8 - Impact & Implication of Performance Issues and Programme and Project Closure

Question 1

What are consequential losses and how is this covered in contracts?

Answer 1

Consequential loss is any loss which is not a direct result of the breach complained of. For example the loss of telephone orders because a new telephone system does not work rather than the cost of the telephone system itself. You may be able to claim for such losses if they were a likely result of the breach.
Contracts can specifically ask for this to be covered

Question 2

What express term can you use to protect against the supplier failure to deliver?

Answer 2

Liquidated damages

Question 3

What are the 2 types of contract terms?

Answer 3

Condition – most important, breach is serious, end or continue contract, claim damages
Warranty – lesser term, cannot terminate, seek damages

Question 4

What 3 contractual arrangements can you terminate a contract?

Answer 4

Convenience – anytime, no specific reason
Frustration – neither party at fault
Force Majeure – beyond control of either party

Question 5

What is a project close out plan?

Answer 5

Highlights the activities required to close the project, delivery acceptance from stakeholders, close team and accounts, conduct audit

Question 6

What is the purpose of an audit?

Answer 6

Identify problems and learn, evaluate the quality of the PM, reduce cost, identify mistakes
Highlights – efficiency, stakeholder impact, business success, lessons learnt

Question 7

What are the 2 types of knowledge held within an organisation

Answer 7

Explicit Knowledge – formally documented & easily shared

Tacit Knowledge – personal ‘know-how’, from experience, difficult to formalise, not easily shared