Consulting Engagement Assumptions and Exclusions

Assumptions and exclusions are the commercial and operational boundaries of a consulting engagement. Assumptions state the conditions under which the scope and fee were developed. Exclusions define what the consultant is not responsible for delivering. Both are protective but serve different purposes: assumptions protect the schedule and fee; exclusions protect the scope.

Read assumptions as: if this condition is not true, the engagement timeline or fee may change. Read exclusions as: the client or a third party is responsible for this, not us.

A thorough assumptions-and-exclusions list is not a defensive move. It is honest commercial communication that eliminates mid-engagement disputes about who was supposed to do what. Include them in every proposal, review them at kickoff, and reference them whenever a change order conversation begins.

Universal Assumptions

These apply to every engagement regardless of type or scale.

Client Resource Access

• A named client project sponsor with decision-making authority will be available throughout the engagement with a minimum committed availability of [X hours/week].
• A named internal project manager or coordinator will schedule meetings, facilitate data requests, and manage internal review cycles.
• Subject matter experts (operations managers, IT contacts, finance leads) will be made available for interviews and data requests within [5 business days] of each formal request.
• Access to operational facilities, warehouse floors, and manufacturing or distribution sites will be granted on agreed dates without unplanned cancellations.
• The client will not reassign its named project sponsor or internal PM during the engagement without prior notice; reassignment mid-engagement may affect timeline.

Data Availability and Quality

• Client will provide all requested data within [5 to 10 business days] of each data request submission.
• Data provided is reasonably accurate and representative of operations during the agreed analysis period. The consultant is not responsible for errors, gaps, or distortions in source data.
• Transaction-level data (order history, inventory records, shipment records, labor hours) is available in extractable form: flat file, database query, or direct system access.
• Any known data quality issues, system migrations, one-time business events, or missing history periods will be disclosed at project initiation, not surfaced mid-analysis.
• If critical data is unavailable, the consultant will document the gap and use stated assumptions or market benchmarks in its place. The limitation will be disclosed in the deliverable.

Scope Stability

• The project scope as defined in the Statement of Work will not be materially changed during the engagement without a formal change order reviewed and signed by both parties before additional work begins.
• The client’s business will not undergo a material transaction (acquisition, divestiture, significant product line change, or operational restructuring) that invalidates the agreed scope without prior notification and scope reset.
• The number and type of facilities, business units, geographies, and functions in scope are as defined in the SOW. Adding any of these requires a change order.

Organizational Access

• The consultant will have access to all stakeholders and information needed to complete the defined scope, including stakeholders outside the primary client relationship: IT, legal, finance, HR, and external vendors where applicable.
• No stakeholder access restrictions will be imposed mid-engagement without a corresponding reduction in scope.

Schedule Dependencies

• Client review cycles will be completed within [5 to 7 business days] of each deliverable submission unless a different turnaround is agreed in the project schedule.
• Client dependencies (data delivery, facility access, review sign-off, workshop attendance) that are not met on time will result in an equivalent extension to the project timeline. Timeline extensions caused by client dependencies are not consultant delays.
• Steering committee and executive review sessions will be scheduled and held as planned. Cancellations with less than [2 business days] notice may require rescheduling to the next available date, affecting milestones downstream.

Technical Environment

• The client’s IT environment allows data extraction in formats compatible with standard analytical tools (Excel, CSV, SQL, Power BI).
• Remote access to client systems, if required for the engagement, will be provisioned within [2 weeks] of project start with appropriate security and access controls in place.
• If the consultant’s analysis requires access to a specific software platform (WMS, ERP, TMS), the client will provide read-only access or will facilitate guided extracts with IT support.

Commercial Basis

• The fee was developed based on the scope, timeline, team composition, and level of effort described in the proposal. Material changes to any of these elements will be addressed through a change order before work on the change begins.
• Travel and expenses are reimbursed at cost (or at an agreed not-to-exceed monthly travel budget). Receipts will be provided for all expenses above [$25 or as specified].
• Invoicing will follow the milestone payment structure defined in the proposal. Payment terms are [Net 30] from invoice date unless otherwise specified.

Universal Exclusions

These apply to every engagement unless explicitly written into scope.

Implementation

• Physical implementation of any recommended solution: procurement, construction management, system configuration, equipment installation, commissioning, or cutover.
• Management of vendors, contractors, or integrators during implementation.
• Ongoing operational management or staffing of any process after the engagement concludes.

IT and Systems

• Software licensing, procurement, or configuration.
• System integration work, API development, or data migration.
• IT architecture design or infrastructure planning beyond what is required to explain a functional recommendation.
• Cybersecurity assessment, OT/IT risk evaluation, or IT risk management unless separately scoped.

Legal, Regulatory, and Compliance

• Legal review or legal opinion on any contracts, agreements, or regulatory obligations.
• Tax, accounting, or financial audit services.
• Permit applications, environmental impact assessments, or regulatory filings.
• Compliance certification (ISO, FDA, OSHA, GMP, or equivalent).
• Advice on labor law, employment contracts, or HR compliance.

Third-Party Deliverables

• Performance or output from vendors, integrators, or other third parties contracted separately by the client.
• Validation or audit of third-party claims, vendor-stated throughput performance, or integrator engineering calculations, unless explicitly scoped.

Physical Infrastructure

• Civil, structural, MEP (mechanical, electrical, plumbing), or fire protection engineering and design.
• Site development, utility connections, or building permits.
• Equipment procurement or specification unless explicitly in scope.

Training and Change Management

• Formal training program design or delivery unless explicitly in scope.
• Organizational change management (communications plans, resistance management, stakeholder engagement campaigns) unless explicitly in scope.
• Post-engagement coaching, facilitation of recurring management meetings, or operational support unless a follow-on scope is contracted.

Engagement Type: Rapid Assessment / Concept Study

What this is: Current-state diagnostic, opportunity identification, financial sizing, and directional recommendations. This is not a design engagement. Typical scale: $40K to $150K, 4 to 8 weeks, one to two consultants.

Additional Assumptions

• Client will provide a minimum of [12 months] of transaction-level data (orders, shipments, inventory snapshots) before or at project kickoff. Data does not need to be clean but must be in extractable form.
• At least two site visits of [one full day each] will be scheduled and held on agreed dates within the engagement window.
• One focused working session ([half day]) with operations leadership will be convened during the diagnostic phase.
• The scope is limited to the [X facilities / functions / geographies] named in the SOW. The engagement will not be extended to cover additional locations or functions without a change order.
• The engagement produces directional findings and opportunity sizing. It does not produce a detailed solution design or a procurement-ready specification.
• Financial sizing for identified opportunities will use client-provided cost data or, where unavailable, market benchmarks with client-acknowledged assumptions. The consultant will not independently audit financial data.
• Benchmarks used for comparison will be drawn from the consultant’s reference database or published sources (WERC, APQC, industry averages). Client-specific benchmarking against named competitors requires explicit consent from the client and is not included in the base scope.

Additional Exclusions

• Detailed current-state process documentation or workflow mapping below the function level.
• Quantitative simulation or discrete event modeling.
• Vendor market scanning or technology selection.
• A recommended solution design with sufficient detail to support a capital appropriation request or an integrator RFP.
• Site visits to locations outside the agreed scope.
• Root cause analysis below the level of operational pattern identification.

Engagement Type: Strategy and Design Engagement

What this is: Current-state diagnosis, future-state concept design, option or vendor evaluation, financial business case, and implementation roadmap. Typical scale: $150K to $500K, 10 to 24 weeks, two to four consultants.

Additional Assumptions

• Client will provide a complete data package within [2 weeks] of kickoff: order history (2 to 3 years minimum), inventory snapshots, labor records, cost data by function, facility drawings, and current system documentation or a guided walkthrough in lieu of documentation.
• A client project team will be formally assigned at kickoff with committed availability: project sponsor [4 to 6 hours/week], internal PM [6 to 8 hours/week], operations SME [4 to 6 hours/week], IT contact [2 to 4 hours/week].
• Facility access for [2 to 3] structured site visits plus targeted follow-up walkthroughs will be granted on mutually agreed dates.
• The client will participate in [2 to 3] structured workshops to validate current-state findings, align on design criteria, and review preliminary recommendations.
• Steering committee reviews will be held at agreed phase gates. The client sponsor will attend each and provide directional sign-off before work on the next phase begins.
• The engagement is designed to produce a concept-level or schematic-level design, not a detailed engineering package ready for construction bid or equipment procurement.
• If the engagement includes a vendor RFP or market evaluation, the vendor list and process will be managed jointly. Vendor demonstrations and site visits are excluded from the base scope unless specified; each adds [1 to 3 days per vendor] of consultant effort.
• Financial modeling will use client-provided cost data. The consultant builds the model structure and populates it with client inputs; the client confirms the inputs are accurate and current.
• Recommendations requiring legal, tax, or regulatory review will be flagged. The client is responsible for engaging its own legal and compliance resources on those items.

Additional Exclusions

• Detailed engineering drawings, AutoCAD construction documents, or equipment specifications at the procurement level.
• Structural, civil, MEP, or fire protection engineering.
• RFP administration, vendor solicitation management, and vendor coordination, unless explicitly scoped as a workstream.
• Automation simulation or discrete event modeling unless included as a named workstream.
• Implementation planning below the phase and milestone level (no detailed project schedule, staffing plan, or task-level work breakdown structure).
• Procurement, contracting, or purchase order administration.
• Post-engagement implementation oversight or advisory support.

Engagement Type: Full Program, Design Through Implementation Support

What this is: End-to-end engagement from diagnosis through design, vendor or integrator selection, and implementation oversight. May include PMO advisory through construction and go-live. Typical scale: $400K to $2M+, 12 to 36 months, three to six consultants across phases.

Additional Assumptions

• A dedicated client PM with authority to make day-to-day project decisions will be assigned for the full duration of the engagement.
• The client will fund and resource implementation workstreams it owns: IT system integration, construction management, HR and workforce planning, training delivery. These are not consultant scope.
• The client’s capital budget for implementation has been approved or is on a defined approval pathway with a known timeline. The consultant is not responsible for delays caused by internal budget approval cycles.
• A steering committee with executive sponsorship will convene [monthly or more frequently at phase gates] and will make timely decisions on escalated issues. The target response window for escalated decisions is [5 business days].
• Third-party vendors and integrators under separate contract to the client will cooperate with the consultant on reasonable requests: meeting attendance, submittal sharing, schedule updates, and RFI responses. Vendor non-cooperation is a client-managed risk.
• The consultant’s implementation oversight role is advisory: review, recommendation, and escalation support. The consultant is not a construction manager, general contractor, or system integrator and will not assume those contractual or legal roles unless separately negotiated.
• All scope changes will go through formal change control. Work on any change begins only after an approved and signed change order is in place.
• Program scope, team composition, and fee may be revisited at each major phase gate based on confirmed scope for the next phase.

Additional Exclusions

• Serving as general contractor, construction manager, owner’s representative with contractual liability, or system integrator.
• Staffing, hiring, training, or managing client employees.
• Holding vendor or subcontractor contracts on behalf of the client.
• Legal review of vendor contracts, indemnification provisions, or performance guarantees.
• Performance guarantees on third-party system throughput, availability, or accuracy; those obligations belong in the vendor contract.
• Ongoing operations management, staffing, or operational support after go-live, unless a separate post-go-live advisory scope is contracted.
• Post-implementation IT support, help desk support, or system administration.

Engagement Type: Automation Design and Integrator Selection

What this is: Material handling and automation concept design, technology option evaluation, RFP development, integrator selection, and proposal evaluation. Implementation oversight is a separate follow-on scope. Typical scale: $100K to $400K for design and selection; implementation oversight priced separately.

Additional Assumptions

• Throughput requirements, SKU profiles, unit-of-measure data, and peak and average volume data will be provided by the client in the format requested within [10 business days] of kickoff. If this data does not exist in structured form, a data development phase is required and will be scoped separately.
• Facility drawings (AutoCAD DWG or dimensioned PDF) for the subject facility are available and reasonably current. The consultant will not conduct building surveys or produce base drawings.
• The client understands that automation concept designs at the feasibility stage carry typical accuracy ranges of plus or minus 30% on capital cost and plus or minus 25% on throughput performance. These ranges narrow through the integrator proposal process.
• The final list of integrators invited to respond to the RFP is a joint decision, with the client having final authority. The consultant will recommend a list based on fit-to-requirements; the client may add or remove vendors.
• The client will participate directly in integrator demonstrations and reference site visits, which are part of the evaluation process and the client’s responsibility to schedule.
• Integrator proposals will be evaluated as submitted. The consultant will advise on commercial and technical terms, but all contracts are executed by the client.
• If simulation or digital twin modeling is in scope, it will be based on client-provided operating data and the integrator’s proposed design inputs. The consultant is not responsible for errors in vendor-provided design parameters.

Additional Exclusions

• Detailed engineering design of the selected automation system; this is the integrator’s contracted scope.
• Controls programming, software configuration, or system integration.
• Civil, structural, MEP, or fire protection engineering required to support the installation.
• Equipment warranties or throughput performance guarantees; these belong in the integrator contract.
• Negotiating the integrator contract on the client’s behalf; the consultant will identify the key commercial terms to negotiate and advise on positioning, but will not execute the contract.
• Commissioning support, operator acceptance testing, or go-live oversight, unless separately scoped.
• Operator training or standard work development for the new system, unless separately scoped.

Engagement Type: Technology Selection (WMS, TMS, ERP, Planning Platforms)

What this is: Requirements definition, vendor RFP or RFI, demonstration facilitation, evaluation, reference checks, and contract guidance. Implementation support is a separate scope. Typical scale: $75K to $300K depending on platform complexity and vendor count.

Additional Assumptions

• An internal IT stakeholder with decision-making authority for systems selection will be actively engaged throughout the project. Technology selection without IT involvement will not produce an implementable recommendation.
• The client has a defined or developing budget range for software licensing and implementation. If no budget exists, a market reference range will be developed during the assessment phase and presented before vendor solicitation.
• Business process documentation sufficient to support requirements definition is available from operations and IT stakeholders. If structured documentation does not exist, a brief current-state process documentation phase is required and will be treated as a scope addition.
• Vendors invited to the RFP process will commit to completing full proposal responses and will participate in scripted demonstrations on agreed dates. Vendors declining to participate are excluded from evaluation.
• The consultant will structure reference check questions; the client will conduct or co-conduct calls with references. Reference contacts will be provided by the vendor.
• The consultant’s scope ends at contract signing or vendor selection unless an implementation advisory scope is separately agreed and contracted.

Additional Exclusions

• Software licensing, contracts, or procurement on behalf of the client.
• System configuration, data migration, integration development, or testing.
• Project management during system implementation.
• Independent technical testing or validation of vendor performance claims or benchmark results.
• IT infrastructure assessment or architecture design.
• Security assessment, penetration testing, or SOC 2 review of proposed software platforms.
• Negotiation of software license terms; the consultant will identify key contract provisions to push back on and advise the client’s legal or procurement team, but will not execute the contract.

Engagement Type: 3PL Strategy and Selection

What this is: Make-vs.-buy analysis, 3PL market assessment, RFP development and administration, proposal evaluation, and commercial negotiation support through letter of intent. Typical scale: $75K to $250K, 10 to 18 weeks.

Additional Assumptions

• The client will provide a minimum of 12 months of shipment history, current 3PL cost data (if applicable), and order-level data needed to build a volume and profile baseline for the RFP.
• Current contract terms with the incumbent 3PL (if applicable) will be shared under mutual NDA for benchmarking and comparison purposes.
• The make-vs.-buy financial model will use client-provided internal cost data for the self-operation scenario. If that data is unavailable or incomplete, the consultant will use market benchmarks with documented and client-acknowledged limitations.
• The 3PL candidate list will be developed jointly. The client has final authority on which providers receive the RFP.
• 3PL site visits (if in scope) are to facilities nominated by the 3PL. The consultant will evaluate what is made available; access to specific facilities or networks cannot be guaranteed.
• The engagement is advisory throughout. The client executes all contracts and commercial agreements with the 3PL.
• If the engagement findings support staying with the incumbent, the recommendation will be presented without prejudice. The consultant’s role is to advise, not to ensure a provider change.

Additional Exclusions

• Transition planning, project management, or operational management during a 3PL transition.
• Ongoing 3PL performance management, scorecard administration, or contract administration after selection.
• Legal review of the 3PL service agreement or ancillary agreements.
• Rate negotiation after initial commercial terms are agreed at letter of intent; ongoing commercial management is the client’s responsibility.
• IT integration design or development between the client’s systems and the 3PL’s WMS or TMS.
• Staffing transition support or HR management for employees transferring to or from the 3PL.

Engagement Type: DC Network Design

What this is: Baseline network cost analysis, demand projection, multi-scenario network modeling, site screening, financial comparison, and implementation phasing. Site selection, lease negotiation, and facility design are follow-on scopes. Typical scale: $150K to $500K, 12 to 20 weeks.

Additional Assumptions

• The client will provide a minimum of 2 to 3 years of shipment history by origin-destination pair at the order or line level, plus current facility cost data and service level performance data.
• The modeling scope (geographies, product lines, business units, channels) is defined at project initiation and will not be expanded without a scope change.
• Demand projections used in the network model will either be provided by the client’s planning team or developed collaboratively using client-provided planning inputs. The consultant builds and runs the model; the client owns the demand forecast that drives it.
• Optimal network configurations are based on the data and assumptions provided. The model cannot account for site-specific risks, geopolitical developments, labor market shifts, or regulatory changes not present in the baseline.
• Facility cost assumptions for candidate markets will use published commercial real estate data (CoStar, CBRE, JLL, Cushman & Wakefield) unless the client provides executed lease terms for specific sites.
• The network study will produce scenario analysis and a recommended network configuration. Specific site identification, lease negotiation, and transaction support are excluded unless contracted as a follow-on workstream.

Additional Exclusions

• Site selection, real estate due diligence, lease negotiation, or real estate transaction advisory.
• Detailed facility design or layout for recommended network nodes.
• Full site-level labor market due diligence; the study will include a summary labor cost assessment by market using published data, not a detailed local market study.
• Tax incentive analysis or incentive negotiation with state and local economic development agencies.
• Transportation RFP or carrier procurement resulting from a network change.
• Implementation project management for the transition to the recommended network.

Engagement Type: S&OP and Demand Planning Transformation

What this is: S&OP maturity assessment, process redesign, meeting cadence design, metrics framework, and facilitated pilot cycles. Technology changes are excluded unless separately scoped. Typical scale: $100K to $350K, 12 to 20 weeks.

Additional Assumptions

• Cross-functional leadership commitment is required and confirmed at project start: commercial/sales, finance, supply chain, and operations leaders will each designate a named representative who attends all cross-functional workshops.
• Historical demand and forecast data (24 months minimum), forecast accuracy history, and inventory records are available and extractable.
• The client’s ERP or planning system will be accessible for a capability and configuration review. Read-only access or a guided walkthrough is sufficient; system administrator access is not required.
• Technology changes required to support the redesigned S&OP process (system configuration, module upgrades, new planning tools) are a separate scope item, owned by IT or a system implementation vendor.
• The pilot phase of the redesigned S&OP process will cover one to two product families or business units. Extension to the full portfolio is a subsequent phase and will be scoped separately.
• Organizational change management, executive coaching, and internal communications campaigns are excluded from the base scope.

Additional Exclusions

• Demand planning system implementation, configuration, or integration.
• Statistical forecasting algorithm development within the client’s planning system.
• Organizational redesign, role restructuring, or headcount analysis unless separately scoped.
• Sales incentive or compensation plan changes.
• Integration of the S&OP process with financial planning (FP&A) or the annual budgeting cycle, unless explicitly in scope.
• Serving as the ongoing S&OP facilitator after the design and pilot phases end. The consultant will train internal facilitators and provide facilitation guides; the client owns the process going forward.

Engagement Type: PMO and Implementation Oversight

What this is: Program management office setup, schedule and budget governance, vendor coordination support, risk management, and reporting support from design through go-live. The consultant advises and manages the governance structure; contract authority remains with the client. Typical scale: $150K to $600K depending on program complexity, number of vendors, and duration.

Additional Assumptions

• The client holds all contracts with vendors, integrators, and construction managers. The consultant provides oversight and advisory support; it is not the contract holder, owner’s representative with legal liability, or construction manager.
• A client executive sponsor is available for weekly or bi-weekly steering committee sessions and will make timely decisions on escalated issues. The target decision window from escalation to resolution is [5 business days].
• All program vendors and contractors will share required project information with the PMO: schedules, submittals, RFI logs, change order status, and milestone updates.
• PMO scope covers the vendors, workstreams, and facilities defined at engagement start. If the program grows materially in vendor count, facility count, or workstream complexity beyond what was anticipated at scoping, a scope review will be required.
• A project tracking tool (PMIS, shared project schedule, or collaboration platform) will be agreed at kickoff and used consistently by all parties for schedule and document management.

Additional Exclusions

• Executing contracts or purchase orders with vendors, contractors, or suppliers on the client’s behalf.
• Construction inspection, field safety oversight, or safety compliance monitoring; these are the general contractor’s or construction manager’s obligations.
• Legal review of vendor contracts, performance claims, or indemnification provisions.
• Claims management, dispute resolution, or litigation support.
• Operational readiness activities: workforce hiring, new employee training, inventory build, or process documentation development, unless separately scoped.
• IT system administration, configuration, or support during implementation.

Commercial Triggers That Warrant a Fee or Timeline Discussion

Regardless of engagement type, the following conditions typically require a formal conversation about the commercial basis of the engagement:

These triggers are not adversarial. They are predictable events on complex engagements. The assumptions list in the proposal and kickoff charter is the evidence base for any fee discussion when a trigger occurs. Teams that track assumption status as part of weekly project reporting surface these issues before they become disputes.

How to Use This Page

In proposals: Pull the universal sections verbatim, then add the type-specific sections for the primary engagement type. Review each assumption for accuracy against the specific client situation before sending.

At kickoff: Walk through assumptions with the client explicitly. Confirm which ones are already satisfied and flag any that represent risk. A 15-minute assumptions walkthrough at kickoff is worth more than a 3-hour scope dispute mid-project.

For change orders: When a scope change or assumption failure triggers a fee conversation, point to the specific assumption that was not met. The documentation was always the goal.

Cross-reference: See SC Logistics Consulting Deliverables Library for a full list of deliverables organized by engagement type, with format and decision-enabling context for each.