Project Management
Impact on Business
“The P in PM is as much about people management as it is about project management”
-Cornelius Fichtner
Project
Management
Impacts of Good PM
• Happy Client
• Repeat business
• Profitable Projects
• Positive Workplace
• Brand recognition
Clients
Projects• Technical Deliverables
Project
Management
Clients
Projects• Technical Deliverables
Impacts of Poor PM
• Legal liability
• Financial liability
• Brand impact
• HR Impact
• Business impact
• Staff Moral
Key Reasons
Projects Fail
Poor CommunicationLack of Planning
No Quality Control
Milestones Not Met
Poor Resource Control
Poor Cost Control
Progress Mismanagement
Poor Management
Overstretch of Supplier Skills
Supplier Under-Resourced
Insufficient Measureables
Inconsistent Suppliers
57%39%
35%
34%
29%
26%
20%
17%
13%
12%
11%
4%
What is the most common issue that
causes projects to fail?
PM Goals and
Objectives
What are key client objectives?
Financial?
Technical?
Contractual?
Regulatory?
Timeline?
Legal?
Overall business?
Project Management Objectives
Initial
Response
to RFP
Proposal
Phase
Contract
Negotiation
Growth
Phase
Maturity
Phase
Demand
Decline
Closure
Phase
Project
Execution
OVERHEAD
REVENUE
PROFIT
Multi-Tasking
Interactions
Project
Manager
Client
Project
Team
Legal
QA/QCPublic
Relations
Contracting
Department
Stakeholders
Consultants &
Contractors
Senior
Management
PM
Triangle
Scope
Budget Schedule
Each side represents a constraint -
one side of the triangle cannot be
changed without affecting the others.
PM
Triangle
Scope
Budget Schedule
Project Management is about providing the tools
and techniques that enable the project team to
organize their work to meet these constraints.
PM
Triangle
Poor Communication
Lack of Planning
No Quality Control
Milestones Not Met
Poor Resource Control
Poor Cost Control
Progress Mismanagement
Poor Management
Overstretch of Supplier Skills
Supplier Under-Resourced
Insufficient Measureables
Inconsistent Suppliers
57%39%
35%
34%
29%
26%
20%17%
13%
12%
11%
4%
A key reason for project failure: not
understanding the scope
= Failure to communicate scope
PM
Framework
Scope
Budget Schedule
Project Charter
Scope Management Plan
Work Breakdown Structure
Schedule Management Plan
Project Schedule
Cost Management Plan
Project Budget
PMFramework
Risk
Management
Project Risks don’t “disappear”
Accept consequences of the risk
Accept
Eliminate the root causes of risk
Eliminate
Minimize the probability of occurrence and impact
Mitigate
Pass the risk to other party
Transfer
Contract
BudgetSchedule
QualityDeliverables
ProfessionalServicesAgreement
Page1of6
ProfessionalServicesAgreement.docx Initials:Consultant:____________
Revision0 Client:___________
RefNumber:yyAAxxxxDate:ddMonthyyyyThisServicesAgreement(this“Agreement”)byandbetween
Clickheretoenterclient’sname(“Client”),havinganofficeatClick here to enter location and Consultant Limited(“Consultant”),havinganofficeatClickheretoenterlocation,ismadeeffectiveasofClickheretoenterdate.In consideration of the mutual covenants and conditionscontainedherein,ClientandConsultant (the“Parties”)do
herebymutuallyagreeasfollows:
Article1: Services
Consultant agrees to perform services in the nature ofpreliminaryengineering,projectdesign,technicalservicesandother services (the “Services”) in connectionwith Client’sproject(the“Project”),allasdescribedintheScopeoftheWorkcontainedinExhibit“1"attachedhereto.
ClientshallpromptlyprovideConsultantwithallinformationanddata,includingrelevantbudgetaryinformation,aswellas,allreviewsandapprovalsrequiredbyConsultanttocompletetheServices.ConsultantshallbeentitledtorelyontheaccuracyandcompletenessofallinformationanddataprovidedbyClientorotherconsultantsorcontractorsengagedbyClient.
ClientshallarrangeandmakeprovisionforConsultant’stimelyentryandreadyaccesstotheProjectasrequiredbyConsultanttoperformtheServices.
Article2: Compensation
ClientshallpayConsultantfortheServicesintheamountsandthemannersetforthinExhibit“2”withoutdelay,deductionorset-off.Allamountsnotpaidwithinthirty(30)daysfromthe
dateofinvoiceshallaccrueinterestattherateequivalenttotheprimeinterestratethenquotedbyRoyalBankofCanadaplusoneandonehalfpercent(1.5%)perannum,calculateddailyandcompoundedmonthly,untilpaid.Client shall reimburse Consultant for all reasonable, pre-approvedthirdpartycostsincurredtocarryouttheServices,
includingaccountingandinsuranceservices.
Article3: Estimates
If the Services require Consultant to perform estimates,including Consultant’s estimates of probable costs of theServices,staffingrequirements,scheduling,completiondateand/orconstructioncostsorrequirements,suchestimatesshallbebasedonConsultant’sexperienceandinformationavailable
toConsultantatthetimesuchestimatesaremade.ClientacknowledgesthatassumptionsmustbemadetopreparesuchestimatesandConsultantshallnotbeliablefortheaccuracyofsuchestimates.
Article4: Adjustments
Consultantshallbeentitledtoanadjustmenttotheschedule,
completiondate,priceand/ormaximumcostfortheServicesupontheoccurrenceofanyofthefollowing:(1)theadditionto,modificationofordeletionfromtheServicesbyClient;(2)thediscoveryofanysubsurface,climaticorotherconditionswhich
differfromthoseshowninorreasonablyinferablefromthedataandinformationprovidedbyClienttoConsultantpriortothecommencementoftheServices;(3)amodificationofapplicablelawwhichincreasesthecostofortimerequiredforperforming
theServices;(4)delayorsuspensionof,orinterferencewith,theServicesbyClientorbyanythirdpartyinvolvedintheProject;(5)Client’smodificationtoordelayinprovidingtoConsultantdesign criteria, decisions or other information needed byConsultant; (6) a change in the Services to addressenvironmentaland/orsafetyconcerns(asreferencedinArticle
8)or(7)anyincreaseinConsultant’scosts,orthetimerequiredfor completion of the Services due to any cause beyondConsultant’s reasonable control. Consultant shall promptlycommunicateallchangestotheServicestoClientinwriting.Adjustmentstotheperformancescheduleand/orcompletiondateshallbeforsuchreasonabletime(s)asConsultantmayrecommendafterconsultationwithClient.Adjustmentstothe
priceand/ormaximumcostfortheServicesshallbedeterminedinaccordancewiththefeeschedulecontainedinExhibit2.
Article5: StandardofPractice
ServicesperformedbyConsultantshallbeconducted inamannerconsistentwiththatlevelofcareandskillordinarilyexercisedbymembersoftheengineeringprofessioncurrently
practicinginthesamelocalityundersimilarconditions.Nootherrepresentation,warrantyorguarantee,expressorimplied,ismadeorintendedinthisAgreement,orinanyreport,opinion,documentorotherwise.Consultantshallprovidequalifiedand,whererequired,suitablylicensedpersonneltoperformtheServices.
Article6: IndependentConsultant
ConsultantshallserveasanindependentconsultanttoClientandshallhavecontroloverandberesponsibleforthemeansandmethodsforcompletingtheServices.InrenderingtheServices,Consultantmayatanytimeengagesub-consultant(s)asdeemednecessaryandsubjecttoapprovalbyClient,tocarryouttheServices.
DefectsintheServices
ClientshallitselfandshallinstructitsothercontractorstopromptlynotifyConsultantinwritingofanyobserveddefectordeficiency in theServicesoranynon-conformitywith therequirements of this Agreement and allow Consultant areasonableperiodoftimetoremedysuchdefects,deficiencyornon-conformity.
Article7: EnvironmentalandSafety
Clientshallhavetitleto,ownershipof,legalresponsibilityforandliabilityforanyhazardousortoxicsubstance(including,withoutlimitation,asbestos)presentattheProjectworksite(s),andnot introducedbyConsultantduringprovisionof theServices.ClientshallberesponsiblefortheProject’scompliance
withapplicablesafetyandenvironmentallaws,rules,regulationsandordinances.IfConsultantdeterminesachangeintheServicesisrequiredtoaddressenvironmentaland/orsafetyconcerns,Consultantshall
Impacts of
Poor PM
• Deliverable Quality
• WIP / AR / DSO : Cash Flow
• Project Profit Margin
• Balance Sheet
• Income Statement
• Banking Governance
• Corporate Governance
• Short & Long Term Liabilities
• HR Turnover
• Shareholders ROI
Project
Management
Clients
Projects• Technical Deliverables
Communicate!
• Scope
• Schedule
• Budget
• Quality Objectives