In the world of engineering and construction projects, the scope of work is the cornerstone of the relationship between the client and the contractor.
The scope of work consists of a complete and detailed description—technically and reasonably feasible—of all activities under the contractor’s responsibility. Along with the technical and commercial conditions, the scope forms the basis on which a diligent contractor analyzes the optimal approach for executing the project, defines processes and procedures, and then develops cost and schedule estimates.
It is essential to remember that these estimates are initially used by the client to select the contractor. A recent post by Jonathan Soto Rosado on LinkedIn accurately pointed out that cost estimation does not end with contract award—it becomes the baseline for project execution.
I not only agree with this statement but go further: a responsible bid from a contractor reflects their understanding of the scope of work to be executed, taking into account the conditions provided by the client and the specific characteristics of the project site.
That understanding leads to a detailed work plan, from which processes, sequences, resources, productivity rates, and timelines are derived. These elements must be refined through iterations until they reach a balanced and feasible plan that meets client requirements. Often, clients have ambitious scheduling expectations which, depending on the industry, may even be unrealistic.
Naturally, understanding the scope and organizing the required plan to fulfill it under the given conditions must not be taken lightly. Responsible and successful contractors typically assign this critical task to highly qualified and experienced personnel—usually senior managers with a proven track record in similar projects.
The scope of work is also one of the main sources of disputes between client and contractor. Therefore, it must be clearly defined and mutually understood. A useful tool for this is the WBS (Work Breakdown Structure), which provides a hierarchical decomposition of the project deliverables.
It is common for the client to request a fully completed project, but parts of the scope may not be clearly defined in the initial bid documents. Hence, it is the contractor’s responsibility—from the bidding stage—to identify these gaps and propose clarifications and adjustments that ensure a complete and functional result. However, all clarifications and proposed modifications must be formally validated by the client. Only after such validation can the scope be considered agreed upon.
Once the scope is agreed, any variation must be mutually approved and may result in adjustments to price and schedule, provided there is a technically sound justification. Such justification must be based on the information and detail submitted with the awarded bid: processes, resources, productivity, durations, and so on.
At DC&R, we offer over 30 years of experience in complex engineering and construction environments for demanding industries such as mining, oil & gas, and infrastructure. We also provide specialized technical assistance to businesses interacting with engineering and construction companies—from bid management to contractual administration.
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