FOUNDATIONS OF RISK MANAGEMENT
Scope
Develop and manage a clearly defined scope of services
A well-defined and written scope of work serves several purposes. First, it helps avoid
misunderstandings by clearly defining which parties will be responsible for completing which task and
when those tasks will be completed. Second, it establishes the basis for negotiations regarding
compensation. Third, it draws the line that forms the basis for additional services. Last, it serves as a
starting point for preparing a work plan.
Communicate the agreed-upon services to the entire staff so that they can recognize when a request for
services goes beyond the contracted scope. Obligations can be extended simply by the actions of
employees. If they begin to perform services that are not within the original scope -- without first
receiving an agreement for extra compensation it will be very difficult, after the fact, to explain that those
services were not in the original scope.
Be especially careful while making site visits that the engineer’s actions do not extend the firm’s
obligations to include responsibility for job-site safety or directing the work of the contractor. Extending
the scope simply increases the amount of risk one is taking without appropriate compensation.
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