S-062 - Contract Strategy for Development and Projects
Contract Strategy answers the questions ‘How should we package the work?’, ‘ Who can build this for us?’ and ‘How should we manage the contracts’, and is required as part of the feasibility assessment of a project. Therefore the contract strategy should be defined during the latter part of feasibility assessment.
- Create a Work Breakdown Structure for the project as a matrix of asset breakdown versus development activity.
- Set aside core activities to be retained in house.
- Group irreducible activities that would never be split.
- Identify where client has an existing contract that could be used.
- Use themes to create several alternative strategies for the remaining scope.
- Make SWOT assessment of the alternatives and select preferred strategy.
- Make list of contracts and estimate of value of each contract.
- A Work Breakdown Structure matrix
- Core, Irreducible and Existing contracts set aside.
- Alternative strategies and a SWOT analysis
- A list of proposed contracts with value.
A 2 day workshop with the client development team will deliver the result stated.