Benefit of employing an independent project manager
Background: A client, an established entrepreneur, has developed a new business initiative and is keen that you provide independent project management services. He has run many projects but recently two of his schemes have been delivered late and overbudget. Last year [20011/2012 financial year April to April] he ran 8 projects ranging between €250,000 and €5,000,000 with a total expenditure of >€30M; he expects that total projects will be similar this year and next year.
(a) Produce a report for the client outlining the benefit of employing an independent project manager. In particular the client seeks advice about:
1. procurement; and
2. standard forms of contract.
i. In particular removing (“sacking”) contractors who perform poorly in terms of:
1. programme [they cause delay];
2. cost [they seek more money];
3. quality [their work is poor quality].
(b) Propose and justify a contractual arrangement between the client and you for your services.
(c) Compare and Contrast the provisions in standard form contracts for payment of the contractor [e.g. payment when complete; or stage/interim etc]