Scope creep is one of the biggest loss leaders with exhibit companies. Scope creep occurs because of our natural desire to provide the best service to our clients and designers Scope creep can be controlled by good contract documentation and bid documentation.
Scope Creep occurs In most instances it occurs because of (1) Poor record keeping during estimate or (2) Project manager buys into what a designer is selling without considering bid or contract documentation. This article will be discussing eliminating scope creep through bid and contract management. One of the challenges of bidding a project is the limited time frame and the changing waters through addendum and pre-bid Q and A.
Step 1
Document all of your assumptions and approach on each line item in a bid. Keep this documentation in your spreadsheet. In my spreadsheets I breakdown each component of an exhibit and write a detailed technical narrative. For example an exhibit wall with a background graphic, monitor and speakers.
Bid Breakdown:
AV hardware
Software
Exhibit wall
Graphics
Each of these will be detailed on line. Examples below:
Exhibit wall, Plywood and Medex typical exhibit wall one sided with provision for AC and low voltage boxes. Graphic wall is sanded and filled for application of graphic. Both sides of wall are primed with a water based primer.
Graphic, Graphic wall paper applied over 32 sf of exhibit wall. Raised lettering is to be provided. Lettering is painted satin gold finish. Letters are pinned off the wall .25 inches, letter is .5 inch thick and has a height of 5 inches. Total of 25 letters.
This type of technical detail of scope keeps everyones expectations in check and provides PM with a good understanding and summary of what was bid.
Step 1
Approach an estimate like a contract write a description only for what is documented in the design documents. The written approach should reflect the bid documents provided. Undocumented conversations via phone or email are not valid in a bid or contract. Neither are pre-bid comments that are undocumented. I really do not communicate with anyone unless its official Q and A that is documented.
Project salespeople often inserts themselves into the bid process. Their undocumented assumptions and conversations should not be considered, except in a general project approach.
I like the Joe Friday approach, "Only the facts".
Step 2
Always always always keep the base bid documents seperate until the conclusion of the project. One set of prints in the company must be kept as bid so that scope arguments can be examined in light of what has been presented during the bid phase. During contracting I insist that a detailed copy of the estimate and takeoff be included as an agreed basis of bid. This allows documentation of bid to live in contract and provides a solid base for all parties to refer to.
Step 3
Be a proactive member of your project build team. Your role on the team is arbiter of bid and contract documentation. Help review requests by owner/ designer in view of what has been documented and always assist with change orders.
Finally assist and help project members understand the overall scope. People tend to freak out on line items. An estimators greatest value is often providing a 20,000 foot overview of the project and reminding team members that although they appear short in hours in reality they have over 500 hours to complete whole project of which a line item is a small part. I find it helpful to break this into real time examples for people. For example 500 hours is actually 6.25 weeks for two people. These types of examples often allay peoples concerns and assist them in better understanding the bigger picture.
The other role as a facilitator post bid is looking at big ticket items that have suddenly jumped in price. If a bid needs image rights but is non-specific, I make an assumption in the bid on the cost of image rights. I document this into the writing of the bid. For example 3 images per graphic at a cost of 150 per image. With this documentation you can look for outliers that may be breaking budget. If several images are going over budget and your documentation is linked to contract a change order for additional costs is in order. If however a few images go way over but the amount of images reduces an estimator or PM must look at total cost versus budget. Again most people panic over line items always a bid is viewed with contract documents and overall budget. If it has not been documented it does not exist.
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