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1-C Negotiate Project Agreements

The document discusses key elements to consider when negotiating project agreements, including statements of work, schedules, pricing, quality requirements, change requests, and dispute resolution. It also covers service level agreements, prioritization techniques, performance reporting metrics, use of expert judgment, negotiation strategies, resource calendars, lessons learned processes, and considerations around go-live blackout times and verifying objectives.

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Gökrem Tekir
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25 views

1-C Negotiate Project Agreements

The document discusses key elements to consider when negotiating project agreements, including statements of work, schedules, pricing, quality requirements, change requests, and dispute resolution. It also covers service level agreements, prioritization techniques, performance reporting metrics, use of expert judgment, negotiation strategies, resource calendars, lessons learned processes, and considerations around go-live blackout times and verifying objectives.

Uploaded by

Gökrem Tekir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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TOPIC C:

NEGOTIATE PROJECT
AGREEMENTS

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Negotiations

• Negotiations are discussions aimed at reaching an agreement.


• Documents might include:
• A statement of work or major deliverables
• A schedule with milestones and dates
• Performance reporting expectations
• Pricing and payment terms
• Inspection, quality requirements, and acceptance criteria
• Warranty and future support
• Incentives or Penalties
• Insurance and Performance Bonds
• Subcontractor approvals
• Terms and Conditions
• Change Request handling
• Termination clauses and Dispute Resolution
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Service Level Agreements

Service Level Agreement (SLA): A contract between a service provider (internal or


external) and the end user that describes the level of service expected from the
service provider.

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Prioritization Techniques to Determine Objectives

Product backlog* An ordered list of user-centric requirements that a team maintains


for a product.

• Prioritization techniques include:


• Kano Model - Basic - Performance - Excitement
• MoSCoW (MSCW) Analysis - (Must - Should - Could - Won’t) have
• Paired Comparison Analysis
• 100 Points Method

These definitions are taken from the Glossary of Project Management Institute, Agile Practice Guide, Project Management Institute Inc., 2017.
25
Performance Report

Project performance metrics might include:


• Percentage of work completed
• Quality and technical performance metrics
• Start and finish of scheduled activities
• Change requests
• Defects
• Actual costs and durations
Work performance data is integrated and contextualized to:
• Generate decisions
• Raise issues, actions, and awareness
Agile projects include:
• Completed and accepted stories
• Product backlog progress
• Comparison of stories delivered and iteration plans
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Expert Judgment

Expert judgment* Judgment provided based upon expertise in an application area,


knowledge area, discipline, industry, etc., as appropriate for the activity being
performed. Such expertise may be provided by any group or person with specialized
education, knowledge, skill, experience, or training.

• For example, people from other areas of the organization, consultants,


stakeholders, and professional and technical associations.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
Institute Inc., 2017. 27
Negotiation Strategy

• Negotiations for the exact parameters of a contract are generally driven by the
procurement manager.

• The project manager and project teams may be engaged as part of the
negotiations.

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Resource Calendars

Resource calendar: Identifies working days, shifts, and when specific


resources are made available to the project.

Lessons Learned

Lessons Learned Register* A project document used to record knowledge gained


during a project so that it can be used in the current project and entered into the
lessons learned repository.

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Go Live Black-Out Times

• Black-Out times occur when the deliverables are handed over for implementation.

• Go Live occurs at the end of the project timeline, and black-out times may be
negotiated in advance based on the overall project schedule and timeline.

• In an Agile approach, there may be numerous releases of aspects of the solution


over the project's timeline, and black-out times (if needed) will be negotiated as the
project approaches a release threshold.

30
Project Agreement Objectives

• An important part of the project agreement is clarity on how the respective parties
will report on and verify that the objectives of the project are met.
• In a traditional project, each deliverable is identified and objective acceptance
criteria for each are identified.
• In an agile project, since the actual deliverables will vary as the product backlog is
added to, reprioritized, and so forth, each story needs to have clearly defined
acceptance criteria approved by the customer. The project may also specify a
Definition of Done for the project, releases, iterations, and user stories.

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