How to write an accurate Scope of Work for a tender
When a Project Manager is ready to go to market to procure their services, they often forget how important it is for their operations to have a clear Scope of Work when requesting for tender. A solid Scope of Work will create a smooth procurement process and will have a major positive impact when managing the contract. It is important to know that the Scope of Work will form part of the agreed conditions of supply. I’ve been a witness of project managers expecting the contract to contain all operational conditions that a poor Scope of Work miss. Be careful with this approach. The contract is a legal binding document, however it needs to be complemented by the Scope of Work.
A strong Scope of Work in conjunction with a well drafted set of tender documents will ensure the success of an engagement. The drafting of a good set of documents can be completed with the support of Procurement. However, the best person to write a quality Scope of Work is the project manager (or end-user). They are the ones who will be receiving the services and know what they need from the supply market. Some key aspects to consider when writing a good Scope of Work are:
Explain the need: Providing the rationale why the services are being requested is essential for the project success and key to the supply market understanding the holistic approach. A clear explanation of the need will also reduce the amount of assumptions made and allow the supply market to provide a more accurately priced solution.
Simple Language: Sometimes the tender documents are drafted in a way that is difficult for the supply market to understand what the exact need is or what the engagement conditions are. Keep the language used as simple as possible and try to avoid using jargon. Simplifying the language is good practice when drafting the Scope of Work. Use short sentences, define all external and internal acronyms and include visuals where possible. Keep in mind that the easier the document is to read, the more accurate the tender response will be. This means that less questions will be raised during the open tender period, less assumptions made in the response and less clarification sessions will be needed when evaluating the tenders.
Define the deliverables: Be clear on what deliverables need to be provided and in what time-frame. This will give a clear idea of the time and resources the supply market will need to invest in order to meet the targets. Examples of typical deliverables are reports, frameworks that tackle a specific area or even specifications of products to be provided. As an end-user, consider that this is the appropriate time to request what is needed from the supply market. Note that if this is done after the contract is signed, it might trigger contract variations that can affect the time and price of the deliverables.
Real need vs ‘nice-to-have’: Define what is necessary for the success of the project and avoid falling into the trap of making ‘nice-to-have’ requirements mandatory. There must be a clear division between what is really needed and has to be supplied versus what would be considered an additional deliverable to improve any outcomes. It is recommended that they are priced separately. The best way to create this separation of needs is by asking the question: ‘Can my project be successful without this specific deliverable?’.
Sanity Checks: After writing the Scope of Work, the drafter would tend to become very familiar with its structure and contents. This familiarity can create the impression to the drafter that the document is clear and understandable for any reader. A good practice is to have the document checked by someone not involved in the drafting. This will ensure the coherence and clarity of the document to be released to the market.
Request your price structure: Project managers have the capacity to request a pricing structure from the supply market that is appropriate to their budgets and operational model. Examples of pricing structures include lump sums, times and materials or payment per milestone, just to name a few. It is important that during the tender period, the management of additional expenses, such as additional meetings or travel expenses, is also considered.
Project managers, as the point of contact for end-users, are in control of what they need to request from the supply market. Procurement is there for them to provide the support they need during the tender period and to obtain the services at the quality requested and at the best price possible. Just remember, project managers should take the lead when drafting the content of the Scope of Work.