I need to know more about how to track fixed-price contract. Basically, I need some tools, templates, and techniques Saving Changes...
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Anton OosthuizenSenior Business Analyst / Project Manager| Self EmployedPretoria, Gauteng, South Africa
Marzie, the variety of tools that you must/can use is almost endless. On a fixed price contract you definitely need to do a WBS and define work packages from this. This will help you to do two things: Effectively assign tasks to resources as complete work packages and allow you to track progress with ease. As I mentioned there are many tools you can use but the most common s probable MS Project.
Something else you will want to implement is time logging and here you need a system that allows you to import your WBS. Resources must log their time against tasks assigned to them until they reach the estimated duration, or completion date, after which any more time required will be flagged so that you, the project planner can evaluate the impact of a possible overrun.
The key to a successful fix price contract execution is in the monitoring and control processes and I would suggest you look at tools that allow you to implement workflow. But obviously this only make sense for large project where the cost is justified. On smaller projects this is not feasible so you might be stuck with a more labor intensive spreadsheet approach in which case you need to turn to collaboration, something like google docs, share point or confluence. Saving Changes...
Mohamad FararjehProject Management - Electrical Engineer| San Francisco Bar Area Rapid Transit (BART)Santa Clara, Ca, United States
This all depends on the structure of the FP contract. typically fixed price (FP) contracts are either lump sum or itemized. If LS, then you need to price breakdown the work (WBS) to track your progress. If the project is already itemized, then you should use that schedule as a template. However, for extra work, or change orders, you need to some templates for tracking and reporting.
In addition, FB Contracts are of many types, FP Incentive Fee (FPIF), FP Award Fee (fPAF), FP Economic Adjustment (FPEA), Purchase Order (Yes PO is a type of FP contract).
So you need to be a little more specific on what you are asking for. Saving Changes...
Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
It depends on your position here, which side of the fixed-price contract you're on, The Owner of the Contractor. Are you attempting to make sure you don't run out of money as a contractor or are you concerned that the progress payments will be excessive as the owner?
The other key part is the contract itself. How does it allow for control of payment? As the owner you need to have contract language so that you can request itemized breakdown from the contractor to facilitate progress draws. As the contractor you need to know what your obligations are with regards to providing costing/billing breakdowns.
As Anton writes, MSProject works for both sides but you can also set up a basic spreadsheet for simpler projects. The S-curve works great for tracking Earned Value compared to planned.and can be done manually - this is what I planned to achieve, this is what I actually achieved and this is what I've paid (or billed). Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Marzie,
tracking FP contracts should be defined in the contract itself. Otherwise the contractor is not obliged to cooperate.
What I have seen are - regular reports with defined content (e.g. EV, deliverable status) - contract milestones / payments linked to progress - deferred payments - third party quality assurance - 2 level project governance, including dispute resolution process - allowance to do site visits and talk to staff - agreement on subcontractors - penalties and incentives attached to performance - transferring ownership for intermediate deliverables, not only after full project - use owners documentation system, other tools (tricky one)
There are many more techniques, again, they should be put into the contract. It is basically doing a risk identification and assessment for this partner and defining risk responses. Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Is the contract price fixed over the scope (fixed scope) or duration (fixed time)? Fixed price/fixed scope is the more prevalent version. (Service retainers are examples of fixed price/fixed time contracts.)
If you have a FPFS contract, then you need to make sure the scope is well defined and that you have mechanisms (contract clauses) to handle scope changes. You will likely have differences of opinions over what is included and what is not included in the scope. Saving Changes...
