS)
Key Milestones P j t C t lli Key Milestones
Deliverables List
Acceptance Criteria
Quality Requirements
Project Controlling Documents
Sub-project PlanProvisions for Change Control Management
Provisions for Configuration Management
Quality Plan
Project Management Requirements
Communications Provisions
Acceptance Plan
Risk Management PlanCo u ca o s o s o s
Security Requirements
Commercial Management Provisions ….etc…….
46
Warranty and Support
Effective Subcontractor Management
Subcontract Initiation
Statement of Work (SoW)Your SOW is the seed document supplying the s bcont act “DNA”subcontract “DNA”.It should supply a description of:
● The job to be done,
● How you are going to manage and control the subcontractor,
● Your expectations of performance and
● Your Acceptance Criteria.
This underlines the disciplined approach expected from the subcontractor.
If you produce a poor SOW (incomplete vague poorly drafted) then it may cause:If you produce a poor SOW (incomplete, vague, poorly drafted) then it may cause:
● A bad initial impression
● Many questions (wasted time)
● Incomplete response
● Ambiguity.g y
47
Effective Subcontractor Management
2 Subcontract Delivery2. Subcontract Delivery
● Billing Basis Options
● Cost Control● Change Control● Planning
● Stakeholder Management
● Communications
● Reporting
48
Effective Subcontractor Management
Subcontract Deliveryy
Billing Basis OptionsFixed Price
● Define Payment Milestones according to work budgeted (agree with commercial).
● Link Payment Milestones to Prime Plan and PFS cycle (for cash flow & accurate EVA).
● Ensure subcontractor’s risk is clearly defined (SOW and Contractor’s Proposal Document)
Profit
(SOW and Contractor s Proposal Document).
● Regular updates of the subcontract schedule.
● Corrective action plans for schedule slippage.
● Implement strict Change Control.
Risk Allocation
Subcontractor Costs
49
Subcontractor’s Fixed Price
Effective Subcontractor Management
Subcontract Deliveryy
Billing Basis OptionsTime and Materials
● Prime price based on NTE Estimate.
● Project Cost model based on Deterministic Estimate.
● Any “Delta” cost is released via Change Request only.
Delta
CR1
CR2
● Ensure subcontractor’s CTC is declared each reporting period.
● Obtain Change Requests even for “zero cost” changes”.
● Prime’s duty is to minimise cost to the t C t t P i d d h
CR1
customer – Contract Price reduced when successful.
Deterministic Estimate
Not to Exceed Estimate
50
Subcontractor’s Price
Effective Subcontractor Management
Subcontract Deliveryy
Stakeholder ManagementStakeholders
•Stakeholder Management Plan: •Key Project Roles•Define Levels of Influence•Identify Management Requirements
51
•Identify Management Requirements
Effective Subcontractor Management
Subcontract Deliveryy
Stakeholder ManagementAnalysis
• Identify
•Name each stakeholder and determine what their interest is in the project and what information they will require
• Assess
•It is important to understand the current level of commitment It is important to understand the current level of commitment of the stakeholder in order that they can be managed accordingly
• Plan
•Determine how each stakeholder will be managed, who by, and the frequency and format of contact
• Action• Action
•Ensure that engagement with stakeholders is maintained as planned and the Stakeholder Management Plan is regularly reviewed and update
52
reviewed and update
Effective Subcontractor Management
Subcontract Deliveryy
CommunicationsCommunications Planning
Wh S b t ti i ti f i t d d d th d i t t thi t When Subcontracting communications frequencies, standards and methods are important things to define:
● Communications Plan
● Roles & Responsibilities (Stakeholder Analysis)● Organisation Chart● Communications Channels and Media● Reporting and Escalation● Reporting and Escalation● Meetings● Review and Approval● Document Formats
C fi ti M t● Configuration Management
Important to cover communications expectations in the SoW (Resource time, locations, channels, t l t i t)travel – cost impact)
53
Effective Subcontractor Management
Subcontract Deliveryy
CommunicationsReporting
● Budget status
● Schedule status
● Earned Value/Cost-to-Complete Estimate
● Key Performance Parameter status● Key Performance Parameter status
● Priorities and Key Objectives
● Risk Status
● Issues status
● Change Request/Approved Change status
● Status against plan/Key Milestones status
● Exceptions and reason for incomplete/corrective action
● Next period plan
Important to cover reporting expectations in the SoW.
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