Planning and Managing Investment Property Finances - Part 3 Managing the Project

Managementproject meets the goals you have set within the
Checkliststimeline you specify. Whenever possible contracts
Using checklists may seem like an oversimplifiedshould be constructed with distinct deliverables
method of managing your tasks, but thethat give vendors goals to work towards
effectiveness of using checklists on a project thatthroughout the life of the project. These goals (or
contains many subprojects cannot be overstated.milestones) will have specific deadlines and can
You should use checklists to identify andoptionally have penalties for late delivery as well
document all of the tasks that will need to beas incentives for early delivery. In any case, your
completed. It's a good idea to break the checklistscontract will need to specify what the milestones
up into logical groups. For instance, you may havewill be, when inspection and acceptance will be
an overarching subproject to beautify the exteriorrequired, and what the payment schedule will be.
of your home that has checklists for gardenAnother important part of a deliverables based
beds, fencing, painting, and landscaping. Once youcontract is an escape clause. Since you are using
have created your checklists you should prioritizemilestones to measure the quality and timeliness
your tasks by how important they are to theof your vendor, you should also have some
project. You may also want to split your checklistprovision that allows you to terminate the
between items you will do yourself and items youcontract without penalty in the event that the
intend to outsource.vendor is unable to meet quality standards or
Speaking of outsourcing your checklists, youagreed upon deadlines. Having a statement like
should also use these checklists when executingthis can protect your project from delays due to
contracts with your vendors. A vague contractdisputes over payment. The escape clause isn't an
doesn't do ANYONE any good, and does evenabsolute defense against delays, but when coupled
less for you as the vendee. If you have takenwith penalties for late delivery, the cost savings
the time to walk through and assess your taskscan help mitigate the cost of the delays.
thoroughly, you should have no problem assistingFinally, you should keep backup contractors on
your vendors with creating a complete andhand in the event things don't work out with the
concise contract that outlines all of the items thevendor you choose. This should be an easy task
vendor will need to complete before you cut himsince you have already taken bids from multiple
a check. Also, remember that creating a contractvendors when estimating the cost of your
with a vendor is a negotiation, try to find oddsproject. Vendors are constantly seeking the next
and ends that the vendor can do aside from thejob, so delays on your job site, funding issues,
main tasks that can be included in the contract.and weather can all lead to a vendor abandoning a
Managing Vendorsproject. Your goal is to be prepared and able to
The structure of the contracts you execute withreact quickly to these changing conditions.
your vendors is crucial to ensuring that your