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Text Box: We will just assign this project to Bob, 
                                  I'm sure he has the Time to handle it.
 
Every time a company assigns an
"Internal Project Manager" 
to "save costs" 
it always results in a 
wasted cost multiplier effect 
for the project.
Internal salary person with benefits not capitalized to the project
Operations people lack "Project" based concept
Unforeseen Cost overruns and extras
Schedule overruns and delays causing lost production
Lost productivity from internal personnel's full time operations job
Why is this always true - Operations involve continuous processes with ongoing durations vs. projects that have a start and finish where being late will severely impact the overall costs (not only cost overruns, but lost production and market share that can never be recouped).
 
  The Contractor says we don't need Project Management, 
                                  They will watch out for Our Best Interests.
 
Every time the company relies on 
the "contractor" to 
provide the Project Management 
to "save costs" 
the door is left open for extras, cost overruns, 
schedule overruns and the same result, 
wasted cost multiplier effect for the project.
Your budget overrun is the contractor's profit.
The contractor can "justify" all his charges as "necessary"
The contractor can "reduce the quality and cost of materials and construction to increase his profit.
You don't get what you paid for, you get what the contractor gives you.
Not all contractors are unethical, but after all, it is your hen house.
Why is this always true - Contractors can manage themselves, just as any company manages their own operations.  However, there is a gap when it comes to projects.  Contractors make their money from performing work on a project and they try to maximize their work and money, as any honest business should.  A company with a project is trying to minimize the cost and maximize the effect of the project.  This leaves the two groups at cooperative yet opposing business positions
  

 

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