A company may consider transferring work under a contract to another party for several reasons. For example, the existing contractor may be unable to deliver the expected results, meet agreed deadlines, or follow the project requirements.
When expectations are not being met, the project manager should review the situation and discuss the concerns with the contractor. The following guidance and sample letter explain how to communicate a proposed change professionally.
Begin by meeting with the relevant decision-makers and experienced staff to assess progress, identify outstanding issues, and consider the available options.
Discuss the work completed, current activities, project records, and handover requirements with the parties involved. If appropriate, agree on a reasonable period for the existing contractor to complete the current phase before the transition.
If another contractor will take over the work, explain the reasons for the change and clarify each party’s responsibilities. Introducing the new contractor and establishing a clear handover plan can help reduce confusion.
The transition may be challenging for both the outgoing and incoming contractors. A constructive approach, clear objectives, and accurate records can help the new contractor understand the requirements and begin work confidently.
A formal letter can document the proposed arrangements, but the transfer should follow the contract’s terms and any required agreement or consent. Keep the wording factual and respectful, avoiding personal criticism or unsupported accusations.
Sample Letter
13 August 20XX
Subject: Proposed Transfer of Contract Responsibilities
Dear Jones and Team,
I have reviewed the progress reports and current status of the contract signed between your organization and our company two years ago. Following this review, the board has expressed concern that the current approach may not achieve the agreed project outcomes.
We appreciate the efforts you and your team have made so far. However, the board has proposed transferring the remaining work to another contractor, subject to the contract’s terms and the necessary agreements. This proposal is based on the project’s requirements and current progress.
We would like to discuss arrangements for completing the current phase and handing over the remaining work. Please provide an update on outstanding tasks, relevant documents, and any matters that could affect the transition. We will then agree on the handover responsibilities and timeline.
We appreciate your cooperation and would welcome the opportunity to discuss the proposed arrangements. If you have any questions, please contact me at [email address] or [phone number].
Regards,
Mark Steward
Project Head
