A vigorous delivery strategy typically drives the project’s success. Project owners can improve the success of the investment by performing an early assessment of the key objectives for the project and analyse the delivery strategies available to execute it.

Project delivery is not only about the form of contract used to shift or share risks inherent in a large capital project. Project delivery is about getting a quality project done meeting the requirements of the business case and taking a lifecycle approach to make sure that the built asset continues to create value over the long-term.

The challenge is that the needs base is not stagnant over the development of the complex plant investment, but those are rather redefining themselves over the development of the investment.

The industry has defined various delivery strategies to deliver a project on time, quality and cost. Such strategies are grouped to a) Traditional, b) Collaborative, c) Integrative and d) Partnering.

The traditional model of project delivery assumes the project owner has assigned a consulting engineer to define completely and accurately the scope and contractor(s) is hired to construct the work. Such typical project delivery methodologies are: Design-Bid-Build and Multiple Primes.

Collaborative project delivery strategy involves construction professionals in the early planning and design phases of the project. Such typical project delivery methodologies are: Agency CM, CM at risk, Design and Build, EPC, and Turn key.

The integrative model of project delivery is a relatively new approach with risk sharing features unlike either the traditional or collaborative models. Such typical project delivery methodologies are: Alliancing, Partnering, and Integrated Project Delivery.

The partnership model incorporates design, construction and operation of a facility and is completed by one of the contracting parties for the benefit and use of another, including the general public. Such typical project delivery methodologies are: Build-Operate-Transfer, Build-Own-Operate, Build-Own-Operate-Transfer, Concession, Design-Build-Finance-Operate, Private Finance Initiative and Public Private Partnership.

The desire to understand and limit its risk by taking the project ‘one step at a time’ might lead the project owner to select a more traditional approach. An active project owner with a ‘hands-on’ approach, who doesn’t mind sharing project risk in a transparent and open manner, is likely to be more comfortable with the collaborative and integrative models of project delivery.

Each project delivery method has advantages and disadvantages, some to mention, for example traditional and collaborative strategies provides sense of one-stop-shop while integrative and partnership strategies require more Owner involvement and Owner’s resources, while the latter allows Owner to control the delivery. Thus, the skill and experience of the owner’s project management resources and capabilities or lack of such resources are the factor in the owner’s selection of as suitable project delivery strategy. In order to harvest “the goodies” of the integrative strategies, could this be differently? – Yes, it could be, with Prohoc Empowering Projects.

Current study issued by VTT, Pertti Lahdenperä 2017, is representing number of innovative project delivery methodologies, which are sort of “hybrids” between conventional project delivery methodologies and competitively innovative investment development phase.

The study introduces eight such hybrid project delivery methodologies:

  • Two Stage Open Book
  • Cost Led Procurement
  • Early Contractor Involvement
  • Early Tenderer Involvement
  • Novation Contract
  • Bridging Method
  • Innovative Contractor Engagement
  • Partial Price Selection

Common nominator for all these methods is that project construction phase can be implemented with one of the traditional or collaborative project delivery methodologies. While the innovative part of these hybrid methodologies is how the development phase is managed by the Owner in collaboration with competitive setting of designer-contractor “alliances”. The advantages of the hybrid project delivery methodologies are the possibility of the Owner to refine his business requirements to the perfection and embed them to the project requirements for incentivized designer and contractor “alliance” in the realization of the project most cost efficiently and innovatively.

It is well known and established knowledge that the value of the project is identified in the early development phase of the investment. Prudent project management processes and methodologies are essential during value identification.

Prohoc Empowering Projects is a statement where Prohoc has defined itself to offer Project Management services – PM Resources, PM Tools and PM Processes – to reinforce the Owner’s project management capability to manage such effort by themselves.

At Prohoc, we are experts and generalists – project maniacs at heart. Don’t hesitate to contact any of us in Prohoc management team to hear more about new empowering project possibilites.

Read full article from Scope Stakeholder Magazine Summer 2018

Scope Stakeholder Magazine

Summer 2018