Project Management

Please login or join to subscribe to this thread

How to use PM in case you are from the seller side

linkedin twitter facebook  
avatar
Mrehan Elshehawy Project Manager| DIMECC Oy Espoo, Finland
Hello Everyone,
I do project management in the company I'm working in and all the time we are from the seller side. This means we receive request for proposals from outside companies and the project is formally initiated in our company when we get the contract signed.
It's always confusing when it comes to documentation

In my case we have proposals, contract , and signed contract
where is the project charter, the statement of work , and the scope statement ? I can't properly locate them during the process

Can somebody help!
Sort By:
< 1 2 >
avatar
Mrehan Elshehawy Project Manager| DIMECC Oy Espoo, Finland
Jun 20, 2020 9:21 AM
Replying to Thomas Walenta
...
Mrehan,

your sponsor is responsible for the charter. Practically, you - as you are assigned as PM -support them writing it. If the role of PM is well defined, this might be very simple, like Kiron states, and you might add your specific needs to be approved by the sponsor. BC may be in the internal proposal approval (expected revenue, cost, profits).

Yes, since contract signing is often under time pressures, planning can start on the assumption that the proposal will reflect the contract. This has to be verified after signature and contract handover from the proposal team.

Internal proposal documents will be much more detailed than the contract.
We receive request for proposal, and we meet with the client to extract their requirements and send a proposal. If the client feels good about it, he signs a contract, and we start the project.

When should I create the charter with the client in this process ? and what I include in the proposal can be considered as the scope statement since I include scope description, deliverables, execlusions and acceptance criteria?
...
1 reply by Thomas Walenta
Jun 21, 2020 8:49 AM
Thomas Walenta
...
I would not create a charter with the client, but with the sponsor in your organization. Your project is authorized by your organization, you are selected by your organization and they are bound to fulfill the contract. Your organization decides if they want to commit to the contract and who should be assigned as PM. As soon as this decision is made, the charter can be signed and you can act officially as the PM. It could be well before contract signing to allow for planning, staffing and preparation.

The client will probably say everything is agreed in the contract, I gave your company the permission to work on the project and the timelines are agreed. The client usually does not select the project manager, the performing organization is. So the client does not need a charter with you.
avatar
Mrehan Elshehawy Project Manager| DIMECC Oy Espoo, Finland
Jun 20, 2020 3:18 PM
Replying to MD Sarfaraj Alam
...
Thanks Mrehan for posting the question.

The fundamentals are already covered by Kiron, Thomas, and Sergio here. Some great insights from them as always.

There will be some seller specific considerations that would be managed differently in PM on Seller Side while formally signed contract will play an authorization to proceed with mobilizing resources within Seller organization. An example would be Risk Management. This would be significantly different for Seller and the Buyer based on the type of contract signed. Example - FFP is good to offset Risks for buyer, not the same for Sellers though. As already covered, some key elements like internal sourcing and costing etc for Seller would ideally not be shared with Buyer. Unlike Scope management which will require robust synergy between Buyer and Seller to make the project a success for both parties.

Hope this helps.
Thank you so much for sharing information :)
avatar
Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
Jun 20, 2020 3:32 PM
Replying to Mrehan Elshehawy
...
Thanks for sharing,
So there is no project charter or business case from the seller side but what authorises the project is the contract.
In this case what we include in the contract is the scope statement or the statement of work ?
You wouldn't include the full scope statement or SoW from the buyer as that represents their scope. As a sellor, you may only be responsible for a subset of the overall project scope, and your contract should focus on that.

Kiron
avatar
Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
Jun 20, 2020 3:38 PM
Replying to Mrehan Elshehawy
...
Hello Sergio,
Thank you so much for sharing. What authorizes thr project in my case is the contract
Usually the client has no idea what the scope of work is as we are consultation firm, they want to improve the work environment safety but doesn't know how.
We receive request for proposal and we meet with the client to extract their requirements and send a proposal, if the client feels good about it he signs a contract and we start the project.

So basically there is no statement of work, charter, bidding documents, business case or anything from the buyer/client side.

What I'm confused about is what I need to create and if what I'm creating in the proposal is the scope statement
I lived that situations. I will try to answer in a way that could be useful for you, perhaps writing something obvious. Forget about the name of the deliverable. What you need is something with product requirements to create project requirements. Product requirements, project requirements, project scope (mainly what it does not include), assumptions and restrictions are key components to say the client "this is what I understood you need then this is what I will give you taking into account this conditions (assumptions and restrictions) from your side and my side". Usually this is high level and the next step is to refine it. It seems you have it because you created the proposal. It will be the base of the contract. With all that information is time to go for the next step which is plan the project.
avatar
Thomas Walenta Global Project Economy Expert Hackenheim, Germany
Jun 20, 2020 3:43 PM
Replying to Mrehan Elshehawy
...
We receive request for proposal, and we meet with the client to extract their requirements and send a proposal. If the client feels good about it, he signs a contract, and we start the project.

When should I create the charter with the client in this process ? and what I include in the proposal can be considered as the scope statement since I include scope description, deliverables, execlusions and acceptance criteria?
I would not create a charter with the client, but with the sponsor in your organization. Your project is authorized by your organization, you are selected by your organization and they are bound to fulfill the contract. Your organization decides if they want to commit to the contract and who should be assigned as PM. As soon as this decision is made, the charter can be signed and you can act officially as the PM. It could be well before contract signing to allow for planning, staffing and preparation.

The client will probably say everything is agreed in the contract, I gave your company the permission to work on the project and the timelines are agreed. The client usually does not select the project manager, the performing organization is. So the client does not need a charter with you.
< 1 2 >

Please login or join to reply

Content ID:
ADVERTISEMENTS

"I went into a McDonald's yesterday and said, 'I'd like some fries.' The girl at the counter said, 'Would you like some fries with that?' "

- Jay Leno

ADVERTISEMENT

Sponsors