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The Right People for the Project
By Marsha Lindquist
Have you ever wondered if the people you choose to work on your clients projects are the right ones for the job? Too often we see project managers dive into a project without reviewing the qualifications of the people they choose. Even worse, sometimes they begin work on a project without the approval of the client, even when it is required.
This is the scenario. You’ve just won a contract and your new client wants you to start work right away. Great, you think! There are just a few hitches that your contracts/legal person says that you need to know before you start. The contract stipulates that you will get written approval for all personnel or perhaps just the key individuals. This may be because there are very specific requirements/ qualifications that must be met or there are security clearance or conflict of interest gates they need to pass.
Starting Without Written Approval
If you don’t have a requirement to have your workers approved for either of the reasons mentioned above, by all means start work! If you do have a requirement, then commencing work without the required approval has some pitfalls.
1. The revenue you generate from the work could be completely disallowed or not be billable to your client.
2. Your reputation is at stake. By beginning work without necessary approvals you show lack of knowledge of your contract. You look like a novice and your client has just taken advantage of your unawareness.
3. Written approval is not the nod of head or a verbal “go ahead” from your technical point of contact. Written is just that, in writing. Nothing replaces that written form of communication when approval is required.
What Should I Do?
If the requirements of the agreement say your people must meet certain criteria for being billed at a certain labor category, make sure they do. If it requires an approval, get it! And get it in writing. Accept only a written response to your request. Don’t get seduced into beginning work until you have the approval. No amount of coaxing by a client to begin, “don’t worry”, or “we’re sure” a person will be approved should get you to begin employing that person on the job until the approval is granted.
If there is a requirement to obtain a security clearance or waiver for a conflict of interest before a person initiates work, do it! And, be sure to make that request in writing with the required paperwork. Again, don’t be enticed into having this person launch into the project without obtaining the approval. Odds are they won’t be allowed to anyway.
What Can Happen?
In the event you have mistakenly assigned a person to a labor category that doesn’t match their qualifications (even if approval is not required), several things can happen.
1. The revenue you billed may become entirely disallowed. You’d have to return the money to the client.
2. The revenue may be reduced to the correct amount. In this case, you would be overstating your financial position and you’ll have to give some of the money back.
3. If you compete for Government contracts, you could be barred or suspended from bidding and obtaining further contracts. It can mean an end to this business segment.
4. Your reputation is marked – not in a positive way either. Your company is now suspected of cheating. No more needs to be said about this.
Obtaining necessary approvals is not difficult but it seems to be unimportant when we are lured by the new contract. Sure. It means more business and has a positive impact on your company. Who wouldn’t want to start right away? Just be certain to get the approvals you are required to – in writing. If approvals are not required, just be sure you know what your exposure is and minimize your financial and business risk.
About the Author
Marsha Lindquist, CEO of The Management Link, Inc., has over 30 years experience as a business expert in Government contracting She has enhanced her clients’ cost competitiveness, improved their contractual positioning, and solidified overall strategies with companies including BP Amoco, DynCorp, and Northrop Grumman. Marsha adds value by telling you what you need to hear. For more information on her, please visit: www.TheManagementLink.com or email her: Marsha@TheManagementLink.com .
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