An article by Paul Huber, Paul Huber Engineering Firm, Neu-Ulm
Large-scale development projects in the technical field are typically complex and turbulent—especially when a large number of project partners are involved in the same project. The effort required for coordination increases significantly, and changes become necessary because problems arise during the course of the project, necessitating new approaches.
On a technical level, collaboration often still works very well. But how do you deal with the technical risks and the resulting changes to a proposal? After all, someone has to approve and pay for these expenses.
To ensure that this goes smoothly, it’s worth thinking about these topics in advance. The image below illustrates the project phases of a typical product development process in the automotive industry.
Figure 1: Project Phases and Coordination Processes in an Automotive Industry Development Project
It is clear that the project is divided into several overlapping phases: A, B, and C. Information from all project phases flows into the project and must be used to manage it. When it comes to change requests, at the very latest, the question arises: Who makes the decisions, and who pays?
That is why processes, communication, and decision-making procedures should be established as early as the proposal stage. By defining these processes in the proposal, you ensure a smooth project workflow from the outset, since this clearly establishes all responsibilities, rules, and communication processes before the project begins.
Therefore, the key points are:
· Take into account and allow for technical changes as the project progresses
· What financial and technical risks exist, and how should they be managed?
· Clarification of points of contact, roles, and associated rights
· Definition and Integration of Approval Processes
· Establishment of deadlines for decisions and, if necessary, the required escalation procedures
· Aligning the approval processes from the engineering department with those of the purchasing department in the quote ( This is very important! After all, who pays if the engineering department is satisfied but the purchasing department hasn’t approved the change at all?!)
With appropriate guidelines, risks and challenges in the project can be effectively addressed because decision-making processes and responsibilities are clearly defined.
In addition, clearly defining the project processes can provide a significant competitive advantage over an in-house developer or even competitors, because these contractual provisions ensure much better access to your project contacts. At the same time, the project can be managed with a high degree of cost transparency for all project participants.
I wish you every success with your offer!
