BSBPM502A Skills Kit

© NSW Department of Education and Training (DET) 2005
All rights reserved. This work is copyright to NSW Department of Education and Training.
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Disclaimer
The views expressed in this work do not necessarily represent the views of the NSW Department of
Education and Training. The NSW Department of Education and Training does not give warranty nor accept
any liability in relation to the content of this work.
This work has been produced initially with the assistance of funding provided by the NSW Department of
Education and Training, Training Development Unit, through the Training Resources & Support Program
with advice from the Product Advisory Committee.
Further copies of this resource are available from: Website: www.skillsonline.net.au
For further information, contact: Email: skillsonline@det.nsw.edu.au
First published July 2005

Resource Development Team Product Advisory Committee
Deborah Griffin NSW DET
Performance Development Solutions Catherine Chaffey Financial Services Education Agency Aust ltd
Lorraine Wheeler & Assoc P/L Suellen Freeman SW Sydney Institute of TAFE Bankstown Campus
Precision Consultancy Paul Tweddell Dept Aging Disability and Home Care
RMIT David Makin/Neroli Sheldon AIM
Training Plus Solutions P/L Justine Mercer Moore NSW Chapter of the AIPM
Lorraine Wheeler/Stephen Auburn Project Team
(BSBPM502A) Manage project scope © NSW DET 2005

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Contents
Index of templates..............................................................................................................4
1. Introduction....................................................................................................................6
1. Introduction....................................................................................................................6
1.1 How the learning guide is organised............................................................................7
1.2 An overview of (BSBPM502A) Manage Project Scope...............................................8
1.3 Learning outcomes.......................................................................................................8
2. Project Scoping: Topics and learning activities............................................................10
2.1 About managing project scope...................................................................................10
2.1.1 Definition(s) and Main Activities Involved In Project Scoping...............................12
2.1.2 The Relationship of Project Scoping and Project Phases.........................................13
2.1.3 Responsibilities for project scope activities.............................................................15
2.1.4 Stakeholder involvement in project scoping............................................................15
2.2 Element 1: Conduct project authorisation..................................................................17
2.2.1 Organising the process of project authorisation.......................................................17
2.3 Element 2: Defining the scope of a project.................................................................21
2.3.1 Establishing agreement with client about project scope..........................................25
2.3.2 Clarifying outcomes and establishing performance measures.................................29
2.3.3 Developing and implementing a scope management plan.......................................34

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2.4 Element 3: Managing the application of scope controls.............................................35
2.4.1 Implementing change control procedures................................................................37
2.4.2 Reviewing progress and recording results...............................................................42
3. Assessment and demonstration of competency............................................................46
3.1 Developing an evidence portfolio...............................................................................46
3.2 Products that can be used as evidence of competency................................................47
3.3 Processes that can be used as evidence of competency..............................................48
3.4 Record of work experience in project scoping...........................................................49
3.5 Assessment activities..................................................................................................52
4. Resources and reference materials...............................................................................55
4.1 Scope management proformas...................................................................................55
4.2 Further references.......................................................................................................63
4.2.1 General references...................................................................................................63
4.2.2 References specific to project scoping.....................................................................63
4.3 Key terms in Project Scoping.....................................................................................64
Appendix 1: Unit of Competency.....................................................................................65
Appendix 2 Assessment Template for (BSBPM502A) Manage project scope

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Index of Learning and Assessment Activities
Reflection: Scoping a project.....................................................................................16
Reflection: Conduct project authorisation activities.........................................................21
Reflection: Breaking deliverables into manageable chunks............................................24
Reflection: Conducting a Works Breakdown exercise.....................................................28
Reflection: Organising a project team briefing.................................................................28
Reflection: Reviewing and recommending changes to scope...........................................38
Reflection: Analysing scope changes...............................................................................41
Reflection Assessing scope effectiveness and recommending changes....................45
Assessment Activity Scoping a project.........................................................................52
Assessment Activity Managing processes to secure scope authorisation.....................52
Assessment Activity Developing a scope management plan............................................54
Assessment Activity Identifying and documenting scope management issues.................54
Index of templates
Project Overview Statement, or scope proforma (a).........................................................55
Project scope proforma (b)...............................................................................................56
Project authorisation proforma.........................................................................................57
Scope definition checklist................................................................................................58
Scope management proformas.........................................................................................59

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(a) Scope management plan.............................................................................................59
(b) Scope Change control template..................................................................................60
Project Change Order Form.............................................................................................61
Issues Register.................................................................................................................62

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1. Introduction
Welcome to these materials, developed by the NSW Training Resources and Support
Program (TRS) of the NSW Department of Education and Training to support delivery of
the Diploma of Project Management (BSB51504) from the Business Services Training
Package (BSB01).
These materials should be used in conjunction with the learning guides for the other units
of competency in the qualification and the relevant assessment activities from the
Assessment Guide including holistic and up front assessment activities.
The design of the materials is based on the assumption that project management is not an
entry level qualification and learners are likely to have existing training and
qualifications. This learner guide is aimed at learners who will be working as project
team members in a single project or in one area of a large, complex project.
This is the learning guide that applies to the national unit of competency (BSBPM502A)
Manage project scope from the Diploma of Project Management (BSB41504) and is
designed for use in conjunction with the other relevant components of the Kit. There are
two other units of competency closely related to (BSBPM502A) Manage project scope.
These are:
 (BSBPM402A) Apply scope management techniques: This unit applies to

functions normally carried out by project team members under the direction
of the project manager and working with other project team members
 (BSBPM602A) Direct the scope of multiple projects/programs: This unit

applies to the functions performed by a project manager to manage scope
within multiple projects and programs.

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The required units of competency to attain the Diploma of Project Management
(BSB51504) are:
(BSBPM502A) Manage project scope
(BSBPM503A) Manage project time
(BSBPM504A) Manage project costs
(BSBPM505A) Manage project quality
(BSBPM506A) Manage project human resources
(BSBPM507A) Manage project communications
(BSBPM508A) Manage project risk
(BSBPM509A) Manage project procurement
(BSBPM501A) Manage application of project integrative processes
1.1 How the learning guide is organised
This learner guide is divided into four sections:
 Section One provides an overview of the unit of competency.
 Section Two contains information and activities arranged around topic areas
that reflect each of the elements in the unit of competency. The activities
include reflective questions, problem solving exercises and activities
involving workplace research. Many of the activities draw on the five case
studies provided with these materials
 Section Three provides information about assessment and demonstration of

competency. It includes proformas for recording evidence of competency
and assessment activities.

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 Section Four contains a number of relevant templates and proformas, a
glossary of terms and a guide to electronic and print resources and reference
materials.
1.2 An overview of (BSBPM502A) Manage Project Scope
This unit specifies the outcomes required to determine and control the end products of the
project, and the processes to develop them. It covers project authorisation, developing a
scope management plan, and managing the application of project scope controls.
A project manager usually performs this function.
A full copy of the unit is included in this learning guide – see appendix one.
1.3 Learning outcomes
The information and activities in this Learning Guide aim to assist you to achieve the
following outcomes:
1.3.1 Elements of competency
The elements are the critical outcomes for the unit of competency. The three elements in
this unit are:
1. Conduct project authorisation activities
2. Conduct project scope definition activities
3. Manage application of scope controls

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1.3.2 Knowledge and skills involved in project scoping
The unit of competency identifies the required knowledge and skills listed below.
Learning and assessment activities in this guide have been developed to reflect following
areas of required knowledge and understanding listed in the unit of competency:
 Organisational processes leading up to project authorisation, start-up and

designation of a project manager
 Where scoping fits in the life-cycle of a project
 The need for scoping during project start-up and for ongoing scope
definition during the project
 Methods to define products and activities such as work, organisation and

product breakdown structures
 The components of a scope statement
 The practice of change control.
Required skills and attributes include:
 The ability to relate to people from a range of social, cultural and ethnic
backgrounds and physical and mental abilities
 project management
 planning and organising
 communicating and negotiating
 problem solving
 teamwork and communication skills
 leadership and personnel management
 monitoring project progress
 project management methodology.
 the need for scope definition during project start-up

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 the importance of, and ability to use techniques for scope definition
 the place of scope management in the project life cycle
 an understanding of scope change control procedures
 methods to define products and activities such as a simple work breakdown

structure
 required attributes include attention to detail, accuracy and critical thinking
2. Project Scoping: Topics and learning activities
2.1 About managing project scope
Project scoping is the framework, or scaffold for the management and implementation of
any project. Project scoping is concerned with mapping a detailed pathway for the
project, from the point at which a project is first considered, through to the final sign off.
Scoping sets a boundary around what the project is about, and, equally importantly, what
the project is not about. In other words, effective scoping ensures that:
 project activities are appropriately authorised
 projects do not stray from their goals and objectives
 projects do not run over time or budget.
Effective project scoping will ensure that:
 the project is appropriately authorised
 that the project outcomes and products are determined
 the processes to develop products are identified and mapped onto a detailed
pathway for the life of the project.
Project scoping may start well before a project is approved and will continue throughout
the life-cycle of the project. If the project has not been formally authorised, the project
manager will need to organise authorisation as the first step in scoping.
For projects include a tendering process, scoping will commence when the organisation is
considering whether to be involved in a tender, or if a number of potential projects are

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under consideration a priority listing will be needed for budget purposes. A scoping
exercise for each project will provide a basis for decision-making.
The project manager usually performs the project scoping; however, a specialist
consultant or interim manager may be involved in the initial scoping, or the project
manager may lead a team to define and manage the scope of the project. The manager
would normally remain responsible for scoping throughout the life of the project. The
responsibilities include:
 regular scope monitoring
 refining scope progressively throughout the project
 identifying ‘scope creep’
 reporting to higher authorities on any changes required and/or made.
In a large project, the manager may need to delegate responsibility for day-to-day scoping
exercises to a member of the project team, who would report regularly to the project
manager.
The need for flexibility and adaptability in scoping a project
While general rules and guidelines can apply to project scoping, no two projects are
exactly alike, and you need to be able to adapt procedures to suit the particular
circumstances. In a project with tight timelines and a limited budget, the project manager
and team may need to reduce the effort put into certain stages of scoping. For example in
Case Study 1: the Asia Tsunami Cricket Match, all of the planning and organising for this
major event was done in 15 days. How do you think that this would affect the job of
initial project scoping and scope management? Everything must have been done on the
run, and the success of the event would have relied heavily on team work and cooperation
between a number of organisations.
The need for constant review of project scope
Because projects seldom proceed according to the original plan, it is very important that
the activities of the team are carefully monitored against the planned project deliverables
and the specified work activities, established at the outset of the project.

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Any changes to the original plan should be identified and checked with the higher project
authority and other stakeholders as required. Changes need to be recorded and the scope
management plan adjusted accordingly.
This constant monitoring and checking role means that the person in charge of managing
the scope of a project needs to have well developed interpersonal skills and to be able to
relate positively to the wide range of people involved in the project.
2.1.1 Definition(s) and Main Activities Involved In Project Scoping
The key activities involved in project scoping are:
 identifying objectives and outcomes and the resources required to achieve

these
 initial consultation with stakeholders to confirm a shared understanding

about the project’s objectives
 ensuring that the project is authorised so that the project receives the
resources and effort necessary for successful implementation
 defining the scope of the project in terms of objectives, deliverables, work

activities, constraints and assumptions
 establishing the measurable project outcomes to enable a quantified

evaluation of project performance
 developing a scope management plan
 implementing the agreed scope management procedures and processes
 monitoring changes to the scope of the project according to change control

procedures within established time, cost and quality constraints so that
project objectives are met
 reviewing project progress and record results
 identifying issues, recommending improvements and passing on documented

recommendations to higher project authorities for application in future
projects.

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2.1.2 The Relationship of Project Scoping and Project Phases
Project scoping is important at all phases of project operations, not just at the start. The
major scoping activities in each phase are outlined below:
1. The proponent phase – that is, before a project proposal is submitted (this is also
called the initiation/concept phase)
During this phase of the project the major activities include identifying the project
objectives and the resources required to achieve them. This part of the project scoping
may be undertaken by a project manager/team other than those for the role of manager for
the project in question. This will depend on the scale of the organisation and the
project(s) for which proposals are submitted. For example, a large building company may
employ a team whose responsibility is to assess the viability of a potential project,
evaluate likely risks, estimate costs and resource requirements and make a
recommendation to project authorities about whether or not to pursue the project.
2. Approval phase – once a project is approved (the planning/development phase)
If a project manager and team have not previously been appointed (for example where a
specialist proponent/concept phase manager and team have been employed), then this will
happen immediately after the project is approved. The first task of the new project
manager is to secure authorisation for the project if this has not been done. If
authorisation has already been finalised, the project manager will need to get copies of
the documentation as the basis for their next task – briefing the project team.
During the approval phase the project manager will consult with the key stakeholders and
ensure that everyone is in agreement about the objectives and deliverables for the project
and carry out the following planning activities:
 Define the work activities needed to meet objectives and deliverables.
 Identify the constraints and assumptions under which the project will
operate, including timelines, budget and other resources available to the
team.
 Develop a statement of quantifiable project outcomes as the basis for

evaluation of project performance.

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 Develop the scope management plan.
3. Implementation phase – when the project is underway (the delivery phase)
Scoping functions carried out during this phase include implementing the agreed scope
management procedures and processes and reviewing project progress. As progress is
reviewed, the project manager will also be monitoring changes to the scope of the project
and implementing the agreed change control procedures to ensure that outcomes and
deliverables continue to be met under changed circumstances.
4. Completion phase - review (the finalisation phase)
During this phase the project manager will lead the team in conducting a final review of
project processes and evaluating the extent to which the project achieved it objectives and
delivered agreed outcomes/products. The review and evaluation will identify issues,
recommend improvements and pass on documented recommendations to higher project
authorities for application in future projects

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2.1.3 Responsibilities for project scope activities
Personnel Responsibility
Project manager Leads the project team in defining and managing the scope of the project,
including refining the scope progressively throughout the project,
monitoring scope, identifying ‘scope creep’ and monitoring and reporting
to higher authorities on changes
Authorizing agent/agency Selects and briefs the project manager, authorising the project and
endorsing the scope management plan, receiving and analysing review
reports and meeting with the project manager at agreed critical points
during the project. The authorising agent may also be required to step in,
in the case of a crisis in the project, or in a dispute resolution role.
Project team member(s) Contribute to the scope definition process including the development of
the scope management plan; work as a team under the leadership of the
project manager to apply the project scope controls; participate in project
review and evaluation activities
2.1.4 Stakeholder involvement in project scoping
A stakeholder is any person or organization who may be positively or negatively affected

by the activities involved in the project and its outcomes and products.
Stakeholders play an important part in communicating their expectations to the project

manager and team and receiving reports from the project manager on the management of
project scope to ensure that change controls are maintaining the project outcomes in
accordance with stakeholder interests. A project is considered successful when the needs
of the stakeholders have been met or exceeded. This means that you need to be clear on
who your stakeholders are and ensure that they have been consulted in the project scoping
stage.

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Here are some of the principle stakeholders to include:
 The project manger.
 The customers (both internal and external) who receive the deliverables.
 The people doing the work for the project.
 The project sponsor (who provides the money and resources for the project).
Reflection: Scoping a project

Case Study 3: Developing a Training Program provides details of a Request for Tender to produce a
program and resources for the Training of Authorised Officers in a Metropolitan Public Transport System.
Reflect on the scenario below, putting yourself in the role of manager in a TAFE Institute Project Unit,
considering whether to respond to the request for tender.
The unit you manage is quite small – just yourself as manager, three full time curriculum
specialists/writers and one administrator. The unit designs and publishes learning materials for the School
of Community Services, Justice and Public Safety, of which they are a part, and draws on the services of
consultant instructional designers, editors and graphic artists as required. If the unit takes on a commercial
project, you will negotiate with the head of school to second additional teaching staff from the school and
additional sessional teachers take on the full-time teachers’ classes for the duration of the project. Your
head of school has asked you to review the RFT and to make a recommendation on whether to put
resources into preparing a tender.
In reviewing the RFT you note that the timelines are very tight (only three months to write and produce
400 hours of teaching material). You know that you have the expertise to develop the curriculum and
assume that because the Training Program is one that the unit already delivers that you will be able to
customise some existing materials. You note also that the materials produced by the project will be owned
by the government department and that you will need to carefully document your existing intellectual
property so that the materials already produced by the unit for use in teaching will remain the property of
the college. You realise that you will need to second two teachers for a month each to help prepare the
materials and that you will need the head of school to agree in principle to the secondments.
As you only have one week to write the proposal and will need to put aside some other work for this time,
you decide that you need to talk over the options with the head of school.
As a basis for that meeting you need to prepare a briefing note including details on the following:
1. The outcomes of the project – for the Unit and the School.
2. The project deliverables.
3. The resources you will need from the school to complete the project.
4. The risks associated with proceeding or not proceeding.
Section Four contains a sample proforma for a project overview statement that could form the basis of the
briefing note.

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2.2 Element 1: Conduct project authorisation
Learning outcomes covered in organising the process of project authorisation include

confirming project authorisation with higher authority to ensure the commitment of
resources and effort.
2.2.1 Organising the process of project authorisation
Most projects will need to be approved or authorised for a range of reasons. Even if you
are in sole charge of a project within an organisation, there will be external points of
authorisation – for example, seeking a planning permit for a building or renovation; or
getting local council approval to hold a street party.
As a project manager working in an organisation, you will be responsible to a higher

authority – for example a project director or general manager, for the work you do. This
means you need to follow organisational policies and procedures to secure authorisation
before projects commence and depending on the scale of the project and agreed
procedures, at other stages of the project. Authorisation will also be required before
going to tender.
In the Case Study 3: Developing a Training Program, the project manager may have
anticipated that she would need additional help to prepare the tender documents as other
project team staff are fully committed at the time. The briefing paper would need to cost
the staff time to balance that cost against the likely benefits to the school if the tender is
won. Once the head of school has signed off on the recommendation to submit a tender,
the project manager is authorised to develop a project proposal that includes the services
of two additional teachers. This process of securing preliminary authorisation also
ensures that the organisation is aware of any risks associated with the project.

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Before proceeding, find out about the project authorisation procedures in your own
workplace, and answer the questions in the tables below.
Project authorisation in your organisation
Name of organisation
Name and position of my project authorising officer
Is there a document that outlines the authorisation procedure?
At what stage(s) does authorisation need to be secured?
Is there a proforma to use?
Upfront authorisation
Upfront authorisation is what enables the project to get off the ground. Depending on the
complexity of the project and the resources required, this may be a single page or a quite
detailed document. The following are two different approaches:
1. The supervisor of teller staff at a local bank branch wants to review customer
awareness of the bank’s new electronic banking service by having tellers’ survey
customers when they come in to do their banking. The project will require no additional
resources and will be conducted over a two week period.
2. All that will be required by way of authorisation is a short statement of the outcomes of
the project, a couple of sentences about how it will be conducted, how the outcomes will
be presented and a statement that no additional resources are required.
3. The manager of a TAFE Institute project unit, having won the tender needs to scope
the project to take place over three months. Given the tight timelines the unit manager
proposes that one of the permanent unit staff act as project manager (on higher duties).
She also needs to fully cost backfilling for the seconded staff members for three days per
week, and to budget for the contracted services of two curriculum specialists.
4. The authorisation in this case would include a copy of the contract (that demonstrates
the funding is available) and a detailed project budget that demonstrates that funding will
be sufficient for the anticipated costs.

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Authorisation at critical review points
In the second example above, the upfront project authorisation has been decided before
the project manager is appointed. The project manager’s first task will be to develop a
scope statement for the project, and to provide the unit manager with a work plan that
includes a schedule for authorisation at the critical review points of the project, for
example:
 when the Project Steering Committee have approved the curriculum design
 when the first draft of the learning materials is completed
 when all materials have been completed and the project manager is
recommending handover to the client.
Scope statements, checklists and proformas
Project authorisation may be in the form of a scope statement. This is a brief document
that provides the person who will authorise the project with a clear summary of:
 the rationale for the project
 details of what will be involved in its implementation.
Examples of different proformas for use in project authorisation are provided in Section
Four of this Learning Guide. Exactly how much detail is included in a scope statement
will depend on the size and complexity of the project and the organisation’s policy and
authorisation procedures.
The checklist in the following Authorisation Checklist table identifies standard items that
may be addressed in a project authorisation process. Use the checklist to compare your
own organisation’s authorisation procedures with these standards.
How does your organisation compare? Are there items that are not addressed? If so find
out why. Are there additional items included in your own authorisation processes? If so
add these items. You can then use this information to customise the project scope
proforma in section 4.1.2 to suit the requirements of your workplace.

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Authorisation checklist table
Standard item Explanation/definition Used in my
workplace ()
Project name and number Used to identify and classify the project
Project sponsor Person/company who has contracted the project
Project manager The person leading the project team who is responsible
for project outcomes
Project director The person to whom the project manager reports
Priority ranking Urgency in relation to other projects
Problem/opportunity What led to the project being commissioned
Deliverable Specific outcome(s)
Key objectives Major commitments/ work to be achieved
Critical success factors Indicators that the outcome has been achieved
Stakeholders People who have a stake/ interest in the project and can
influence its success
Performance reporting A statement of how progress will be measured and

communicated
Specification Describes the deliverables in detail
Budget & resources The funding and other resources (including people,
space, equipment) required to achieve project outcomes
on time
Time Start and finish dates; critical milestones
Risks, obstacles, assumptions What might go wrong or get in the way; assumptions
on which the specification, budget and timelines are
based on
Escalation management Strategies for managing issues, conflict and disputes
Contingency Backup strategies – part of risk management
Contractual arrangements Between project sponsor and project organisation;

between project organisation and sub-contractors
Business value Rationale for taking on the project
Approvals Sign-off required for project to commence and proceed
Attachments Any document accompanying the authorisation

proforma
Prepared by/ Date Person submitting the authorisation
Approved by/Date Person(s) authorising the project/approving the scope

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Reflection: Conduct project authorisation activities
The briefing note you produced in the previous section’s Reflection activity related to Scoping a Project,
identified three important outcomes for the unit and the School: first, if the tender bid was successful it
would help secure the annual income target; secondly, it would bring the school a new client; thirdly it
offered an opportunity to extend the specialist skill base of the school through seconding teachers as writers.
Your head of school believes that the tender should go ahead, but asks you to think about it overnight and
prepare a formal request for authorisation. In addition to the material in the briefing note the authorisation
proposal should include information on:
1. The resources required to complete the tender documentation
2. Any assumptions on which a tender bid would be based – e.g. the availability of additional staff members
to develop the materials
3. Any risks (e.g. not being able to meet the deadlines) and strategies for dealing with the risks.
In Section 4.1.3 you will find an authorisation proforma that can be adapted for this task.
2.3 Element 2: Defining the scope of a project
Learning outcomes covered in defining the scope of a project include:
 Identifying project objectives: these may be the same as the deliverables, but
can also relate to the way the project is conducted, including the
maintenance of good client relations, ensuring safe working conditions for
employees and contractors and addressing contingencies in a timely manner.
 Identifying project deliverables: these include all of the products and

services defined within the scope.
 Identifying constraints: Constraints are factors that will limit the project
management team’s options. For example, a predefined budget is a
constraint that is highly likely to limit the team’s options regarding scope,
staffing, and schedule. When a project is performed under contract,
contractual provisions will generally be constraints. Another example is a
requirement that the product of the project be socially, economically, and
environmentally sustainable, which will also have an effect on the project’s
scope, staffing, and schedule.

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 Identifying assumptions: the project manager, project team and the client
operate on the basis of assumptions about roles and responsibilities and
outcomes. It is important that these are clarified at the outset so that the
chance of later misunderstandings is minimised.
 Defining Principle work activities: this is the plan of what the project team
will do to achieve objectives and produce deliverables and the timeline to be
followed.
Scope definition involves working out exactly what is part of the project and, equally
importantly, what is not. An accurate definition of the scope of the project will make the
job of managing scope and scope changes throughout the project easier and reduce the
chances of ‘scope creep’ and misunderstandings between team members and with clients
and stakeholders about the goals of the project. The definition of project scope also forms
the basis for establishing a formal agreement with the client about what the project will
deliver, how it will be undertaken, and when it will deliver on agreed outcomes.
Breaking deliverables into manageable chunks
An important part of scope definition involves identifying project outcomes and

deliverables, and subdividing deliverables into smaller and manageable components. The
smaller components can also be subdivided into even smaller groups of self contained
work tasks – called ‘work packages’ to enable:
 easier management of each component
 accurate estimation of time, cost and resource requirement
 a baseline for performance measurement to be set
 easier assignment of resources
 easier assignment of responsibility for works packages.
http://www.projectmagazine.com/oct01/scope2.html
Breaking project deliverables into smaller easier to manage components involves two
steps:
 Identifying the major components of the work scope. The way these major
components are identified must also be in synch with how the overall project

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will be managed. For example the first level of decomposition may be into
project phases or may even be geographical, country or region.
 Deciding if cost, schedule and quality can be effectively managed at this

level of detail. If not then the components need to be broken down into
another level of detail.
As an example consider Case Study 2: The major task ahead of Fred, who has just won a
contract to construct a shed are to build a shed in three weeks on a budget of $40,000.
Each of these tasks can be further broken down, for example:
Building the shed involves:
 finding and contracting suitable subcontractors
 finalising the colour and design
 preparing the site for construction
 undertaking the construction in compliance with building regulations
 making good – including rubbish removal and handover.
Each of these tasks can be further broken down into manageable components, each of
which can then be aligned to the timeline and the budget.
A recommended method for defining scope is to build-up a Work Breakdown Structure

(WBS) that facilitates the planning and control of cost, schedule and technical quality of
the project outcome and can be used to confirm a common understanding of the full
scope of the project. Any work not included in the WBS is not included in the scope of
the project.
The WBS is normally shown in the form of a chart, similar to a family tree. Each level
breaking down the scope of the work into more defined components, until the lowest
works package level is reached. Each component of the WBS has its own set of goals and
project objectives which must be achieved in order for the overall project objectives to be
met. A WBS template is located in Section 4 of this learning guide.

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Reflection: Breaking deliverables into manageable chunks
First read Case Study 2 about Fred’s Sheds and list all of the project tasks that are mentioned in the story.
Then take the 5 subtasks listed above and break each down into smaller components. Once you have
divided the sub-tasks into sub-sub-tasks, ask yourself whether these components are small enough to be
manageable. If so, list the sub-sub-tasks in the order in which they will need to be completed.
Use the table below to format the tasks and sub-tasks. The first set of sub-tasks have been completed as a
guide
FRED’S SHEDS: JOB NO: 129: MR JONES COMMENCEMENT DATE: 4 APRIL 2005
WORK PLAN
Planning and permits
Finalise building design and specifications and get client sign-off
Apply for permits to clear and build
Develop 1st draft master schedule
Source and price materials
Finding and contracting suitable subcontractors
Email/phone three sets of sub-contractors with offer; 24 hour turn-around on acceptance
Develop sub-contracting schedule and contract; organising signing
Lock construction team into schedule
Revise and distribute master schedule to sub-contractors and team
Preparing the site for construction
Undertaking the construction in compliance with building regulations
Making good – including rubbish removal and handover

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2.3.1 Establishing agreement with client about project scope
The agreement between a project manager and a client may take different forms: it may
be a letter of agreement; a memorandum of understanding; or a formal contract. Whatever
form the agreement takes, there are four basic principles to follow:
1. Make sure the agreement is in writing and signed by the client and the person
responsible for authorising the project or their delegate.
2. Make sure the agreement spells out progress will be monitored and how changes to the
scope of the project will be dealt with.
3. Write the agreement in clear, precise language that can be readily understood by your
client and your project team.
4. Make sure the agreement includes statements on: the project objectives and
deliverables; the constraints and assumptions under which the team will operate; and the
principle work activities and timelines.
The contents of a client agreement will vary according to the type of project. In the case
of IT projects – for example the installation of a new software system on a client’s
network will require detailed technical specifications of the system as part of the
agreement. Because software installations affect business operations and impact on staff
roles projects there will be a number of considerations to be included in the scope
definition and agreed with the client, such as:
 business processes that will be affected
 business areas/units that will be affected
 business locations that will be affected
 business data that will be changed
 business applications that will be changed
 technologies that will be changed.
http://www.projectperfect.com.au/info_define_the_scope.php
A useful way to organise a client agreement is to use a Scope Definition Checklist. You
might decide to complete the checklist before meeting with your client, and work through
the list with them or perhaps complete the checklist with your client. Alternatively you

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may decide to use the checklist as an in-house tool and write a letter of agreement to your
client.
The completed sample checklist on the following page identifies the main elements for an
agreement between Gino and Andrea – the co-owners of Makeovers R Us and their
client, Cecile Andrews - see Case Study 4. Gino and Andrea have completed this
checklist as the basis for writing a letter of agreement with Cecile. Once the letter of
agreement is signed and the detailed timelines and work plan has been determined, Gino
and Andrea use their client agreement checklist to establish performance measures and
their scope management plan, including plans for review and evaluation.

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Scope definition and client agreement checklist
Who is the client? Cecile Andrews
What are the objectives of the 1. To provide Cecile with a fully renovated kitchen within 5
project weeks commencing 1 May 2005;
2. To ensure that Cecile’s domestic life is disrupted as little as

possible during the renovation. This will include organising
temporary facilities to make coffee and heat meals during the
renovation, storing kitchen fittings where Cecile can access those
needed during the renovation, and making sure the cat doesn’t
‘escape’ or constitute a hazard for the tradespeople.
What are the project deliverables 1. A costed plan for the new kitchen that specifies: Colour
including products, services and scheme; paint brand and tones; floor coverings; layout; new
other agreed outcomes fittings and fixtures;
2. An agreed timeline for the renovation;
3. An agreed team of tradespeople and suppliers;
4. Temporary kitchen facilities and a strategy for looking after the

cat
6. A fully renovated kitchen, evaluated against agreed

specifications
What assumptions does the client Cecile assumes that we can deliver on their claim to manage
have? projects ‘on time, on budget, to your specifications;
What assumptions does the project We are working on the assumption that Cecile’s specifications are
team have? an accurate framework for planning the project, but we know that
we will need to carefully detail how we intend to meet each
Are these assumptions compatible specification, so that there is no misunderstanding about the scope
of the project. In case Cecile wishes to add specifications during
the project, we’ll build time and cost contingencies into the
agreement.
What constraints is the project The main constraint is time. We do need to carefully cost all items
operating under? and make sure the quotes we get are firm.
The other issue is the cat – apparently she cannot be allowed

outside as she is a bolter! A solution is needed
What will the project team be doing The project team will manage all aspects of the renovation,
to deliver agreed products and ensuring that all tradespeople arrive on the appointed day and that
services? fittings and fixtures are delivered on time. We will also phone
Cecile after each stage of the renovation is completed to make
sure she is satisfied
What are the timelines for these We aim to finish in three weeks with agreed over-run only if
activities additional specifications are to be met. Detailed timeline to be
developed once the letter of agreement is signed.
Are the client and the project team in On the basis of discussion to date, yes; The letter of agreement
agreement regarding the project will include attachments detailing the budget, timeline and
activities and timelines? solutions to storage problems (including cat!) and temporary
kitchen facilities. These will be signed by Makeovers R Us and
client.

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Reflection: Conducting a Works Breakdown exercise
In the Case Study of Cecile’s kitchen renovation breaking down all the tasks to be done to the level of
detail required will ensure adherence to timelines and budgets can be monitored. This breakdown will
become an attachment to the letter of agreement.
To develop the breakdown first list all of the project management activities, for example:
 Source and price each item to be purchased (Stove, fridge, dishwasher etc)
 Source tradespeople, secure quotes and check availability

Once you have listed all work activities, put them in order and plot them against the timeline for the
project (note that you have already decided to finish the project in three weeks), and also identify the cost
items for each stage. (For the purposes of this activity the budget should include all cost items but actual
costs are not necessary).
Once you have allocated each activity to a time line and budget item, ask yourself if the breakdown of
tasks is sufficient to be able to accurately cost the activity and identify time and budget blow-outs
Briefing the project team
In the case study above, the project team will consist of Gino with assistance from one of
the company’s regular consultant project officers, who will be the daily point of contact,
reporting to Gino. The team briefing in this instance should be relatively straightforward.
On the other hand, in the case of the Asian Tsunami Benefit Cricket Match, briefing the
project team would be a major logistical task, since there would have been a number of
different operational teams, employed by different organisations as well as a coordinating
team convened by Cricket Australia.
Reflection: Organising a project team briefing

Read Case Study 1 on the Asian Tsunami Benefit Cricket Match. First think about how many project
teams would be in operation; then cast yourself in the role of a Cricket Australia employee who has been
asked to prepare an initial briefing note to be emailed to all participating companies to let them know that
the ICC, ACC and ICPA have all agreed to the match and to organise for a just-in-time planning process to
ensure the event can take place in 14 days. Remember, all of the organisations involved in providing
services are donating their time. Note: you can find some information on the Tsunami Relief Match on the
Cricket Australia website:
http://www.cricket.com.au/portal/site/cricketaustralia/menuitem.e24a2d46f6a0897e6918d6104420a2a0/
Go to Media Centre, and search for media releases in January 2005, and
Go to Major Reports and Publications where you will find the February issue of the Cricket Australia
newsletter that contains a report on the match.

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2.3.2 Clarifying outcomes and establishing performance measures
Performance measurement involves the quantitative evaluation of project performance.

Performance measures are indicators of how well the objectives of a project have been
achieved and the extent to which deliverables. As the name suggests performance
measures enable processes and outputs to be measured against a benchmark established at
the start of the project.
The development of performance measures involves the development of criteria for

measuring how well a project has adhered to the agreed work plan, or methodology and
how well the project has performed in meeting agreed outcomes. There are two types of
performance measures:
 one that measures whether the project is under control
 another that measures the project's success.
For example, to measure the success of the Tsunami Benefit Cricket Match Cricket
Australia may have established a performance indicators related to the amount of money
raised, the amount of media coverage, the number of organisations that provided services
free of charge and the number attending the match. These indicators and related measures
might be documented as follows:

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Objective Performance Indicator Performance measure
1. To raise funds for the global Net funds raised after all costs Target of $10, 000,000 net
tsunami relief effort deducted proceeds
Minimise costs through service Target: all service provider to

provider donation donate 75% of costs
Target attendance of 50,000
2. To raise awareness in the Media coverage during the 14 Coverage in seven capital city
community of the plight of day planning period, broadcast of dailies each day
tsunami victims the match and coverage after the
event Front page coverage of the match
in all dailies
Feature in sporting sections of 3

capital city dailies
Broadcast on ABC
Coverage on CNN news
3. To attract major sponsorship Sale of corporate boxes Target of $5,000,000 sponsorship
Sale of naming rights
Sale of advertising space
Depending on the scale of the project, measures can be applied at three stages:
 Pre-project measurements applied during the set up phase to generate the

base-line indicators;
 Measurements taken during the project to check on whether key

performance milestones are being met; and
 Post-project measurements that reveal whether the completed project has

delivered the specified project outputs and that outcomes are realised.
A Project Manager's report to the stakeholder committee and client should always include
reporting against the agreed performance measures for the project. Failure to introduce
performance measures will result in too little feedback for stakeholders to effectively
monitor the project's management and progress.

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Developing a review and evaluation plan
As indicated above, performance measures can be applied prior to the commencement of

the project, during the project and on completion. As the project manager you will be
responsible for ensuring that appropriate plans are in place to establish indicators and
measure performance. Along with the definition of the project scope, the review and
evaluation plan will form part of the overall scope management plan.
Depending on when a project manager is appointed, the performance indicators and

measures may already have been decided, and the project manager’s task is to ensure that
appropriate strategies are in place for review and evaluation. In many cases the project
manager will be responsible for establishing performance measures.
As the project manager for the renovation of Cecile’s kitchen, Gino, of Makeovers R Us
will determine performance measures and put a review and evaluation plan in place. The
framework for this exercise is already in place in the content contained in the client
checklist, including provision for regular reviews and for evaluation against deliverables.

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Gino had come up with the following performance indicators and measures.
Performance Indicators and measures for kitchen renovation
Project objectives and deliverables Performance indicators Performance measures
To complete the renovation within 5 Timelines met Client’s timeline exceeded

weeks commencing 1 May 2005 by two weeks
To ensure that Cecile’s domestic life is Client agreement to proposed Signed agreement
disrupted as little as possible during the plan
renovation. This will include organising All scope changes identified
temporary facilities to make coffee and Definition of scope and managed
heat meals during the renovation, storing
Client feedback during 100% satisfaction with
kitchen fittings where Cecile can access
project arrangements during
those needed during the renovation, and
renovation, measured weekly
making sure the cat doesn’t ‘escape’ or
constitute a hazard for the tradespeople. Zero complaints from
tradespeople re cat’s
intrusion; from Cecile re
Tradesperson and Cecile’s
state of mind
feedback on the cat
A costed plan for the new kitchen that Client agreement to one of Signed agreement
specifies: Colour scheme; paint brand three costed options
and tones; floor coverings; layout; new presented Plan carried out and
fittings and fixtures; reviewed
An agreed timeline for the renovation; Project schedule Timeline monitored and
changes agreed
Client agreement
An agreed team of tradespeople and Client agreement Signed agreement

suppliers;
Temporary kitchen facilities See above
A strategy for looking after the cat
A fully renovated kitchen Client feedback on 100% client satisfaction with

conclusion of each stage of each stage of renovation and
renovation final result
Client feedback on On time; on budget

completion
Project team evaluation of

effort

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Reflection: Developing a performance review plan
To develop a plan to review progress on the renovation of Cecile’s kitchen, you should include details of
what is being reviewed, when the review will take place and how it will be conducted.
You may decide to present the plan in tabular form, using the sample layout below.
Work Plan Progress Review Plan
Work task Scheduled Scheduled Conducted by: Method Actual

Completion review completion

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2.3.3 Developing and implementing a scope management plan
The Scope Management Plan is a subsidiary element of the overall project plan that
brings together all of the elements involved in project scoping and describes how scope
changes will be evaluated, processed and integrated into the project. The plan includes a
definition of the project scope (or includes other scope documents as attachments) and
details the steps that will be taken to manage scope throughout the project and integrate
changes into the project. A scope management plan should include:
 An assessment of the expected stability of the project scope.
 A clear description of how scope changes will be identified and classified.
 A scope change control system that defines the process to approve and
integrate change into the overall project. This will include the paperwork,
tracking systems, approval levels, and the method of integrating the
approved change into the overall project with a minimum of disruption.
 A description of how changes will be managed against the baseline and how
they are integrated into the project.
 A plan for reviewing performance during the project and for evaluation on
completion.
Implementing the scope management plan involves regular monitoring of all aspects of
the project scope. Depending on the size and complexity of the project, a project manager
may decide to delegate responsibility for monitoring to a senior member of the project
team who would then report regularly to the project manager on the stability of and
changes to the scope. Implementation of scope management is covered in more detail in
the next section of this learning guide.

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2.4 Element 3: Managing the application of scope controls
Learning outcomes covered in managing the application of project scope controls include
the change control process that is required to assure that the scope implemented
throughout the project, is the scope that was approved at the start or was modified to take
account of agreed changes. The key aspects of this scope change -control process are:
 proposing a change request to the Project
 controlling the change request through the review and approval process
 informing affected groups and individuals of approved change request
 providing an audit trail of proposed changes.
This procedure allows changes to approved work products to be proposed and evaluated,
assessed for cost, schedule and quality impact. Once the assessment is complete the
change request may be approved or disapproved in a controlled manner.
The Project scope control procedure is considered complete when implementation of an

approved change request is verified or disapproved change request is archived, and
affected groups and individuals are notified.
The need for scope change can come from
 an external event (a change in a governmental regulation or funding)
 a value-added change (a project may be able to take advantage of a

technology which was not available when the project began)
 an error or omission in the product scope (e.g. the product requirements may
have been incomplete)
 a request from the client
 project Team Members
 the availability of new technologies that offer the opportunity for value
adding.

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Obviously, all of the above are valid reasons for changing the scope of the project and
must be addressed in a logical, consistent manner.
The following flow chart describes a typical change control process.
Typical Change Control Process Flow Chart
NO
Identify Evaluate
Review Does it impact
need for YES
request impact
change
plan?
Prepare
Not a change order
good
idea
Issues Register
Change
Amend the NO order
plan approved
Make the
change
YES
http://www.projectmagazine.com/jan02/scope4.html

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2.4.1 Implementing change control procedures
A change control procedure will be successful if you following these steps:
 The project contract or agreement includes a description of how changes to

the agreed scope will be processed.
 You record changes to scope in the form of a ‘Change Order’ describing the
change and the impact on budget, schedule and deliverables.
 You ensure Change Orders are approved by the client.
 You inform all stakeholders of changes and give them a chance to influence
change if appropriate.
You can not automatically integrate changes into a project. You will need to carefully
evaluate each change in terms of its impact before proceeding:
 If there is no impact on the project deliverables, budget or the schedule,

make the change, and document it.
 If a change to scope is necessary you would need to consult with the client
and other stakeholders to reach agreement on how to implement the change.
This may include revising timelines and budget. Where a change has
negative effects – such as extending timelines, increasing costs or reducing
effectiveness of outcomes you should record it in an Issues Register (see
template in Section 4.1)
 When changes are to be made, they need to be reviewed, recorded and

reported. You should use standardised templates for this purpose to facilitate
accurate communication amongst team members, clients and stakeholders.
The Change Order Form is used to review, track and approve changes (See
sample in Section 4.1).
The change approval process will depend on the scale of the change, the project and its
agreed procedures. Small changes may be approved by the client, larger changes may
require approval by a ‘Change Control Board’.

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Reflection: Reviewing and recommending changes to scope
Read Case Study Three: Developing a Training Program, and cast yourself in the role of project manager
for the Team that was successful in winning the tender. You have seconded two teachers to work full time
on curriculum development and the production of teaching and support materials, and, are about half way
through the project timeframe of eighteen months. The curriculum design has been signed off by the
Project Steering Group and the production of teaching and support materials is nearing completion. As the
teaching and support materials are completed in draft form they are passed over to a Sub-committee of the
Steering Group for review. This is proving to be a lengthy process as the members of the sub-committee
sometimes do not get round to reading the materials until near to the sign off date, requiring meeting times
and deadlines to be shifted.
To date the changes to deadlines has not threatened the success of the project, as you have been able to
negotiate a small extension of time with the client. However, there is a major change looming: The union
that covers ‘Authorised officers’ in the Public Transport System has successfully negotiated a change to
the industrial award that will change the roles and responsibilities of Authorised Officers. This means that
four of the units of competency need to be customised and the curriculum and teaching and support
materials re-written.
The government department are not happy with the changes but agree that they will be made; the project
contact person has asked you to work out how to make the changes in the minimum time and to bring a
proposal to the Project Steering Group for approval. He also asks that you include in the documentation
the details of minor changes made to the scope so far (the four week extension to the timeline, and the
changes to sign off dates, and to make sure that there is a formal authorisation for these changes recorded
on the report form.
You will need to review the changes needed and prepare documentation for the Steering Group. The
Change Order Form in Section 4.1.6 can be used for this purpose.

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Varying formal agreements
When significant changes to the scope of a project are negotiated the contract should be
varied to reflect the new agreement. The variation may take the form of a replacement
schedule to the contract; amended text in the contract that is initialled and dated by both
parties, or a letter of variation that lists the changes and is signed by the project manager
and the client. The important thing is to ensure that you inform the client of significant
changes and provide an opportunity to discuss the potential impact of such changes
before they implemented.
Controlling ‘project creep’
Some amount of scope change is natural for a project. No project exists in a vacuum; the
world around it keeps changing. It is common that shifts in the external business
environment result in a valid need to change the project scope. The longer the project, the
more likely this becomes. Scope management techniques will help you handle this
effectively.
Many scope changes are not so natural though, and could be avoided. This insidious
variety of change is not due to the business environment, but to problems with the
original scope definition. By allowing these flaws to exist in the scope definition, you’re
setting yourself up for scope changes down the road and for the project to drift away from
its original purpose, and/or to over-run the original budget and schedule.
Scope creep can be a result of poor change control or lack of proper identification of the
products and features required to bring about the achievement of project objectives in the
first place.

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10 Signs that You May Have Scope Problems
The following indicators that you may have scope creep are drawn from an titled “Self-
inflicted Scope Changes, by Deanna Keahey. The article can be found at:
http://www.projectmagazine.com/jan02/change4.html
1. Unclear purpose If the overall purpose isn’t clearly understood and agreed, there is tremendous room
for future disagreement on the project scope.
2. The scope doesn’t match the objectives. You will not be able to meet the project objectives with
a scope that dose not meet the objectives.
3. There are gaps in definition. Try to make sure you have all areas covered in the scope document..
4. The scope statement contains insufficient detail. It pays to clarify exactly what is
required and be as specific as possible up front.
5. The scope contains hidden assumptions. Uncovering the hidden assumptions can be difficult, but
is possible with persistent, delving questions. Document all known assumptions clearly, including those
you’re making yourself.
6. Undocumented interfaces. Make sure you have every interface defined in the project scope, and all
sources required for data conversion.
7. Items don’t fit. If something in the scope doesn’t make sense to you, then you should question it.
8. Wrong participants/approvers. If there are other people who have a better understanding of what
should be done, a more significant stake in the project, and/or more appropriate authority to make decisions,
get them involved as soon as possible.
9. Silent questions. You see people, especially project sponsors, who just don’t seem convinced. They’re
on the verge of saying something, but don’t come right out with it. They’ll probably bring it up later, so try to
get it out on the table now.
10. Unresolved issues. Make sure you know which are the sharks in the bunch, the ones just waiting to
bite you. Understand your issues well enough to identify those that potentially affect the scope, and try to
address them as early as possible.

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Reflection: Analysing scope changes
Use the 10 signs of scope problems to evaluate a project you have managed: whether the problems existed
and what strategies were employed to address these. How effective were the strategies?
A table has been provided below to assist in data gathering
ISSUES DID ISSUE IF SO, WHAT WAS DONE and WHAT

ARISE? SHOULD HAVE BEEN DONE?
Y/N/NA
1. Unclear purpose.
2. Mismatch between scope and

objectives.
3. Gaps in scope definition.
4. Insufficient detail in the scope

statement
5. Hidden assumptions in the scope
6. Undocumented interfaces.
7. Items that did not fit in the scope

statement
8. Wrong participants/approvers
9. Silent questions.
10. Unresolved issues.

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2.4.2 Reviewing progress and recording results
From a project manager’s perspective, there are a number of questions that form the
framework for progress review:
 Is the project on track to meet objectives and produce agreed deliverables?
 Is the client satisfied with progress?
 Is the project scope under control?
 Are changes being identified and managed?
 Have all scope changes been registered and agreed with team and client?
The point of scope management is not to try to avoid change, but to minimise negative
impact and keep changes under control. The information you need to maintain control
comes from regular reviews of project progress against the initial scope and updated
scope definition.
2.4.3 Improving scope management
As has been discussed above, changes to the scope of a project are difficult to avoid: in
particular changes caused by external factors – such as bad weather that affects
construction timelines; increased costs of components; illness or accident, can mean that
project scope needs to be adjusted and issues of time and budget over-run addressed. The
larger and longer a project, the more likely it is that significant changes will take place.
Think about major civic construction projects in your community: you will find that few
have reached completion without having to deal with changes. Projects on the scale of the
Sydney Opera House are usually subject to major changes to timelines and budget, and
perhaps to the design and construction specifications.

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Reflection: Improving scope management - Sydney Opera House project
Read the extract below on the design and construction of the Sydney Opera House and develop an initial
scope statement that would cover objectives and deliverables. Identify and classify all of the changes that
took place and map these against the original scope of the project.
The construction of Sydney House- an example of scope creep

The Bennelong Point Tram Depot, present on the site at the time, was demolished in 1958, and formal
construction of the Opera House began in March, 1959. The project was built in three stages. Stage I (1959-
1963) consisted of building the upper podium. Stage II (1963-1967) was the construction of the outer shells.
Stage III consisted of the interior design and construction (1967-73).
Stage I was called for tender on December 5, 1958, and worked commenced on the podium on May 5, 1959
by the firm of Civil & Civic. The government had pushed for work to begin so early because they were afraid
funding, or public opinion, might turn against them. However major structural issues still plagued the design
(most notably the sails, which were still parabolic at the time).
By January 23, 1961, work was running 47 weeks behind, mainly due to unexpected difficulties (wet weather,
unexpected difficulty diverting stormwater, construction beginning before proper engineering drawings had
been prepared, changes of original contract documents). Work on the podium was finally completed on
August 31, 1962.
Stage II, the shells were a originally designed as a series of parabolas, however engineers Ove Arup and
partners had not been able to find an acceptable solution to constructing them. In mid 1961 Utzon handed the
engineers his solution to the problem, the shells all being created as ribs from a sphere of the same radius.
This not only satisfied the engineers, and cut down the project time drastically from what it could have been
(it also allowed the roof tiles to be prefabricated in sheets on the ground, instead of being stuck on
individually in mid-air), but also created the wonderful shapes so instantly recognisable today. Ove Arup and
partners supervised the construction of the shells, estimating on April 6, 1962 that it would be completed
between August 1964, and March 1965. By the end of 1965, the estimated finish for stage II was July 1967.
Stage III, the interiors, started with Utzon moving his entire office to Sydney in February 1963. However,
there was a change of government in 1965, and the new Askin government declared that the project was now
under the jurisdiction of the Ministry of Public Works. In October 1965, Utzon gave the Minister for Public
Works, Davis Hughes, a schedule setting out the completion dates of parts of his work for stage III.
Significantly, Hughes withheld permission for the construction of plywood prototypes for the interiors (Utzon
was at this time working closely with Ralph Symonds, an inventive and progressive manufacturer of
plywood, based in Sydney). This eventually forced Utzon to leave the project on February 28th, 1966. He
said that Hughes'es refusal to pay Utzon any fees and the lack of collaboration caused his resignation, and
later famously described the situation as "Malice in Blunderland". In March 1966, Hughes offered him a
reduced role as 'design architect', under a panel of executive architects, without any supervisory powers over
the House's construction but Utzon rejected this. The cost of the project, even in October of that year, was
still only $22.9 million, less than a quarter of the final cost.
The second stage of construction was still in process when Utzon was forced to resign. His postion was
largely taken over by Peter Hall, who became largely responsible for the interior design. Other persons
appointed that same year to replace Utzon were E.H.Farmer as government architect, D.S.Littlemore and
Lionel Todd.
The four significant changes to the design since Utzon left were:
 The cladding to the podium and the paving (the podium was originally not to be clad down to
the water, but left open. Also the paving chosen was different from what Utzon would have
chosen)

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 The construction of the glass walls (Utzon was planning to use a system of prefabricated
plywood mullions, and although eventually a quite inventive system was created to deal with
the glass, it is different from Utzon's design)
 Use of the halls (The major hall which was originally to be a multipurpose opera/concert hall,
became solely a concert hall. The minor hall, originally for stage productions only, had the
added function of opera to deal with. Two more theatres were also added. This completely
changed the layout of the interiors, where the stage machinery, already designed and fitted
inside the major hall, was pulled out and largely thrown away)
 The interior designs (Utzon's plywood corridor designs, and his acoustic and seating designs
for the interior of both halls, were scrapped completely.)
The opera house was formally completed in 1973, to a bill of $102 million. The original cost estimate in
1957, was £3,500,000 ($7 million). The original completion date set by the government was January 26,
1963.
http://en.wikipedia.org/wiki/Sydney_Opera_House#Utzon_and_the_construction_of_the_Opera_House
Identifying issues and recommending improvements
Judgments about the success of the project to build the Sydney House have, of course
changed over time and according to the perspective of the evaluator. As a member of the
public seeing the finished product – now dubbed by some as ‘the eighth wonder of the
world’, there is little doubt that you would judge it as a success – a project that changed
the face of Sydney, and the way other nations regarded Australian culture. As one of the
many project managers, you may well have had a different view, as did the Australian
media, and the NSW government and opposition when the increased costs were being
debated.
The key questions for the project manager in charge of scope management are:
 How well were the changes managed?
 Were changes reviewed, registered and agreed?
 Was there a complete record of actions and decision making so that scope
management could be reviewed and improvements recommended and
implemented.

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Reflection Assessing scope effectiveness and recommending changes
Read Case study 2: Fred’s Sheds and then read the story below about what happened when he secured the
contract.
1 How effective was Fred’s scope change management early in the project when Mr Jones asked
for a larger shed?
2 What might you have done differently? Make recommendations regarding his scope change
management strategy
Fred’s shed: Plans and Realities

Mr. Jones was very impressed with Fred’s tender to build the shed. Fred had managed to offer superior
quality building materials and construction to heavy-weather construction standards, for just $3,000 above
Mr Jones optimum price. Further, Fred had guaranteed completion three weeks after Council approvals
were through. The contract was signed and Fred immediately set to work on finalising the design to Mr
Jones specification.
When the design was submitted for approval, Mr Jones asked if the size of the shed could be increased to
enable him to also store his dinghy. Fred agreed on the spot, subject to a small adjustment to costs. Having
already checked with his suppliers he was confident that he could get the larger size shed frame. While he
was waiting for the permits to come back Fred organised for the surveyor to check the boundaries and also
checked for underground cables in the excavation area.
All went well with the initial planning: the permits arrived; the supplier could provide a larger shed, and
the excavation was completed on time. When the formwork was in place, Fred organised for a Council
inspection, and also booked the concrete truck and organised the shed delivery date, confident that the
council inspection was a formality.
The inspector contacted Fred from the site to check the dimensions of the shed, and on hearing Fred’s
response, queried the specifications for the concrete pour. He said that he did not think there was a
problem, but as the shed was way above the norm in the area, he would have to double-check the
regulations.
Shouldn’t take more than 48 hours to clear and he’d get back to Fred by Friday. But that was the day for
the concrete pour! Fred cursed that he hadn’t double-checked the regulations himself: he was sure that the
additional size was still in the same tolerance zone, but he didn’t have any paperwork to prove it. He’d just
have to fit in with the inspector’s timetable, as he didn’t want to get the inspector off-side, or the site
would never pass the inspection!

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3. Assessment and demonstration of competency
A person who demonstrates competence in this unit must be able to provide evidence that
they have taken responsibility for scoping management of projects. This will include
evidence of managing the work of others within the project team with respect to scoping
3.1 Developing an evidence portfolio
What is an evidence portfolio?
An evidence portfolio is a collection of documents and other documentary evidence (such

as film or photographs) that show what work you have done and the skills and knowledge
you have developed. There are a number of reasons why you might put together an
evidence portfolio:
 so that you can demonstrate competency to a qualified assessor and apply

for formal recognition of competency
 for your own records and as part of your curriculum vitae
 as a resource to use in your role as a volunteer or in other work
 as a reference for your own further learning and resource to assist others you
may train and mentor.
What does it look like?
What an evidence portfolio looks like depends on both the sort of evidence you are
collecting and the purpose for collection.
You might start with a box into which you put any documents, photographs, things you
have made to be sorted out later. You could use a concertina file or a set of document
folders, a ring binder or perhaps (if you are collecting documents in a large format) an art
student folio.
The most common and flexible format for a portfolio is probably the ring binder
containing clear plastic sleeves for holding collected documents and artefacts, as this will

Page 46 of 65
enable you to collect and store evidence and then when presenting the portfolio, to write
any explanations of what you are presenting.
What does an Evidence Portfolio contain and how is it organised?
Again this depends on the purpose of the portfolio. When building an evidence portfolio
to apply for formal recognition against nationally endorsed units of competency, such as
the unit you are studying now, then the documentary evidence you collect should be
organised under headings that relate to the elements and performance criteria for the unit
of competency.
3.2 Products that can be used as evidence of competency
Scope management products that could be used as evidence of competency in this unit
include documentation produced in managing project scope such as:
 plans and schedules, statements, and guidelines, instructions and directives

to project teams
 documentation of work breakdown, product breakdown and organisation

breakdown
 other scope definition documents
 progress and performance measure reports
 change requests and change orders
 records of control of scope changes
 records of scope lessons learned

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3.3 Processes that can be used as evidence of competency
Scope management processes that could be used as evidence of competency in this unit
include descriptions and demonstrations of:
 how project authorisation was gained
 how project scope was defined
 how team members were managed with respect to the scope of the project
 how the need for scope changes within projects were identified and
implemented
 how improvements to scope management were acted on
 if you think that you already have some or all of the evidence required as
evidence of competency, the following proforma can be used to record your
work experience relating to project scoping.

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3.4 Record of work experience in project scoping
3.4.1. On the lines below list and outline any projects in which you have been responsible
for managing the scope of a project.

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3.4.2. In the table below record the evidence you can produce to indicate that you have
undertaken the activities covered by this section of the Kit. You should identify at least
two examples of each one.
Work processes Examples of Evidence Your list of

evidence
Identify objectives and outcomes and Any documents to do with upfront scoping
the resources required to achieve these
Ensure that the project is authorised so Project authorisation documentation that may
that the project receives the resources be in the form of a scope statement;
and effort necessary for successful
implementation, including: A descriptions or demonstration that can be
observed by an assessor of how you went
Developing a scope statement for the about securing start-up authorisation,
including details of how you managed the
purposes of securing project
team and the process of briefing the higher
authorisation project authority
Managing processes to secure start-up Project progress reports that have been
submitted to a higher project authority for the
authorisation from a higher project purposes of signing off on milestone
authority authorisation
Managing authorisation at critical

review points during the project
life-cycle
Conduct consultation with stakeholders A descriptions or demonstration that can be

to confirm a shared understanding about observed by an assessor of how you
the project’s objectives organised and managed stakeholder
consultations
Define the scope of the project in terms Copies of scope definition documents
of objectives, deliverables, work
activities, constraints and assumptions A descriptions or demonstration that can be
observed by an assessor of how you defined
the scope of a project
Establish the measurable project A descriptions or demonstration that can be

outcomes to enable a quantified observed by an assessor of how you went
evaluation of project performance about establishing measurable outcomes;
Copies of performance measurement

documents.
Develop a scope management plan Copies of scope management plans
Implement the agreed scope Plans and schedules, statements, and

management procedures and processes guidelines, instructions and directives to
project teams;
Documentation of work breakdown, product

breakdown and organisation breakdown
A descriptions or demonstration that can be

observed by an assessor of how team
members were managed with respect to the

Page 50 of 65
Work processes Examples of Evidence Your list of
evidence
scope of the project
Monitor changes to the scope of the Change requests and change orders
project according to change control
procedures within established time, cost Records of control of scope changes
and quality constraints so that project
objectives are met
observed by an assessor of how the need for
scope changes within projects were identified
and implemented
Review project progress and record Progress and performance measure reports
results
observed by an assessor of how
improvements to scope management were
acted on
Identify issues, recommend Records of scope lessons learned

improvements and pass on documented
recommendations to higher project
authorities for application in future
projects

Page 51 of 65
3.5 Assessment activities
Assessment Activity Scoping a project

Develop a scope statement for the purposes of securing project authorisation for a project
you have managed, using the template below.
Project Overview Statement

Project Name Project No: Project Manager Start date
Background data:
Problem/opportunity
Project objectives
Project deliverables
Key success criteria
Assumptions
Risks
Obstacles
Prepared by: Date: Approved by: Date
Assessment Activity Managing processes to secure scope authorisation

This assessment activity focuses on securing start-up authorisation. You will need to
provide evidence of how you managed the team and the process of briefing the higher
project authority and any project progress reports that you submitted to a higher project
authority for sign off on milestone authorisation. Complete the following template for a
project you have managed

Page 52 of 65
Project title Project manager
Project Sponsor Project team members
Project timeline Planned start date Planned End date
Planned budget Total budget excluding GST Staffing costs
Total budget including GST Consultancy costs
Other costs
Project objectives
Project assumptions and
constraints
Major phases 1. 2. 3. 4.
Key deliverables in each phase

Milestones and proposed dates
Detailed information attached Detailed budget breakdown Risk analysis
Stakeholder identification and analysis Steering committee/advisory

mechanisms
Scope review plan Other agencies/teams involved
Work breakdown
Recommendation That this project be authorised to commence Project manager’s

signature
Decision Authorising officer’s

signature

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Assessment Activity Developing a scope management plan
In Section 4 you will find two scope management plan proformas. Use these proformas as a framework
for developing a scope management plan for a project you have managed.
In completing this activity you will be applying the skills you have developed in preparing documents for
an initial scoping exercise, securing authorisation, undertaking a scope definition exercise, organising a
client agreement, and developing a review and evaluation plan. All of these documents are relevant to the
scope management plan as they address the elements of the project that may need to be adjusted if there
are changes to its scope.
Assessment Activity Identifying and documenting scope management issues

Identify a project that you had been involved in, or a project conducted by someone else in your
workplace, where a range of scope management issues occurred.
Review the paperwork associated with the project on how changes were registered and approved.
Produce a scope definition document, a scope management plan, and scope change template for the
project?
For the project you have selected, identify the scope management issues encountered and write a report
that tracks the updating of the scope definition against each issue.

Page 54 of 65
4. Resources and reference materials
4.1 Scope management proformas
Project Overview Statement, or scope proforma (a)
Project Overview Statement

Project Name Project No: Project Manager Start date
Background data:
Problem/opportunity
Project objectives
Key success criteria
Assumptions
Risks
Obstacles
Prepared by: Date: Approved by: Date

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Project scope proforma (b)
ITEM
Project name and number
Project sponsor
Project manager
Project director
Priority ranking
Problem/opportunity
Deliverable
Key objectives
Critical success factors
Stakeholders
Performance reporting
Specification
Budget & resources
Time
Risks, obstacles, assumptions
Escalation management
Contingency
Contractual arrangements
Business value
Approvals
Attachments
Prepared by/ Date
Approved by/Date

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Project authorisation proforma
Project title
Project Sponsor
Project manager
Project team members
Project timeline Planned start date Planned End date
Planned budget Total budget excluding GST Staffing costs
Total budget including GST Consultancy costs
Other costs
Project objectives
Project assumptions/constraints
Major phases 1. 2. 3. 4.
Key deliverables in each phase
Milestones and proposed dates
Detailed information attached Detailed budget breakdown Risk analysis
Stakeholder identification and analysis Steering committee/advisory mechanisms
Scope review plan Other agencies/teams involved
Work breakdown
Recommendation That this project be authorised to commence Project manager’s signature

Decision Project authorising officer’s signature

Page 57 of 65
Scope definition checklist
Who is the client?
What are the objectives of the project 1.
2.
3.
What are the project deliverables including products, services and other 1.
agreed outcomes
2.
3.
What assumptions does the client have?
What assumptions does the project team have?
Are these assumptions compatible
What constraints is the project operating under?
What will the project team be doing to deliver agreed products and services?
What are the timelines for these activities
Are the client and the project team in agreement regarding the project
activities and timelines?

Page 58 of 65
Scope management proformas
(a) Scope management plan
1. Scope definition checklist
Activity Document Location
Initial scoping Scope overview statement
Project authorisation Signed project authorisation proforma
Scope definition Scope definition checklist
Work breakdown Work breakdown schedule
Client agreement Signed letter (see above)
Defining performance measures Performance review and evaluation plam
2. Scope monitoring checklist Change agreed Impact level
Yes No H M L Action Taken
Timeline
Budget
Work plan
Client feedback
3. Scope change report
Description Source of change Action Outcome including revised documents

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(b) Scope Change control template
Classification of change elements Customer originated scope change Internally originated scope change
Changes affecting cost of Project
Required authorization level
Required Documentation
Required Communication
Changes affecting timing of project

Required authorization level -
Changes affecting quality of project

Required authorization level -

Page 60 of 65
Project Change Order Form
Project Name:
Project commencement date Planned completion date
Project Number: Change request number and date
Project Manager:
Change Request:
Background information
Impact Assessment Type of impact Level of impact
+ve -ve H M L Description of impact
Impact on Service/Quality
Impact on Schedule:
Impact on Cost?
Immediate Action Required
Communication – who, how, when
Notification of change requirements
Authorisation
Requested by: Date Requested:
Approved by: Date Approved:
Authorized by: Date Authorized

Page 61 of 65
Issues Register
Description of issue Dated raised Status (Open Date Responsibility Deadline to Comments, Details of
or closed) Closed for resolution Resolve resolution

Page 62 of 65
4.2 Further references
4.2.1 General references
LCPowers.com at http://www.lcpowers.com/ offers general information on project

management including a series of project planning tutorials and further references and
resources.
Graham, Robert J. & Englund, Randall L. Creating an Environment for Successful

Projects San Francisco, CA: Jossey Bass, 1997.
Lewis, James P. The Project Manager’s Desk Reference Chicago, IL: Probus Publishing,
1993.
Meredith, Jack R. and Samuel J. Mantel, Jr. Project Management: A Managerial

Approach New York, NY: John Wiley & Sons, Inc., 1995.
Pinto, Jeffrey K., Power & Politics in Project Management Sylva, NC: Project
Management Institute, 1996.
Wysocki, Robert K., Beck, Robert Jr., and Crane, David B. Effective Project
Management: How to Plan, Manage and Deliver Projects on Time and within Budget
New York, NY: John Wiley & Sons, Inc., 1995.
4.2.2 References specific to project scoping
ProjectConnections.Com is a subscription service that provides a range of resources for

project managers including case studies and interviews
http://www.projectconnections.com/community/interviews/index.html
The website also offers a range of tools and templates for download for subscribers
http://www.projectconnections.com/knowhow/template_list/subjects/pm_skills/
planning.html

Page 63 of 65
4.3 Key terms in Project Scoping
Particular terms that relate to project scoping are provided below:
Action Plan A plan that describes what needs to be done and when it needs to be
completed. Project plans are action plants.
Activity network A diagram that shows the workflow, milestones and task
interrelationships of a project.
Affected groups and Groups and individuals impacted by an action or decision, including
individuals project team members, sponsors, project leadership, sales, operations,
etc.
Assumptions Factors related to a project that affect the environment within which a
project is being implemented and which are taken as being true or
correct for the project to be successful.
Authorised The recorded decision that a deliverable or output has been cleared for
use or action after having satisfied the quality standards for the project.
Baseline Plan The initial approved plan to which deviations will be compared as the
project proceeds.
Change A condition that potentially affects or forces rework or removal of a

previously reviewed and approved document, requirement or deliverable
and may also impact future deliverables, budgets, schedules, resources
or timelines.
Change Request Form This form is completed by the Originator for any change to approved
documents, requirements, or deliverables to begin the Project Change
process.
Change Request Log This is a document that tracks and reports on change control activity
throughout the Project and controls the change versions of the requests.
Constraints Factors or things that may impact on a project in some way, usually in
terms of limiting or prescribing its direction or development.
Consultation mechanisms Systems set up to facilitate communication between project

stakeholders.
Corrective action Changes made to bring expected future performance of a project into
line with the plan. This should be distinguished from making changes to
the plan in response to new information or changing circumstances.
CRB Change Review Board - Key stakeholders, generally comprised of both

sponsor and leadership personnel, selected to review and approve
changes to project work. The method used to reach a decision regarding
the disposition of a proposed change request. Approaches include
consensus, and majority decision. There will be a CRB at the Project
Level and the Program Level. Within the Company, the Program CRB is
referred to as the I/T Steering Committee
Deliverables The clearly defined results or goods or services that are produced during
or at the end of a project.

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Formal Scope Modification Modification to scope which requires a formal contract or service
agreement amendment, work order, sponsor-approved change order, or
other formal documentation
Gantt chart This is a type of timeline that identifies the activity, person responsible
and the period over which it is to be undertaken.
Goals The specification of what is to be achieved at the end of a project.
Higher authority A higher authority is a person with the responsibility for making key
decisions about the project and, often, providing necessary written
authorisation or signature.
Implementation Plan Describes how the outputs will be delivered to the customer, including
any special requirements such as stage implementation or ‘roll out’,
training and delivery requirements
Issue A concern raised by any stakeholder that needs to be addressed, either

immediately or during the project. As issues are reviewed during the
project, they may become a threat to the project and a mitigation strategy
prepared.
IT Needs Request Process of how all requests requiring IT resources are submitted,
reviewed, prioritized and approved/disapproved
Objectives More specific detail building on goals.
Outcomes The end result or benefits of a project.
Performance indicators Measures that show that a goal or objective has been achieved.
Project manager The project manager is accountable to the project sponsor for the
successful delivery of the project objectives.
Project plan A specification which is the source of definitive information about a

project’s goals, objectives, scope, outcomes, organisation and strategy,
budget and justifications.
Scope The size or extent of a project and what is achieved within the
timeframe.
Stakeholder Any person or agency/s who are affected by, have an interest in, or
could have an impact (positive or negative) on the project.
Variation A change to the original agreement for the project.
Work breakdown structure A planning tool which divides and sub-divides the work of a project into
smaller, more manageable work packages.
Appendix 1: Unit of Competency
(BSBPM502A) Manage project scope

Page 65 of 65

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First published July 2005

(BSBPM502A) Manage project scope © NSW DET 2005

1.1 How the learning guide is organised............................................................................7

1.2 An overview of (BSBPM502A) Manage Project Scope...............................................8

1.3 Learning outcomes.......................................................................................................8

2. Project Scoping: Topics and learning activities............................................................10

2.1 About managing project scope...................................................................................10

2.1.1 Definition(s) and Main Activities Involved In Project Scoping...............................12

2.1.2 The Relationship of Project Scoping and Project Phases.........................................13

2.1.3 Responsibilities for project scope activities.............................................................15

2.1.4 Stakeholder involvement in project scoping............................................................15

2.2 Element 1: Conduct project authorisation..................................................................17

2.2.1 Organising the process of project authorisation.......................................................17

2.3 Element 2: Defining the scope of a project.................................................................21

2.3.1 Establishing agreement with client about project scope..........................................25

2.3.2 Clarifying outcomes and establishing performance measures.................................29

2.3.3 Developing and implementing a scope management plan.......................................34

(BSBPM502A) Manage project scope © NSW DET 2005

2.4.1 Implementing change control procedures................................................................37

2.4.2 Reviewing progress and recording results...............................................................42

3. Assessment and demonstration of competency............................................................46

3.1 Developing an evidence portfolio...............................................................................46

3.2 Products that can be used as evidence of competency................................................47

3.3 Processes that can be used as evidence of competency..............................................48

3.4 Record of work experience in project scoping...........................................................49

3.5 Assessment activities..................................................................................................52

4. Resources and reference materials...............................................................................55

4.1 Scope management proformas...................................................................................55

4.2 Further references.......................................................................................................63

4.2.1 General references...................................................................................................63

4.2.2 References specific to project scoping.....................................................................63

4.3 Key terms in Project Scoping.....................................................................................64

Appendix 1: Unit of Competency.....................................................................................65

Appendix 2 Assessment Template for (BSBPM502A) Manage project scope

(BSBPM502A) Manage project scope © NSW DET 2005

Reflection: Scoping a project.....................................................................................16

Reflection: Conduct project authorisation activities.........................................................21

Reflection: Breaking deliverables into manageable chunks............................................24

Reflection: Conducting a Works Breakdown exercise.....................................................28

Reflection: Organising a project team briefing.................................................................28

Reflection: Reviewing and recommending changes to scope...........................................38

Reflection: Analysing scope changes...............................................................................41

Reflection Assessing scope effectiveness and recommending changes....................45

Assessment Activity Scoping a project.........................................................................52

Assessment Activity Managing processes to secure scope authorisation.....................52

Assessment Activity Developing a scope management plan............................................54

Assessment Activity Identifying and documenting scope management issues.................54

Project Overview Statement, or scope proforma (a).........................................................55

Project scope proforma (b)...............................................................................................56

Project authorisation proforma.........................................................................................57

Scope definition checklist................................................................................................58

Scope management proformas.........................................................................................59

(BSBPM502A) Manage project scope © NSW DET 2005

(b) Scope Change control template..................................................................................60

Project Change Order Form.............................................................................................61

(BSBPM502A) Manage project scope © NSW DET 2005

 (BSBPM402A) Apply scope management techniques: This unit applies to

 (BSBPM602A) Direct the scope of multiple projects/programs: This unit

(BSBPM502A) Manage project scope © NSW DET 2005

(BSBPM502A) Manage project scope

(BSBPM503A) Manage project time

(BSBPM504A) Manage project costs