Next video:
Loading the player...

Deliverables is a project management term describing an object or function that must be provided or completed by a certain due date.  Deliverables can be tangible or intangible.  They include reports, graphic designs, computer program upgrades, analysis, or anything else that helps a larger project along to completion.

For contracts involving intangible products, the deliverable often is the detailed description of the intangible product that is the subject matter of the contract. For instance, Conglomo hires ABC Consulting to modernize its inventory management system. In the contract, Conglomo will specify a number of deliverables. This is often referred to as a statement of work.

One deliverable might be ABC’s detailed analysis of how to modernize Conglomo’s inventory system. Another might be custom software that automates the purchasing process. Still another deliverable might be special computers configured to run the inventory software. 

Once Conglomo receives all the deliverables as specified in the contract, they will pay ABC’s consulting fee. 

The statement of work also serves to keep track of a project’s agreed-upon deliverables. For instance, during the inventory modernization, Conglomo asks ABC to upgrade its shipping software. ABC can point to the consulting contract and say that this deliverable was not included in the contract. If Conglomo wants this service as well, the contract will have to be amended to add the shipping software upgrade as a deliverable – with a corresponding increase in the consulting fee paid to ABC.

Related Articles
  1. Investing

    How Do Accountants Use the Equity Method?

    The equity method is an accounting technique used by firms to assess the profits earned by their investments in other companies.
  2. Investing

    Explaining Hedging Transactions

    A hedging transaction takes a position that protects an investor from substantial losses in another position.
  3. Insurance

    How to Calculate a Combined Ratio

    Combined ratio is a formula used in the insurance industry to measure the performance of an insurance company.
  4. Investing

    The Impact Of Share Repurchases

    Share repurchases can impact investors and companies in different ways.
  5. Small Business

    Why Do Companies Go Offshore?

    The term offshore simply means to be located or based outside of a nation’s boundaries.
  6. Investing

    What is Accrued Income?

    In a mutual fund, accrued income is earnings that have accumulated over the year, but have not yet been paid out to shareholders.
  7. Investing

    Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
  8. Investing

    What is an Impaired Asset?

    An impaired asset is one where the fair market value of the asset is less than the historical cost (or book value) of the asset.
  9. Investing

    What is the Price-to-Sales Ratio?

    The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.
  10. Investing

    Explaining Accrued Liability

    Accrued liability is an accounting term for an expense a business has incurred but has yet to pay.
Hot Definitions
  1. Tender Offer

    An offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the ...
  2. Ponzi Scheme

    A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns ...
  3. Dow Jones Industrial Average - DJIA

    The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange ...
  4. Revolving Credit

    A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is ...
  5. Marginal Utility

    The additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important ...
  6. Contango

    A situation where the futures price of a commodity is above the expected future spot price. Contango refers to a situation ...
Trading Center