Project Management

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Project Scope Statement & Contract Management

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Eduard Hernandez
Community Champion
Product Operations Program Manager Barcelona, Cataluña, Spain
I have recently attended a seminar dealing with Contract Management and its big impact on project success. In a nutshell, it was said that most companies are lacking the figure of a Contract Manager which often has a negative impact on the project outcome (money, time, quality...).

The lack of clarity in the project scope was one on the main reasons for project overrun or even cancellation.

My question is: how do we juggle the following concepts in order to minimize the risk of the above explained situation?

Project Charter
Project Scope Statement
Contract Management
Scope Creep

Others?

Look forward to your opinions and thoughts
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
The problem is the degree of clarity you have into each step of your process. Project scope is created from Product scope and product scope is defined at some degree depends on the point you are on your process. People do not understand that things happend based on a limited amount of information and definition that will change to more clarity and defintion when process progresses, unless you are working to create some products like somethng that could jeopardize human being life or things like a setellite. So, you have to deal with that.
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Patrick Dicey Manager, Customer Project Management| CentralSquare Technologies Orlando, Fl, United States
As a Project Manager working in a small commercial company with smaller projects who works in the type of environment you are describing, the PM needs to be cognizant of the lack of contract manager and fill this void. As things become 'above your head', you need an outlet to escalate for legal guidance/review through attorneys on retainer.

In the past I worked on a team with a lot of contract development/negotiation experience and had the opportunity to work with seasoned contract managers and attorneys, so I got a bit of experience others may or may not have. Not sure what kind of training is out there in these cases.
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Anonymous
Eduard

This is a wide open question

As usual Sergio is on spot and he described well the relation between product scope, project scope.

I do not know what the real question is so I am not sure how to focus my answer. I will highlight a few relevant points.

Scope Creep are hidden or undocumented changes and they are usually due to one of the following factors:
1. Poor scope definition - whether by design or a mistake
2. Changing project environments resulting in changes to accommodate market drivers
3. Lack of proper control in the organization - whether by design (to sneak things in) or lack of awareness of the importance of change management


You also need to distinguish between scope management plan and scope of work (scope statement

Contract Management starts with proper contract scope of work and contract. The work needs to be done - the contract SOW is usually the responsibility of the PM & Team whereas the contract is the responsibility of procurement (if not then PMT will handle).

On capital projects - buyer organizations, we always like to have a Contract or Sub-Contract Admin. If not available, someone else will do the work. This is good practice.

I hope my mumbling help identify a few points

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