An agreed hourly rate does not establish how much a contractor is authorised to spend. Set a clear spending limit, monitor the forecast cost and approve increases in writing to reduce budget surprises and payment disputes.
Although alliance systems can lead to great cost and time savings, it is important to pay particular attention to internal communications and authorisation systems. It can take a lot longer …
Avoid problems later by checking early in the project who is responsible for what aspect of the project and who has authority to approve what. Document this.
Instigate and enforce a good change management system Change management coordinators and people who have to approve changes spend a lot of time chasing signatures, putting information in to spreadsheets, …