(4, 2) – Impact and implications of performance issues; and programme and project closure

Question 1

What can a project manager do to ensure there aren’t performance issues with a supplier?

Answer 1

• Ensure contract terms are clearly established and responsibilities / liabilities are clear
• Take steps to identify early warning signals of potential problems
• Give suppliers clearly defined performance targets

Question 2

What are consequential losses?

Answer 2

Where the costs not directly associated with an incident aren’t covered by insurance. Property damage claims usually cover the value of the replacement of the property rather than the amount of money loss due to unfulfilled contractual obligations etc.

Question 3

If a supplier fails to deliver on time, what can you do to protect yourself?

Answer 3

Liquidated damages can be used as an estimate of the losses which will be incurred due to late failure.

Question 4

What is a Service Level Agreement and a Service Credit?

Answer 4

SLA – used to specify the precise performance standards required through the contract term
Service Credit – a service credit is pre-agreed which is payable by the supplier in the event a service provision falls below a specified level

Question 5

What is the difference between a ‘Condition’ and a ‘Warranty’?

Answer 5

Condition – the most important terms, fundamentally the reason the contract was placed and breaches are serious. They can result in damages / termination
Warranty – is a lesser term which the injured party cannot terminate for but is entitled to damages.

Question 6

What is Specific Performance?

Answer 6

Where a court decides financial damages aren’t sufficient and the party must carry out the contract to the terms set by the court.

Question 7

What are the different termination clauses which could be used?

Answer 7

Convenience
Frustration – no breach but circumstances prevent the contract being carried out
Force Majeure

Question 8

What would a project manager need to do in the close out stage?

Answer 8

Create a close-out plan with tasks allocated to each individual, for example:
Obtain delivery acceptance from stakeholders
Shut down project team resources
Close off the accounts and settle invoices
Conduct a project audit to evaluate performance

Question 9

What should be done when assessing the performance of the project in the close out stage?

Answer 9

Project deliverables should be assessed by the stakeholders against the specification and any performance measures e.g. KPI’s / SLAs

Question 10

What ways did Meredith and Mantel identify which recommendations from a project audit can help?

Answer 10

1. Identify problems earlier
2. Evaluate the quality of project management
3. Reduce costs
4. Identify mistakes and avoid them in the future

Question 11

What areas will a project audit provide valuable information in?

Answer 11

• Efficiency – was it delivered on budget, to schedule and with the allocated resource
• Stakeholder Impact – are they happy? Has the spec been met?
• Business Success – did the project meet internal business objectives?
• Lessons Learned – what went well? What could have gone better?

Question 12

What 2 types of knowledge might be used to do a project audit?

Answer 12

Explicit knowledge – more formally presented and documented, easily shared
Tactic knowledge – often referred to as know-how, tactic knowledge comes from experience

Question 13

What must a project manager do right before closing the project off?

Answer 13

Identify outstanding risks which will go into business as usual
Communicating lessons learned