How to Minimize the Risk of Delaying Your Project by a Customer

By | March 29th, 2013|Business Management, Project Management, Risk Management|1 Comment

How to minimize risksWhen it comes to project delays there are several factors that can lead to such situation. The customer is one of them and there are two issues that can be discussed: what to do when the delay already happened and the other how to minimize the risk of happening such a delay.

Customer delaying the project is a major risk that should not be overlooked in any project. Minimizing this risk is not easy to be accomplished and its probability differs from client to client. But in case it happens mitigation actions must be performed.

Write clear specifications

In order to keep things clear and avoid misunderstandings it is important to create a solid project plan with clear specifications regarding possible project delays and the measures and penalties that apply. When it happens communicate clear factual evidence of the cost and timescale impact of delays caused by the customer. This is very important to keep things clear and to avoid the situation when the customers may argue that it is his fault and the contractor is suspected for hiding other delays behind those caused directly by them. Issues need to be resolved in a timely fashion to minimize risk and loss on both sides.

When dealing with external clients and when creating a contract it is advisable to add a clause that states that the client is responsible for prompt responses to ensure the project is not delayed. If the client provides delayed responses, actions etc. that lead to project delays then it nullifies timeline clauses in the contract. If the contract doesn’t have this kind of specifications then it is preferred to get a lawyer, or a better one in case a lawyer already exists.

In return when dealing with internal team the project manager has to take the same actions. Although there are no contractual terms that can generate a direct financial penalty, it will get noted at review time and possibly no raise…

Know the customer management

Avoiding the project delay problem is not a healthy thing to do. Escalation might reveal there are issues on the customer side where their project manager is not communicating clearly enough internally. This is why when contracting a new project it is good to know the customer and almost a must to know his management team. Knowing what to expect from them can decide whether to accept the new contract or to reject it. And even if the project is accepted contractual terms can be added to compensate the lack of professionalism on the customer management side. (more…)

What to Do when the Customer is Delaying Your Project

By | February 25th, 2013|Business Management, Project Management Software, Risk Management|1 Comment

customers delaying projectsContrary to the popular belief, the customer is not always right. In fact, sometimes the customer may be the one delaying the project by not giving the approval of a completed phase when required, by not communicating effectively, by missing deadlines for the review of the deliverables – shortly, by being aloof to the project.

Customer’s delay translates into delay of the project, monetary loss, and decrease of the motivation and morale of the project team. Sometimes the customer may be too busy, especially if he or she represents a large organization and yours is just a side project for them. Other times, the customer may not see the implications of his or her attitude or may be just relying on the project manager’s decisions. Regardless of the motivation, customer’s delaying the project is a problem that you, as the project manager, must solve.

Ideally, this situation could have been avoided by accurate project planning. A communication plan, including deadlines to be respected by both sides, and monetary penalties for project delays should have been approved by the customer. More important, since customer’s performance is actually a major project risk, mitigation plans for it should have been included in the risk management plan. However, in small projects, sometimes this documentation or part of it has been overlooked. (more…)