Why do they send an invitation to tender, what is it and who uses it? We will answer those questions below. We’ll also outline what goes into a thorough invitation to tender and then illustrate the process with an example to make it clear.

What Is an Invitation to Tender?

Let’s start with a definition. An invitation to tender is a formal document issued by a company or organization to invite suppliers, contractors or service providers to submit a bid or proposal for the supply of specific goods, services or work. It’s typically used in procurement processes, especially for large or complex projects that require competitive bidding.

The reason to use an invitation to tender is that it ensures transparency and fairness in supplier selection. It also encourages competitive pricing and innovation. The process also helps to identify the most capable and cost-effective vendors. In short, this is a critical part of a structured procurement process, designed to solicit competitive and compliant offers from qualified vendors.

An invitation to tender also plays a significant role in shaping a project’s Gantt chart by defining key milestones, timelines and tasks crucial to the project’s success. When using a Gantt chart featured in project management software, the scope, deliverables and milestones outlined in the invitation to tender become a visual and dynamic tool for managing a project’s flow.

ProjectManager is award-winning project and portfolio management software with robust Gantt charts that create clear timelines and deadlines, define key milestones, scope and deliverables with risk and budget management features. Use these Gantt charts to schedule tasks, resources and costs. Plus, link all four types of task dependencies to avoid cost overruns and filter for the critical path. Get started with ProjectManager for free.

When Is an Invitation to Tender Typically Used?

An invitation to tender is commonly employed when a project requires formal proposals and competitive bidding to ensure transparency, value for money and quality. They’re typically used in industries and situations where multiple suppliers or contractors can meet the project’s requirements and the best option needs to be selected based on price, quality and capability. Below are several key areas where it is used.

• Construction Projects: Invitation to tender are frequently used in the construction industry to invite contractors to bid on building or renovation projects. These tenders help organizations select the most suitable company based on cost estimates, experience and the ability to meet deadlines and specifications.
• Government Procurement: Government agencies use an invitation to tender to ensure that public funds are spent efficiently and transparently. By inviting multiple suppliers or service providers to bid on government contracts, the process ensures fairness and accountability in procuring goods and services for the public sector.
• Infrastructure Development: Large-scale infrastructure projects such as roads, bridges or energy facilities often require an ITT to ensure contractors or vendors are selected properly. The complexity and scale of these projects make it essential to select capable suppliers who can meet the technical and safety standards required.
• IT Systems or Consultancy Services: When organizations require specialized IT systems or consultancy services, an invitation to tender is issued to invite firms to submit proposals. It typically outlines the scope of the service, technical specifications and project timelines, ensuring that only qualified professionals or firms are considered for the job.

What Should Be Included In an Invitation to Tender?

An invitation to tender must be thorough, clear and structured to ensure all potential bidders have the information needed to submit accurate and competitive proposals. A well-prepared one sets the foundation for a successful procurement process by reducing misunderstandings, ensuring compliance and attracting qualified bidders. Below are the key components that should be included.

Introduction and Background

This section provides an overview of the issuing organization and the context of the tender. It explains the project’s purpose, the business need behind it and any relevant background information that helps bidders understand the bigger picture.

Scope of Work

The scope of work outlines the specific tasks, deliverables and expectations associated with the project. It should be detailed and clearly define what the supplier is responsible for, including any performance standards, milestones or technical requirements.

Instructions to Bidders

This part of the invitation to tender offers detailed guidance on how to submit a tender. It includes the submission process, formatting requirements, deadlines, contact information for queries and any protocols for site visits or clarification meetings.

Evaluation Criteria

This section explains how the submitted tenders will be assessed. It usually outlines the weightings for cost, quality, experience, methodology and other relevant factors, helping bidders understand how their proposals will be scored and selected.

Legal and Commercial Terms

Here, the ITT should define contractual conditions such as payment terms, liabilities, warranties, confidentiality agreements and compliance with laws or standards. This ensures that all bidders agree to the same legal framework.

Required Documentation

This lists all forms, certificates and supporting documents that must accompany the bid. These could include financial statements, case studies, insurance policies, licenses or references, depending on the nature of the project.

Tender Timeline

The timeline should include all critical dates in the tendering process, including the release of the invitation to tender, deadline for questions, submission due date, evaluation period and announcement of the selected bidder. This helps all parties plan accordingly and ensures transparency throughout the process.

Invitation Tender vs. Request for Proposal

An invitation to tender and a request for proposal are both formal procurement documents used to solicit bids from external vendors or contractors, but they serve different purposes and are used in different project scenarios. Understanding the distinction between the two helps organizations choose the right method based on the project’s complexity, the clarity of requirements and the level of vendor input needed.

An invitation to tender is typically used when the project requirements are clearly defined and the organization knows exactly what it wants to procure. The focus is on price and compliance, with minimal need for innovation or input from the supplier. They are more rigid and are common in government, construction and infrastructure projects.

A request for proposal is used when the project scope is more complex or open-ended, and the organization seeks vendor expertise to define the best approach. It invites suppliers to propose creative solutions or methodologies to meet an overall goal, allowing for more flexibility and collaboration. This is best for projects requiring strategy, design, technology or custom services. They also tend to be more technical and not focused on price alone.

Invitation to Tender Example

This invitation to tender (ITT) example provides a structured format for soliciting bids from contractors for a residential construction project. It outlines the project background, scope of work, submission requirements, evaluation criteria and key contractual details.

This sample serves as a practical reference for organizations looking to issue a clear and professional ITT document in construction or similar industries. You can download this ITT sample by clicking the image below.

Related Project Management Templates

Some templates can help with the invitation to tender process. Below are three of them from the over 100 free project management templates for Excel and Word that can be downloaded immediately from our site. They cover all aspects of managing a project.

Request for Information Template

Download this free request for information template for Word to collect general information from potential vendors, suppliers or service providers before launching a formal procurement process. It helps project managers, procurement teams or decision-makers understand the market, evaluate capabilities and identify possible solutions to meet their business needs.

Request for Proposal Template

Use this free request for proposal template for Word to solicit detailed proposals from potential vendors or service providers for a specific project, product or service. It outlines the project requirements, evaluation criteria and submission guidelines to ensure consistency in vendor responses and facilitate informed decision-making.

Request for Quote Template

A request for quote is a formal document organizations use to solicit price quotations from suppliers or vendors for specific products, services or work. Unlike a request for proposal, which asks for detailed solutions, this free request for quote template for Word primarily focuses on costs, delivery terms and availability.

How ProjectManager Helps Manage Projects

Procurement is part of the larger project management process. Templates are helpful as relationships are created with vendors and suppliers. But once those services are contracted and the project is being planned, executed and tracked, templates won’t cut it. These static documents aren’t intended for that dynamic process.

Project management software, on the other hand, is designed to deliver projects successfully. ProjectManager is award-winning project and portfolio management software with multiple project views that allow teams to use the tools that are right for them, be that Gantt charts, task lists, kanban boards or calendar views.

Keep Teams Productive With Robust Resource Features

Procurement requires efficient resource management to get the most out of what you have. That includes the proper scheduling with Gantt charts, but also knowing the availability, skill sets and pay rates of the team, which is set when onboarding. This leads to more efficient resource allocation. To ensure that resources are balanced, a color-coded workload page makes it easy to see who is overallocated or underutilized.

Balance the team’s workload without leaving the chart to keep everyone working at capacity without burning them out. The team page is a valuable tool to view the daily or weekly activity of the team. It can be filtered by progress or priority, and tasks can be updated right from that page when changes are made. Plus, free guest licenses keep vendors, suppliers and contractors in the loop.

Track Projects With Real-Time Dashboards and Reports

The ability to manage project teams and the various suppliers, vendors and contractors involves powerful tracking tools. The summary dashboard can be viewed by project managers, teams and others (with free guest licenses) to get an overview and keep everyone updated in one place. It features team summary, breakdown, project pulse and workstream to stay current on comments.

A project or portfolio dashboard tracks time, cost, workload and more on easy-to-read graphs and charts and customizable reports zero in on key metrics such as status, variance, workload, timesheets and more. They can also be filtered and shared with stakeholders to keep them updated on progress. Secure timesheets help with tracking labor costs to avoid overspending on the budget.

Related Project Management Content

There’s more to project management than an invitation to tender, though that’s an important part of the procurement process. For readers who want to learn more about how procurement fits into the larger project management process, below are some recent blogs.

• Construction Bidding Basics: Mastering Construction Bids
• Contract Bidding Process: A Quick Guide
• 16 Bid Proposal Templates for Word and Excel
• How to Write a Bid Proposal (Templates Included)

ProjectManager is award-winning project and portfolio management software that connects teams whether they’re in the office or out in the field. They can share files, comment at the task level and stay updated with email and in-app notifications. Join teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.

The post What Is an Invitation to Tender in Project Management? appeared first on ProjectManager.

So, how can changes be used to your advantage in project management? We create a system to guide these changes. This system prevents confusion and disorganization which can sink and operate, and it all begins with a change request.

What Is a Change Request?

Change requests act as these formal documents and are a core component of a change management plan. These documents outline modifications to some aspect of the project or organization — usually at a high level, such as a project deliverable or organizational operations.

The requests for change can come from within or outside the organization, and while requested changes can vary wildly, the process for creating them is the same. This continuity simplifies the process of creating, submitting, monitoring and approving (or denying) them.

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Change Request Form

Use this free Change Request Template for Word to manage your projects better.

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What Is the Purpose of a Change Form?

In any project or organization, there is the potential that processes or tasks will need to be changed. Change requests exist to officially document details about those aspects that need to be altered. Their purpose is to request a modification and control this change.

These modifications can be necessary when high-level goals and objectives and/or project deliverables change or are added on to. For example, a client may want to change the deliverables of a project, a company may want to expand its mission, an organization may want to improve communication or internal operations. The list goes on. Regardless of what the change is, change requests document the proposed modification.

These formal requests list all pertinent information and are then passed along to an individual stakeholder (or a board or comity of individuals) for approval. Change requests summarize everything they need to know and simplify how the change management process will progress.

Project management software makes it easier to manage change for your projects and wider organization. With ProjectManager, incorporate change into your project schedules with robust Gantt charts with dependencies, baseline tracking and version control. Leverage built-in risk management features and collaborate on tasks online with your team in List or Board views. It’s software designed specifically with project management in mind. Try ProjectManager today for free.

What Should Be Included in a Change Request Form?

No matter the kind of request for change is made, there are a few bases you should be sure to cover. Start with these core components and build out the rest of your change requests around them.

• Request Title: A brief, descriptive title that summarizes the nature of the change being requested.
• Request Number / ID: A unique identifier assigned to the change request for tracking and reference.
• Date of Request: The date on which the change request is formally submitted.
• Requestor Information: The name, role and contact details of the person initiating the change request.
• Description of Change: A detailed explanation of the proposed change, including what is being changed and why.
• Reason for Change: A justification for the change, explaining the problem, opportunity or requirement prompting it.
• Impact Analysis: An evaluation of how the change will affect the project’s scope, schedule, budget, resources and quality.
• Resource Requirements: A summary of additional personnel, tools, time or budget needed to implement the change.
• Potential Risks: Any known risks or uncertainties that could arise as a result of implementing the change.
• Proposed Solution or Alternative: The recommended approach to implement the change, including any alternative options.
• Affected Documents/Deliverables: A list of project documents, components or deliverables that will be impacted by the change.
• Priority Level: The urgency or importance of the change, typically categorized as low, medium or high.
• Approval Section: A space for reviewers or decision-makers to record their names, roles and signatures as part of the approval process.
• Decision: The final determination (e.g., approved, rejected, deferred) regarding the change request.
• Implementation Plan: A high-level plan describing how the change will be executed, including steps, timeline and responsibilities.
• Comments: An optional section for additional notes, clarifications, or supporting information related to the change.

Depending on the type of change or the organization or project, you may wish to include additional details. This is completely fine, but you’ll want to keep these additional sections short and sweet and be sure the format of each request is as consistent as possible.

Change Request Form Example

To better understand what a change request is, here is an example. The section below outlines the essential details of the change request, including who submitted it, when and what the change entails. In the example, the request is to add e-commerce functionality to a website redesign project, with a high priority due to shifting business goals.

Here, the broader implications of the change are evaluated, such as the effect on project scope, budget, resources, risks and schedule. The proposed change adds complexity, requires additional staff and time, and shifts the deadline by several weeks—factors critical to project planning.

The final section captures the official decision regarding the change, with space for comments and approval signatures. In the example, the change is accepted with a note on privacy considerations and the necessary stakeholders sign off to authorize implementation.

Change Request Form Template

Get started making change requests at your organization with this template. Our free change request form template for Word will help you describe the change, evaluate the impact of the change, establish a sign-off process and more. It’s the ideal way to integrate change management into your projects and business. Download yours today.

What Is Change Request Management?

Change request management is the structured process of identifying, evaluating and implementing changes within a project or organization. It ensures that any proposed modifications—whether to scope, schedule, budget, resources or deliverables—are carefully reviewed and approved before execution. The goal is to maintain project control and alignment with objectives while minimizing disruptions and risks.

This process typically involves submitting a formal change request, conducting impact assessments, involving key stakeholders and documenting decisions. Change request management is essential in dynamic project environments where new information, shifting priorities, or unforeseen issues can necessitate adjustments. By following a standardized approach, teams can make informed decisions, ensure transparency and maintain accountability throughout the project lifecycle.

Free Related Change Management Templates

The change request form is only one of over 100 free project management templates for Excel and Word that cover all aspects of managing projects across multiple industries. Here are just a few that relate to change management.

Change Management Plan Template

Download this free change management plan template for Word to guide organizations through the process of managing change effectively. It outlines how changes—whether organizational, technical, procedural or strategic—will be identified, assessed, approved, implemented and monitored. This template provides a standardized format to ensure consistency, clarity and alignment across all change initiatives.

Change Impact Assessment Template

Use this free change impact assessment template for Excel to evaluate how a proposed change will affect various aspects of a project, process, organization or system. It helps decision-makers understand the scope and implications of a change before implementation, enabling better planning, risk mitigation and communication with stakeholders.

Change Log Template

This free change log template for Excel is used to track and manage changes throughout the lifecycle of a project. It provides a centralized record of all requested, approved, deferred or rejected changes, including essential details like the nature of the change, when it was made, who initiated it and its impact on project scope, schedule and cost.

Types of Change Requests

Change requests can be sorted into different categories, depending on the objective of the change. Here are the four key types of change requests to be aware of. Each of these four can apply to both projects and organizations as a whole.

• Normal Change: A normal change request addresses a significant alteration to operations, existing systems, infrastructure, etc. This type isn’t uncommon, but it does imply substantial, far-reaching changes need to be made. And, as you can imagine, normal change requests often result in additional ones.
• Standard Change: A standard change request proposes a low-risk change that occurs often. As we’ve discussed, many changes are perfectly natural over the course of a project or in an organization. These changes can be thought of as evolution. They are proposals outlining what needs to be modified, but the modification itself will follow a preexisting system.
• Major Change: A major change request proposes a significant change that will require substantial financing. Major changes pose a high risk, but they can also reap high rewards. These changes don’t occur often, and if they’re handled poorly, they can do serious damage. That being said, they’re necessary to make extreme modifications.
• Emergency Change: An emergency change request is a high-priority proposal for immediate change. This type is generally the result of a mistake or something not going as planned and can be used to prevent these unexpected circumstances from wreaking havoc.

How to Establish a Change Request Process

It’s important to have a concrete system of processing requests in place. This creates a set of steps anyone can follow and cuts down on errors. This will look different depending on the industry, organization or project, but there are some universal points they need to hit. Here are a few to focus on:

1. Create a Change Request Form for Your Organization

Change requests can impact many aspects of a project plan or even the entire organization. But, no matter what kind of requests are submitted, they should all contain the same components and answer the same questions. For this reason it is highly advisable to use a change request form for any change requests that might be required throughout the organization. This consistency in formatting makes for better records and more thorough reporting.

Because consistency is so important, many organizations choose to use templates when creating one. These templates make it simple to find the information you’re looking for because you’re already familiar with the formatting. A template also ensures no details are left out.

2. Assemble a Change Control Board

Assembling a Change Control Board (CCB) involves selecting a group of stakeholders who are responsible for reviewing, evaluating, approving or rejecting change requests in a structured and consistent way. A well-formed CCB ensures that proposed changes align with project goals, stakeholder interests and organizational priorities.

Typically, the change control board includes the following.

• Project Manager: Chairs the board, facilitates discussions and ensures the change process aligns with project goals and timelines.
• Project Sponsor or Executive Stakeholder: Provides strategic oversight and ensures changes align with business objectives and funding constraints.
• Product Owner or Client Representative: Represents the end-user perspective and assesses how changes impact functionality, value and usability.
• Functional Leads or Department Heads: Offer input on how proposed changes affect operations, staffing and departmental responsibilities.
• Quality Assurance Lead: Evaluates changes for their impact on deliverable quality, testing protocols and compliance.
• Risk Manager: Analyzes potential risks introduced by the change and recommends mitigation strategies.
• Technical Lead or Systems Architect: Assesses feasibility, resource implications and technical impact of the proposed change.
• Change Manager (if applicable): Oversees the change process and ensures adherence to organizational change management frameworks.

3. Establish a Chain of Communication Between Requestors and the Change Control Board

Submitting a request to the change control board is not the end of the process. In fact, submitting often only starts a longer conversation. Regardless of whether a change request is approved or denied, there will likely be some back and forth between the person submitting the request and the person responsible for reviewing it.

Because change requests do often start these conversations, it’s important to establish exactly how these “edits” will be discussed or questions will be asked. Each party must know who to speak to and how to voice their questions, concerns, criticism, etc. When there is a set communication plan in place, this cuts down on conflict and improves efficiency.

4. Create a Change Log to Register Change Requests

This step involves documenting all submitted change requests in a centralized change log. The change log acts as an official record that tracks each request from submission through resolution. It captures key details such as the request ID, date submitted, description, requestor name, status, priority and decision outcome.

Maintaining a change log ensures transparency, accountability, and traceability throughout the change management process. It helps project managers and stakeholders monitor progress, avoid duplication and evaluate the overall impact of changes on scope, budget, timeline and resources. An up-to-date change log is essential for successful project governance and communication.

5. Assess the Potential Impact of Change Requests

Before approving a change request, it’s essential to evaluate how the proposed change will affect various aspects of the project. A structured impact assessment helps project teams make informed decisions, avoid unintended consequences and maintain alignment with project goals. Below are the core areas to assess.

• Scope: Determine whether the change expands or reduces the project’s deliverables or objectives. Will new tasks be added? Are existing requirements being modified?
• Schedule: Evaluate how the change will affect the timeline. Will it delay milestones or the final delivery date? Does it compress time for other tasks?
• Cost: Assess the financial implications. Will additional funding be needed? Are there potential cost savings or increases?
• Quality: Consider how the change may impact the quality of deliverables. Will it compromise standards, or does it aim to improve outcomes?
• Resources: Analyze whether the change requires more personnel, equipment, or materials. Is current capacity sufficient, or are additional resources needed?
• Risks: Identify new risks introduced by the change and determine how they affect the project’s overall risk profile. Are mitigation strategies required?

6. Approve, Deny or Defer the Change Request

When evaluating a change request, there are typically three decisions a change control board (CCB) or project decision-makers can make.

• Approve: If the change request aligns with project goals, provides value and has acceptable impacts on scope, schedule, cost and resources, it should be approved. Approval indicates that the change will be implemented according to the proposed plan and reflected in updated project documentation.
• Deny: A change request is denied if it introduces unacceptable risks, costs or misalignment with project objectives. This decision halts further consideration unless the request is revised and resubmitted.
• Defer: Deferring a change request means postponing the decision. This often happens when more information is needed or when the project isn’t at the right phase to accommodate the change.

7. Implement the Change Request

When approved, it’s time to execute the resulting changes. This usually falls to many different individuals and can even involve different departments. Perhaps the most important part of establishing a change management process is deciding what will happen after a request is approved.

Although the changes being approved can vary widely, the steps after approval should look the same. This includes holding a meeting and completing necessary forms such as a change order. The key is having a system in place to take approved requests from documents and turn them into reality.

8. Conduct a Post-Implementation Review After Executing Change Request

A post-implementation review (PIR) after executing a change request assesses whether the change met its objectives, its impact on the project and lessons learned. For instance, in a project where a new user feedback feature was integrated into a website, the PIR evaluates whether the feature improved user engagement and provided valuable insights. Feedback from stakeholders, including product owners and support teams, confirmed the success of the change.

The review also looks at the impact across various areas like scope, schedule, cost, quality, resources and risk, all of which were successfully managed. Key lessons learned include the importance of early stakeholder input and the smooth collaboration between teams. Recommendations for the future might include continued monitoring of user engagement trends and exploring additional interactive features for the site. This review ensures that the change request was not only successfully executed but also provides valuable insights for continuous improvement.

How ProjectManager Helps Manage Changes in Your Project

When creating and submitting change requests, it’s important to have the proper documentation tools. Throughout the course of a project, you will need to organize and store an array of documents so that everything is easy for anyone to find and nothing is lost. ProjectManager allows you to upload all the documents you need to your project, with unlimited file space.

And if you need to point out a specific detail on a change request, simply leave a comment in the document and tag the team member(s) you want to show. This eliminates the need to email PDFs. back and forth and puts all your correspondences in one space.

Keeping all of your change requests in one location also makes it easy to execute the changes themselves. Because these requests live in the same space as your project plan, schedule, dashboard, task management tools and more, you can make adjustments with only a few clicks and get to work immediately.

Related Change Management Content

• Free Change Management Templates for Excel and Word
• How to Make a Change Management Plan (Example & Template Included)
• Change Request: How to Submit, Manage and Execute

ProjectManager is a cloud-based software that manages changes to your project with features that guide you through every step. Identify what needs to change, plan the change and then track its progress all with the same tool. Assume total control of project changes by trying ProjectManager for free today.

The post Change Request: How to Submit, Manage and Execute appeared first on ProjectManager.

To understand procurement, one must first understand what a tender document is, who uses it and what should be included to ensure that everything goes smoothly. To put that in context, we’ll also show how it’s done in a real-life scenario.

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Tender Document Example

Use this free Tender Document Example for Word to manage your projects better.

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What Is a Tender Document?

A tender document is several formal documents used in procurement to invite bids from contractors, suppliers or service providers for a specific project or service. Organizations issue tender documents when they need to source goods, services or construction work, often for large-scale projects. It provides all the necessary information bidders need to prepare and submit competitive proposals.

A tender document is important because it ensures a transparent, competitive and fair selection process. What it does is outline the project requirements, terms and conditions, which helps potential bidders understand what’s expected. This process allows organizations to evaluate bids objectively and select the most suitable contractor based on criteria like cost, quality and timeline.

The tender document also acts as a foundational reference for the creation of the project schedule. That’s because it helps outline the project scope, timeline, deliverables and key milestones that will be visualized on a Gantt chart, a critical tool used in construction project management software.

ProjectManager is award-winning project and portfolio construction management software with robust Gantt charts that schedule resources, costs, tasks and more. But our tool goes further, linking all four types of task dependencies to avoid cost overruns, filters for the critical path to identify essential tasks and slack, plus can set a baseline to track progress in real time. Get started with ProjectManager today for free.

Who Requests a Tender Document?

A tender document is typically requested by an organization or entity seeking to procure goods, services or construction work through a competitive bidding process. The entity requesting the tender document is often called the client, project owner or employer. Here are some examples.

• Government Agencies and Public Sector Organizations: Government bodies often request tender documents for large-scale infrastructure projects, public works or service contracts. Public sector tenders follow strict procurement regulations to ensure transparency and fairness.
• Private Companies and Corporations: Private businesses may issue tenders when they need external vendors or contractors for specialized projects such as construction, IT system development or facility management.
• Construction Firms and Developers: Real estate developers or construction companies may request tenders for subcontractors, materials suppliers or consultants for large building projects.
• Nonprofit Organizations and NGOs: Nonprofits may request tender documents when seeking suppliers or service providers for humanitarian aid, community development programs or research initiatives.
• Utilities and Infrastructure Companies: Energy companies, telecommunications providers or transportation authorities often issue tenders for large projects like power plants, communication networks or roads.

Any organization needing external expertise, services or materials to complete a project may request a tender document to find the most suitable vendor through a transparent and competitive bidding process.

Who Submits a Tender Document?

A tender document is submitted by companies, contractors or service providers interested in winning a contract for a project or providing goods and services. These entities respond to the invitation to tender (ITT) the client or project owner issued. The following is a list of those entities.

• Construction Contractors and Subcontractors: In construction projects, general contractors or specialized subcontractors submit tender documents to bid for contracts related to building, civil engineering or infrastructure projects.
• Suppliers and Vendors: Companies that provide raw materials, equipment or other resources often submit tenders to fulfill supply contracts.
• Consulting Firms: Management consultants, engineering consultants and IT service providers submit tender proposals for projects requiring their expertise.
• Service Providers: Organizations offering services like maintenance, logistics, transportation or facility management submit tender documents in response to service-based contracts.
• Design and Architecture Firms: For design-build projects or urban development, architects and design firms often participate in the tendering process to provide their creative solutions.
• Joint Ventures: For large-scale projects, multiple companies may form a joint venture and submit a collaborative tender document to pool resources and expertise.
• Freelancers or Small Businesses: In some cases, independent contractors or small business owners may submit tenders for smaller projects or specialized tasks.

All qualified entities that meet the requirements outlined in the tender invitation can submit a tender document, competing to secure the contract by proposing the most competitive and capable offer.

Tender Document Example

As promised, we’re taking the facts we’ve defined above about a tender document and showing how they work in a real-life scenario. In our example, we’re looking at a commercial construction project.

As seen in the above tender document example, the project is named, the scope is defined and the instructions are outlined for bidders to follow. Submission requirements are detailed, including the method. The evaluation criteria are also defined, as well as terms and conditions. All this provides a roadmap for bidders to submit and the construction company to choose the one that best fits their needs.

What Should Be Included in a Tender Document?

A well-structured tender document provides clear and detailed information to potential bidders to ensure that they understand the project’s requirements and can submit competitive, compliant proposals. It serves as a formal guide for the bidding process, outlining expectations, evaluation criteria and contractual terms. It should include the following components.

Invitation to Tender

An invitation to tender is a formal announcement inviting qualified companies or individuals to submit bids for the project. It typically includes a brief project summary, deadlines and instructions for accessing additional information.

Project Overview & Background

This section provides context about the project, including its purpose, objectives and any relevant background information. It helps bidders understand the project’s significance and key goals.

Scope of Work

A scope of work is a detailed description of the tasks, deliverables and responsibilities required for the project. It outlines the expected outcomes and the standards bidders must meet.

Submission Requirements

Clear guidelines on what bidders need to include in their proposals, such as financial information, experience, technical capabilities and proposed timelines.

Submission Method

Instructions on how and where to submit the tender, including formats, deadlines and whether the submission should be physical, digital or through an online portal.

Eligibility Criteria

Eligibility criteria define the qualifications and experience required for bidders to participate, ensuring only capable and relevant companies submit proposals. This may include licenses, certifications or financial stability.

Evaluation Criteria

Outlines how proposals will be assessed, often using factors such as cost, technical capability, experience and proposed timelines. This ensures transparency and fairness in the selection process.

Payment Terms

Payment terms offer details on how and when payments will be made, including milestones, payment schedules and any penalties or incentives tied to performance.

Contract Terms and Conditions

The legal framework governing the project includes responsibilities, dispute resolution mechanisms, confidentiality agreements and other contractual obligations. Bidders are expected to review and agree to these terms when submitting their proposals.

Related Construction Project Management Templates

Several free templates can help with the procurement process. These are just a few of the over 100 free project management templates for Excel and Word that can be downloaded from our site. Some templates serve all aspects of managing a project across multiple industries. Here are the ones to help when using a tender document.

Request for Quote (RFQ) Template

Download this free request for quote (RFQ) template for Word to solicit price quotes from suppliers, vendors or service providers for specific goods or services. It provides a clear framework for requesting detailed pricing information, helping businesses compare offers and select the most cost-effective option.

Request for Information (RFI) Template

Use this free request for information (RFI) template for Word to gather information from potential vendors, suppliers or service providers. Unlike a Request for Quote (RFQ), an RFI is primarily used in the early stages of procurement or project planning to gain insights about available solutions, industry capabilities and vendor qualifications.

Bid Proposal Template

This free bid proposal template for Word can be used by contractors, vendors or service providers to submit formal offers in response to project opportunities. It outlines the bidder’s approach, qualifications, pricing and other relevant details, demonstrating why they are the best choice for the project.

How to Manage Construction Projects With ProjectManager

Templates can be helpful during procurement, but they’re not ideal. These are standalone documents and any information discerned in the process of creating a tender document, for example, will have to be moved into project management software. That’s because static documents are a poor choice for managing dynamic projects.

ProjectManager is award-winning project and portfolio construction project management software with multiple project views that let everyone on the construction crew work how they want. General contractors can schedule work on Gantt charts, teams can execute their tasks on kanban boards or task lists and stakeholders can stay updated on progress with the calendar view.

Track Resources and Keep Everyone Productive

The resources contracted with the tender document can be scheduled on the Gantt chart. Then, for the human resources, set their availability when onboarding. This includes everything from PTO, vacation and global holidays to skill sets and pay rates. To view resource allocation across all projects, use the workload chart. It’s color-coded to make it easy to see who is overallocated or underutilized.

The team’s workload can be balanced without leaving the chart to keep everyone working at capacity without threatening burnout. There’s a team page that shows their activity on a daily or weekly basis. It can be filtered by progress or priority and tasks can be updated from that page.

Monitor KPIs With Real-time Construction Dashboards

To get a high-level overview of project resources and other metrics, toggle to the real-time project or portfolio dashboards. The easy-to-read graphs and charts help track everything from time to cost, workload and more.

For more information, use customizable reports on status, variance, timesheets, workload and more. Filter the reports to focus on key data points or share more general information with stakeholders and keep them up-to-date. Even our secure timesheets help by keeping managers updated on labor costs to help stay on budget.

Related Construction Project Management Content

A tender document is only a small part of construction project management. For those interested in learning more about this industry, we have listed below links to a handful of recently published articles on the subject, from bidding to how to write a proposal.

• Construction Bidding Basics: Mastering Construction Bids
• Contract Bidding Process: A Quick Guide
• RFP: A Quick Guide to Request for Proposals
• Creating a Request for Quote (RFQ) for Procurement
• How to Write a Bid Proposal (Templates Included)

ProjectManager is online project and portfolio management software that connects teams whether they’re in the office or at the job site. Teams can share files, comment at the task level and stay updated with email and in-app notifications. Join teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free

The post Tender Document in Construction: A Quick Guide appeared first on ProjectManager.

Why Use a Proposal Template?

Across industries, a proposal template is a starting point for customizing proposals to suit specific needs. For example, in construction, the focus may be on deliverables, site plans and contractor timelines. In IT, the emphasis might be on system architecture and technical requirements.

Despite the differences in content, the template’s consistent format—typically including an executive summary, goals, methodology, budget and risk assessment—ensures that decision-makers can quickly evaluate the feasibility and value of a proposed project. This cross-industry adaptability not only saves time and improves clarity but also enhances collaboration and decision-making across departments and sectors.

12 Free Proposal Templates for Submitting Proposals

These proposal templates provide a standardized structure that helps stakeholders understand the project’s objectives, scope, timelines and resource requirements, regardless of the field.

1. Project Proposal Template

Download this free project proposal template for Word to outline the details of a proposed project in a clear, organized manner. It serves as a structured framework for presenting important project information to stakeholders, clients or decision-makers to gain approval, funding or support.

This fully customizable proposal template can be easily adapted for use in construction, IT, marketing, engineering or any business proposal. This document is created to kick off a new project. It’s in-depth with a clear and concise cover letter and executive summary to provide an overview of the proposal and convince the sponsor to approve it.

If the project is approved, the proposal template will continue to be useful as it informs the project planning phase. That’s because it defines the project scope and objectives, identifies key activities and milestones, resources and roles, estimates timelines and shows dependencies. The project proposal template explains what will happen and why, which then allows a Gantt chart to show when it will happen and in what sequence.

ProjectManager is award-winning project and portfolio management software with robust Gantt charts that can do all that and so much more. Yes, it schedules tasks, resources and costs, but unlike many of the competitors, it can also link all four types of task dependencies to avoid cost overruns. Also, we can filter for the critical path and set up a baseline to track progress in real time. Get started with ProjectManager today for free.

2. Event Proposal Template

Download this free event proposal template for Word to outline key details, objectives and logistics of an event for potential clients, sponsors or internal stakeholders. It serves as a blueprint that describes the event’s purpose, target audience, venue, schedule, budget, marketing strategies and expected outcomes. By organizing this information in a clear, persuasive format, the template helps event planners present a professional and convincing case for why the event should be approved, funded or supported.

An event proposal template streamlines the planning process and ensures consistency across different events or clients. It allows planners to quickly adapt proposals to various audiences while maintaining a high standard of quality and thoroughness. A strong template not only improves communication but also demonstrates the planner’s expertise, attention to detail and understanding of the client’s or organization’s goals.

3. Request for Proposal Template

Use this free request for proposal template (RFP) for Word to solicit bids from vendors, contractors or service providers for a specific project or service. It outlines the project’s requirements, objectives, scope of work, timelines, evaluation criteria and submission guidelines. Templates help organizations ensure that every RFP they issue is clear, consistent and detailed enough for vendors to prepare thorough, comparable proposals.

A good RFP template reduces misunderstandings, improves the quality of vendor responses and helps the organization select the best partner for the project. This proposal template not only saves time but also increases transparency and fairness in the vendor selection process.

4. Budget Proposal Template

This free budget proposal template for Word presents a detailed estimate of the financial resources needed for a project, event or organizational activity. It outlines expected costs across categories like labor, materials, equipment, travel, marketing and other expenses. A budget proposal helps stakeholders understand the financial requirements, justify funding requests and evaluate whether the proposed project is feasible and aligned with organizational goals.

This proposal template ensures that all necessary financial details are included, organized clearly and presented consistently and professionally. A well-prepared budget proposal not only strengthens the overall project proposal but also helps with financial planning, accountability and decision-making once the project is underway.

5. Construction Proposal Template

Download this free construction proposal template for Word to outline the scope, timeline, materials, labor and pricing for a construction project they are bidding on. It serves as a formal offer to a client, clearly detailing what work will be performed, the terms and conditions, project milestones, estimated costs and payment schedules.

This kind of proposal template ensures that all critical information is included, presented professionally and customized easily for different projects, helping contractors win jobs and protect themselves legally if disputes arise later. It not only clarifies expectations between the contractor and client but also builds trust by demonstrating transparency, thorough planning and professionalism.

6. Consulting Proposal Template

Use this free consulting proposal template for Word to pitch services to potential clients by outlining the solutions they will provide, how they will deliver them and the value the client can expect. Unlike more technical proposals, a consulting proposal focuses on diagnosing the client’s problem, presenting a tailored approach and explaining why the consultant’s expertise is the right fit.

It’s both a strategic and persuasive document, meant to demonstrate understanding of the client’s needs and build confidence in the consultant’s ability to drive results. Because consulting work often varies widely between clients, the proposal template is designed to be flexible, allowing for customization based on project scope, industry or business goals. A well-crafted consulting proposal not only lays the groundwork for the project but also sets the tone for the client-consultant relationship.

7. Bid Proposal Template

Businesses, contractors and freelancers use this free bid proposal template for Word to formally offer their services or products at a specified price in response to a client’s request. It outlines key details such as the scope of work, timeline, cost breakdown and terms and conditions.

The goal of this proposal template is to convince the client that the bidder not only understands the project requirements but is also offering the best combination of price, quality and reliability. Using a template ensures that bids are professional, complete and easy to compare against competitors’ submissions.

8. Service Proposal Template

Use this free service proposal template for Word to offer professional services to potential clients in a clear, organized way. It outlines what services will be provided, how they will be delivered, the timeline for completion, pricing and any terms and conditions. A service proposal is not just a pricing sheet—it’s a persuasive document that explains the value and approach of the service provider, aiming to align the proposal with the client’s needs and goals.

This proposal template helps service providers maintain consistency across different proposals while saving time and ensuring no important information is overlooked. A strong service proposal makes it easier for clients to understand exactly what they are getting, builds trust and increases the likelihood of securing the business.

9. Business Proposal Template

This free business proposal template for Word is used to present a product, service or solution to a potential client, partner or investor to secure a deal or agreement. It organizes key information—such as the problem being addressed, the proposed solution, implementation strategies, pricing and terms—into a clear, persuasive document.

A business proposal is meant to show not only what you are offering but also why your offering is the best choice. This proposal template ensures that proposals are consistent, comprehensive and professionally presented, saving time while improving the quality of communication.

10. Marketing Proposal Template

Download this free marketing proposal template for Word to outline a strategic plan for promoting a client’s products, services or brand. It presents a clear framework that explains the client’s current challenges, proposed marketing solutions, specific tactics (like digital ads, SEO, social media campaigns), timelines, expected outcomes and associated costs.

The purpose of this proposal template is to help marketers communicate their vision effectively, making it easier for clients to understand the value and impact of the proposed strategy. A marketing proposal not only highlights what actions will be taken but also emphasizes how those actions align with the client’s broader business objectives.

11. Grant Proposal Template

Use this free grant proposal template for Word to apply for funding from a grant-making entity, such as a government agency, foundation or nonprofit. It provides a clear, organized way to present the project or program needing financial support, outlining objectives, methodologies, expected outcomes and budget requirements.

The goal of this proposal template is to convince the funding organization that the proposed project aligns with their goals and is worthy of financial backing. A grant proposal template helps ensure all necessary components are included in a way that meets the funder’s expectations and guidelines.

12. Work Proposal Template

This free work proposal template for Word is used to outline a specific task or project, usually between a service provider (like a contractor, freelancer or consultant) and a client. It details the work to be completed, how it will be done, the timeline and the costs involved.

The purpose of this proposal template is to define expectations and terms, ensuring that both parties are on the same page before work begins. It serves as an agreement to avoid misunderstandings and sets a clear roadmap for how the work will progress.

ProjectManager Turns Proposals Into Winning Projects

A proposal template is valuable when appraising or bidding or a project. Once the project is accepted, the template is less useful. It’s not a waste, of course, as the information gathered can be used to plan the project. But that planning, managing and tracking of work shouldn’t be done on templates. That’s what project management software is for.

ProjectManager is award-winning project and portfolio management software that has Gantt charts, but also multiple project views, such as sheet, task, list and calendar views and kanban boards to execute work in the way that’s right for you. Use custom or automated workflows, with task approval settings to ensure quality, to add efficiency to processes. This helps to meet the goals of the proposal.

Manage Resources and Stay Productive

Efficient resource management starts with scheduling the human and nonhuman resources on the Gantt chart. The next step is to onboard the team, but before assigning them to tasks, set their availability to streamline the process and ensure the right resources for the right job at the right time.

View all project resources on the color-coded workload chart to see who is overallocated or underutilized. Balance the team’s workload right from that chart to keep them productive. A team page offers a daily or weekly overview of their activities, which can be filtered by priority or progress. Their tasks can even be updated without leaving the page.

Track Metrics and Keep on Schedule

Other project metrics need to be monitored and controlled. For a high-level project overview, toggle to the real-time project or portfolio dashboards. They’re already set up and ready to view easy-to-read graphs and charts that show time, cost, workload and more.

Greater detail can be found with one-keystroke customizable reports on status, variance, workload, timesheets and more. Filter each to focus on key data points or progress, which can be shared with stakeholders to keep them updated. Even our secure timesheets help track labor costs to help projects stay on budget.

Related Proposal Content

For those who want to explore the subject beyond the boundaries of proposal templates, below are some links to articles and a video that go into how to write and make different types of proposals.

• How to Write a Project Proposal (Examples & Template Included)
• How to Write a Service Proposal: Sample & Template Included
• How to Make a Request for Proposal (RFP)
• Project Proposal Writing: How to Write A Winning Project Proposal

ProjectManager is online project and portfolio management software that connects teams whether they’re in the office or out in the field. They can share files, comment at the task level and stay up to date with email and in-app notifications. Join teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjetManager today for free.

The post 12 Free Proposal Templates for Submitting Proposals appeared first on ProjectManager.

Why Use an Event Budget Template for Google Sheets?

Google Sheets is an excellent tool for creating an event budget because it’s free, online and allows real-time collaboration. Unlike static spreadsheets, Google Sheets makes it easy to update costs, add new budget categories and share data with your team. This flexibility ensures that all stakeholders stay informed about budget updates.

Our event budget template in Google Sheets is designed to track activities and their associated costs. Each task includes:

• Estimated labor and material costs to plan financial allocations
• A vendor/contractor column to note outsourced services
• An actual cost column to compare estimates with real expenses, making post-event analysis easier

However, ProjectManager is a much better way to plan, schedule and track the completion of events. That’s because ProjectManager offers award-winning tools such as Gantt charts, real-time dashboards, workload management charts, timesheets and project calendars equipped with robust features to schedule events, create an event budget, manage tasks and track event costs. Get started with ProjectManager for free today.

Free Event Budget Template for Google Sheets

The best way to determine if this event budget template for Google Sheets is a good fit for your team is to try it and compare it against other similar alternatives, such as event planning templates for Excel or project management software. To do so, click the image below to access this template for free, then make a copy so you can edit it.

Simply fill out the fields to identify the tasks that need to be executed to carry out your event and all their estimated costs. Then you can log the actual cost of those event activities as your event is executed to determine if there are any cost overruns.

Event Budget Template for Google Sheets: Pros & Cons

While Google Sheets provides a convenient and accessible way to manage event budgets, it comes with advantages and limitations. Below, we break down the pros and cons of using our event budget template in Google Sheets.

Pros of Making an Event Budget in Google Sheets

Using Google Sheets for event budgeting offers several benefits:

• Free and cloud-based: No need for expensive event planning software; accessible from any device
• Real-time collaboration: Multiple team members can view and edit the budget simultaneously
• Customizable format: Modify the template to suit specific event cost management needs
• Automatic calculations: Built-in formulas help prevent manual math errors
• Easy data export: Can be downloaded as an Excel spreadsheet or PDF for reporting

Cons of Making an Event Budget in Google Sheets

Despite its advantages, Google Sheets has some drawbacks as an event budgeting tool:

• Limited automation: Lacks advanced financial tracking features found in dedicated project budgeting tools
• Manual data entry: Requires frequent updates to stay accurate
• Potential formatting issues: Large datasets may become hard to navigate and are better displayed on dashboards
• Internet dependency: Requires an online connection for full functionality
• No built-in cost analysis tools: Doesn’t provide detailed financial insights like some specialized software

ProjectManager’s Budgeting Features are Better than an Event Budget Template for Google Sheets

This event budget template for Google Sheets helps event planners estimate event costs and compare them against actual costs to monitor the financial health of an event, but it falls short when compared to ProjectManager’s resource planning, budgeting and cost tracking features. Here’s a quick overview of some tools that make ProjectManager a better event budgeting solution.

Multiple Event Planning Tools

ProjectManager offers powerful project management tools ideal for event planning, such as Gantt charts, kanban boards, task lists and project calendars, which allow you to create event schedules, assign tasks to team members and monitor progress. These tools automatically sync with online timesheets, workload management charts and event management dashboards to visualize high-level event planning data.

Advanced Resource Management and Cost Tracking Features

ProjectManage allows event planners to allocate and schedule resources, estimate their costs, create an event budget and compare cost estimates against actual event costs. Managers can also balance their team’s workload using interactive workload management charts and log employee work hours using online timesheets.

How to Use This Free Event Budget Template for Google Sheets

Now let’s review the contents of this event budget template for Google Sheets to better understand how it works.

1. Identify All Event Planning Activities

Event planning involves numerous tasks across different areas, including venue setup, equipment rentals, travel and accommodation, marketing, staffing, food and catering and entertainment. Listing all these activities helps ensure no cost is overlooked, allowing for a complete and well-organized budget.

2. List Vendors or Contractors

Each event planning activity will likely involve vendors or contractors, such as caterers, equipment suppliers or entertainers. Identifying these service providers ensures accountability and helps track who is responsible for each aspect of the event plan. Proper documentation of vendors also allows for better cost management and negotiation opportunities.

3. Log Planned Costs

This template enables event planners to enter estimated labor and material costs for every task. By logging planned costs, you can allocate resources effectively and set financial expectations. This helps prevent overspending and ensures that each category remains within its designated budget.

4. Compare Planned vs. Actual Costs

Tracking actual expenses against planned costs helps event planners determine whether they are staying within budget. This comparison is crucial for identifying cost variances early and making necessary adjustments. It also provides valuable insights for future event planning, allowing for better budgeting strategies and cost control.

More Project Management Templates for Google Sheets

Google Sheets is a helpful tool for event planning teams as it provides an online platform that allows team members to collaborate more efficiently than traditional spreadsheet software like Excel. Here are other free project management Google Sheets templates that can be used with this event budget template.

Google Sheets Timeline Template

This free Google Sheets timeline template is ideal for visualizing event planning activities, their due dates and the sequence in which they need to be executed, which facilitates creating an event schedule.

Google Sheets To Do List Template

As stated above, events involve a lot of activities that can fall through the cracks if they’re not properly documented. This free Google Sheets to-do list template helps event planners log any tasks and track their completion.

Google Sheets Kanban Board Template

This free Google Sheets kanban board template helps event planners track the completion of event tasks by defining the stages of completion they go through and then using kanban cards to reflect their progress.

Related Event Planning Content

A successful event requires thorough planning, scheduling and budgeting, which is why we have dozens of blogs, templates and guides that can help master all the different areas of event management. Here are some of them.

• 12 Free Event Planning Templates for Excel and Word
• How to Create an Event Budget
• How to Plan an Event: Event Planning Steps, Tips & Checklist
• Event Budget Template for Excel
• Event Proposal Template for Word
• Event Plan Template
• Gantt Chart for Event Planning

If you’re looking for an event planning tool that can go the distance, try ProjectManager. Our software is fully loaded with all the resource management, scheduling, budgeting and cost tracking features listed above and more to help you plan, track and report on your events. Stay on track and work more productively. Get started with ProjectManager for free.

The post Event Budget Template for Google Sheets appeared first on ProjectManager.

To better understand this process, let’s define the term and when a project appraisal should be done. Just as there’s more than one type of project, there are different types of project appraisals. We’ll explore those, including project appraisal techniques and more.

What Is a Project Appraisal?

A project proposal is a formal document that outlines a project’s objectives, scope, timeline, budget and overall plan. It’s typically created to convince stakeholders, clients or decision-makers to approve and support the project. The proposal outlines why the project is necessary, how it will be executed and what resources are required.

Using a project appraisal serves several purposes. For one, it’s made to secure approval of a project. It does this by clearly defining the project’s goals and deliverables. It should be persuasive but backed with research. A successful project appraisal will effectively demonstrate why the project is worth the investment and how it delivers value or why it doesn’t and shouldn’t be approved.

If the project proposal should convince stakeholders of the project’s viability, the next step is to take the outline of the project budget, resources and timeline described within and apply it to project management software. That’s because there needs to be tools to plan, manage and track the project to deliver on its promise.

Create Stronger Project Appraisals with ProjectManager

ProjectManager is award-winning project and portfolio management software with robust Gantt charts that schedule tasks, resources and costs, tracking them in real time. Use the Gantt alongside our list, sheet, board and calendar views to improve project appraisals.

• Generate custom reports to ensure the project appraisal is on track
• Leverage unique visual dashboards to track progress, resources and more
• Demonstrate the appraisal’s worth to stakeholders using guest licenses. Try it free

When Should a Project Appraisal Be Conducted?

A project appraisal is more than just a tool for determining if a proposal is worth pursuing. It’s a crucial part of the project life cycle, offering valuable insights at various stages. Whether you’re kicking off a new project, assessing progress mid-way or reflecting on the results after completion, appraisals provide a clear lens through which you can measure success, identify challenges and ensure you’re on the right path. Here are some points in a project when one should conduct a project appraisal.

Before the Project Begins

The first and most important project appraisal usually takes place before the project starts. This is the feasibility appraisal, often done during the early planning stages. It’s when you’re still dreaming up the project, mapping out goals and considering its potential impact.

Why is this step crucial? It ensures that the project is worth pursuing in the first place. Think of it as a reality check—will this project align with your business goals? Are the resources available and is the timeline feasible? By appraising the project upfront, one can ensure it’s viable and prevent investing time and money into something that might not work out.

Planning the Path Ahead

As the project moves from idea to action, another project appraisal takes place during the planning phase. Now, you have a clear roadmap: objectives, budget, timeline and the team that will bring it all to life. This is your chance to ensure everything aligns with the initial goals.

Are you being realistic about what’s possible within the set timeframe and budget? Are there any risks that need to be addressed before you proceed? This stage is about fine-tuning your plan, ensuring everything is in place before you jump into execution.

Keeping Things on Track

Once the project is in motion, it’s essential to appraise progress at key milestones or phases. Think of this as a GPS for your project—just like you’d check directions on a road trip, you need to assess whether you’re still heading in the right direction.

Some things to consider: Is the project on schedule? Are resources being used effectively? Are there any unexpected challenges? Conducting these appraisals at each milestone helps you identify issues early, so you can pivot or adjust the plan before small problems become big obstacles.

A Mid-Project Reality Check

Amid the action, mid-project appraisals come into play. These check-ins typically happen regularly, like every month or quarter, and allow you to take a step back and evaluate whether you’re still on track.

It’s not just about whether the project is meeting its deadlines, but also whether the resources are being used efficiently. Is your budget being stretched too thin? Are team members feeling overworked? This is your opportunity to course-correct and ensure that you’re still on the path to success.

Post-Mortem

Finally, when the dust settles and the project is complete, a post-project appraisal helps you reflect on what worked and what didn’t. This is when you assess whether you achieved the goals you set out to meet. Did the project deliver the expected results? Was it worth the time and investment? And most importantly, what can be learned for future projects?

It’s the perfect time to review the successes, uncover lessons learned and celebrate what went well. But it’s also an opportunity to reflect on what could have been improved and use those insights to make your next project even better.

Types of Project Appraisals

When embarking on any project, it’s essential to evaluate its potential from various perspectives. Project appraisal serves as a comprehensive tool to assess the feasibility, risks and benefits of a project. Different types of appraisals allow stakeholders to take a closer look at the project’s financial, economic, technical and social aspects to ensure its success and alignment with strategic goals. Below, we’ll explore the key types of project appraisals and what each evaluates.

Financial Project Appraisal

A financial project appraisal focuses on the project’s financial viability. It assesses whether the project will generate enough revenue to cover its costs and deliver a reasonable return on investment. This appraisal includes evaluating the initial costs, ongoing expenses, expected profits and cash flow over the project’s lifespan. The financial appraisal helps determine if the project is financially sustainable and if it will create value for investors or stakeholders.

Economic Project Appraisal

The economic project appraisal takes a broader view, looking beyond the project’s financial return to evaluate its impact on the economy. This appraisal assesses the economic benefits the project will bring, such as job creation, stimulating local economies or contributing to broader economic growth. Economic appraisals are particularly important for large-scale projects where public funds or resources are involved, ensuring that the project contributes positively to the overall economy.

Strategic Project Appraisal

A strategic project appraisal focuses on how well the project aligns with the organization’s long-term goals and strategic objectives. This type of appraisal helps stakeholders understand whether the project supports the company’s mission, vision and growth strategy. For example, it could assess whether the project will help the organization enter a new market, enhance its competitive advantage or develop new capabilities. This appraisal is crucial for ensuring that projects drive the broader goals of the organization.

Technical Project Appraisal

A technical project appraisal evaluates the technical feasibility of the project. It examines whether the project is technically possible, considering the tools, resources and expertise needed to complete it successfully. This includes assessing the technology, materials, processes and skills required. Technical appraisals help identify potential barriers such as lack of expertise, technology limitations or logistical challenges that could hinder the project’s success.

Operational Project Appraisal

An operational project appraisal assesses the project’s practicality in terms of day-to-day operations. This appraisal focuses on whether the organization has the capacity, resources and infrastructure to support the project’s implementation and long-term operation. Key considerations include assessing whether the project fits into existing workflows, how it will affect current operations and whether the necessary support systems are in place to sustain the project once it’s completed.

Social Project Appraisal

The social project appraisal examines the potential social impact of the project. This appraisal considers factors such as community well-being, quality of life and social equality. It evaluates whether the project will improve social conditions for individuals or communities, whether it will address social issues or whether it might lead to negative social consequences. This is especially important for projects that involve large-scale infrastructure, public policy or community development.

Legal and Regulatory Project Appraisal

A legal and regulatory project appraisal assesses the project’s compliance with laws, regulations and industry standards. This appraisal ensures that the project adheres to local, national and international legal frameworks, including environmental regulations, safety standards and labor laws. It also considers potential legal risks, such as liability issues or intellectual property concerns, that might arise during the project’s lifecycle.

Each type of project appraisal provides valuable insights into the different aspects of a project, ensuring that the final decision accounts for all potential challenges and benefits. By conducting thorough appraisals across these categories, project managers can improve the likelihood of a project’s success and avoid costly mistakes.

Project Appraisal Methods and Techniques

When evaluating a project, there are several appraisal methods and techniques available to help assess its potential value, risks and overall feasibility. These methods are used to make informed decisions about whether to proceed with a project or how to optimize its outcomes. Below is an overview of some of the most widely used project appraisal methods and techniques, which are a structured way to understand the viability and impact of a project.

Cost-Benefit Analysis

Cost-benefit analysis is a straightforward method that compares the total expected costs of a project with its potential benefits. This technique helps determine whether the benefits of the project outweigh the costs and if the project is financially worthwhile. It often involves assigning monetary values to tangible and intangible costs and benefits, helping decision-makers decide whether to proceed with the project. Below are tools used to perform detailed financial analysis within the broader scope of cost-benefit analysis.

• Net Present Value (NPV): Evaluates a project’s profitability by calculating the difference between the present value of expected cash inflows and outflows over the project’s lifetime. A positive NPV indicates that the project is expected to generate more value than its cost, making it a good investment. This technique helps assess the financial feasibility and long-term profitability of a project.
• Internal Rate of Return (IRR): Evaluates the potential return on an investment. It’s the rate at which the present value of a project’s cash inflows equals its cash outflows. Essentially, it represents the project’s expected annual rate of return. If the IRR exceeds the required rate of return or the project’s cost of capital, the project is considered viable and profitable.
• Payback Period: Calculates the time it takes for a project to recover its initial investment through cash flows. It’s a simple metric used to assess the liquidity and risk associated with the project. A shorter payback period indicates a quicker return on investment, reducing the financial risk.

Feasibility Study

A feasibility study is a comprehensive evaluation of a project’s practicality and potential for success. It looks at various aspects such as technical feasibility, economic viability, operational capability and legal requirements. By examining whether the project can be completed with the available resources and within the given constraints, a feasibility study helps decide whether the project should move forward.

SWOT Analysis

A SWOT analysis, which stands for strengths, weaknesses, opportunities and threats, is a strategic planning tool used to assess the internal and external factors affecting a project. It helps identify strengths that can be leveraged, weaknesses that need addressing, opportunities that could be exploited and threats that could hinder the project’s success. This analysis provides a balanced view of the project’s potential and challenges.

PESTLE Analysis

PESTLE analysis, which stands for political, economic, social, technological, legal and environmental It’s a tool used to evaluate the external macro-environmental factors that could impact the project. By understanding how these factors may influence the project, stakeholders can anticipate potential risks and opportunities and adjust their strategy accordingly.

Balanced Scorecard

The balanced scorecard is a strategic performance management tool that evaluates a project from four perspectives: financial, customer, internal processes and learning and growth. This technique helps ensure that a project’s goals are aligned with broader organizational objectives and provides a holistic view of its performance beyond just financial outcomes.

Monte Carlo Simulation

The Monte Carlo simulation is a statistical technique that assesses project risks and uncertainties. It uses random sampling and probabilistic models to simulate project outcomes based on varying conditions. This technique helps predict the likelihood of certain risks occurring and provides insight into how they might impact the project, allowing project managers to plan for different scenarios.

By applying these methods and techniques, project managers can make more informed decisions, reduce risks and ensure that their projects are financially viable, strategically aligned and set up for success.

Related Project Management Templates

Some of the above techniques can be done with templates. Readers can download over 100 free project management templates for Excel and Word that cover all aspects of managing projects across multiple industries. Below are just a few examples that relate to project appraisal.

Cost-Benefit Analysis Template

Download this free cost-benefit analysis template for Excel to systematically compare the costs and benefits of a project, investment or business decision. It provides a clear and organized way to assess whether the benefits of a project outweigh its costs, helping stakeholders make informed decisions.

SWOT Analysis Template

A SWOT analysis is used to evaluate a project, business, product, or organization by analyzing its strengths, weaknesses, opportunities and threats. This free SWOT analysis template for Word is a simple but effective tool for strategic planning and decision-making.

Balanced Scorecard Template

Use this free balanced scorecard template to monitor and measure an organization’s performance across multiple perspectives, ensuring a well-rounded evaluation of its goals and progress. Instead of focusing solely on financial outcomes, a balanced scorecard takes into account other key areas that contribute to long-term success.

How ProjectManager Helps With Project Management

Templates are useful to help with decision-making or determine whether a project appraisal is worth implementing or passing on. However, as noted above, once the project has been approved, it’s time to throw the templates away. They’re simply not equipped to plan, manage and track projects. For that, you need project management software.

ProjectManager is award-winning project and portfolio management software that has multiple project views so everyone can work on the right tool for their job. For example, project managers can schedule on Gantt charts, teams execute their tasks on kanban boards or task lists, while stakeholders can monitor progress on the calendar view.

Keep Teams Productive With Resource Management Features

A project appraisal approves a project, but then the project resources have to fulfill that promise by executing the tasks as planned. This requires powerful resource management tools. It starts with scheduling tasks, resources and costs on Gantt charts. Then, when onboarding teams, set their availability to ensure the right resources are assigned to the right tasks at the right time.

To get an overview of resource allocation, view the color-coded workload chart to see who is overallocated or underutilized. The team’s workload can then be balanced without leaving the chart. For a daily or weekly overview of team activity, use the team page. It can be filtered by priority or progress and tasks can be updated from that page.

Track Progress and More With Real-Time Project Dashboards and Reports

Monitoring more than resources is important to ensure that projects stay on schedule and meet their budget. For a high-level overview of the project, toggle to the real-time dashboards. They automatically collect unique project data and display it on graphs and charts.

To get more information, use our customizable reports. It’s fast and simple to generate status, variance, workload and timesheet reports that can be filtered to focus on specific data points or share a more general summary of progress with stakeholders to keep them updated. Even our secure timesheets help track labor costs to keep projects on budget.

Related Project Management Content

There’s more to project management than just a project appraisal. For those curious to learn more about the subject, especially the process of deciding on whether to approve or pass on a project, the following links to recently published blog articles will be helpful.

• What Is a Feasibility Study? How to Conduct One
• Feasibility Report in Project Management
• Cost-Benefit Analysis: A Quick Guide with Examples
• How to Measure Project Profitability
• Project Financial Management

ProjectManager is online project and portfolio management software that connects teams whether they’re in the office or out in the field. They can share files, comment at the task level and stay updated with email and in-app notifications. Join teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.

The post Project Appraisal: How to Measure the Value of Projects appeared first on ProjectManager.

Naturally, scope management is an important area of project management and there’s a lot to learn about it. But before we jump into that, let’s start with the definition of project scope.

What Is Project Scope?

The project scope is the total amount of work that needs to be done to complete a project. To define it, project managers must break down the project into the tasks and deliverables that’ll be executed to meet goals and stakeholder requirements and deliver the project successfully.

Defining the project scope is an integral part of the project planning process because based on the scope, project managers will assemble their teams, estimate what project resources are needed and determine what the project plan, schedule and budget will be.

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Project Scope Template

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Who Is Responsible for the Project Scope?

The project manager has the main responsibility for defining, managing and controlling the project scope. While defining the scope, they often work with key stakeholders and the project team who provide input on what the project will and won’t include. The project manager will also manage the scope throughout the project lifecycle and inform stakeholders of any updates.

The project sponsor initiates the project and provides high-level requirements and business needs that drive the project scope. They also formally approve the project scope statement or major changes. Also involved at a higher, more strategic level than the project manager may be portfolio managers or PMOs, as they work to ensure that all projects and programs within the portfolio align with the organization’s strategic goals and objectives.

The project team or subject matter experts may contribute to defining the scope by offering insights into the tasks, resources and deliverables needed for their areas of work.

What Is Project Scope Management?

Project scope management is the process of tracking the scope of a project once it starts to ensure it doesn’t grow beyond control. It’s important that no extra work or extra costs are added to the project scope without the supervision of a project manager; if the scope of a project changes during the project execution phase, the project plan, schedule and budget that were initially defined won’t match the scope, causing project delays and overspending. This is known as scope creep and might cause projects to fail.

However, the scope of a project can safely expand when stakeholders or project team members use a formal change request which is agreed upon by both parties. This allows project managers to ask for more time and resources and adjust the project schedule and budget accordingly.

To control project scope, project managers create two main project scope management documents: a scope statement and a scope management plan. These documents define the scope during the planning phase and establish the rules and guidelines for tracking it. We’ll explore these documents in more depth in the section below.

But before doing so, let’s hear some expert advice. In the video below, Jennifer Bridges, professional project manager (PMP) explains what the scope of a project is and why it is so important to control it.

Now that we’ve defined what project scope management is, let’s focus on each of the scope management steps to better understand this process.

Project Scope Management Steps

Managing scope means from the start that you and the stakeholders have a clear line of communication. You must know their vision to know what they’re expecting in a project. That way, when change happens you can direct it to meet the project’s goals while keeping the project on track. But that’s just the beginning.

To manage the scope of the project, you have to do five things:

1. Define the Project Scope

Defining the scope of a project consists of identifying the work that’ll be performed. To do so, you must first outline the main goals and objectives of the project and think about the activities required to achieve them. Then, once you have an idea of what your project should accomplish, you can use a work breakdown structure to break down the project into a set of tasks. A work breakdown structure (WBS) is a planning tool that helps project managers visualize the tasks required to complete a project, prioritize them and identify deliverables and dependencies.

Once the scope of a project has been determined, it needs to be managed through a process known as project scope management. Project management software helps you manage scope. ProjectManager, award-winning project management software that has robust Gantt charts, helps you to create a project plan, where all of your scoped tasks are scheduled with assignees and deadlines. Plus, our Gantt charts feature progress bars that update in real time as team members complete their tasks, so you have utmost transparency. You can also set a baseline to track your planned effort against your actual effort in real time to avoid scope creep. Get started with ProjectManager today for free.

Once you’ve defined the project tasks that’ll be executed, you should consider what won’t be included in your project scope, which is known as project exclusions. Determining that is just as important as defining the scope. That will help you avoid any misunderstandings with project stakeholders when submitting a project proposal. It’s also important to note any important constraints such as costs that might affect the project scope.

Related: Project Proposal Template

2. Write a Project Scope Statement

Once you’ve defined your project scope, you can write a project scope statement, also known as a project scope document, which describes the following elements:

• Project goals & objectives: The project requirements or acceptance criteria.
• Project deliverables: The outcomes of project tasks.
• Project exclusions & constraints: As a project manager you need to explain what can’t be done and why.
• Project assumptions: Some initial assumptions that the project management team has before executing the work.
• Project milestones: These mark important moments in your project life cycle, such as the end of a phase.
• Scope baseline: Your original scope as you planned it. The scope baseline allows you to compare actual results against what it’s in your scope statement.

The scope statement is also a guideline for the project manager. It helps them make decisions about change requests throughout the project life cycle. Change is an inevitable part of any project, no matter how thorough your project plan is, so you want to include the likelihood of change in your scope statement to better manage it later.

3. Create a Scope Management Plan

The scope management plan is a document that describes the guidelines and procedures on how the scope will be defined, tracked and adjusted. The scope management plan is an important component of the overall project plan. While there’s not a one-size-fits-all method to create a scope management plan, it should:

• Include the scope statement
• Show the work breakdown structure that was used to define the project scope
• Describe the scope baseline
• Explain who are the team members and what their roles and responsibilities are
• Establish acceptance criteria for project deliverables
• Describe what are the major milestones and project phases
• Explain what change control procedures will be used to change the project scope

4. Define a Scope Baseline to Control the Scope

A scope baseline describes the project scope that was approved by both the project stakeholders and the project management team. It’s used during the project execution phase to ensure the project scope is executed as planned.

5. Monitor and Control your Project Scope During the Project Life Cycle

Besides creating project documents, most project managers use project management software tools like Gantt charts, kanban boards and project dashboards to keep track of their project scope. For example, ProjectManager’s Gantt charts allow you to create a visual project schedule where you can add tasks, link their dependencies and set due dates.

Then, ProjectManager’s real-time project dashboard lets you monitor the status of your project and check whether tasks have been completed on time and under budget. We even have portfolio dashboards that allow you to track data across all of your projects.

Project Scope Template

Defining the scope of a project can be challenging for both new and experienced project managers alike. For this reason, we’ve created a free project scope template for Word to facilitate this process. Download it for free now to get started quickly.

Why Is Project Scope Important?

Scope management is one of the most critical areas of project management because managing the project scope also helps manage its schedule and budget. That’s because scope management consists in achieving the goals of the project within the timeline and costs approved by the stakeholders. An effective scope management process can help project managers achieve the following goals.

• Creating realistic project plans
• Avoid issues like cost overrun and scope creep
• Set clear expectations for project stakeholders
• Hire team members with the right skills and qualifications for the project
• Meet project deadlines
• Produce high-quality deliverables
• Establish change management procedures

How to Prevent Scope Creep in Project Management

Scope creep can happen in any project, resulting in delays, budget overruns and even decreased team morale. Here are five ways to avoid it.

Define and Document the Project Scope from the Beginning

Establishing project boundaries from the beginning can go a long way in managing expectations early. Define what is included and excluded during the planning process and document any assumptions made during planning. Visual representations of the project scope are helpful as well, including a work breakdown structure (WBS) to ensure everyone has a shared understanding.

Establish a Formal Change Control Process

Outline the steps for requesting, evaluating and approving changes to the project scope. All formal requests should be submitted in writing and there should be an impact analysis of the proposed change on the budget, resources, schedule and overall project objectives. Consistently adhere to this process and don’t make any exceptions.

Maintain Consistent, Proactive Communication with Stakeholders

Stakeholders should be informed about project progress and any scope-related discussions. Be proactive in communicating and addressing misunderstandings as quickly as possible. If stakeholders have feedback or concerns, pay attention to what they have to say. However, always refer back to the documented scope.

Implement Scope Verification and Validation

Conduct periodic reviews of project deliverables with stakeholders to ensure they approve of the defined scope and acceptance criteria. If needed, get formal sign-off on key deliverables and project phases to ensure the work meets the agreed-upon requirements. This way, stakeholders can’t later request additional features or changes.

Foster a Culture of Scope Awareness within the Project Team

The team should be aware of the project scope and how their responsibilities contribute to it. Do they fully understand how important it is to adhere to the project scope? If they notice any requests or tasks that seem to fall outside the scope, encourage them to flag them. Should there be any perceived scope changes, the team should understand and follow the established change control process.

Project Scope Management Tips

Here are some of the best project scope management tips for project managers.

Start by Defining Project Goals & Objectives

Project goals and project objectives aren’t the same things. Goals are higher-level than objectives, which are more specific. They must be set before you can define the scope.

Collect Project Requirements

Stakeholders have quality, financial, and other types of project requirements. Those requirements will help you define what can and can’t be included in your scope.

Make a Resource Management Plan

Based on your project scope, you should create a resource management plan which will guide how resources will be acquired, allocated and leveled throughout the project. This includes team members, equipment and materials. Estimate the costs related to these project resources and add them to your project budget. This is key to ensuring the execution of your project scope goes as planned.

Establish a Change Control Process

The project scope can be negatively impacted when changes such as new project requirements go unnoticed. That’s because they create extra work which isn’t accounted for. To avoid that, you need to change control procedures such as change requests so that the project team can adjust the scope management plan.

How to Manage Project Scope With ProjectManager

ProjectManager has a bevy of tools to help managers track their project scope. Our online software gives you real-time data to make more insightful decisions and fosters collaboration by allowing teams to share files, comment and much more.

Task Management Features for Doing the Work

ProjectManager comes with different views for working on tasks: Gantt charts, kanban boards and task lists. All three views can be used to work on the same project, which means team members can work on the project tasks in their own way. This flexibility improves productivity across the team, making sure that you avoid the dreaded scope creep.

Project Dashboards for Better Tracking

Dashboards are your best friend when you’re trying to spot scope creep. Our real-time project dashboard gives you a live look at critical metrics across your project. This live data lets you spot bottlenecks and issues faster than you would have thought possible. Plus, it’s all displayed in simple graphs that can easily be shared with stakeholders or team members.

Related Content

There’s a lot to learn in project management before you can plan, schedule, execute and deliver projects successfully. For this reason, we’ve created dozens of blogs, templates, ebooks and videos on the most important topics in project management. Here are some of them.

• 20+ Project Management Tools & Techniques
• Best Project Management Certifications
• Project Management Basics: Definitions, Methods and Tools
• 100+ Project Management Terms: PM Terminology
• PMBOK: The Project Management Body of Knowledge Explained
• Top 15 Project Management Methodologies: An Overview
• Best Project Management Charts for Project Planning
• ¿Qué es la Metodología de un Proyecto? 15 Tipos de Metodologías

The best way to manage the scope of a project is to have an online project management tool that gives you real-time data so you can act when issues arise and before they become problems. ProjectManager is online, so when your team updates their status, from wherever they are and at whatever time, that information is immediately updated and you can monitor the progress of your project more accurately. See for yourself by taking this free 30-day trial. 

The post What Is Project Scope? Scope Management Steps, Tips & Tools appeared first on ProjectManager.

This guide defines what project documentation is and why it’s important in addition to outlining the top 15 project documents that you should always create to plan and execute your projects.

What Is Project Documentation?

The term project documentation refers to the project management documents that are created throughout the project life cycle. These documents, such as the project plan, project schedule or project budget, define activities, procedures and guidelines that the project team should follow.

Project documentation has several purposes such as project planning, cost management or risk management. In addition, there are certain project documents that must be created at a specific project phase as they set the stage for the next step. For example, the project management plan must be created before the project execution phase can begin.

Project management software can help you organize and share information that is crucial to the success of your project. ProjectManager is project management software with advanced planning, tracking and reporting that has unlimited file storage and makes it easy to share product documentation with your team and stakeholders. All of its multiple project views share one source of information to keep everyone on the same page. Get started for free.

Let’s take a look at which project documents should be created at each project management phase.

Project Documentation by Project Phase

Projects vary in size and complexity and some require more comprehensive project documentation than others. Here’s an overview of some of the project documents that are usually created throughout the project life cycle.

• Project Initiation: Project charter, project summary, business case, project kickoff meeting agenda
• Project Planning: Project management plan, work breakdown structure, project budget, project schedule, change management plan, scope management plan, risk management plan
• Project Execution: Project status report, project execution plan lessons learned template, timesheets, change requests, change orders
• Project Monitoring and Control: Project status report, lessons learned template, timesheets
• Project Closure: Project closure template, punch list

Now that you have an idea of the right project documentation for each phase of your project life cycle, let’s dive into some critical project management documents.

Top 20 Project Documents to Include in Your Project Documentation

Here’s a brief description of the important project documents and a corresponding project management template for each of them. Don’t forget to check our library of free project management templates where you’ll find dozens of templates to build your project documentation.

1. Project Plan

The project plan is the most comprehensive of all project management documents because it compiles the project documents that are created during the project planning phase. For example, your project plan should include your project budget and your project schedule.

2. Project Charter

The project charter is written during the project initiation phase and it sets the stage for the project plan. Project managers use project charters to provide a quick overview of the project to stakeholders, sponsors and clients.

3. Business Case

Just like the project charter, a business case is a document that’s created during the initiation phase to convince project stakeholders of the project’s value by explaining the potential benefits it could have for their organization.

4. Project Schedule

At a basic level, the project schedule defines the timeline for the execution of all project tasks. It can also include more details such as the resources needed for each task, who’s responsible for it, the float or slack your project has and the critical path. ProjectManager’s Gantt chart is the perfect tool for creating a detailed project schedule.

ProjectManager offers four kinds of dependencies, baseline tracking and real-time resource availability when assigning work. You can break down you project into subtasks and track costs for each phase to ensure you stay on track. Get started with ProjectManager for free and build a better project schedule.

5. Work Breakdown Structure (WBS)

A work breakdown structure (WBS) is a fundamental example of project documentation. It breaks down the project’s scope into smaller, more manageable components. At the top is the overall project goal that is progressively broken down into smaller pieces. This tool helps organize complex projects and ensures they stay on track.

6. RACI Chart

RACI stands for responsible, accountable, consulted and informed. A RACI chart, also known as a RACI matrix, helps define roles and responsibilities for different tasks and deliverables within a project or process. It aims to eliminate confusion about who is responsible for what and improve communication. This is a valuable tool for projects of all sizes, especially those with multiple stakeholders and complex workflows.

7. Risk Register

This document allows you to register all potential project risks and includes a brief description of their potential impact and likelihood. A risk register is an important project document as it provides important information for your risk management plan that contains all risk management documents, strategies and guidelines.

8. Scope Statement

A scope statement defines the activities that will be executed to complete a project. It’s used by project managers to let stakeholders know what will be done and what won’t be done so that expectations are clear from the beginning. It’s part of the scope management plan, a comprehensive document that explains the procedures and guidelines related to the project scope.

9. Project Budget

The project budget is a critical project management document. To create one, you’ll need to estimate your project costs, which include labor, materials, equipment and anything that’s needed to execute the project.

10. Project Communication Plan

A communication plan sets all the guidelines for communication among team members and project stakeholders. It defines the communication channels to be used, the communication schedule and roles and responsibilities among other details to streamline the communication process throughout the project life cycle.

11. Project Status Report

Project status reports are a must-have project management tool because they allow you to check the health of your project at any point in time and share data with stakeholders to keep them updated. Status reports are brief and include the most relevant information only.

12. Project Closure Template

It’s always necessary to create project documentation at the end of the project closure phase. That’s because project managers need to close contracts, create a “lessons learned” document and get formal approval from stakeholders among other important tasks. All of this must be documented so that nothing falls through the cracks.

13. Project Proposal Template

A project proposal is a project management document that provides a quick overview of the key areas of a project. Its main purpose is to convince potential stakeholders of the value of the project during the initiation phase. It should be a persuasive document that highlights the main benefits, goals and requirements.

14. Issue Log Document

An issue log is an example of project documentation that helps manage problems or obstacles that come up during a project. It’s a list or spreadsheet that’s used to document, monitor and resolve issues that could potentially impact the project’s schedule, budget, scope or quality. An issue log helps establish responsibility for resolving issues and creates a historical record for future reference.

15. Change Request Form

A change request form is a standardized project document that formally proposes, evaluates and approves alterations to a project’s original plan. It helps manage modifications to scope, budget, schedule or other project aspects in a controlled manner. This form helps mitigate the negative impact of uncontrolled changes and keeps the project on track with its overall goals.

16. Project Brief Template

A project brief is a summarized version of your project plan, geared towards an audience such as cross-functional teams or stakeholders who don’t need to dive into all the details of a project management plan but still need to have an understanding of the project goals, budget, roles & responsibilities among other key aspects.

17. Requirements Gathering Template

Project requirements are the goals and specifications that are expected from a project to make sure all stakeholders are satisfied. Our free requirements gathering template will help you document all your project requirements.

18. Project Overview Template

A project overview is a 1-page document that outlines the most critical aspects of a project such as its timeline, milestones, budget, status and the team members’ roles & responsibilities.

19. Team Charter Template

A team charter is a project management document that shows the roles, responsibilities, deliverables and resources of a project team. It helps project managers understand the workload and objectives of each team member for better resource planning.

20. Stakeholder Analysis Template

Stakeholder analysis helps identify individuals with a vested interest in a project. A stakeholder analysis template is the ideal type of project documentation to use before the project’s execution phase. It analyzes the stakeholders who can be impacted by a project, decision or initiative. Use this template to better understand stakeholder needs, expectations and influence to develop effective communication and engagement strategies.

What’s Worth Documenting for a Project

No matter your organization’s structure, the ability to record and document all aspects of a project is vital to being a successful project manager. Multiple reports, charts, graphs, documents, change requests and status updates need to be maintained throughout the project life cycle, and documentation works to stitch the disparate pieces of a project together and bring it to a successful finish.

However, your time is limited, and so is patience in most organizations for tedious paperwork. How can you maintain efficiency and effectively document the project? Consider the following to determine what’s worth documenting:

• Client-Related Everything – Imagine that a client suddenly questions a decision that was made months ago. The client says that they chose one direction but your company decided to go down another path during implementation. Clear documentation on client meetings, including notes with dates, times and attendees helps resolve misunderstandings.
• Legal Dictates – For certain projects, legal teams are required to review documentation during the project. For public projects, there might be oversight and review processes that analyze a project after its completion. Know the documentation requirements your legal team needs before your project begins. Playing catch-up is risky in this kind of environment.
• The Right Amount of Process – While you don’t want to get lost in documenting so much of the plan and process that you’re not actually processing, you do want some definition around the project plan and goals. Let your organizational structure guide how many processes to document. For example, trying to operate process-free on a project that requires legal documentation will only get your project in trouble. When in doubt, the best approach is to document.
• Changes to the Project – Ongoing project reports are essential to document, especially as project goals shift. Ideally, you’ll have a real-time online project management tool so your resources and task changes are scheduled live and issues are captured as they occur. However, larger impacts to the project plan should be added to project documentation in a version-controlled manner.

Project Documentation Best Practices

So what are the best strategies you should use to keep your documentation effective, efficient and timely? To align your documentation according to best practices you should:

• Take the Time – Use your calendar! Many people think that calendars are only for scheduling meetings. It’s not. Use it to schedule 2-3 hour blocks of uninterrupted time to assemble an essential document. Instead of taking calls or conversing with a coworker, take the time to get in the zone of writing. With focused time and attention, you’ll be able to make significant progress. Likewise, schedule 10-15 minute blocks in your calendar each week to review and update documentation.
• Have the Right Level of Detail – Putting documentation together for engineers is different from documents you present to executives. Engineers need details you can provide while executives don’t have time to be bogged down with details. They just want bullet points, the bottom line and the next steps. It’s up to you to determine the right level of documentation for the right audience.
• Use Smart Storage – Your documentation needs to be easy to locate. Documentation is useless if it’s buried under a rock where nobody can find it. This includes making sure that the infrastructure is in place to access the documentation online and that the folder structure and hierarchy are easy and intuitive to understand.
• Share with Others – Most people hate putting documentation together but love it when it’s packaged up for them. You’ll be pleasantly surprised that people actually read the documentation! Use your online project management software to store your documents online with the project, ideally in a collaborative, secure environment.
• Version Control and Up-to-Date – Keeping project documentation current and updated is challenging. It’s easy to get to the point of the initial version, but it’s painful to go back and update documentation and maintain version control. The biggest help is the document repository infrastructure you have in place. Automatic version control allows you to manage this process and the consumers of your documentation always trust that they have the latest version.

How ProjectManager Helps With Project Documentation

ProjectManager is work and project software that connects hybrid teams and fosters collaboration. All project documents can be stored on the tool and everyone who needs access to documents will have it. You can create project plans and so much more, making ProjectManager the only software you need for project success.

Make Project Plans on Interactive Gantt Charts

One of the most important project documents is your project plan. You can make and share this with our Gantt chart, which organizes all your tasks, links dependencies and plots milestones to help you stay on schedule. It even filters for the critical path. Our online Gantt charts deliver real-time data and are easy to share so everyone is always working from the most current data.

Monitor Your Project With Real-Time Dashboards

Your project documentation only sets the stage for the execution of your project. To keep to those plans, you need to have a way to monitor progress and performance in real time. Our live dashboard automatically collects, calculates and delivers real-time metrics for time, workload and more. Unlike other tools, there’s no setup necessary. You see what’s happening as the project unfolds.

Go Deeper Into the Data With One-Click Reporting

When a high-level view isn’t enough, you can generate project reports with a keystroke. Get more information on your costs, progress and more. All reports can be filtered to show only the data you want to see. You can attach reports to stakeholder emails or print them out for presentations.

ProjectManager is a flexible tool that allows you to update your project documentation as needed as projects change. Everyone is updated with email notifications or in-app alerts so there’s never any confusion about what’s expected. Use a tool that manages your project plan, resources, cost and team while storing all the project documentation you have to deliver success.

Related Content

• How to Write a Project Summary (Free Template Included)
• How to Write a Project Description: A Quick Guide
• How to Write an Executive Summary: A Quick Guide
• Ultimate Guide to Gantt Charts
• Ultimate Guide to Project Tracking
• How to Use a Project Decision Log for Optimal Results

Sure, documentation can be the bane of your project, but you need it. There are tools that can help you do it easier, better and faster. The online software suite from ProjectManager is a great collaborative tool to create and store your project documentation for easier access and document sharing with your team. Get started for free.

The post Project Documentation: 20 Essential Project Documents appeared first on ProjectManager.

What is a variation order? We’ll define the term and explain when to use one and who requests and approves it. Then we’ll break down the components of variation orders and illustrate how they work in a real-life situation by providing an illustrated example.

What Is a Variation Order?

A variation order is a formal document issued to modify the original contract terms, typically concerning the scope of work, materials, design or project timeline. Variations may arise due to design changes, unforeseen site conditions or client requests.

The variation order outlines the changes, their impact on the project cost and schedule, and is agreed upon by both the contractor and client before implementation. It ensures clear communication and proper documentation of adjustments to prevent disputes.

Project management software can help with managing variation orders. ProjectManager is award-winning project and portfolio management software with robust Gantt charts that visually represent the project timeline, tasks, dependencies and milestones, which can be used to assess the impact of variation order on the project schedule and resources.

Project managers can quickly identify which dependent tasks may be delayed and estimate how the overall completion date will be impacted, including additional resources that may be required. Our Gantt chart links all four types of task dependencies, filters for the critical path and can set a baseline to monitor progress in real time and make sure the additional tasks are completed on schedule. Get started with ProjectManager today for free.

When to Use a Variation Order

A variation order should be used in a construction project when there’s a need to formally change the terms of the original contract. This includes any adjustments to the scope of work, design, materials, costs, timelines or other contractual obligations. Here are common scenarios when a variation order is necessary.

Design or Scope Changes

• The client requests additional features or modifications to the original design.
• Errors, omissions or ambiguities in the design are discovered that require clarification or adjustments.
• The contractor suggests improvements that could enhance quality, reduce costs or improve efficiency.

Site Conditions and Unforeseen Issues

• Unexpected site conditions are encountered, such as poor soil quality, underground utilities or archaeological findings.
• Environmental factors like flooding, landslides or weather damage affect construction progress.

Regulatory or Compliance Changes

• New regulations, safety standards or building codes are introduced after the project begins.
• Inspection authorities require changes to meet compliance requirements.

Material or Equipment Substitutions

• Specified materials are unavailable, and alternative materials need to be used.
• Equipment specified in the contract is no longer suitable due to unforeseen conditions.

Time Extensions or Delays

• Project delays occur due to factors beyond the contractor’s control, such as adverse weather, supply chain disruptions or labor shortages.
• A variation order can formalize a time extension to adjust project timelines.

Budget Adjustments

• Changes in labor or material costs may require a re-evaluation of the budget.
• Additional work or unforeseen conditions may result in increased costs that need client approval.

Client or Stakeholder Requests

• Clients may change their preferences mid-project, asking for aesthetic modifications or functional adjustments.
• Stakeholders might request changes to accommodate business needs or operational improvements.

Who Requests a Variation Order

Different parties involved in a construction project can request a variation order, depending on the situation. The most common roles requesting a variation order include the following.

Client or Project Owner

• The client may request a variation order to make design changes, add new features or adjust project requirements.
• They might also request changes due to evolving business needs, regulatory updates or aesthetic preferences.

Contractor

• The contractor may identify unforeseen site conditions, such as poor soil or hidden utilities, that require additional work or changes to the construction plan.
• They may also propose variations to improve constructability, reduce costs or meet safety requirements.

Architect or Designer

• Architects or designers may request a variation order if they identify design flaws, omissions or discrepancies in the project drawings or specifications.
• They may also suggest modifications to enhance functionality or aesthetics.

Engineer

• Structural, civil or MEP (mechanical, electrical and plumbing) engineers may request changes due to technical issues, unforeseen site conditions or changes in material availability.
• They may also recommend variations to ensure structural integrity and compliance with regulations.

Project Manager or Consultant

• The project manager may identify the need for a variation order to mitigate delays, reallocate resources or address issues affecting project timelines.
• Consultants responsible for quality assurance or regulatory compliance may also suggest changes.

Regulatory Authorities

• In some cases, building inspectors or regulatory agencies may require changes to meet updated codes, safety standards or environmental regulations.

Who Approves a Variation Order?

A variation order is typically approved by the party or parties with contractual authority over the project. The approval process ensures that the proposed changes are justified, budgeted and aligned with the project’s goals. The key individuals or entities that may approve a variation order include the following.

Client or Project Owner

• The primary approver in most cases, since they are responsible for funding the project.
• The client evaluates the financial and timeline impacts before approving.
• They may involve their legal or financial advisors for larger variations.

Project Manager

• Often plays a role in reviewing the variation order for feasibility, cost-effectiveness and its impact on the project schedule.
• While they may not have the final authority, they provide recommendations to the client.

Contractor

• May need to approve the variation order if it affects their contractual obligations, timelines or resource management.
• In some cases, the contractor might also negotiate for adjustments in payment or schedule.

Architect or Designer

• Approves variations that involve design changes to ensure the changes align with architectural intent and building codes.
• Provides technical input regarding the feasibility of the proposed changes.

Engineer

• If the variation order involves structural or technical modifications, the engineer must assess the impact on safety, stability and compliance with engineering standards.

Quantity Surveyor or Cost Consultant

• Reviews the financial impact of the variation order, ensuring accurate cost estimates are provided before approval.

Regulatory Authorities (If Necessary)

• For variations that affect safety standards, zoning regulations or building codes, the relevant regulatory authority may need to approve the changes.

What Should Be Included in a Variation Order?

A variation order is a formal document to request and approve changes to a construction project’s original contract. It serves as an essential record of any adjustments in scope, timeline or budget. To ensure clarity and transparency, a well-structured variation order should include the following elements.

Project Details

Provide basic information about the project, including:

• Project name and location
• Contract number or reference
• Client’s and contractor’s names
• Date of the variation order

This ensures all parties can easily reference the correct project and context.

Description of Change

• Clearly outline the nature of the variation.
• Specify what is being added, removed or modified, including details about materials, design or scope.
• Explain the reason for the change, whether it’s due to client requests, unforeseen site conditions or regulatory requirements.

Change Impact

Provide a detailed analysis of how the variation will affect the project’s:

• Cost: Estimate any additional costs or cost savings.
• Time: Specify any changes to the project schedule, including revised milestones or completion dates.
• Resources: Indicate if extra labor, materials, or equipment will be required.

This section ensures that stakeholders understand the full impact of the change.

Signatures

Include designated spaces for signatures from key stakeholders, typically:

• Client or project owner
• Contractor or subcontractor
• Project manager or consultant

The signed approval formalizes acceptance of the variation order.

Supporting Documents

Attach any relevant documentation to provide additional context or justification, such as:

• Revised drawings or blueprints
• Cost estimates or quotations
• Schedules and timelines
• Correspondence or meeting notes

Supporting documents ensure that all details are accurately recorded and accessible for future reference.

By including these elements, a variation order becomes a clear, comprehensive document that facilitates effective communication and decision-making in construction projects.

Variation Order Example

To better understand what a variation order is, let’s look at how it works in a real-life scenario. For example, a change order for a construction project that consists of adding additional parking spaces to an apartment complex.

Change Description

Change Impact

Sign Offs

The above charts illustrate how a variation order would be done in the construction of additional parking spaces in an apartment complex.

Variation Order Template

To help with the variation order process, download this free change request form template for Word, which is another way to describe a variation order.

This is an essential part of the change management process and helps to make sure the change is thoroughly and smoothly implemented.

Related Construction Project Management Templates

A variation order template is one of over 100 free project management templates for Excel and Word that can be downloaded from our site. They cover all aspects of managing a project across multiple industries. Below are a few that are related to the change management process.

Change Management Plan Template

Download this free change management plan template for Word to outline how changes will be identified, assessed, approved and implemented within a project. It serves as a guide for managing both anticipated and unexpected changes, ensuring minimal disruption to the project’s progress.

Change Impact Assessment Template

Use this free change impact assessment template for Excel to evaluate the potential effects of a proposed change on a project. It helps stakeholders understand how the change will impact various aspects of the project, including time, cost, resources and overall objectives. This template is often used as part of the change management process to make informed decisions before approving or rejecting a change request.

Change Log Template

A change log is a spreadsheet used to track and manage changes in a project. Download this free change log template for Excel to provide a clear and organized way to document details about change requests, their status and their impact on the project. Using this free template makes it easy to filter, sort and analyze data, ensuring that all changes are properly monitored and managed.

How ProjectManager Helps With Change Management

Change management is too dynamic to depend on static templates to manage implementation into construction projects. Construction crews need tools that don’t have to be manually updated and can provide a more collaborative environment. That’s why they choose construction project management software. ProjectManager is award-winning project and portfolio construction management software that allows project managers to track, assess and implement changes systematically while maintaining control over timeline, budgets and resources.

Manage Tasks and Resources Effectively

After a change is approved, new tasks can be assigned to team members with deadlines and priorities. Because their availability has been set when onboarded and human and nonhuman resources are scheduled on the Gantt chart, project managers can ensure the right people and materials are there to make the assigned changes.

Workload charts show resource allocation across one or multiple projects, so it’s easy to see who is overallocated or underutilized. The team’s workload can be balanced to keep them all working at capacity without causing burnout. There’s also a team page to get a daily or weekly summary of team activity, which can be filtered by progress or priority and tasks updated without leaving the page.

View Impact Assessment With Real-Time Dashboards and Reporting

There are many ways to see how changes are impacting the schedule, budget and more. For a high-level overview, toggle to the real-time project or portfolio dashboards. They automatically collect live data and display it on easy-to-read graphs and charts that display time, cost, workload and more.

For a closer look, use customizable reports on status, variance, workload timesheets and more. Each can be filtered to focus on key data points or provide a more general view of progress, which can then be shared with stakeholders. Secure timesheets can track labor costs to help stay on budget.

Related Change Management Management Content

A variation order is a crucial but small part of the larger change management process. For those who want to learn more about the topic, below are some more recent pieces we’ve published on our blog about change management principles, processes, plans and more.

• What Is Change Management? Principles, Process & Models
• How to Make a Change Management Plan
• How to Make a Change Management Communication Plan
• What Is Change Control in Project Management?
• Change Impact Assessment & Analysis

ProjectManager is online project and portfolio construction management software that connects teams whether they’re in the office or on the job site. They can share files, comment at the task level and stay updated with email and in-app notifications. Get started with ProjectManager today for free.

The post Variation Order in Construction: A Quick Guide appeared first on ProjectManager.

To write a project scope statement, you’ll need to understand the project goals, work breakdown structure and requirements, among other things. Then, once you’ve defined your project scope, you can create a scope document.

What Is a Project Scope Statement?

A scope statement is a document that defines all the elements of the project scope as well as assumptions, project requirements and acceptance criteria. Your project scope statement will act as the primary tool for stakeholders and teammates to reference and use as a guideline to accurately measure project success.

A project scope statement is part of the scope management plan, a larger document that contains all the strategies, rules and procedures to manage your project scope. In the same way, the scope management plan is an important component of your project plan.

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What Does a Project Scope Statement Include?

This detailed project document defines the boundaries of a project, outlining inclusions and exclusions. Typically, the project scope statement starts with a project description with a brief overview of its purpose and objectives. There’s also a list of tangible and intangible product deliverables as well as defined project objectives.

Project acceptance criteria should also be included to determine whether the project deliverables are acceptable, while project exclusions outline what isn’t included in the project. This document outlines project constraints that may impact the project’s execution and a list of assumptions made during the planning process. Also included in the project scope statement is a detailed scope description, project boundaries, initial project risks and stakeholder acceptance criteria.

Project Scope Statement Sample

To better understand what the project scope statement is, we thought it’d be helpful to visualize it using our free project scope template for Word as a project scope statement example. As you can see, it has the basic project scoping information on top and then goes into a general justification for the project’s need and how it’ll fulfill that.

Then we get into the main part of the project scope statement, such as what will be in scope and out of scope for the project. This creates boundaries for the project and makes clear what is essential and must be prioritized.

Now we get into explanations of the business objectives, such as targets that the project needs to hit in order to be successful, and the deliverables that’ll be produced over the life cycle of the project.

From there, you’ll describe project exclusions, issues of time, cost, scope, risk, resources and so on that could constrain it and whatever is assumed to be done in the project.

Finally, you’ll go into costs. The project scope statement is going to estimate the costs and list them all, including the estimated cost, the actual cost and the cost on completion of the project. Then you can show the variance, which is the difference between the estimated cost and the actual cost.

How to Write a Project Scope Statement

Now that we know what a project scope statement is, let’s learn how to write this important project management document. Similar to the five Ws of journalism—who, what, when, where, why—to properly outline your project scope statement, you must address these seven things:

1. Project Goals & Objectives

Project goals and objectives are what define the purpose of a project. Project objectives are the smaller steps that lead to the project goals, which are broader. Start your project scope document by explaining them. These goals and objectives should be documented in a project charter, too.

2. Project Requirements

Project managers and stakeholders must reach an agreement about the project scope and other project requirements such as the expected quality, risk, benefits and cost, among others.

3. Project Scope Description

It might sound easy enough, but this is the most important step. Here is where you’ll define your project scope, which is all the work that needs to be done to complete the project. Here are some simple steps to help you define the project scope.

• Use a work breakdown structure to visualize all your project tasks, deliverables, and milestones.
• List what’s within the scope of your project, and what’s out of scope. Everything that’s not included in the project scope is known as project exclusions.
• Identify project constraints, which are all the limitations such as time or cost.
• Create a scope baseline to compare your actual progress to the planned project scope.

Project exclusions and constraints are essential because they help establish boundaries for the project to exist. They also manage your stakeholders’ expectations/input and give your team members some creative limitations to work within.

4. Project Exclusions

While it’s imperative that you define the boundaries around what the project includes from the outset, it’s also extremely important that you list what this project doesn’t include. For example:

• Application updates that are planned for a later project and are intentionally not included in this project
• Restricted or rescheduled customer access to certain support lines/product features

5. Project Constraints

Project constraints are what make managing projects such a puzzle to solve. The top three constraints to managing any project are typically time, money and scope, known as the triple constraint of project management. They’re interconnected, meaning that if you pull one lever on ‘scope,’ another lever on ‘money’ or ‘time’ will also move.

But there are additional project constraints that can crop up at any time, including risk, resources, organization, method, customers and more. List all the constraints you foresee in your project, so you can try to have solutions in place ready to launch when needed.

6. Project Assumptions

Your project assumptions typically revolve around the very things that end up being constraints, including time, money and scope. For example, it’s in this section of your project scope document, “the front-end development team will be available during this project time period,” or, “the customer support team will receive new product training by x time.” It’s important to list these out as this won’t only tell key stakeholders what your primary resource needs are to make the project go, but it also gives you fast insight as to where your biggest risk factors lie.

7. Project Deliverables

List out the deliverables your team members need to produce in order to meet business objectives. This can include the product itself, instruction and installation manuals, marketing materials, press releases, advertising campaigns and more.

Your project scope statement outline helps act as a marker as you build out your full scope statement. Because while predicting the future of the project is impossible at such a high level, this is the first step to getting your project as close to the outcome as possible. By starting with the seven key statements above, you can get a head start on a successful project.

Gantt charts are the workhorses of scope management. However, most Gantt chart software is woefully limited in terms of its functionality. ProjectManager has dynamic online Gantt charts that do the regular organizing, prioritizing and linking dependencies and adding milestones. But unlike other tools, you can filter for the critical path. When you set the baseline, you’re able to compare your actual progress to what you had planned. There’s no better way to monitor project scope.

Project Scope Statement Examples

Now let’s review two simple project scope statement examples to better understand how a scope statement can be used in different industries.

Construction Project Scope Statement Example

Defining the scope of a project is one of the most important steps in the project planning process. In construction, defining the scope helps construction project owners, contractors and subcontractors not only reach an agreement on what the construction project will look like but also create an accurate project cost estimate based on the work, materials, equipment and labor that’ll be required.

1. Project Goals & Objectives: Build a residential construction project, an apartment complex that will generate revenue for the construction firm.
2. Project Requirements: Architects, engineers and construction project managers will work on the construction design to determine the specifications and requirements for the project. These include quality standards for construction materials and safety requirements, among others. To have a clear understanding of what these project requirements will look like, they’ll need to create a set of construction drawings and construction documents such as blueprints, a bill of quantities and computer-assisted designs.
3. Project Scope Description: Once there’s a design for the building, the project scope can be defined by using a work breakdown structure that’ll allow the construction management team to zoom into the types of tasks that will need to be executed, such as masonry, plumbing, electrical and other types of construction activities.
4. Project Exclusions: One of the most important things when writing a scope statement is to state what activities won’t be executed, known as project exclusions. Clearly explaining this helps avoid misunderstandings down the road.
5. Project Constraints: In project management, there are three traditional project constraints; time, scope and cost. However, there are even more project constraints that can affect a construction project, such as resources, quality and risk. For any construction project, there will be constraints that need to be factored in during the project planning phase such as environmental concerns, local regulations and building codes.
6. Project Assumptions: In any project, there are assumptions that subject matter experts will draw before the construction phase begins. These are usually things beyond the control of the construction management team, such as weather conditions, availability of suppliers and the ability of the team to complete work within the planned time frame. These assumptions will be proven true or false once the work begins.
7. Project Deliverables: As previously stated, the construction project involves different types of work such as HVAC, electrical work, woodwork and masonry, among others. Each of these construction crews or subcontractors will be responsible for producing many project deliverables throughout the construction phase.

Manufacturing Project Scope Statement Example

Manufacturing projects generally involve the production of physical products. This takes a series of steps needed to transform raw materials into finished goods. Here’s a simple scope statement example for manufacturing.

1. Project Goals & Objectives: Create a finished product based on market research and the strategic planning of the company.
2. Project Requirements: There will be internal and external requirements for the development and manufacturing of your product. In terms of internal requirements, think about the concerns of your company stakeholders who will want low production costs, high profit margins and the shortest time possible to get a return on their investment. In terms of external requirements, consider the competition in your market and the preferences of your target customers such as the quality, price and features they expect from your product.
3. Project Scope Description: The project scope in this case will summarize the different activities that are part of the production cycle. This includes the product development process, the procurement and transportation of raw materials, parts and components from suppliers to the production line, the assembling process, quality control procedures and the distribution channels that’ll be utilized to bring the product to the market.
4. Project Exclusions: It’s important to explain to your stakeholders exactly what features will be included in your product as well as the quality standards that will be followed. Product documentation such as a bill of materials is ideal to define your project exclusions.
5. Project Constraints: There will be project constraints specific to manufacturing such as limited production capacity, resource availability, customer demand and machinery maintenance.
6. Project Assumptions: Brainstorm with different departments involved with the product, such as marketing, sales, production and maintenance to draft as many project assumptions as you can get. The more cross-functional insights you can get, the better. It’s important to be ready to face multiple scenarios. A good way to do so is to use linear programming models to simulate different levels of production and customer demand.
7. Project Deliverables: The deliverables will be all the different product development documents that’ll guide the production process, the product prototype and finally the final version of the product that’ll be launched to the market.

Project Scope Statement vs. Scope of Work

There are a few things that project scope statements typically get confused with, including your scope of work. They may sound like similar project scoping documents, but here are the primary differences between these two.

Your scope of work is an agreement of work, typically between consultant and client, that details the work plan to be performed, including, but not limited to:

• Deliverables/products/results
• Project timeline
• Project milestones
• Reports to catalog project progress

While your scope of work can be time-consuming to write, it outlines the project itself and not necessarily the plan that’s to follow. The project scope statement, in turn, fulfills that role by detailing and mapping out exactly what to expect with the project plan and the project itself.

Scope Statement vs. Scope Management Plan

They might sound similar, and the outcome of the project may be similar, but a project scope statement is different from your project scope management plan. A project scope management plan is what follows the project scope statement, detailing the scope management process from the start to the finish of your project life cycle.

Additionally, it helps define the work that must be done over the course of the project, and it controls and monitors those processes. It also documents and tracks phases to avoid scope creep and assists with project closing, including an audit of deliverables and assessing the project outcome for success factors.

Your scope statement isn’t nearly as involved—it’s just the umbrella over your project scope management plan, acting as a rubric for stakeholders and team members to follow.

How Does a Project Scope Statement Help a Project Team?

This crucial document significantly benefits a project team in many ways. It acts as a guide that provides clarity and understanding, outlining what is included and excluded from the project. It clarifies project deliverables and connects the project to the overall business needs.

A project scope statement also breaks the project into manageable tasks, making it easier to determine what resources are needed for each. All stakeholders, including the client, sponsor and team, have a shared understanding of the project scope, which minimizes disagreements. Ultimately, this document can contribute to a more successful project outcome.

Tips to Write a Project Scope Statement

Here are the best practices to consider as you write your project scope statement:

• Avoid using jargon-heavy language. You’ll be talking to multiple people across multiple departments and specializations, so keep the language consistent and clear.
• Involve all relevant stakeholders such as the client, sponsor, team members and end users. Their input and feedback ensure everyone agrees on the boundaries and objectives.
• Keep it short. Since this is a project document that’s seeking stakeholder buy-in, there will likely be plenty of editing to be done before it’s finalized, and it’ll need to be a quick reference guide for later. So, keep it simple and save the verbiage for your full project plan.
• Stay away from sweeping statements. You don’t want to over-commit your resources to the project before it even kicks off.
• Explicitly state what is out of scope to better manage expectations and prevent the project from expanding beyond its intended boundaries.
• Focus on deliverables instead of tasks, as the end products or services help the project team determine the best approach to complete the work.
• Make sure it answers questions, like:
  • What are the long-term business benefits?
  • What does it provide our customers that do not already exist?
  • Is this better than what we currently offer on the market?

ProjectManager & Project Scope Management

Major project rollouts can be demanding on both your time and energy. Don’t let it overwhelm you before kick-off. For starters, you can use our Gantt chart software to create a WBS and get a visual on deliverables, as well as the tasks needed to complete before submitting your project scope statement.

From there, you can try ProjectManager and use our task management features to get all the necessary tasks organized, prioritized and sorted by project phase. You can even ask other people for input: team members can comment directly on the tasks so communication stays organized and to the point.

Keep tabs on your resources, tasks, deliverables and more so you can keep your project on track. With ProjectManager, you can practice mapping out your project timeline by using our Gantt chart, listing out deliverables using our task list or kanban tool and inviting team members to review the timeline before submitting the scope statement to key stakeholders. Start your free 30-day trial today.

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