Project delivery order: Overview, definition, and example
What is a project delivery order?
A project delivery order is a formal document that authorizes the start of a specific project or task under an existing contract. It outlines the project scope, timeline, deliverables, and cost, ensuring that both parties agree on the terms before work begins.
For example, if a business has a long-term contract with a construction firm, each new project might require a separate project delivery order detailing the work to be done, deadlines, and payment terms.
Why is a project delivery order important?
A project delivery order is important because it provides clarity and structure for project execution. It ensures that both parties understand their responsibilities, reducing the risk of misunderstandings or disputes.
For businesses managing multiple projects under a single contract, project delivery orders help track work progress, control budgets, and maintain accountability. They also serve as a reference point in case of disagreements about scope, deadlines, or costs.
Understanding a project delivery order through an example
Imagine a technology company signs a long-term service agreement with a software development firm. Instead of drafting a new contract for each project, the company issues a project delivery order for each phase of work. One order might cover the development of a new mobile app, specifying features, timelines, and costs, while another order might cover ongoing software maintenance.
Similarly, a government agency might have a standing contract with a consulting firm. Each new initiative, such as a market analysis or policy review, would be assigned a separate project delivery order specifying objectives, deadlines, and payment terms.
An example of a project delivery order clause
Here’s how a project delivery order clause might appear in a contract:
“The Contractor shall perform work under this Agreement only upon receipt of a written Project Delivery Order from the Client. Each Project Delivery Order shall specify the scope of work, timeline, deliverables, and compensation. No work shall commence without an executed Project Delivery Order.”
Conclusion
A project delivery order formalizes the details of a project under an existing contract, ensuring clear expectations for scope, timing, and costs. It helps businesses manage multiple projects efficiently, reducing the risk of disputes and providing a structured approach to project execution.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.