What Should A Project Manager Do If The Customer Delays A Project?

Delays on projects are nothing new. Between the scope of work changing, unexpected issues arising and things not going according to plan, projects are routinely delayed around the world, at least according to their original schedule. In fact, only about one-third of projects are completed on time, according to Wellingtone. When the contractor or designer delays the project, the Owner has plenty of rights afforded to them via laws and the contract. Not to mention, they’re the ones paying, and can withhold making any payments for a number of reasons. But what should a project manager do if the customer delays a project? Let’s find out!

The Owner, Client or ‘Customer’ has a lot of authority on a project – and they should. They are, after all, not only paying the costs for the work getting done, but are taking risks, too:

• What happens if the design team misses something?
• Will there be legitimate change orders?
• What kind of unknowns are they being exposed to?
• Did they select the best contractor for the job?
• Is the price they’re paying going to provide the most value?
• What happens if a contractor or firm disappears? Goes bankrupt? What if they try to sue if negotiations aren’t smooth?
• How long will the project take? Is the original schedule achievable?

These are only a few thoughts going through the mind of a Client, and they occur during all five stages of the project – from the beginning to the end.

All of the above being said, the Client or Customer is not exempt from creating confusion, hindering progress and causing delays to the project.

How Can A Customer Delay A Project?

Here’s a list of ways that the Client or Customer can create delays, sometimes without being aware of it:

• Scope Creep – Gradually adding more work to the general scope of work without considering additional time or cost.
• Delays In Payment – This can create general cash flow issues, as well as delay the process of making large purchases (i.e. downpayments, deposits, raw materials, etc.)
• Vague Or Unclear Scope Of Work – this creates the need or opportunity for change orders; sometimes valid, others arguable, some invalid.
• Not Managing ‘The Design Team‘ – allowing them to produce incomplete project documents, take additional time responding to questions, not address issues or taking too much time reviewing/approving contractor’s documents.
• Indecision – Leaving items open or undecided can eat up valuable time getting the project done.
• Expectations That Are Not Communicated – this can be milestone dates, performance standards, etc.
• Not Making Time For Progress Meetings – problems have less time to snowball into something larger when addressed early.

These are a few of the major ways a customer can create project delays. Let’s explore the specifics.

So What Should A Project Manager Do If The Customer Delays A Project?

The best way to outline this is to break the project down into the five phases mentioned earlier, with the exception of the final phase (reviewing once complete). Below is a list of things a project manager should do if the customer is delaying the project, according to the project phase:

Delays During Project Conception (Idea Phase)

This section assumes that the customer has asked a contractor to bid on the project, and you’re in the midst of drafting a proposal. These strategies are preventative:

• Make sure all milestones and completion dates are clearly noted.
• Request a sample contract, and have a legal counsel review it.
• Create a list of questions and formally submit it to the customer for clarification, particularly after reviewing bid and design documents.
• Ensure that all pricing and planning reflects these questions.
• Ask the Customer if they, or their Design Team, has referenced a basis of design for the project.
• Submit your proposal with the scope of work restated, along with specific qualifications and exclusions: what’s been assumed, and what’s not included.
• Run a credit check on the customer to ensure they have any blemishes on their record.
• Make sure the contract clearly notes any items in the scope of work that are up in the air, or are not clearly defined.
• Have the final contract reviewed by your legal counsel for good measure.
• Lastly, make sure all payment terms are crystal clear!

Delays During Project Planning

This section assumes that the customer has signed an agreement with your firm, and the project is officially underway (at least on paper):

• Clearly communicate the scope of work to all members of the project staff, including subcontractors and vendors. More specific, ‘pass through’ all contractural terms and conditions to them, too. This unifies all parties on the contractor’s side of the coin.
• The act of communicating the information/terms above will in turn keep all parties on the lookout for any scope creep or slight changes.
• Provide an overall schedule, projection of bills/payments and a list of all expected deliverables to the customer as early on as possible.
• Make sure that the contract includes a specific amount of time that the Client (or Owner’s Reps) has to respond to questions and review/respond to documents.
• If the above is not being done, document this in writing to the customer.
• If there are items that are open-ended, not decided upon or still vague, make sure to qualify these in schedules, submittal documents, etc.
• Come to an agreement with the customer on when these open-ended portions of the scope will be clearly defined.
• Should a delay arise, make sure this is not only documented in writing to the customer, but outline cost and time implications as well as potential solutions.

Delays During Project Execution

This section applies to the project once it’s fully underway (i.e. ‘boots on the ground’ – literally on a construction project):

• Establish regularly scheduled meetings with the customer, and make sure each meeting has an agenda and minutes.
• At these meetings, concerns over delays of any kind should be addressed in the agenda, and the outcome summarized in the minutes. This creates a paper trail that can be used in court, should the project ever get to that point.
• If your project experiences scope creep or an unexpected customer delays, STOP ALL WORK related to the items of work in question, and DO NOT perform any work on this item until costs and time are addressed and agreed upon (in writing) with the client. Performing work without the promise of getting paid is extremely risky, and may be seen as consent on your part that the item is in fact your responsibility.
• Submit change orders following the discussions mentioned above.
• Make sure the customer understands all up-front payments that will be required by your firm or any of your consultants, subcontractors, etc. – deposits, up-front purchases, retainers, etc.
• This is the stage when we should begin tracking payment periods/dates, response time to questions, time to get approvals, etc. Should they begin to slip, document it.
• As usual, keep your legal counsel abreast of any delays you’re experiencing during the execution of a project.

Delays During Project Monitoring

At this stage the project is underway, and there are hopefully no more significant unknowns or major portions of the scope still undefined. This is the monitoring phase, where the project’s progress is being tracked:

• If the schedule is getting delayed and it’s not because of your company, it’s a good idea to review the following (restating from the prior section):
  • Time periods to get approvals/responses
  • Time between submitting a bill and getting approval.
  • Also, time between approval and getting paid.
  • Timespan between when a change order is first submitted, and when it gets responded to / approved.
• If payments aren’t being made on time, or not at all, bring this to your legal counsel’s attention ASAP.
• Based on earlier phases, the contract terms have been reviewed and agreed to – now is the time to act if you’re experiencing delays caused by the customer. This includes:
  • Summarizing all delays in a letter or document.
  • Outline what it will take from the customer to get the project back on track.
  • At the advice of your counsel, you may stop all work on the project if the contract allows this and the legal experts advise it.

Wrapping It Up

Delays on projects occur for a variety of reasons. Each situation requires a different approach, but the methods of addressing delays caused by the customer are unique. As the Project Manager, you now have some ideas and techniques to implement if the customer delays the project – for every phase of the project! We hope this outline has been helpful, insightful and will be useful in the future.

And remember – everything will be OK!