By Eugene le Roux, FSAIRAC, and Eamonn Ryan
Project management, by its very nature, is a complex endeavor fraught with potential pitfalls. This is Part 1 of a four-part series.
A newly developed system underperforms significantly. Pressfotot/Freepik
Even with meticulous planning, unforeseen challenges and interpersonal conflicts can derail progress, inflate costs, and damage client-contractor relationships. Often, these “problematic situations” stem from ambiguities, misaligned expectations, or a breakdown in communication and accountability. Understanding the root causes of these common scenarios is the first step towards diffusing them and ensuring successful project delivery.
Scenario 1: Client Furnished Items (CFE) – the blame game
- The problem: A newly developed system underperforms significantly. The contractor attributes the poor performance directly to the use of Client Furnished Items (CFE) – components or materials supplied by the client for integration into the project. The client, naturally, seeks to assign blame.
- Analysis: Blame in this scenario is rarely unilateral. It’s typically a shared responsibility rooted in a lack of clarity and upfront due diligence.
- Client’s role: The client, by providing CFE, implicitly vouches for its suitability and quality. If the CFE is inherently flawed, incompatible, or fails to meet necessary specifications, the client bears responsibility for supplying inadequate materials.
- Contractor’s role: The contractor, as the system integrator, has a professional obligation to vet all components, including CFE. This involves reviewing specifications, conducting compatibility tests, and raising any concerns before integration. If the contractor proceeded without proper vetting or failed to formally document potential risks associated with the CFE, they share accountability for the resulting underperformance.
- Diffusion strategy: This conflict highlights the critical need for a robust CFE management process. The project contract and Statement of Work (SOW) must explicitly define:
- CFE specifications: Detailed technical requirements for all CFE.
- Inspection and acceptance: A clear process for the contractor to inspect, test, and formally accept or reject CFE before use.
- Risk allocation: How performance risks associated with CFE are shared or allocated between client and contractor.
- Change control: A formal process for addressing any issues identified with CFE, including potential impacts on schedule and cost.
Early and transparent communication, coupled with formal documentation of CFE status and any associated risks, is paramount to prevent this situation from escalating into a blame game.
