Project Specifications: A Comprehensive Guide

Acting as a real common thread,  project specifications play a central role in a project's success. The answer to the question "do we need specifications for a project?" is indisputable: yes. This essential tool ensures that objectives, project scope, deadlines and budget are respected.

But then, what should a project specification contain? In this article, we explain why this document is strategic, what the challenges are for each stakeholder, and offer a clear project specification structure, reusable as a template, for your future projects.

What Is A Project Specification?

Formalize needs

Any project is likely to require project specifications: from the redesign of a website to the deployment of software, including the organization of an event. 

Indeed, it is an essential document because it formalizes all the essential elements for the smooth running of the project and its success:

• needs,
• objectives,
• the perimeter,
• constraints,
• features,
• deadlines,
• the provisional budget.

Plan and track

In this way, it forms a basis for project planning and facilitates its subsequent management. It condenses all elements into a single document, providing a uniform level of information for all stakeholders, both internal and external. 

A contractual document

The project specifications are drawn up during the planning phase of the project, after the client has expressed their expectations. 

Although the project manager is usually in charge of writing it, this task can be delegated to an external consultant. In all cases, the document produced must be officially approved and then signed by the client and the project team, thus constituting a contractual document. However, it does not represent a contract in its own right.  

The Different Types of Project Specifications

The functional specifications

The functional specification details how the product or service will meet the needs. Thus, it specifies the uses, functionalities, characteristics and constraints. It serves as a basis for the technical specifications, but does not express a technical solution. 

The technical specifications

The technical specifications reflect the functional needs from a technical point of view. Thus, he details: 

• the technical solution used,
• the technical aspects to be taken into account,
• the standards to be respected,
• constraints,
• features with a technical perspective.

The mixed specifications

The mixed specifications are a combination of the functional and technical specifications. They can be drafted separately or integrated into a single document: the mixed specifications. 

Why Are Project Specifications Crucial For Service Companies?

Specifications as a customer-supplier security tool

The specifications contribute to a healthy relationship between the customer and the service provider. Indeed, clarifies the commercial relationship and provides a framework for commitments in order to avoid any dispute. 

Thus, the project specifications serve as a reference, limiting misunderstandings, unspoken words and inaccuracies. 

Clear, specific, unambiguous, it ensures that all elements are clear on both sides in order to maximize the quality delivered. It sets the limits by specifying the exclusions and constraints. In addition, it facilitates the creation of the quote by explaining the expectations. 

The Challenges of Project Management Specifications

• Project Manager and Team 

In the context of service companies, the project specifications represent a major challenge for the project team. Composed of the project manager who designs and manages the project, the consultants are responsible for respecting the constraints of execution, scope and priorities. Ideally, the project manager is responsible for the profitability of their projects and customer satisfaction.

Issues

Thus, for the project team, the project specifications allow: 

• Have visibility on tasks, milestones, and programs thanks to the project schedule. 
• to know by whom its elements will be produced and in how long,
• avoid misunderstandings and misunderstandings,
• anticipate friction points.

Risks 

The project specifications limit: 

• conflicts over priorities, 
• Doubts about responsibilities and assignment: the project manager is responsible, his mission being to deliver the project in accordance with the rules and on time,
• The customer's disengagement: by signing, the customer acknowledges that he or she is informed and in agreement with the information provided.

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• The management and top management

Management has different needs than the project team. Responsible for the strategic vision, her interest is to have visibility on the achievement of the objectives of the project portfolio : it is therefore a consolidated vision of the monitoring of compliance with the specifications that she needs.

Issues 

The specifications must guarantee the profitability of the projects and the satisfaction of the customers. The monitoring of project reports must make it possible to keep a portfolio aligned with strategic and financial objectives.

Risks

The project specifications thus provide a basis for monitoring consolidated performance : costs, deadlines, customer satisfaction.

Stafiz allows you to track portfolio projects at a glance . It is therefore possible to quickly identify the projects that will deviate in costor deadline, but also the most profitable projects and customers. Stafiz offers detailed reports to identify the causes of deviations in order to be able to restore the margin or delivery times.

Financial project management

• Project Portfolio Manager 

In a service company, PPM managers (business unit manager, COO or director of operations), in conjunction with project managers, play a key role in managing production. Their attention is then focused on the management of resources through projects and their profitability. Together with the project managers, they establish the provisional budgets of the projects in the specifications in order to generate a given margin.

Issues

For portfolio managers, the specifications constitute a baseline. This will allow him to organize execution and plan resources, particularly during themeetings of resource planning : organize profiles across projects, identify and staff the right profiles, at the right time, on the right mission.

Risks

Without precise specifications, portfolio managers are exposed to poor costing, a poor description of needs and therefore of the resource planning associate. This represents a risk for deadlines, the quality of deliverables and the availability of the right profile-project pairs, which ultimately impacts customer satisfaction.

Profile selection

Stafiz centralises your profile requests and speeds up your decision-making with all the information you need to select and assign your profiles: skills match, availability and even appetites. Your resource planning are greatly easier and are faster.

Predictive load visibility

Stafiz provides predictive visibility on the workload of the teams, thus avoiding under- or over-loading.

• CFOs and Management Controllers

These profiles are responsible for overseeing finances. They focus their attention on profitability and contractual risks. 

Issues

Thus, he uses the specifications to monitor the budgets set, control costs, deadlines and margins. The project specifications allow him to precisely quantify the service and the cost of production.

In particular, Stafiz makes it possible to obtain a vision on landing, giving financiers a predictive capacity, thus making it possible to anticipate deviations in advance. We can see in the example, the curve of the planned resources exceeds those, in red, of the maximum resources initially planned, leaving time to act.

Risks

For finance teams, incomplete or ill-defined specifications in terms of costs represent a financial risk, which can lead to budget overruns due to underestimation of costs, or overestimation of the resources needed for a project. 

• Sales teams 

As direct interlocutors of the customer, sales representatives and Customer Successes focus on the relationship with the customer : follow up, support them and identify upsell opportunities. 

Issues

For them, the project specifications represent a contractual reference point that allows them to manage expectations and formalize commitments.

Risks 

The project specification helps to avoid poor framing, which could lead to customer dissatisfaction or a tunnel with no visibility on the project. 

How To Write an Effective Project Specification?

The 9 steps to follow to write a specification

Gather the information 

The first step in drafting a relevant project specification is to gather information from the various stakeholders. This can take the form of individual interviews, group meetings or even benchmark analyses and user tests. 

Set the context

Giving context to the project is essential for the teams working on it. Indeed, from an operational and strategic point of view, it is essential to understand the environment and the general issues. 

Thus, this first part consists of a quick presentation of the company and more specifically of the project. 

In the presentation of the company, it is necessary to define: 

• the overall functioning of the organization; This is all the more useful if you work with external service providers,
• the sector and the market of activity,
• the products or services offered,
• the short- and long-term vision. 

In the presentation of the project, it will be necessary to clarify: 

• the needs that the project addresses,
• the reasons that led to the emergence of this project, 
• why they were raised, and why now, 
• the expected advantages and benefits.

In addition, the context must present the current state of the project, i.e. the existing and all the versions that have already been produced so far. This can include previous versions, mockups, drafts, or presentations.

Define goals

The definition of the objectives specifies the expected results, in a quantified way. The SMART method will be used to define specific, measurable, achievable, realistic and time-bound objectives. 

For example: increase the site's organic traffic by 20% within 6 months.

Clarifying the scope

Defining the perimeter allows you to avoid any overflow, or scope creep .

Thus, it is essential to define the limits, at all levels: 

• the level of intervention (company or group),
• the persons or services involved and those specifically not involved,
• the main beneficiaries of the project,
• any geographical boundaries, 
• languages. 

Specifying the constraints

In addition to limitations, the project may contain constraints. Especially: 

• technical constraints: software, network, technology, etc.
• regulatory constraints,
• Time
• Budget.

The definition of constraints can also be accompanied by risk management : what to do in case of delay? How do you manage dependencies? 

Clarify the deliverables expected in the specifications

Determining the expected deliverables helps avoid ambiguity, conflict, or disappointment. By specifying what will be delivered and in what form, you limit the risk of frustration for the customer. This step must therefore specify the conditions that must be met for the deliverables to be considered validated. 

Clarify timelines and milestones

Any successful project requires a clear definition of the schedule. So, after estimating the time needed for preparation, fulfillment, and testing, propose a delivery date. Don't be too optimistic, be realistic above all. Also include intermediate deliverables, this will reassure the customer and mark the highlights for the operational teams. 

To help you organize the project temporally, you can use a Gantt chart. This tool helps to clearly visualize key dates, milestones, and delivery date. 

As a reminder, the specifications do not have the value of a contract. But the delivery date can be included in an invoice or a quote and will then become contractual.

Set a budget 

To define the projected project budget and monitor its consumption, use project management software such as Stafiz.

Consider all the expense items, Stafiz for example to enter all the costs and manage your different sales models: 

• human (internal or subcontracted),
• hardware (software, infrastructure, licenses),
• maintenance costs.

Have the rendering validated

Once the project specifications have been drafted, you must make sure that they are suitable for the project sponsor. This will avoid changes during the course of the project that could jeopardize its success.

However, note that some elements may change, such as resources, schedule, or requirements. Each element modified has an impact that must therefore be reflected in the other characteristics.

Once signed and approved, the project brief can be shared with the rest of the team so that everyone has the same level of information. 

Stafiz allows you to develop skills files to present to your client, thus validating the specifications on the employee component to be mobilized in the project.

Best practices for writing project specifications

Here are some best practices for establishing relevant project specifications.

• Express yourself in clear and accessible language to leave no room for interpretation.
• Communicate realistic expectations, in terms of features, deadlines or budget.
• Take into account safety margins.
• Be aware that the project specifications may change.
• Illustrate with charts, graphs, and other visuals to make the document pleasant to read.
• Keep track of all changes made as the project progresses, with accurate versioning.

Common mistakes to avoid in your specifications

Some common mistakes should be avoided when writing your project specifications. 

• Being too technical or too specific : This document is intended for a heterogeneous audience.
• Not framing the perimeter sufficiently and generating perimeter drift. In the event of a change, remember to adapt the schedule or budget accordingly. Unattainable goals could create team overload and frustration. 
• Forgetting to have the document validated and signed. 

Writing a precise project specification is essential to guarantee the success of a project. Like a roadmap, it clarifies responsibilities, determines priorities and limits the risks of drift and ambiguity between all stakeholders.

However, it is still essential to make the difference between a project charter and a specification : the charter sets out the main lines and focuses on the official validation of the project launch, while the specifications detail what needs to be done, when and by whom.

By structuring your specifications in a clear and exhaustive way, as in the example we offer, you put all the chances on your side to manage your projects effectively, strengthen customer satisfaction and ensure the profitability of your missions.