Ready to Run?

You’ve won that elusive contract, been awarded that proposal you spent hours on, excited to have secured an important piece of business. So, when do you run with the ball and actually start the work?

We have noticed an alarming trend recently. Proposals accepted, insurance not in place, scope not fully agreed upon, yet the client starts planning meetings to move forward. Perhaps it is the time, a year of challenges and change, or perhaps not. When your proposal is accepted, when should you actually begin the work?

First, and foremost, you need an executed contract or at least a Letter to Proceed. Once you have been told your proposal has been accepted, the first step and only step should be to have an executed contract or at the very least a Letter to Proceed provided. This protects you and ensures your business the price you offered, not one you never agreed to with the client. Secure the contract before you proceed with any work, including kick-off meetings.

Secondly, make sure you have insurance in place. Often, in service contracts, the Prime requires you as a consultant to provide them with a Certificate of Insurance naming them and the client as Additional Insureds. This is common practice. However, when you touch base with your Insurance Agent for the Certificate, they may wish to see the contract you are entering into to ensure it meets with their coverage conditions. You will see this often in professional consulting situations, where professional liability is a mandate. Your Insurance Agent should be in your Circle of Trust and someone who you have frequent dialogue with and are satisfied that they are always looking out for you.

Proceeding to commence work without a signed contract can lead to several areas of concern and risk you and your company do not need. Often, the Project Managers for larger Prime Businesses are not that firm’s owner. They sometimes seem to forget that you as a small business or sole entrepreneur must have all your coverage in place before you agree to even a kick-off meeting. You need to get paid for your work and that executed contract is your legal insurance. If you begin work prior to the execution, you could risk not receiving payment for all your efforts prior to the execution date. This is not a risk you should take.

Often, the excitement of being awarded work can engulf your actions to move forward. But, you need to contain the excitement and focus on getting the contract signed, or, at the very least, receiving a Letter to Proceed. If you do not take these actions, insurance may not cover you and you risk nonpayment of work completed. Neither is a situation you wish to find yourself handling.

When that contract is awarded, take a moment and celebrate and congratulate your team for a successful effort. The next vital step is to secure written confirmation. That is your Go Command. Without it, you could find yourself in muddy waters.

So, be like Bix, our Cocker Spaniel in our photo today, fetch that all important ball, but before you start running with it, make sure you are headed down the right path. The success of your business and the limitations of risk to your organization demand it.

Be well.