How to avoid unrealistic bids through a clear project scope
Posted on 13th July 2018 at 09:29
If you’ve ever heard of scope creep, you know of the importance to state the scope of a project as clearly as possible. Scope creep is defined as adding unauthorised additional functions or requirements within a project with the end result that the project either does not finish on time or within budget (usually both!).
Not defining the scope of your project clearly and precisely can also wreak havoc in the tendering process.
The scope provides guidelines to bidders, so they can provide accurate and complete tender proposals. If details aren’t specified, bidders have to make assumptions that, if wrong, can backfire later on during project delivery. This is an all too common mistake that derails the vast majority of projects undertaken.
What to include in your scope of work
In order to receive complete and accurate bids from potential suppliers you have to provide them with a precise list of requirements and full scope of what you want and need. It is not only important to include your requirements but also if there are any things you don’t want right now but possibly at a later date. The best approach to clarify this is by using the MoSCoW method. The acronym stands for Must have, Should have, Could have and Would like to have.
Make it clear to your potential suppliers which requirements you “Must have”, i.e. what requirements the project would fail without. They also need to know which requirements are important but not vital and bids without them still provide a viable solution for the project; these are the “Should haves”. “Could have” requirements are “nice to have” and will improve the project but are not necessary for its success.
It is useful to include what is not expected (or out of scope) in this particular contract that would normally be expected. As an example, a new software package is to be installed across the business and normally training would be expected, but the company decides to outsource training separately.
You also have to make sure to include any conditions that will be encountered by your potential Suppliers that could have an impact on the project. This could be accessibility of the site, necessary preparations so that work can commence, etc. Describe any possible challenges you are aware of in detail to minimise any surprises further down the lifecycle.
Providing a clear scope will ensure that your bidders can take everything you need into account when preparing their tender bids. You will end up with more precise price calculations as potential suppliers don’t have to make sweeping assumptions if key details are omitted in the project scope. There should be no assumptions made as these are one of the key failure points in project delivery.
How Green Giant Consulting can help
Here at Green Giant, we can help with your whole project management process, from the creation of the invitation to tender to the successful completion of your project.
If you prefer to keep your project management in-house, we also offer a 3-day ILM accredited Practical Project Management training course, which has been developed to focus on real life project management.
Whatever your requirements, we can help. Please get in touch if you have any questions on the subject. You can reach us by phone on 0844 259 6210 or via our Contact Page.
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