SCOPE OF WORK & ESTIMATES

 

As many of you have experienced, it can take a considerable amount of time and effort to develop a Scope of Work (SOW) and man-hour estimate, submit them to LHTAC for review and approval only to revise the SOW and estimate before these documents are acceptable to both parties. This cost you, the Consultant, and LHTAC a lot of time and effort that could be directed to completing the project itself.

There are numerous reasons for the difficulty in developing an acceptable SOW and estimate, but the primary issue may be the lack of understanding the format LHTAC expects. A scope of work for LHTAC’s projects is a narrative description of the work required to accomplish the project in a work breakdown structure (WBS) format. Clearly documenting accepted expectations, the SOW lists the objectives, deliverables, constraints, success criteria for the project, and clarifies responsibilities for all the stakeholders.

Typically, the SOW for LHTAC projects has an embedded WBS. The WBS is used to break the project into separate task and identifies the project tasks. Tasks that are short in duration may not be needed to be listed separately from other task as long as it is well understood where these task are accounted for and they have not been overlooked. For example, the ITD-783 form takes minutes to complete; this task could be combined with “Compile Concept Report” with a description stating the form is included in the time estimated to complete the task. There are two kinds of task in a WBS – summary task and work packages. “Work package” is the generic term used to describe tasks that have definable end results. Summary tasks such as the Concept Report, Preliminary Design, Environmental, Survey, etc. are made up of work packages such as concept narrative, traffic investigation, ITD-757, etc., and when all of the work packages are complete under a particular summary task, that summary task is accomplished. A summary task is not performed but is the accumulation of completed work packages; it is the work packages that are actually being performed. According to Harold Kerzner, Ph.D., author of the book, Project Management: A Systems Approach to Planning, Scheduling, and Controlling, ideal work packages are approximately 80 hours or 2 weeks in duration; however, there will be work packages with shorter durations associated with LHTAC projects.

Under each summary task and work package, there should be a description of that task and effort required to complete the work package. It should be clear enough for a third party reviewing the SOW to be able to estimate the amount of time required to complete each work package. The work package descriptions must be clear enough for LHTAC personnel to understand and clearly distinguish one work package effort from another. This is probably the greatest barrier to creating an acceptable SOW. Do not include summary task or work packages that will not be performed as part of the project. Under assumptions, state what summary task and work packages are not included and reasons why. If there are identical work packages for different summary task, clarify if those work packages will be performed simultaneously.

The WBS format is the single most important element because it provides a common framework from which:

1. Planning can be performed.
2. Cost and budgets can be established.
3. Time, cost, and performance can be tracked.
4. The responsibility assignments for each element can be established.
5. Schedules and status-reporting procedures can be established.
6. LHTAC can quickly evaluate supplemental agreement request.

When there is a mixing of tasks, use of vague language, a wide variation in how to describe details of the work, or an apparent lack of pattern, structure, or chronological order, the SOW becomes confusing and introduces many misunderstandings. LHTAC cannot accurately estimate the cost of the design if we do not fully understand what is being proposed. We have no other choice than to return the SOW for revision. Nothing should be taken for granted when developing a SOW. At LHTAC, we have different specialties and may not be as familiar with certain aspects of a project as we are with other tasks.

We understand developing a SOW is charged to overhead, but a well-written, well thought out SOW is the foundation for a successful project and that is what we all want for the Sponsor. Time utilized on SOW development is a long-term investment in the project and will payoff long before the project is completed.

To view an example SOW and Estimate, click on the link below.

Sample SOW & Estimate