This document outlines 10 common risks that can occur in agency/consultant relationships and provides preventative actions to mitigate each risk. The risks include gaps in quality, cost overruns, scope creep, non-delivery, loss of productivity, bait and switch tactics, misalignment of goals, reputational damage, irrelevance of work, and lack of organizational acceptance. For each risk, preventative actions are suggested such as clearly defining deliverables and expectations, establishing approval processes for new work, identifying key contacts, and ensuring internal buy-in throughout the project.

1. ©2013 Ingenium Communications Inc.
Risk Mitigation Guide
Agency/Consultant Relationship Management
Risks Description Preventative Actions
1. Gaps in quality The agency/consultant does not meet
your expectations in the quality of the
deliverable
Structure the project to have interim
deliverables in order to give a sense for
alignment with expectations
Set up validation mechanisms through the
project lifecycle
Ensure that expectations are clearly
documented as part of contract and project plan
2. Cost overruns Project costs for the deliverable go up, or
bills are received for unexpected project
components
Structure contracts to focus on
deliverables/results
Document inclusions and exclusions for costing
in contracting
Formalize terms for milestone payments
Document expectations for version control in
contract and project plan
3. Scope creep Project evolves to include unforeseen
elements, costs and/or time
Define the specific project deliverables and
component parts in the contracting phase
Confirm the project components in the project
plan
If new requirements come up, document the
scope of those elements for pre‐approval
Ensure that the contract precludes the
agency/consultant from beginning work on new
project components without documented pre‐
approval
4. Non‐delivery Supplier fails to deliver the required
product
Document terms for non‐delivery in the contract
Plan for early warning signals in the project plan
in order to secure an alternate supplier in a
timely fashion
5. Loss of
productivity
Staff member(s) spend an inordinate
amount of time and energy on managing
the agency/consultant, thereby presenting
an opportunity cost from investing in
other worthwhile initiatives
Identify one point of contact for managing the
agency/consultant relationship in order to have
an efficient internal system
Use the project plan to budget staff time
appropriately, particularly in scheduling time
required for approvals
6. Bait and
switch
Agency/Consultant presents key talent but
then replaces these resources, usually
with less experienced staff
Design the contract to protect against bait and
switch and secure access to key talent
Define key relationships with the
agency/consultant to clarify the appropriate
resource for various tasks
Discuss an appropriate arrangement for ease of
access to key talent as required

2. Risk Mitigation Guide – Agency/Consultant Relationship Management Page 2
©2013 Ingenium Communications Inc.
Risks Description Preventative Actions
7. Mis‐alignment There is a disconnect in the
goals/direction of the agency/consultant
and of the client, and/or an erosive
conflict or tension in the
agency/consultant‐client relationship
Structure the contract and project plan to focus
on aligning goals and strategic direction
Identify and address points of conflict early as
part of the project planning process
Work to constructively and collaboratively
address points of conflict or mis‐alignment
through face to face communication
8. Reputational
risk
The agency/consultant has a negative
impact on the client reputation by making
disparaging comments, sharing
confidential information or breaching
intellectual property rights
Protect corporate reputation as part of the
contracting process
Proactively and immediately address any
perceived risk to reputation through face to face
communication
Escalate concerns about reputational risks and
seek appropriate intervention as appropriate
9. Irrelevance The operating circumstance evolves,
making the project as it was originally
intended irrelevant
Take immediate steps to identify and isolate the
risk of irrelevance
Assess potential opportunities for shifting the
project focus or design in order to address
current/emerging needs
Evoke contract mechanisms to cease work on
project if it no longer provides value in its
current form
10. Lack of
organizational
acceptance
The organization or Board does not accept
the agency/consultant or their deliverable,
thereby jeopardizing the initiative’s ability
to offer value
Ensure that key internal partners are brought
into the project early, through the project scope,
briefing and kick‐off process
Build regular ongoing communication with key
internal partners into the project plan to help
foster positive alignment throughout the project
lifecycle
Consider a project hand‐off to staff or
integration with another project as means of
helping to enhance internal organizational
acceptance