Far too many commercial relationships and related projects do not perform well. For example, on average, mega-projects are delivered two years late and 80% over budget1. Moreover, around 35% of standard projects experience a substantial shortfall against plan - with the commercial contracting aspects particularly susceptible to problems. \r
Organizations must consider the Scope of Work, or SOW, and contract as enabling tools for improved project and relationship management. The SOW defines what the relationship and project must deliver, who it is that will undertake that delivery, the responsibilities of the participants, the way that performance will be overseen and measured and (finally) the consequences if anyone fails to perform or the objectives are not achieved. Many project teams think of contracts only in the context of 'what happens when things go wrong'. As a result, they consign the contract to the drawer or to their document repository - and in so doing, they immediately place the outcome of their project in jeopardy.
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