Examples of Different WBS: (continued)

… A project to develop a laptop computer using a subcontractor for the LCD screen (see next page):

In this project, the Liquid Crystal Display was outsourced to a contractor. Including the work of the subcontractor in a position of prominence on the WBS demonstrates how important the subcontractor is to the project. Most contractors are extensions to your project staff.

Many organizations let the subcontractor decompose their own branch of the WBS to a level where they believe they have tasks under control and can report on their own measured deliverables or progress. Other organizations request the contractor to breakdown work in the same manner as the prime, not to restrict flexibility, but to clearly identify counterparts in the respective companies to enhance communications.

What are the advantages of letting the contractor develop their own WBS? What are the risks? Click on the highlighted words to hear some answers.