CONTRACTING: SETTING AND MEETING
EXPECTATIONS
JANUARY 28, 2013
FRANK BATTEN SCHOOL OF LEADERSHIP AND PUBLIC POLICY,
UNIVERSITY OF VIRGINIA
BEGIN WITH THE END IN MIND
You’ll be satisfied if you end the project with:
 A client who values your contribution and will refer you
to others… Is “super pleased”
 Fully engaged organization
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Organizational changes that will be adopted
Leadership signed on and participating
Line staff see value and adopt measures
 Recommendations implemented
 Problem solved
 Tools and talents within organization to sustain change
HOW WILL YOU GET THERE?
 Contracting is using imagination and experience to
envision the path
 To ensure that you can complete it over and above
expectations.
 Begins with client and consultant relationship
 Consultant’s task is to listen and ask good questions
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What do they see as their needs?
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The end deliverable they seek?
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What is your analysis of the problem and the
appropriate solution?
WHAT IS YOUR CAPACITY TO ASSIST?
Give your skills a sober and ambitious assessment
 Assess the match between their needs and your
expertise and skills
 Assess level of risk: Is the assignment realistic? Is
the client’s view of the approach the most effective?
 Develop your own interpretation of the “presenting
problem “
 Say “yes” only if you have the skills, or the capacity
to learn and excel quickly
 Know what you don’t know. Bring in others to assist
or offer only the services you know you can deliver
KNOWING WHAT TO CHARGE
Estimating work and budget
 Be precise in your estimate of hours
 Ask for detailed description of client’s desired
outcome.
 Spend considerable time understanding the scope and
deliverable: do not rush contracting
 Break down project into phases for good estimate,
i.e.,:
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Background reading
Interviews with key staff and leadership
Facilitation
Site visits
Writing and revising reports
Analyzing results with team
Meetings with client…..
SETTING RATES
 In estimating, match dollars with hours
 Be comfortable talking with client about your rates
early
 Do not provide “back of the envelope” estimate
 Clarify client’s budget early - before contracting
 Consider additional costs of doing business
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Transportation, materials, lodging
 Publish and share rates with clients pre-contract
CONTRACT COMPONENTS
Client expectations
 Be clear what is yours and what the client will do

50/50 is what Flawless Consulting (Block) calls for
 Write expectations down, such as:
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24-hour turn around on review of documents
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Schedule and arrange all meetings. Take minutes
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Time with top leadership – CEO and Board
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Completion of “homework” on time
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Time dedicated to complete the plan or project
FINALIZING CONTRACT
 You have complete clarity on the charge and final
product
 You understand to the best of your ability the time it
will take you
 You have allowed for some unpredictability
 You provide a draft to the client to review
 Arrive at a final agreement together
 There is trust and rapport between you and the client
 Proposal may go through several rounds
 Request signature of Board Chair and CEO
KEY COMPONENTS
What are essential pieces of contract?
 Categories can include:
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Consultant Approach
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Steps to Take
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Agency Expectations
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Deadlines and Deliverables
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Qualifications
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Budget
 What else?
BUDGET
Requesting “lump sum” or hourly free
 Lump Sum
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Requires good estimating skills
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Simpler billing process
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Predictable revenue stream
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Allows for more flexibility in approach
 Hourly within Outside Figure
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Pay as you go
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Unpredictable revenue stream
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Less risk of being underpaid
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Less chance of being overpaid
ATTRIBUTES OF A GOOD CONTRACT
 Early:
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Top leadership understand and can articulate what you
will be doing
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Consultant understands the path forward and the
resources he/she will need to complete
 Later:
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Client’s project is complete, problem is resolved
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Client evaluation is positive
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Deadlines and deliverables met
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Measureable change in organization for the better