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10.3 Construction (or Capital Works) Projects: OGC Achieving Excellence in Construction Guidance

10.3.1The Achieving Excellence Initiative for Northern Ireland aims to make the public sector client a best practice client when procuring construction projects and services. The Initiative is explained at CPD's Achieving Excellence website which contains links to relevant resources including the full suite of Achieving Excellence guides.
10.3.2The principles in the current Achieving Excellence in Construction guidance should be applied and should be reflected in NI Departments' documented client procedures for the management of projects. This guidance advises Departments of the principles for the management of capital works projects which should be integrated into Departmental systems. Departments should have in place procedures to control capital projects which, as a minimum, include these principles. Where a Department is at present applying more rigorous guidelines it should of course continue to do so.
10.3.3The Achieving Excellence suite of guidance replaced the Construction Procurement Guidance series in 2003. The new series reflects developments in construction procurement over recent years and builds on departments' experience of implementing the Achieving Excellence in Construction initiative. In taking forward Achieving Excellence, new targets for government clients have been established; these are outlined in the Achieving Excellence documents. DFP's Central Procurement Directorate (CPD) will coordinate on the adoption and dissemination of this guidance.
10.3.4

The current Achieving Excellence suite of guidance includes:

  • A Manager's Checklist
  • Construction Projects Pocketbook
  • AE Guide 1 Initiative Into Action
  • AE Guide 2 Project Organisation
  • AE Guide 3 Project Procurement Cycle
  • AE Guide 4 Risk and Value Management
  • AE Guide 5 The Integrated Project Team
  • AE Guide 6 Procurement and Contract
  • AE Guide 7 Whole Life Costing and Cost Management
  • AE Guide 8 Improving Performance
  • AE Guide 9 Design Quality
  • AE Guide 10 Through Health and Safety
  • AE Guide 11 Sustainability
  • Common Minimum Standards
  • Guide to 'Fair Payment' Practices
  • Making Competition Work for You
10.3.5These guides are available in full together with relevant case studies at the OGC Achieving Excellence website.
10.3.6

The principles set out in the OGC guidance form part of a continuum of good capital project management practice. They are especially important in relation to major projects which involve considerable expenditure, but are relevant to projects of all sizes. Departments should exercise their judgement in applying appropriate control measures to projects of different size and scope.

Roles
10.3.7A key principle is the establishment of roles. Departments' documented client project management procedures must identify the client roles of Investment Decision Maker, Project Owner (or Senior Responsible Owner) and Project Sponsor. The procedures must also draw a clear distinction between the client roles and the provider roles. The latter roles are that of the Project Manager, the design functions and the works contractors. The main client and provider roles are defined in AE Guide No 2.
10.3.8Whereas the client roles can be undertaken by intelligent lay-persons with appropriate training, the Project Manager must have technical expertise. The Project Manager is the person appointed by the Project Sponsor to be responsible for managing the project on a day-to-day basis. He or she must ensure that the Department's agreed systems and procedures are adhered to and that the contractor/supplier complies with requirements. The Project Manager reports progress to the Project Sponsor at agreed intervals.
10.3.9

In addition, in the case of projects that are above the delegated limit, there will be an approving authority role that will be exercised by the Supply Divisions of DFP. The Project Sponsor should report progress to the approving authority at agreed points during the management of the project. Departments must submit progress reports to Supply in accordance with any conditions/timetable set at the time the project was approved by DFP.

Project Planning and Control
10.3.10Proper attention must be paid to planning and controlling the project at all stages. AE Guide No 3 includes a general framework for construction procurement, describing all the main stages in a project's development. This should be adapted to suit the needs of the specific case in hand.
10.3.11Greater emphasis should be given at project initiation stage by way of definition, estimating and risk assessment and management under the responsibility of the Project Sponsor. The Project Sponsor should ensure that there is a clear project brief which provides a comprehensive statement of the Department's requirement for the project. This should be based on close consultation between the Project Sponsor, Project Owner, users and stakeholders.
10.3.12

Greater thoroughness prior to formal approval is considered to be one of the most important factors in achieving better control and performance. Performance in terms of completion within budget and time depends crucially on thorough specification, and careful assessment of cost and time required, and the development of a Project Execution Plan.

Project Execution Plan
10.3.13The Project Execution Plan is the key management document governing the project strategy, organisation, control procedures, responsibilities, and, where appropriate, the relationship between the project sponsor and the project manager. It is a formal statement of the user needs, the project brief and the strategy agreed with the project manager for their attainment. The scope of the plan will depend upon the size and nature of the project. It is a live active management document, regularly updated, to be used by all parties both as a means of communication and as a control and performance measurement tool. Fuller guidance on the Project Execution Plan is given in AE Guide No. 3.
10.3.14

The Project Sponsor should ensure that a Project Execution Plan is agreed. The Project Sponsor must be satisfied that the Project Execution Plan represents a viable and realistic plan for implementing the project and achieving its objectives.

Cost Management
10.3.15

It is essential that capital projects should be managed on time and within budget. AE Guide No. 7 contains appropriate guidance on budget estimation and cost management, including allowance for risks and whole life costs. Applying these guidelines should help alert Departments to potential cost overruns in sufficient time to take appropriate remedial action. When monitoring project management performance, sponsoring Departments should pay particular attention to the management of risk giving rise to time and cost slippage.

Project Reports
10.3.16

The project manager should issue regular reports to the project sponsor regarding the current status of the project, key issues and problems requiring resolution and the steps being taken to resolve them. The project sponsor should normally forward copies or summaries of them to the project owner for information and will draw the project owner's attention formally to any matters of serious concern to the department.

Advice
10.3.17Advice on establishing appropriate systems for the management of construction or capital works projects is available from CPD. Their website is at www.dfpni.gov.uk/cpd

Read on to PRINCE: Management of Projects in General

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