What to Include in the Scope of Your Industrial Contracting Project

November 14, 2024

When planning for an industrial contracting project, one of the first – and most important – steps is developing a well-defined scope. Your project scope should include a detailed outline of the work that needs to be done to allow industrial contractors to provide an accurate bid.

A clear project scope helps prevent costly misunderstandings and delays by aligning expectations between your team and the contractor, setting the stage for successful project completion.

Here’s what you need to include in your scope of work.

Project Objectives

Start with an overview of the primary objectives for your project. This includes the goals, such as expanding production capacity, upgrading existing systems, or adding new facilities. A concise, high-level overview keeps everyone focused on the main purpose for the project and provides a reference point for any decisions that are made during execution.

Expectations and Deliverables

List each specific deliverable required along with any particular expectations for the finished product. This section should detail each phase or component, helping to ensure your industrial contractor understands exactly what needs to be delivered.

Clearly defined deliverables, such as “complete structural steel framing” or “install equipment foundations,” reduce confusion about responsibilities and help prevent scope creep. For the best results, outline who is responsible for each task, whether it’s your team, the industrial contractor, or a separate subcontractor.

Standards and Requirements

In your scope, be sure to include any quality standards or certifications that the contractor must meet. This may include industry certifications, compliance standards, or material requirements.

For example, if the project involves equipment installation, the scope could specify materials that are resistant to chemicals or withstand high temperatures. Making sure these requirements are understood from the beginning ensures the final result meets your standards and helps avoid costly rework.

Timeline and Milestones

A realistic timeline with distinct milestones helps keep your project on track. Breaking down the timeline into phases and including delivery targets allows everyone to see the progress and ensures that the project is moving according to schedule.

If you’re unsure what milestones are involved with a project, that’s okay too. Give your industrial contracting partner a deadline to shoot for, and ask for them to create a schedule with the milestones that are needed for them to complete the project.

Budget and Payment Terms

It’s important to be transparent and outline the budget and payment terms at the outset of any project. Define a clear payment structure, including deposits and payment schedule.

When you’re clear about finances and expenses, you give the contractor a basis for accurate budgeting, which helps avoid disputes and ensures both parties are aligned on financial details from start to finish.

Communication and Touchpoints

Effective communication keeps the project running smoothly, especially for complex industrial projects. Outline the preferred communication methods, who will be the main points of contact, and how often updates should be provided.

This can include weekly check-ins, milestone reviews, or emergency contacts for off-hours. Clear communication protocols make it easier to stay informed and address any issues promptly.

Your project scope is like a GPS for a road trip. It charts the path, stops and destination, ensuring that everyone knows where they’re headed, what’s expected along the way and the resources needed to get there. Without a clear roadmap, you might waste time on detours, miss key milestones or end up far from where you intended to go.