Project Management

Do You Rely Too Much on One Client or Contractor?

Andy Jordan is President of Roffensian Consulting S.A., a Roatan, Honduras-based management consulting firm with a comprehensive project management practice. Andy always appreciates feedback and discussion on the issues raised in his articles and can be reached at [email protected] Andy's new book Risk Management for Project Driven Organizations is now available.

I know of a number of contract project managers who have been working at the same client for a very long time. I don’t mean that they have been simply been doing work for the same client for that period, I mean they have been working there full-time—eight hours a day, five days a week, for 10 or more years. I know of one project manager who has only had one client for more than two decades, and has been working for all of that time.

Depending on where you are, that scenario can cause some significant tax and employment rule implications for both the client and the contractor. But putting that aside, is this a good arrangement? Presumably both parties are satisfied with what is happening, because otherwise the contract wouldn’t keep getting renewed—but are there risks and issues that need to be considered with this type of arrangement?

It’s a bad concept
To answer those questions, I think we need to separate individual situations between contractors and clients from the overall concept. As far as I am concerned, there are only a few reasons why an organization would supplement its own employees with contract PMs:

  • It needs more PMs than it currently has, or can hire in the available time period.
  • It needs a specific skill set or experience for current work, but that specialty won’t be needed on an ongoing basis—so hiring or …

Please log in or sign up below to read the rest of the article.

ADVERTISEMENT

Continue reading...

Log In
OR
Sign Up
ADVERTISEMENTS

"O, it is excellent To have a giant's strength! But it is tyrannous To use it like a giant."

- William Shakespeare

ADVERTISEMENT

Sponsors