This is the first of two articles in which the author shares experiences gained from the development and delivery of a business/industry project-based capstone course. The course integrates research, proposal development and design experience based on knowledge and skills acquired in earlier coursework. The course also incorporates standards and realistic constraints. Preparing students for "real world" practices is an integral part of the curriculum for many engineering and technology programmes. Such preparation can involve numerous approaches to simulate realistic experiences, including engaging students with real-world external clients who might use their work. These practices offer the challenge of identifying and selecting suitable projects as well as developing the means to evaluate effectively the learning outcomes related to students' participation in such projects. This paper has two main parts. Part 1 concerns the process of project solicitation and communication with clients during different phases of the capstone project life. The difficulties encountered and the means of reducing their negative impacts are also addressed. Part 2 includes the development of the students' learning outcomes and the tools used to measure them. The second paper, also published in this issue of "Industry and Higher Education," addresses some of the key factors in enhancing student learning in teams. (Contains 6 tables.)