Strategic Project Development Stage Of New City Construction Essay

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This is a formal report for the Senior Responsible Owner of the City Government on the current status of the proposed project to build a new local government administrative headquarters located in the city centre. The strategic objective of the client for the new project is to achieve Value for Money and the OGC 3 project procurement lifecycle is the adopted procurement framework. The appointed independent VRM consultant in the report offers advise on the following stages of OGC 3:

Task 1: Identifying Business needs - a value study is designed to achieve the objectives of identifying both long and short term business needs, set health and safety, sustainability and design quality objectives; establish agreed performance indicators and measure objectives against key performance indicators (KPI's) to evaluate the success of the project.

Task 2: Options to meet business needs. Confirm project still required- value and risk study is designed to examine in great detail and appraise these options, such options may include non-project or 'prior options' and private finance initiatives, confirm the need for the project and risk management to identify risks with option while updating the risk register. Both studies have a maximum duration of one day.



This is a formal project report to the Senior Responsible Owner of the client - City Government on the above-mentioned project. The report is expected to address the following: Benefits of the studies to the client and the project, required pre-workshop activities in preparation for the studies, identification of relevant stakeholders to be invited, agenda for each study indentifying appropriate workshop activities and an outline of the expected recommendations contained in the follow-up study report.

Value Management Studies

Value analysis is a commonly used value management and is used at the design stage in the construction industry and comprises the 'Job Plan' (used to keep the value studies on track) and functional analysis and other tools (examine the project or being studied and ensure the stakeholder needs are met.

During this study, the VRM consultant will organise a one day workshop at which each task is systematically explores, challenged and recommendations for improvements achieved through brainstorming sessions. Its expected that through the value and risk studies conducted on the projects the costs of the project will be reduced and quality of outcome improved. Benefits such as reduced staff turnover, improved cost staff awareness, commitment and motivation due to being involved in a study team while saving time.

The 'Job Plan' value study tool

This has eight comprehensive stages. Firstly the Planning stage - the value study for the above project is planned at this stage so objectives with questions of what are the key objectives of the study- identify business needs and options to meet business needs also identification of the stakeholders in the study team, time scale of study- one day workshop and so on. Secondly the information stage where essential information is gathered such as how best to build the new headquarters and also where relevant benchmark information can be found. Thirdly the analysis stage where information gathered is evaluated to deduce reasoning like the thoughts of major stakeholders and implications of such thoughts. Fourthly the creative stage - new ideas are brain stormed such as use of recycled materials how to get value for money in the building process. The evaluation stage is the fifth stage and it is at this stage the best ideas or options are selected; this coincides with task 2 when options to meet business needs are chosen. After which the report stage where top management approves the chosen options after examining the business case made for the project and if it meets the city's government financial criteria. The seventh stage is the implementation stage where the new ideas are put into practice. The last stage is the Follow up stage where the final outcome is audited- lessons learnt for the future, recommendations expected in the follow up report

Benefits of the Value and Risk studies to the Client and Project

Value management (VM) studies are usually held by a qualified facilitator, in this case it's the independent VRM consultant appointed by the client holding a VM workshop. The maximum duration of the study is one day for each task and it provides the client and project with the following benefits (the list is not exhaustive):

Enhanced comprehension of the project and project lifecycle

Directs the project into focus of its strategic objective - value for money

Maximises the contribution of key stakeholders and exploits collective knowledge

Utilizes the group dynamics of whole project through teamwork

Project design defects with the potential to create problems are uncovered

Improved output, competence and value for money

Reduced risk and increased functionality

Enhances quality of project outcome; reduces time and cost

Pre-Workshop activities required in preparation for studies

Preceding the workshop the VM facilitator (VRM consultant) would meet the project manager, client and key stakeholders to determine the VM key performance indicators. The facilitator would review the expected result from the workshop; dates should be fixed in advance to avoid conflicting schedules. Also the intensity of the workshop should be within reasonable limits. The pre-workshop activities are as follows:

Documentation distribution Prior to the workshop the facilitator issues a comprehensive ephemeral pack to all the workshop participants. Thus availing them with the required important information for the workshop.

Set Clear workshop objectives The objectives of the identification of business needs and options to meet business needs should be achievable within the one-day time frame. They need to be concise and easy to understand or explain to participants to avoid confusion, misinterpretation and time wasting. Thus if necessary the option to set another workshop should be considered and its better to spread out the objectives than overload the process thus nullifying the desired objective and getting undesirable results.

Role of Participants These roles should match the objective of the workshop to identify business needs and options to match these business needs as well as confirm project required. Roles required include decision makers at this stage of the project lifecycle and participants with the relevant knowledge of the stages involved.

Number of Participants Ideally the number of participants should be between 10 and 15. The approach of the workshop should adapt to the size of the participants

Identification of Stakeholders to be invited

The key stakeholders invited to the workshop are multi-disciplinary to attain the collection of radical ideas and to ensure that information gathered is dynamic and a true representation of all the relevant parties involved. It's the recommendation of the VRM consultant that an internal study team see's the entire project through compared to the use of a separate internal auditory team. Thus it is imperative that the right people are involved from the start. This provides the client and project the advantage of improved implementation of the ideas due to the parties involved taking ownership and also reduce the cost of the VM study.

Agenda for each study that identifies appropriate workshop activity

There are typically two types of workshops and they are strategic and technical. A project usually requires a series of workshops and this particular workshop is strategic. The workshop agenda is designed to apply VM tools in a logical sequence to deliver benefits to the project. The workshop was designed to meet the specific needs of the client and not a pre-concluded VM process. The aim of this workshop is to analyse the project in an informal setting, identify the business needs, challenge design through function analysis, brainstorm suggestions from participants and produce options to meet the identified business needs to enhance value for money for the client. The success of the workshop is predicated on the knowledge and skill of the facilitator. The workshop agenda for both tasks are outlined in the pages below.

Identify Business needs one-day workshop

08.30 Registration and refreshments

09.00 Introductions, review of agenda and VM procedure

09.30 Presentation of the issue of Identification of Business needs

10.00 Review of project objectives, limitations and risks relative to business needs

10.45 Break

11.00 Analysis phase:

- Presentation of process

- Define mission statement of project

- Review constraints/imposed limitations

- Identify functions/objectives

- Prioritise functions/objectives

12.30 Lunch

13.00 Creativity phase:

- Brainstorming ideas

15.00 Break

15.15 Evaluation phase:

- Determine options to meet business needs

- Assign champions to develop options

16.30 Outline the action plan and programme

17.00 Close of workshop

Options to meet business needs. Confirm project still required one -day workshop

08.30 Registration and refreshments

09.00 Introductions, review of workshop agenda and VM system

09.30 Presentation of the issue of Options to meet business needs identified in Task 1

10.00 Review of project strategic objective (Value for money), limitations and risks relative to business needs

10.45 Break

11.00 Analysis phase:

- Presentation of process to meet options

- Outline mission statement of project against options

- Review constraints/imposed limitations

12.00 Lunch

12.30 Creativity phase:

- Brainstorming ideas

14.00 Break

14.15 Evaluation phase:

- Determine options to meet business needs

- Discuss Confirmation if project still required

15.30 Confirm project still required

16.30 Close of workshop

Recommendations expected in follow-up study report