Contracting vs. Project Management

The contracting function in public agencies is often in conflict with the project management function.

Project managers of design and construction projects are primarily focused on getting their project done quickly, often working in a difficult political environment with tight budgets and schedules. They frequently known who they would like to do the work, but find themselves constrained by public contracting laws and regulations that “get in the way.”. As a result, project managers and construction managers get frustrated at what they term the contracting bureaucracy.

On the other hand, contracting personnel are also frustrated. They are charged by the law and the public agency with ensuring a fair process that complies with the law, ensures integrity in the selection and contracting process, and gets the best financial deal for the agency, all within the constraints of public contracting laws.

There is a natural tension between these two functions, with project managers charging that contracting personnel try to put up roadblocks to prevent them from doing their job, while contracting personnel complain that project managers skirt the law and give away the financial store by their practices.

What is needed to reduce this tension is strong support from high level management for both the contracting and project management functions. Without this perspective that values and recognizes the necessity of each function, an organization will take on the leanings of its top management. If top management doesn’t value the contracting function, that attitude will trickle down to project managers who will view that as a license to cut corners. Likewise, if top management rigidly adheres to contracting processes but fails to understand the importance of getting the project completed expediently, projects will come in over budget and behind schedule. Without a balanced support for both contracting and project management, personnel will be frustrated and find themselves caught in the crossfire of unclear expectations, and dealing with unnecessary conflict.

Management and staff in public agencies need to have a clear understanding about the role of each of these functions and how they will attempt to balance competing interests. It is important to have facilitated conversations that can help an agency articulate how they will live in the public sector world – getting the projects done on time and on budget and in compliance with contracting regulations and processes.

Unfortunately, many agencies are not very deliberate about confronting this natural tension.