There is a vendor providing resources on a T and M basis, to a Client for their software development in India. The Purchase order was for an Architect and three senior developers. There are two challenges faced by the vendor now. 1. An architect is made to address production fixes 2) Resources are made to work for more hours. Where is this handled in the contract with the Client, regarding the scope and overtime? Are there specific clauses that will have to be there in an MSA?. Also, How do we proactively take care of these, even if we do due diligence regarding the work culture at the client's place. Saving Changes...
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Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Shani,
it depends on the specific contract terms.
In my experience with T&M, scope control is fully with the client.
So if they ask the architect to handle production fixes, it is their call. Yes, it may be that then project progress is challenged, but also total project responsibility lies with the client in T&M environments… Nevertheless I would formally inform the client of any issues like that.
Asking for more hours than contracted is quite usual, so this should be a contract term, like how to ask for more hours, are there any add-ons for overtime/weekends.
If you estimated the required hours for a scope junk, then you hopefully documented your assumptions, that are probably now invalidated by the client.
Thomas
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1 reply by Shani Sankar
May 05, 2022 3:20 AM
Shani Sankar
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Thank you Thomas for the insight. My problem persists when it comes to managing human resources facing the client asking for more hours subtly.
Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
As Thomas explained, a time and material contract is meant to provide the client with as much flexibility as possible. While there may specific constraints, such as work location, number of hours per week, the contract usually has sufficient slack to readily allow even these conditions to be altered.
The good thing with T&M contracts is that the risks are largely with the client. That's because the client is managing the work. Your job is to manage the supplied resources.
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1 reply by Shani Sankar
May 05, 2022 3:26 AM
Shani Sankar
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Thank you, Stephane, You are absolutely right, the job is to manage the resource.I was trying to address the situation with a motive to avoid the other risks pertaining to attrition of resources
Saving Changes...
Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
As Stephane writes, in a T&M contract the client typically manages the work and carries the risk. The contractor/consultant provides/manages the resources.
This gets complicated when there is a fundamental change in the scope of the work resulting in the contracted resources not being able to provide the newly required services either due to limited availability or necessary expertise. Should the contracted people not have the technical expertise or time to deliver professional services, the contractors needs to advise the client of the risks and offer solutions. It is up to the client to respond by adjusting the requirements or accepting the risks. If there is a professional liability or reputational issue the contractor may be able to withdraw services but you may want to refer to the contract terms on that.
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1 reply by Shani Sankar
May 05, 2022 3:42 AM
Shani Sankar
...
Thank you, Peter, It helps get straight to mellow down the situation and face the challenges from the resource management part of it.
In my experience with T&M, scope control is fully with the client.
So if they ask the architect to handle production fixes, it is their call. Yes, it may be that then project progress is challenged, but also total project responsibility lies with the client in T&M environments… Nevertheless I would formally inform the client of any issues like that.
Asking for more hours than contracted is quite usual, so this should be a contract term, like how to ask for more hours, are there any add-ons for overtime/weekends.
If you estimated the required hours for a scope junk, then you hopefully documented your assumptions, that are probably now invalidated by the client.
Thomas
Thank you Thomas for the insight. My problem persists when it comes to managing human resources facing the client asking for more hours subtly. Saving Changes...
As Thomas explained, a time and material contract is meant to provide the client with as much flexibility as possible. While there may specific constraints, such as work location, number of hours per week, the contract usually has sufficient slack to readily allow even these conditions to be altered.
The good thing with T&M contracts is that the risks are largely with the client. That's because the client is managing the work. Your job is to manage the supplied resources.
Thank you, Stephane, You are absolutely right, the job is to manage the resource.I was trying to address the situation with a motive to avoid the other risks pertaining to attrition of resources
...
1 reply by Stéphane Parent
May 05, 2022 6:57 AM
Stéphane Parent
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That is certainly one of the risks for the T&M supplier, Shani. When you sign the contract, you agree to provide the requested resources within a certain amount of time and a certain amount of skills.
I've been in a situation where we agreed to supply very specific skillsets but had a hard time to find and keep them. I was constantly trying to recruit additional resources that would be suitable to the client.
As Stephane writes, in a T&M contract the client typically manages the work and carries the risk. The contractor/consultant provides/manages the resources.
This gets complicated when there is a fundamental change in the scope of the work resulting in the contracted resources not being able to provide the newly required services either due to limited availability or necessary expertise. Should the contracted people not have the technical expertise or time to deliver professional services, the contractors needs to advise the client of the risks and offer solutions. It is up to the client to respond by adjusting the requirements or accepting the risks. If there is a professional liability or reputational issue the contractor may be able to withdraw services but you may want to refer to the contract terms on that.
Thank you, Peter, It helps get straight to mellow down the situation and face the challenges from the resource management part of it. Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
May 05, 2022 3:26 AM
Replying to Shani Sankar
...
Thank you, Stephane, You are absolutely right, the job is to manage the resource.I was trying to address the situation with a motive to avoid the other risks pertaining to attrition of resources
That is certainly one of the risks for the T&M supplier, Shani. When you sign the contract, you agree to provide the requested resources within a certain amount of time and a certain amount of skills.
I've been in a situation where we agreed to supply very specific skillsets but had a hard time to find and keep them. I was constantly trying to recruit additional resources that would be suitable to the client. Saving Changes...
