Page 309 - Global Project Management Handbook

15-10 MANAGEMENT OF GLOBAL PROGRAMS AND PROJECTS

Government-to-government agreements that specify transport of products across
borders typically will include an exemption from taxes and tariffs. Private companies,
however, do not always have the leverage to obtain concessions on taxes and tariffs. It
may require research with the tax agency of a particular country to identify charges for
products for export or for products imported to ensure factoring in any potential costs.
Additional costs to a project can affect the quality if a performing contractor is
unable to complete the work under a cost-limited contract. Product quality may suffer
if the additional cost burden imposed through taxes and tariffs causes the contractor to
cut costs in materials or work practices.

PLANNING FOR INTERNATIONAL PROJECTS

There cannot be enough planning and anticipation of potential problems in interna-
tional projects. Experience in one country may be helpful in assessing another coun-
try, but new situations always will emerge. The full range of potential challenges to
projects probably will bring forth new challenges with each new environment.
Compiling a checklist and validating potential performing contractors are essential
to be able to select the best contractor to conduct part of the project work. Checking
on the governmental and cultural aspects of a country may reveal advantages or disad-
vantages for a project and an organization’s ability to deliver a product that meets all
the requirements of the customer.
International projects at first may appear to be simple and beneficial to all parties.
There are pitfalls that can change a perceived highly beneficial project that has many
identified advantages for all parties to one of catastrophic failure. Failure is often the
result of operating in an unknown venue that does not have the capability to perform
the project work.
When a project is conducted in a country other than that of the project’s parent
organization, one may need to plan for support services to accommodate all the project
staff. Sleeping and eating accommodations are essential to meet the minimum needs
of the staff to maintain morale. Project environments with extreme hot or cold temper-
atures will require some temperature conditioning to ensure the safety and comfort of
the staff. A desert environment where temperatures during the day often exceed 110°F

typically will require air conditioning for proper living temperatures. A project in
Antarctica, for example, needs heat to ensure a workable situation from an outside
temperature of perhaps −50°F.

SUMMARY

This chapter lists some of the areas to be considered and gives examples that may
guide project managers in assessing the potential of partnering with an organization in
another country. The examples show that many different factors may affect project
and product quality. Some of these factors will be readily apparent, whereas others
may be hidden at the start of the project. Weaknesses that are discovered must be dealt
with as they occur.
Anticipating different practices that can affect product quality and planning to
overcome any weaknesses will be helpful during project execution. Using the “defect
prevention” approach can serve to preempt adverse situations that have a negative
impact on quality. It is not sufficient to just state the requirements to a performing