Major Project Contract Strategy Development
An organization undertaking its largest-ever major project lacked the supply chain and contracting process to proceed responsibly. McDaniel+Cullen delivered contract strategy training, facilitated a contract strategy workshop, built a contract quilt, developed RFx documentation, and led a risk management workshop — enabling the client to quantify project risk and present a board-approved contract strategy.
Situation
This organization was preparing for the largest major project in its history but lacked the supply chain processes and contracting capability to proceed responsibly. It needed a contract strategy and an associated risk management approach robust enough to win board approval.
Major projects concentrate enormous cost and risk into a single undertaking, and contracting decisions made early determine how that risk is shared and managed for years. Proceeding without a sound contract strategy could have exposed the company to significant, unquantified risk.
M+C Approach
McDaniel+Cullen trained the client's team on the role of supply chain in major projects and on the contract types available to them. The team facilitated a contract strategy workshop and built a “contract quilt” mapping how the project's scopes would be packaged and contracted.
M+C then assisted with developing the RFx documentation and ran a workshop on contract risk management, helping the client quantify the project's risk in terms the board could evaluate. The engagement also surfaced the organizational capability gaps the company needed to close to execute a project of this scale.
Results
The client was able to quantify project risk for a board presentation, and capability gaps across contracts, supply chain, and risk assessment were clearly identified.
Key Outcomes
- Team trained on supply chain's role in major projects and contract types
- Contract strategy workshop facilitated and a contract quilt built
- RFx documentation developed for the project's scopes
- Contract risk quantified for board presentation
- Capability gaps across contracts, supply chain, and risk identified
Client Feedback
"Our company needed to fully understand how to execute major project problems from a strategic contracting and risk perspective. M+C team did a fantastic job and we plan to follow up with more of their support.