ConstructingExcellenceProjectOrganisation 23 01 2010

Achieving Excellence in Construction
Procurement Guide
02
Project
organisation
roles and responsibilities
02
Contents
01 The Achieving Excellence Procurement Guides
02 Introduction
02 Principles
07 Practice
16 Client capability
21 Annexes (electronic only)
21 Further information
NAO endorsement
The NAO recognise that proactive client leadership and robust project management are pre-
requisites to the successful delivery of construction procurement.
They consider that procurement of construction should be on the basis of whole-life value for
money and endorse the use of the good practice promoted by this suite of guides. They may
investigate whether this good practice is applied in practice in any future examination.
Acknowledgements
This guide has been published after extensive consultation within government and valuable
contributions from leading individuals and organisations across the construction industry.
OGC would like to thank all who have contributed.
© Crown Copyright 2003.
The OGC logo ® is a Registered Trade Mark of Her Majesty’s Treasury.

The Achieving Excellence Procurement Guides
The Achieving Excellence suite of procurement guides replaces the Construction

Procurement Guidance series.
The new series reflects developments in construction procurement over recent years
and builds on government clients’ experience of implementing the Achieving
Excellence in Construction initiative.
A manager’s checklist
Construction projects Pocketbook
Construction
High level guides projects

Achieving Excellence in Construction Achieving Excellence in Construction
Procurement Guide Procurement Guide Procurement Guide
01 02 03
Initiative Project Project
organisation procurement
Core guides into action
lifecycle
the integrated process

Achieving Excellence in Construction Achieving Excellence in Construction Achieving Excellence in Construction Achieving Excellence in Construction
Procurement Guide Procurement Guide Procurement Guide Procurement Guide
04 05 06 07
Risk and value The integrated Procurement Whole-life
management project team and contract costing
teamworking and partnering
strategies and cost management
Supporting guides
Achieving Excellence in Construction Achieving Excellence in Construction Achieving Excellence in Construction Achieving Excellence in Construction
Procurement Guide Procurement guide Procurement guide Procurement guide
08 09 10 11
Improving Design quality Health and Sustainability
performance safety
project evaluation
and benchmarking
Achieving Excellence in Construction Procurement Guide 02: Project organisation: roles and responsibilities 1
©Crown copyright 2003.
Achieving Excellence in Construction Procurement Guide
02 Project organisation: roles and responsibilities
Projects should be organised in such a way that everyone is committed and empowered
to achieve successful delivery. Roles and responsibilities should be clearly defined; there
must be short and effective lines of communication to senior management so that they
can take prompt action when needed.
Introduction
This guide explains the key roles and responsibilities involved in construction
procurement projects. It provides a recommended framework for project
organisation that can be adapted to individual circumstances.
There are obvious benefits to applying a consistent approach and common

language across clients. OGC recommends the terminology set out in this guide,
which harmonises approaches used across the public sector. However, clients in
different parts of the public sector may be using different terminology that is
already widely adopted in their community, although the actual functions of the
roles are identical. Terminology need not be a barrier to common ways of
working; what matters is that the principles set out in this guide are followed, so
that everyone involved in the project knows what they have to do and when, their
personal accountability and their reporting lines.
Principles
Critical factors The client organisation must ensure that:
for success the business needs of the project are well established and understood by the
client and supplier alike. In particular, the expected life of the facility must be
clear; many facilities are only required to fulfil a short-term need but are built
for the long term when that is not necessary – and vice versa
the investment decision maker for the project approves the need for the
project in terms of contributing to business objectives
the right people are given the roles of senior responsible owner – SRO (that is,
the individual responsible for the success of the project) and project sponsor
(empowered to take decisions on behalf of the SRO role), with the knowledge
of the desired outcome for the business, experience, skills and commitment to
achieve success
the right suppliers are selected to act as partners – organisations with the
capability and capacity to deliver; and compatible objectives to ensure project
success
everyone involved in the project works together as an integrated team (client,
designers, constructors and specialist suppliers), with effective communication
and coordination across the whole team
the right person is assigned the role of project manager with the ability to
create and lead the project team
2 Achieving Excellence in Construction Procurement Guide 02: Project organisation: roles and responsibilities
the impact of the project and its outcome on the organisation is analysed and
planned to ensure that it is integrated and aligned with the business
levels of delegated authority for the project team are clearly set out and
understood and enable effective and timely decision-making
clear roles and responsibilities are defined and understood, supported by an
uncomplicated project management structure that reflects good practice
the procurement route for the project supports and facilitates integrated
teamworking.
The client organisation undertaking each project should have clearly identified
responsibilities for investment decisions, project ownership and project
sponsorship; the people concerned should have formal statements of their respon-
sibilities and be accountable for them. The senior responsible owner role should
be a formal appointment in the part of the business that requires the finished
project, with sufficient seniority to understand the business drivers and to make
decisions on behalf of the business. Priority should be given to ensuring that
project delivery teams are composed of high quality individuals; there must also
be a commitment to continuity in key roles.
Wherever possible, the project should be delivered by an integrated project team

made up of the client project team, consultants, constructors and specialist
suppliers working together as a single team. This approach should be used on all
construction projects because it helps to encourage innovation and avoid an
adversarial culture; it encourages collective responsibility for a successful
outcome. It can bring significant benefits – a focus on whole-life value for money,
rather than lowest price; collective responsibility for buildability and
considerations of health and safety, sustainability and design quality; shared
responsibility for managing risk; greater efficiency and reduced waste (see AE5:
The integrated project team for more information). The details of an integrated
approach will vary depending on the contractual arrangements; the important
point is that integration should always be the main feature.
Essential roles and Essential roles and the associated responsibilities are:
responsibilities investment decision-making – takes the investment decision for use of
resources (including capital, operational and manpower resources) based on
justification of the business need, affordability and cost-effectiveness, and
whole-life value for money (the investment decision maker or IDM)
ownership – defines the scope of the project for delivering the business
benefits; personally accountable for the success of the project (the senior
responsible owner or SRO (often referred to as the project owner). This role
should be undertaken by a senior individual in the organisation, who should
have the status and authority to provide the necessary leadership and must
have clear accountability for delivering the project outcome. This individual
should also ensure that sufficient resources are made available to enable a
successful outcome
interface between ownership and delivery – ongoing day-to-day management

and decisions on behalf of the SRO to ensure that the desired project
objectives are delivered; this individual must have adequate knowledge and
information about the business and the project to be able to make informed
decisions (the project sponsor)
provision of independent advice to the client – independent advice may be
required on a range of issues, including business strategy, investment appraisal,
financial, legal, and technical aspects). This is the role of independent client
advisers, who may be appointed to assist the project sponsor; sometimes they
may be appointed early on in a project to support the SRO. They should be
independent from suppliers to avoid any conflict of interest.
Different terms may be found in use across the public sector, although the functions
of each key role are similar. Figure 1 shows the recommended OGC terms, together
with equivalents that are widely used in other parts of the public sector.
1 Equivalent terms for key roles
Function OGC term Also known by this term
Responsible for making the Investment decision maker Project sponsor (APM)
investment decision
Ownership of the project at a senior level Senior responsible owner Project owner
Project sponsor
(local government)
Interface between the client team and Project sponsor Project director (NHS)
supply team via the project manager, as Client manager
the main day-to-day client representative (local government)
Managing the project and project team Project manager
In addition, but often outside the client organisation are:

project management – leading, managing and coordinating the integrated
project team on a day-to-day basis (the project manager, who may be
independent of the supplier team and seconded to the client). The client must
ensure that the project manager is appropriately qualified and experienced for
the role
supply team – delivers the required outputs or deliverables. The team may
include designers and other consultants (cost consultants, engineers, etc),
constructors and specialist suppliers (such as manufacturers). They should be
an integrated team with collective responsibility for project delivery and
management of risks (including health and safety aspects). Its members
should be brought together at the earliest opportunity to work with the client’s
project members as a single team, preferably during the planning stages of the
project
facility managers – manage the completed facility on behalf of the client. They
should be involved early in the project at the design stage, whether or not they
are responsible as members of the integrated project team for design,
construction, operation and maintenance.
Stakeholder The project sponsor should ensure that stakeholders, including user
involvement representatives, provide important input in developing the outputs required from
the project.
There may also be a requirement for a project board – an advisory panel

including a technical adviser and business adviser, to address strategic issues and
ensure stakeholder buy-in at a high level.
For smaller projects there is unlikely to be a project board, but it will still be
important to capture the views of users and stakeholders. The key delivery roles
will be those of the senior responsible owner (responsible for project success),
project sponsor and project manager (responsible for project delivery).
Combining roles For smaller or less complex projects some roles may be combined, but only if the
person combining the roles has the required competencies, experience, expertise
and time to commit to the task. The roles of investment decision maker/SRO,
SRO/project sponsor or project sponsor/project manager can be combined for
smaller or straightforward projects, where a single individual can fulfil the respon-
sibilities of both roles. Where roles are combined, the allocation of the functions
must always be absolutely clear. Where two roles are combined, the person
appointed must have at least the authority and status of the ‘higher’ role.
However, it is important to note that the three roles of investment decision maker,
senior responsible owner and project sponsor cannot be allocated to a single
individual because of the risk of conflict of interest. In addition, note that roles
that do not overlap should not be combined – for example, the roles of SRO and
project manager should not be combined, with a different individual taking the
role of project sponsor.
Figure 2 shows the overall relationships between the key roles. The client should
partner with the integrated supply team to form the integrated project team. The
relationships with the supply team should be as part of an integrated team.
Management structures to support decision-making and day-to-day activity of
project delivery should have clear lines of reporting and decision-taking. Note
that it may not always be necessary to allocate each role to a different individual
as described in the section on roles above.
2 The integrated approach
Key roles under an

Investment
integrated procurement route
decision maker
Integrated
project team
Project board
(advisory only)
May not be required
Senior responsible owner
Independent client adviser
(may be required by non-
technical sponsor; generally
external consultant/s)
Project sponsor User panel
Project manager
Integrated supply team

The Integrated supply team
(IST) comprises the lead
supplier and a number of
integrated supply chains
(ISCs). Examples of ISCs
include designers,
constructors, specialist
suppliers, maintainers etc.
Reporting and The important points to note about reporting and decision-making are:
decision-making lines of reporting should be kept as short as possible and very clear
delegations and individual responsibilities for decision-taking are clearly

established at the outset and understood by everyone involved in the project.
They should be set out in the Project Execution Plan (PEP).
Experience has shown that, where these conditions are not met, the likelihood of
conflicting, poorly informed or delayed decisions significantly increases the risk of
failure of the project. There must be a single interface or point of contact between
the project sponsor (representing the client) and the project manager (interface
with the supply team).
Practice
Figure 3 shows the roles within an integrated project team involved in a typical
construction project. The client roles of investment decision-maker, senior
responsible owner and project sponsor are described in detail in this guide, together
with outlines of the requirements for an independent client adviser and project
manager. For details of supply team and independent client adviser roles, please see
the companion guide AE5:The integrated project team: teamworking and partnering.
3 The integrated project team
Stakeholders,
including end-users
Integrated project team
Client team: Managed by: Supply team:

SRO, project sponsor and project sponsor and Integrated supply chains of
support as required project manager consultants, constructors,
specialist suppliers and
facilities managers
Independent
client adviser/s
A traditional project structure is not integrated; it separates out the responsibili-

ties of each party (see Figure 4). For this reason it should not be followed unless
it demonstrates significantly better value for money than the recommended
procurement routes (see AE6: Procurement and contract strategies). However, even
with this fragmented approach it is possible to aim for some level of integration
(see AE5).
4 Traditional approach
Separate responsibilities following

the traditional approach Investment decision maker
Senior responsible owner Project board

Independent
client
adviser/s
Project sponsor User panel
Project manager
Specialist
Consultant(s) Constructor(s)
supplier(s)
Integration should be aimed for if the

traditional approach is followed
The investment The investment decision maker (IDM) is the role in the client organisation that
decision maker decides whether or not a proposed investment in a project should be made.
The role may be assigned to an individual or to a group (such as the
management board). The IDM should be responsible for the approval of the
project and thereafter maintain the visible and sustained commitment of senior
management to its delivery. The role might be at ministerial, board or senior
management level, depending on the size and complexity of a project. On a major
project significantly affecting the department’s budget, reputation or operation,
the role could fall to an Accounting Officer or Chief Executive. Where the role is
assigned to an individual member of the management board, the IDM would be
answerable to colleagues for the successful delivery of the project in the interests
of the business as a whole. The decision to invest in a project should be based on
demonstrable business drivers and benefits, achieved within a whole-life value for
money framework.
Achieving Excellence in Construction: checklist for managers shows where the Gates
fit along the project planning route. The project should not proceed beyond these
points until specific management and funding activities have been completed. At
each decision point, the IDM should evaluate the business case and investment
proposals and if justified, give approval for the project to proceed. (See the OGC
Successful Delivery Toolkit for details of the Gateway process and the Gateway
Checklist for Managers at www.ogc.gov.uk/sdtoolkit/workbooks/gateway/
gateway.html
It is important to note that for construction projects there are two additional
major decision points, usually between Gates 3 and 4 (outline design and detailed
design). For details of the project process and steps, see the companion guide
AE3: Project procurement lifecycle).
At the first Gate (Gate 0), the IDM makes a strategic assessment of the proposed
project, its contribution to the business strategy, drivers and benefits and
considers the high level options for a solution.
Following a detailed options appraisal in line with the principles of HM

Treasury’s Green Book (at Gate 1), the IDM should be satisfied that:
there is a business need for the project
success criteria have been defined
the business drivers and expected benefits have been established with
stakeholders
all options (including PFI) for meeting the business needs have been
evaluated, together with the risks and the consequences of their occurrence
associated with each option
the risks are clearly identified, together with their potential impact on the
project in terms of quality, cost and time.
the estimated cost is made up of the whole-life costs of the project, including
the risk allowance and base estimate
the estimated cost includes fees, in-house costs and any financing costs
there is a clear understanding of the key issues on which the business case and
investment proposals are based
an appropriate management structure (lines of accountability and delegated
authority) is in place and named individuals have been appointed as senior
responsible owner and project sponsor
the project is likely to provide whole-life value for money for the department’s
business as a whole
the senior responsible owner and project sponsor are competent for the
particular project and will undertake training in any areas where skills gaps
have been identified (see the matrices at the end of this guide).
The IDM, when considering a change in the scope or direction of a project, must
take account of impact on the department in terms of risks, quality, cost and time
before reaching a decision. If a decision is made to change the scope or direction
of a project, the project brief and the project sponsor’s terms of appointment must
be amended to reflect the change. All changes must be clear, transparent, properly
reasoned and recorded. Note that any changes during the detailed design and
construction phases of the project are likely to have significant impact on quality
and/or cost and/or time; they should be avoided unless absolutely essential.
The senior The senior responsible owner (SRO) should be a senior manager in the business
responsible owner unit that requires the project. This individual is appointed by the IDM and
reports directly to them; the SRO is accountable to the IDM for the project and
its budget. The SRO should have the status and authority to provide the
necessary leadership and must have clear responsibility and accountability for
delivering the project requirements in accordance with the approvals given. They
should also ensure that sufficient resources are made available to the project
sponsor to enable a successful outcome.
The senior responsible owner is responsible for project success. This named individual
should be accessible to key stakeholders within the client organisation and, in order to
reinforce commitment to the project, should also be visible to the top management of
the partnering organisations involved. The IDM should ensure that the SRO has the
authority that matches the responsibilities of the role.
The SRO defines the scope of the project, is personally responsible for its
delivery and should be accessible to stakeholders. The SRO may be assisted by a
project board, to ensure that other stakeholders buy in to the project as early as
possible. The project board should not have any powers that cut across the
accountability and authority of the SRO. Project boards should be advisory only,
addressing strategic issues and major points of difficulty. If a major issue cannot
be resolved with the SRO, project board members would have recourse to the
IDM. The SRO must form part of a clear reporting line from the top of the office
to the project sponsor.
The SRO’s responsibilities are:

to be the design champion for the project, with a personal commitment to
delivering a facility that demonstrates design excellence – or to ensure that an
appropriate individual takes on the responsibility of design champion
to oversee the preparation of the business case and budget for the project,
ensuring the proposals are realistic and meet the business objectives, and
submitting them to the IDM for approval
to establish an appropriate organisation structure and the necessary
communication processes
to ensure that users and other stakeholders are involved in, and committed to,
the project
to appoint a project sponsor and provide the terms of reference, adequate
resources and any necessary support and training
to ensure that a brief is developed that clearly reflects the project objectives
and is agreed by the stakeholders
to establish a progress and reporting procedure, ensuring that any changes in
circumstances affecting the project are evaluated and appropriate action taken
to resolve issues with members of the client team and other stakeholders
to approve any essential changes to the scope of the project, ensuring that any
impact on quality, cost or time is assessed and reported to top management as
appropriate
to ensure that a post implementation review (also known as post occupancy
evaluation) is carried out and considered by all stakeholders in the project.
to ensure that the finished asset still supports and satisfies the business
objectives
to ensure that the business accepts and benefits from the finished asset.
The SRO should draw up the terms of appointment for the project sponsor,
setting out the following:
the business needs to be addressed by the project
the resources available to the project sponsor, internally and externally
the authority delegated to the project sponsor for decision-making
the project sponsor’s responsibilities in relation to health and safety regulations

(see AE10: Health and safety).
The SRO should ensure that the terms of appointment are amended promptly in
line with any decisions taken by the IDM.
The business case is normally prepared by the project sponsor, with the
assistance of independent client advisers or existing integrated supply team as
required. It is the SRO’s responsibility to ensure that the business case is reviewed
and that:
the recommended option meets the user needs while providing best value for
money
all of the viable options have been properly evaluated
appropriate advice has been sought from suppliers and/or advisers
risks associated with each option are clearly identified, together with their
impact on the project in terms of performance, cost and time.
The SRO should be committed to encouraging good teamworking practices

within the client organisation and with other organisations involved with the
project, to ensure that the whole project team really is integrated – client and
supply teams working together as an integrated project team. In particular, the
SRO should give clear, decisive backing where the client enters into partnering or
teamworking arrangements with the integrated supply team (consultants,
constructors and specialist suppliers) during the life of the project. Such visible
backing would include attendance at the inaugural partnering workshop and
commitment to the partnering agreement.
The SRO should attend project reviews with senior managers from the other
parties involved in that stage of the project. These reviews should be conducted at
regular intervals, appropriate to the stage and nature of the project, to consider
major issues, identify achievements and enable potential disputes to be resolved
promptly. The SRO is responsible for ensuring that post implementation review is
undertaken, to check that the expected business benefits have been achieved; this
review is an essential input to Gate 5, which provides independent scrutiny of
whether the outcome is as expected.
The project sponsor The project sponsor is the client’s representative, acting as a single focal point for
day-to-day management of the client’s interest in a project, securing its
development and delivery and leading its post implementation review.
Project sponsors should fully understand the client’s business but do not have to
be construction experts; they are advised by the project manager (who must have
construction expertise), independent client advisers or specialist members of the
supplier team as required. They should always report to the SRO, have formal
terms of appointment, empowerment to take decisions and clearly defined
delegations with resources provided to ensure that they can direct the project
effectively. The core requirements of each sponsor’s role should be determined
before appointment; the sponsor should stay in post until the project is
completed. Note that some project sponsors may have responsibility for a
number of projects at one time.
A project sponsor should understand risk and how it is managed, together with
the principles of brief-writing and project management techniques. Training
should complement practical experience of the industry including teamworking
and collaborative working.
The principal tasks of the project sponsor are to manage the client’s interests and
to represent those to the supply members of the integrated project team. There
should be no automatic requirement to appoint an external or in-house project
manager to manage the suppliers; depending on the individual and the
circumstances (including resource availability), this role could be filled by a
suitably qualified and experienced project sponsor with the right support or
delegated to a suitable member of the integrated project team.
The project sponsor must be able to articulate the client needs. This requires an
understanding of the culture and business of the client’s organisation. Project sponsors also
need access to a good understanding of the construction industry and the way it works.
The project sponsor has personal responsibility to the SRO for the whole of the
project and should expect to stay with the project until its completion. Continuity
is an essential feature of this role.
The tasks are to:

support the SRO
– preparing business case and investment appraisals and updating as required
– ensuring that Gateway reviews are undertaken
– managing the resources allocated by the SRO
– working within delegated authorities including health and safety
manage the department’s interests in the project by:
– coordinating and directing user input
– appraising options (with assistance from independent client advisers, as

appropriate, and the project manager) and submitting them to the SRO for
approval
– preparing the project brief for the project manager, making the role of
design clear in setting the brief and achieving the goals of the project
– controlling changes (if required) following approval, ensuring that change
control procedures are adhered to
– ensuring appropriate risk management on the project
– managing the project budget, including the risk allowance
secure professional services for delivery of the project by:

– appointing the integrated supply team (see AE5:The integrated project
team)
– coordinating and fostering teamwork
ensure effective delivery of the project by:

– determining the procurement route (see AE6: Procurement and contract
strategies)
– producing the project execution plan, including the risk management
plan, in collaboration with the project manager
– ensuring the project is managed in accordance with the project
execution plan
– establishing formal reporting arrangements on project progress
– providing a focal point for all client contact with the supply team,
providing approvals and decisions as necessary
carry out a post project review with the integrated project team
ensure effective feedback from the project by assisting the SRO in carrying
out a post implementation review to inform the IDM and SRO of:
– how far the project met the department’s interests and objectives
– what lessons need to be learned for the future (things done well and
areas that need to improve).
There is no single set of skills and responsibilities for project sponsors, because
some will undertake only one project in their entire career whereas others will
be involved in a succession of projects. However, there is a common core set of
skills that typically apply to a project sponsor. It is unlikely that one individual
will possess all these skills; independent client advice should be obtained to
provide support where there are gaps.
A project sponsor should have understanding of:

the department’s business, objectives, culture and financial regime
the functional activity that the project is to support
the role of design in setting the brief and achieving the goals
the impact of different procurement routes
risk analysis and risk management
value management and value engineering
health and safety issues relating to construction projects
sustainability issues
the design and construction processes
the tendering process and forms of contract
project management techniques
project review, including Gateway reviews
team working and partnering
performance measurement and benchmarking
whole life costing and cost management.
The project sponsor should have interpersonal skills that include decisiveness
and the ability to challenge, communicate, motivate and negotiate
effectively, together with:
the ability to prepare an investment appraisal, with support from
independent client advisers if required
the ability to write a project brief.
The project sponsor ensures that the users have the opportunity to provide
relevant input to the design process. While the SRO can deliver the senior
stakeholders’ views, it is unlikely that they will represent the everyday
requirements of end-users, such as patients attending a hospital. The users
may find it difficult to articulate their needs in output terms but their
perception of what makes a successful facility is an essential contribution to
the design.
Independent client Where the project sponsor is not a technical expert and such expertise is not
advisers available in-house, external advisers should be consulted at the earliest
opportunity, before Gate 0, to determine whether or not a construction
solution will best meet the client’s needs. Independent client advisers should be
experienced professionals, with substantial business and/or technical expertise
in construction, property, procurement or other relevant fields, who will assist
the project sponsor. Access to independent client advisers is especially useful
before the appointment of the project manager and thereafter to give expert
advice on particular issues. However, advisers should not be used routinely to
check every aspect of the project manager’s work.
As the project progresses, different competencies may be required and

different individuals may act in the capacity of independent client adviser
throughout the life of the project (examples of disciplines that may be required
include legal, financial and technical advice). Independent client advice must
be independent of the supply team, to avoid any conflicts of interest.
The project manager The project manager is the named individual (often from the private sector)
and relationship with responsible for the day-to-day detailed management of the project and who
project sponsor provides the interface between the project sponsor and the supplier members
of the project team. Good project management is essential to the success of
the project. (See also AE5:The integrated project team.)
For most projects an external project manager would be appointed; however,

there may be exceptions. In local government, for example, it is usual for the
project manager to be a member of the in-house team. However, the project may
not need a project manager in addition to the project sponsor. Depending on the
individual and the circumstances, the project could be managed by a suitably
competent sponsor with the right support, but only those sponsors who are
construction professionals, with abilities and experience appropriate to the project
and sufficient time available, should take on the project management role.
Where a project manager is appointed, the role of the project sponsor should be to:
define the scope and boundaries of the project
manage the project manager’s performance of delegated responsibilities
define the criteria for control and management of the project
monitor the implementation by the project manager of control and

management systems
assist the project manager in the resolution of problems
act as the department’s main point of contact with the project manager
ensure that the project manager receives departmental decisions on time
receive and review detailed reports on the project from the project manager
establish with the project manager a common approach to major issues that
arise
maintain at all times an overview of the project status in relation to the
established objectives.
Where a project manager is not appointed, the project sponsor should retain the
responsibilities that would normally be delegated to the project manager (see
Annex C via electronic link for more details).
Client capability
The management and technical abilities required at each level of the client
organisation are identified in Figures 5 and 6 (excluding the abilities required of
an investment decision-maker, which are generic in nature). The required
management abilities are similar for the three levels of SRO, project sponsor and
project manager (see the Successful Delivery Skills Programme in the OGC
Successful Delivery Toolkit at www.ogc.gov.uk/sdtoolkit/reference/skills/skills.html).
Identifying the OGC is consulting with departments and the industry on training to reflect new
management and ways of working. While this is under development (see Figure 5), a management
technical requirements ability matrix should be used to highlight areas where further management
training is necessary. Such management training is available either within
departmental training programmes, the Successful Delivery Skills Programme, the
Civil Service College or the private sector.
Figure 6 is a technical ability matrix that lists the technical requirements under
subject headings. Each subject heading is identified on the accompanying model
syllabus (electronic copy only) with the subject aims and knowledge to be taught.
5 Management ability
Senior responsible owner Project sponsor Project manager
Attribute Desirable Essential Desirable Essential Desirable Essential
Decisiveness
Be challenging
Communication
(inc giving feedback)
Motivation
Teambuilding
Facilitation
Interviewing
Negotiation skills
Assertiveness
Objective setting
Annex A (via electronic link) describes each of these attributes in detail.
These matrices are used to consider people against an agreed standard and to
identify the training needed to meet any skills gaps by:
assessing the individual skills and knowledge of project sponsors (both new
and existing staff) against the maturity matrices. These will help identify any
skill gaps in management ability and technical ability
identifying the posts that require project sponsor skills, and consider each post
against the following options:
– new or existing post holders to possess the required skills or undertake to be
trained to acquire them
– skills to be acquired within 12-18 months of starting the job
– the development of trainees through the training/development programme

to be reviewed by senior staff as part of staff appraisal, reporting and
objectives setting.
Training for the technical requirement against the model syllabus may be
provided by OGC’s Successful Delivery Skills Programme (certificate of
competence in construction project sponsorship) or other suitably qualified
external trainers, provided they meet the model syllabus requirement.
The following definitions apply when using the maturity matrices below:
understanding: able to understand the key issues of each subject heading and
their implications for the client department and able to ask sensible questions
on the subject
competence: have the technical ability to do what is required at each stage of
the project or able to direct someone to carry out the detailed requirement.
6 Technical ability
Subject Under- Competence Under- Competence Under- Competence

standing standing standing
Task 1.
Manage
department's
interests:
Business strategy
knowledge
Business case
investment appraisal
Procurement strategies
Risk management
Writing a project brief
Knowing the
construction industry

Whole-life value
for money
Value management
Whole-life costing
EC Directives
CDM Regulations/
Health and safety
requirements
Design quality
Sustainability issues
Task 2.
Procure professional
services:
Contract strategies
Tender and tender

evaluation
Forms of contract –
types
Forms of contract –
terms and conditions
Partnering
Task 3.
Ensure effective
delivery of project
Specification
Project execution plan
Construction process

Energy management/
environmental issues
Design – understanding
the design process
Programming/
project planning
Space management
Alternative Dispute
Resolution/claims
Performance
measurement
Cost management
Change management
Task 4.
Ensure effective feedback
from project
Project evaluation
- pre-project
- in project
- post-project
Annexes
Annex A provides details of the management attributes described in Figures 5
and 6. Annex B provides details of the topics summarised above, as the basis for
training syllabuses. For advice on assessing project sponsor requirements for
specific projects, see Annex C. (Please Note: Annexes to follow)
In the interests of sustainability and optimising the length of this briefing, Annexes A, B
and C are provided as separate documents via an electronic link only. If you do not have
access to the Internet, please contact OGC to obtain a copy.
Further information
OGC’s Successful Delivery Toolkit provides practical advice and guidance on all aspects of
the project delivery lifecycle. It is available on the OGC website at www.ogc.gov.uk/
sdtoolkit and on CD-ROM – call the OGC Service Desk for a copy.
The toolkit includes references to external sources of help and information, such as the
NAO and HM Treasury.
Annex A: Management ability – attributes
Procurement Guide
Project
Organisation
Annex A
Management ability
Desirable attributes for:
§ Senior Responsible Owners
§ Project Sponsors
§ Project Managers
Achieving Excellence in Construction Procurement Guide 02: Project Organisation: roles and responsibilities 1
Crown copyright 2003
02 Annex A
Contents
Contents .............................................................................................................................. 2
Introduction......................................................................................................................... 4
Management Ability ........................................................................................................... 4
Decisiveness.................................................................................................................... 5
Be Challenging................................................................................................................ 5
Communication............................................................................................................... 6
Motivation....................................................................................................................... 6
Team building ................................................................................................................. 6
Facilitation ...................................................................................................................... 7
Interviewing .................................................................................................................... 7
Negotiating skills ............................................................................................................ 7
Assertiveness................................................................................................................... 8
Objective setting ............................................................................................................. 8
Further Information............................................................................................................. 9
The AE Guides
The Achieving Excellence Suite of procurement guides replaces the

Construction Procurement Guidance Notes Series.
The new series reflects developments in construction procurement

over recent years and builds on government clients’ experience of
implementing the Achieving Excellence in Construction initiative.
High Level Guides
Core Guides
Supporting Guides
Introduction
This Annex, as referred to in AE 2 under table 5, addresses the importance of competent
personnel, particularly the management ability required at each level of the client
organisation. The levels examined here are those of the Senior Responsible Owner
(SRO), Project Sponsor (PS) and Project Manager (PM). Not surprisingly there are
considerable overlaps between the management abilities required of each of these
positions, and this should be considered when deciding on the suitability of a particular
individual to take on one or more roles.
Management Ability

Attribute Desirable Essential Desirable Essential Desirable Essential
Decisiveness P P P
Be Challenging P P P
Communication P P P
Motivation P P P
Team Building P P P
Facilitation P P P
Interviewing P P P
Negotiation Skills P P P
Assertiveness P P P
Objective Setting P P P
Decisiveness
Management should:
• be prepared to make decisions and be accountable for them
• accept responsibility for decision making
• obtain required data and seek advice where necessary to inform decision making
• develop confidence to make decisions when time is short and information is limited
• defend decisions taken but respond positively to reasoned argument
• have confidence to take appropriate risks
• act quickly
• make sound decisions when guidelines and procedure provide no clear precedent.
Be Challenging
Management should:
• be prepared to question project team’s proposals in order to bring about
improvements in areas such as risk, health and safety and sustainability
• generate discussion of alternative designs and require investigation and presentation
before deciding on the solution
• be innovative and look for other ways of delivering products and encourage project
team to do the same
• demand that project team members consider their design proposals from different
perspectives before making recommendations e.g. from customers’ (users’)
perspective, project owner and senior management, for more detail please see AE 9
Design Quality
• be prepared to evaluate conflicting information and project demands, and make clear
that others should do the same
• take the opportunity to keep up to date with technical information and project
programming in order to challenge effectively.
Communication
Management should:
• establish clear lines of responsibility with the project manager (including feedback)
• spell out to all parties the methods of communication required (e.g. when, and what
information will flow between interested parties)
• show interest in the “why” and “how” to signal an “open door” relationship
• agree specific, measurable, achievable, realistic and timely (SMART) objectives and
review procedures
• agree contingency communication routes in the event of problems
• when attending meetings be aware of body language and its effect on others
• express yourself according to the needs of the listener. When first meeting with any
party, explain what you expect from them and what they can expect from you
• establish regular “open forum” workshops with interested parties to review progress
and brainstorm problems.
Motivation
Management should:
• set targets and strive to meet objectives
• make a positive effort to achieve targets in difficult circumstances
• be resilient and maintain a commitment even under pressure
• face tasks with drive and determination
• be conscientious and take action without being asked
• constantly seek to achieve a high output of quality work.
Team building
Management should:
• be visible and approachable
• set an example by displaying a positive attitude
• within agreed lines of responsibility, participate actively in setting and achieving
project targets
• help establish the project team’s identity by creating opportunities for a joint team
presentation to customers and promote the use of publicity to raise the team’s profile
• represent the team and, where appropriate, recommend the acceptance by customers
of the team’s proposals and method of working
• participate in project team discussions with a view to encouraging a healthy exchange
of ideas and information.
Facilitation
Management should:
• agree and promote a sense of common purpose and direction within the team
• develop a team environment where members have the confidence to operate on their
own initiative but within clearly defined boundaries
• identify and publicise the means and frequency of communication channels - external
and internal - to the project team
• make all current information available to the team
• arrange for timely responses/feedback from customer to project team
• resolve conflicts between any party either on the client side or on the supply team
side.
Interviewing
Management should:
• define project objectives and ensure that relevant information is distributed to
interviewees well in advance of the interview
• establish personal and project related criteria, weighted where appropriate, against
which interviewees will be measured in terms of performance and understanding of
the project objectives
• make selection criteria and other requirements clear in advance of interview
• ensure all candidates are treated equally and that confidentiality is maintained
• test interviewees suitability by asking “open” questions
• speak clearly and concisely
• listen closely and respond appropriately
• avoid jargon.
Negotiating skills
Management should:
• set realistic objectives including timescale for achievement
• question, challenge and interpret information to clarify the main issues
• convey oral and where necessary written information to others accurately
• be confident
• assimilate points quickly
• summarise accurately the discussion points made by others
• express yourself according to the needs of the listener
• establish common ground
• be open, honest and fair in dealing with others.
Assertiveness
Management should:
• set the agenda
• deal sensitively but firmly with difficult issues
• ask in-depth questions and seek responses before agreeing to action
• differentiate between wants and needs
• focus the team’s view on what these wants and needs are
• make decisions in the face of competing demands
• take informed risks
• challenge any discrepancy or lack of clarity and ensure quick correction.
Objective setting
Management should:
• establish a clear understanding of the project requirements
• identify the “what”, “why”, “how” and “when” questions
• clarify the link between contributions from team members and the requirement of the
final product
• identify the areas of activity which will contribute to the achievement of the end
product
• set realistic timescales to which all team members can commit themselves
• build in monitoring and reviewing milestones
• it is essential to plan projects, through identifying the tasks required to produce the
product, setting these out in a logical order and allocating time required, dates and
resources to them
Further Information
OGC’s Successful Delivery Toolkit provides practical advice and guidance on all aspects
of the project delibery lifecycle. It is available on the OGC website at
www.ogc.gov.uk/sdtoolkit and on CD-ROM, to obtain a copy, please call the Service
Desk for a copy on 0845 000 4999.
The toolkit includes references to external sources of help and information, such as the
NAO and the HM Treasury.
About OGC
OGC – the UK Office of Government Commerce – is an office
of HM Treasury.
OGC Service Desk

OGC customers can contact the central OGC Service Desk
about all aspects of OGC business. The Service Desk will
also channel queries to the appropriate second-line support.
We look forward to hearing from you.
You can contact the Service Desk 8am–6pm Monday–Friday

Telephone: 0845 000 4999
e-mail: ServiceDesk@ogc.gsi.gov.uk
www.ogc.gov.uk
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www.ogc.gov.uk
AE 02 Project organisation: roles and responsibilities
Annex B: Technical Ability training and development
Procurement Guide
Project
Organisation
Annex B
Technical Ability
Desirable topics to integrate when training:
§ Investment Decision Maker
§ Senior Responsible Owners
§ Project Sponsors
§ Project Managers
Annex B: Topics for training syllabus for project sponsors
02 Annex B
Contents
Contents .............................................................................................................................. 2
The AE Guides.................................................................................................................... 3
Introduction......................................................................................................................... 4
Task 1 Manage the Department’s Interests......................................................................... 7
Business Strategy Knowledge......................................................................................... 7
Business Case and Investment Appraisal ....................................................................... 8
Procurement Strategies ................................................................................................. 10
Risk Management ......................................................................................................... 11
Writing a project brief................................................................................................... 15
Knowing the Construction Industry.............................................................................. 16
Value for Money ........................................................................................................... 17
Costing Systems in Industry ......................................................................................... 17
Value Management ....................................................................................................... 19
Whole-life Costing........................................................................................................ 20
European Union Directives........................................................................................... 22
Health and Safety Requirements................................................................................... 24
Design Quality (and Environmental Issues) ................................................................. 25
Task 2 Procure Professional Services ............................................................................... 26
Contract Strategies ........................................................................................................ 26
Tender and Tender Evaluation...................................................................................... 28
Forms of contract .......................................................................................................... 29
Forms of Contract: Type............................................................................................... 29
Forms of Contract: Terms and Conditions.................................................................... 29
Partnering – Establishing better relationships............................................................... 30
Task 3 Ensure Effective Delivery of the Project .............................................................. 31
Specification ................................................................................................................. 31
Project Execution Plan .................................................................................................. 32
Construction Process..................................................................................................... 33
Environmental Issues and Energy Management........................................................... 34
Design – Understanding the Design Process ................................................................ 35
Programme and Project Planning.................................................................................. 37
Space Management ....................................................................................................... 38
Alternative Dispute Resolution including Claims ........................................................ 39
Task 4 Ensure Effective Delivery of the Project .............................................................. 41
Project Evaluation: Pre Project ..................................................................................... 41
Project Evaluation: In Project ....................................................................................... 41
Project Evaluation: Post Project.................................................................................... 41
The AE Guides

The new series reflects developments in construction procurement

over recent years and builds on government clients’ experience of
implementing the Achieving Excellence in Construction initiative.
High Level Guides
Core Guides
Supporting Guides
Introduction
This Annex relates to table 6 of AE 2 and addresses the importance of the technical
ability of the Client’s personnel, particularly the technical ability required at each level of
the client organisation. The levels examined here are those of the Senior Responsible
Owner (SRO), Project Sponsor (PS) and Project Manager (PM). As with management
ability there are considerable overlaps between the abilities required of each position.
Technical Ability Table Task 1

Senior Responsible Owner Project Sponsor Project Manager
Subject Understanding Competence Understanding Competence Understanding Competence
Task 1: Manage Departments Interests
Business Strategy
Knowledge P P P
Business case and
Investment Appraisal P P P
Procurement
Strategies P P P
Risk Management P P P
Writing a Project
Brief P P P
Knowing the
Construction Industry P P P
Whole-Life Value for
Money P P P
Value Management P P P
Whole-Life Costing P P P
EU Directives P P P
Health & Safety
Requirements P P P
Design Quality P P P
Sustainability Issues P P P

Task 2: Procure Professional Services
Contract Strategies P P P
Tender and Tender
Evaluation P P P
Forms of Contracts;
Types P P P
Forms of Contracts;
Terms & Conditions P P P
Partnering P P P

Task 3: Ensure Effective Delivery of Project
Specification P P P
Project Execution
Plan P P P
Construction Process P P P
Environmental issues
/Energy Management P P P
Design Quality
and Process P P P
Programming and
Project Planning P P P
Space Management P P P
Alternative Dispute
Resolution / Claims P P P
Performance
Measurement P P P
Cost Management P P P
Change Management P P P

Task 4: Ensure Effective Feedback from the Project
Project Evaluation;
Pre Project P P P
Project Evaluation;
In Project P P P
Project Evaluation;
Post Project P P P
Task 1 Manage the Department’s Interests
Business Strategy Knowledge
Business Case and Investment Appraisal
Aim
To understand what a business case is, why it is needed and what it must cover. Also to
understand the need for, and purpose of, investment appraisal and how to draft one in line
with OGC’s recommended format for business cases (see the OGC Successful Delivery
Toolkit for a business case workbook and template).
Knowledge to be taught:
• what is a business case ?
• relationship between the business case and investment appraisal
• why options must be identified and evaluated
• “do nothing” and “do minimum” options
• “prior options”:
- is the function still needed?
- can it be privatised?
- can it be contracted out?
- can it be transferred to others?
• other options:
- PFI
- refurbishment
- new build
- leased building
• evaluation of options
• presentation of options
• time frame for decisions
• the meaning and importance of investment appraisal:
- requirements of government accounting
- Treasury “green book”
- structure of an investment appraisal
• objectives
• options
• costs (including life cycle costs) and benefits
• net present cost calculations
• risk (treatment of and quantifying)
• presentation of results
• evaluation
• VFM and net present cost considerations

- examples
• who is responsible for the business case and investment appraisal?
Procurement Strategies
Aim
To understand the procurement strategies for a major building project, the advantages and
disadvantages and the procedures.
• what do we mean by “procurement strategies”?
• examples include:
- PFI
- Private Developer Scheme
- Leased Building
- Crown Build
- new build
- refurbishment
• nature of each
• cost, timescale, quality, and risk control
• the need for professional advisers for each
• who makes the decision and on what basis
• consideration of building fit out.
Risk Management
Risk Management training requirement for investment decision makers and

project owners
Definition
Risk management is the continual process of identifying, assessing, recording and
responding to all risks associated with the project in a controlled framework.
Aim
To understand the principles and concept of risk management and gain an understanding
of a framework within which the project sponsor’s recommendations are validated and
the investment decision maker is assured of the level of project risk exposure. The aim of
the training is to provide the investment decision maker / project owner with an
understanding of the following:
• what is risk management?
• why employ risk management?
• how is risk management carried out? and
• who is responsible for the management of risk?
• risk management strategy:
- management of cost, time and quality risks
- strategic risks
- political and business implications of risks
- understanding the management strategy
• risk and contract strategy
• risk transfer:
- openness with suppliers
- price for transfer of risk
• responsibility:
- project sponsor, project owner
- exception reporting
• project approval:
- base cost of project, risk allowance, management of risk allowance
• an understanding of each of the following stages in the process (identifying good and
bad practices):
- identification
- qualitative assessment
- quantitative assessment
- response and mitigation
- outcome
- the regime:
• reporting procedures
• responsibilities
• presentation of results
- risk identification, assessment, management exercise
- case studies and examples.
Risk Management training requirement for project sponsors
Aim
To understand the principles and concepts of risk management, consider a framework
within which project sponsors, their consultants and contractors, can operate an
appropriate risk management regime and understand and recognise some of the processes
and techniques. The aim of the training is to provide project sponsors with the necessary
competence in the following:
• what is risk management?
• why use risk management?
• how is risk management carried out?
• when should risk management be undertaken?
and
• who is responsible for the management of risk?
• definition of risk, understanding of different types of risks, eg strategic and technical
risks
• risk management: a continuous process to achieve aims and objectives of time,
quality and cost to minimise the client’s exposure, a risk averse culture, identification
of risks at inception, the implementation of continuous management
• the process: integration of risk management within financial approval, contract
strategy,
• identification, assessment, response and mitigation, outcome
• identification:
- methods:
• workshops
• interviews with key staff
• questionnaires
• advantages/disadvantages of each
- unique nature of construction projects
- who should take part
- produce a schedule of risks (risk register)
from consensus of opinions
• qualitative assessment:
- initial assessment of identified risks
- formal registration (sample proforma)
- focus on areas of greatest concern
- risk register
- description and categorisation of risks
- interdependencies
- potential impact
- probability
• response/mitigation
• owner
• prioritise risks
• risk exposure matrix.
• an understanding of quantitative assessment
• techniques:
- calculate time, cost and quality effects
- simple assessment/probabilistic analysis/
• Monte Carlo Simulation/sensitivity analysis
- results v base estimates
- risk allowances
• response and mitigation:
- active response/plan of action
- avoidance
- transference or sharing
- reduction
- elimination
• outcome:
- residual risk
- dissipated risk
- resultant risk
- risk efficiency
• the regime:
- reporting
- responsibilities
- presentation of results
• reporting:
- procedures/mechanism
- continual monitoring, review and
• reassessment
- main tangible evidence
• responsibilities:
- predominant responsibilities (project
• manager / risk manager)
- individual risks
- reporting responsibilities
- budgetary responsibilities
• presentation of results:
- criteria - must be understandable,
• recognisable, concise, logical, consistent,
• updateable
- markers - future commitments, potential
• liabilities, trends
- status - initial, considered, final
• risk exercise: identification, assessment and
• management option
• contract strategy
• case study and examples.
Writing a project brief
Definition
The project brief is a formal method of defining the client/user’s requirements and
objectives in sufficient detail to enable the consultant to design and specify the proposed
facility.
Aim
To identify by description, what is required.
Training
Should include the “what”, “why”, “when” and “how” of project brief writing and should
include a combination of lecturing on the relevant theory and practical application in
small groups.
Training evaluation/testing
This is dependent on the length and style of any course and in most cases this would be
included within the content of a wider subject matter. Therefore a method of testing
knowledge (eg in a syndicate group) may be for students to write a simple project brief
after necessary explanation at a lecture. Alternatively, the group could analyse a given
project brief which had a series of omissions from a standard form and provide an
updated version noting any considered variations. In each case the resulting explanation
should indicate a level of understanding of the substance of a project brief followed by
discussion with the lecturer.
Knowing the Construction Industry
Definition
An understanding of the construction industry, its participants, methods etc will enable
project sponsors to allow industry to give of its best.
Aim
Scene setting - to provide an understanding of the overall nature of the construction
industry, how it is organised, who its participants are and their roles.
• overall size of the industry, make up, number of firms, contribution to the economy
• professional institutions, education and training
• construction organisations, education and training
• consultancies, their organisation, liabilities, various members - architects, engineers,
quantity surveyors etc and their roles
• construction companies, their organisation, main contractors, subcontractors,
suppliers etc and their roles
• how the disparate elements interface with each other and with the client
• how different contract strategies influence roles and interfaces.
Value for Money
Definition
Optimum combination of whole life costs (including capital, maintenance, management
and operating costs, residual value, time) and appropriate quality to meet the users’
requirement.
Aim
To provide an understanding of the factors which, when brought together, would produce
best value for money. (Note that all public sector procurements have to comply with
OGC’s Best Practice guidance on evaluating value for money – see the OGC Successful
Delivery Toolkit for a copy of the Best Practice briefing.) .
• understanding the context and interpretation of procurement policies, rules and
regulations
• value versus cost/price
• life cycle costing techniques
• value management techniques
• how to get the best from suppliers
• managing the risk.
Costing Systems in Industry
Definition
The various methods undertaken to produce, report and control financial information on
projects.
Aim
To provide an understanding of the methods, terms and techniques used for the
production of financial information.
• empirical data
• cost planning
• estimating
• contingencies and risk provision
• building elements eg substructure, superstructure, cladding etc
• direct costs, “preliminaries”, overheads andprofit

• cost control and management
• delegated limits
• sponsors’ responsibilities.
Value Management
Definition
A structured approach to the examination and development of a project to achieve best
VFM.
Aim
To provide an understanding of the tools and techniques of value management to enable
the sponsor to achieve best VFM in project definition and delivery.
• overall understanding of the tools, techniques and process
• defining and developing a VM plan
• roles of all parties eg project manager/ project team/contractors and suppliers
• outline of VM reviews, how to set up and what to expect
• objective setting techniques
• role of Value Engineering.
Whole-life Costing
Definition
Whole life costing is a technique to establish the total cost of ownership ie the total cost
of building, operating and maintaining a facility for its planned life.
Aim
To understand the commitment being entered into, the principles and concepts of whole
life costing, to recognise the key aspects, concerns and objectives of whole life costing,
and how the results can be used to assist management in the design and decision-making
process when there is a choice of product.
What is whole life costing?

• The “iceberg” effect - capital expenditure and future commitments.
What does it include?

• acquisition
• design
• construction
• operation
• maintenance
• disposal.
Investment appraisal techniques:

• net present value / whole life costing calculation.
Spend profiles:
• capital cost
• operating cost:
• energy consumption
• maintenance
• insurance, rates.
Planned maintenance:
• maintenance plan
• maintenance costs / charges
• spend v forecast.
Worked example:
• from initial screening of options to schedule of annual costs.
European Union Directives
Aim
To provide a comprehensive understanding of the relevant European law; the public
sector procurement directives (Works, Supplies, Services and Compliance) the related
World Trade Organisation Government Procurement Agreement (GPA) rules and the
implementing UK legislation, so that the EU and Government Procurement Agreement
procurement rules can be applied appropriately.
General background
• Treaty of Rome, Treaty of Accession, Single European Act and Treaty on the
European Union (Maastricht)
• history of the EU procurement directives - how they relate to the Treaties
• history and relevance of World Trade Organisation GPA
how the directives relate to UK’s procurement policy in particular the need
to achieve best VFM and to acquire goods and services by competition
unless there are convincing reasons to the contrary
• implementation of the Directives in the UK: the need for legislation, benefits of the
approach adopted (eg clarity, a step by step format and supplier’s rights) - the UK
regulations currently in force.
The Regulations in more detail:

• Main elements of the Regulations: coverage (definitions of a contract, a contracting
authority and a provider), exclusions, thresholds, aggregation rules (including a single
requirement, a work or works, regular and renewable contracts and discrete
operational units) technical specifications including quality standards; description and
selection procedures - open, restricted, negotiated, accelerated, advertising
requirements - prior information notices, contract notices and contract award notices,
selection of tenderers, criteria, debriefing of suppliers, statistics.
Application of the Regulations to:

• Part A and B Services
• market testing and contracting out
• framework agreements (including definition of a framework agreement), provision

for framework arrangements in the Utilities Regulations, use of framework
arrangements under the Supply,
Works and Services Regulations

• use of approved lists (approved lists are not provided for under the EU Directives)
• PFI contracts (including an outline of the types of PFI project, consideration of
whether a PFI contract is for services, works or supplies, scope for using the
negotiated procedure)
• green procurement (ie the ability to specify requirements in “green” terms but not to
enquire into the “green” or environmental policies or credentials of providers); tender
clarification and evaluation (including scope for post tender negotiation)
• bids from third countries (eg GPA, Europe Agreements, Eastern European
Agreements)
• contracts also subject to the GPA.
Case studies:
• Practical case studies of the EU procurement process -demonstrating use of strategic
planning, achieving results for end users and applying the procurement rules
appropriately.
Enforcement:
• need for a Compliance Directive (relationship between EU and national law)
• Compliance Directive: remedies available to aggrieved suppliers in national courts,
interim measures, setting aside of decisions, award of damages. Powers available to
the Commission under the Directive
• Article 169 procedures for alleged infringements of the Treaty and procurement
directives
• workings of the European Court of Justice and case studies of breaches.
Health and Safety Requirements
Includes Construction Design and Management Regulations

Aim
To understand current Health & Safety Legislation and its effects on projects, also to
understand the project sponsor’s role as “client” under the CDM Regulations.
• background of key legislation and its effect on the department and its projects:
- requirement to appoint competent persons to provide advice
- requirement for risk assessments
• the CDM Regulations 1994 - an understanding of the requirements of the regulations:
- the role and responsibilities of the project sponsor as the client
- the role and responsibilities of the:
• designer(s):
• planning supervisor
• principal contractor
• sub-contractors
- items to be included in the health and safety plan
• knowledge and understanding of the Construction (Health, Safety & Welfare)
Regulations 1996.
Design Quality (and Environmental Issues)
Definition
An understanding of the effects of design on both quality and environmental issues on the
various parties (owners/staff/customers/ other users and the public).
Aim
To provide project sponsors with an understanding of how design can impact on the
various parties above and how they can ensure that their design team takes these factors
into account in producing a building that provides the client/owner with true VFM.
The training would need to ensure that project sponsors understand:

• objectives of building ownership
• principles of whole life costing
• potential effects of buildings on staff, customers, other users and the public
• environmental impact of buildings (resources, transport issues, materials, aesthetics)
• planning requirements.
Task 2 Procure Professional Services
Contract Strategies
Aim
To understand different contract strategies, their advantages and disadvantages, and the
considerations behind the selection of the most appropriate one for a particular project.
This assumes that a decision has been made to proceed with a “Crown build” strategy.
• what do we mean by “contract strategies”?
• examples:
- traditional
- construction management
- management contracting
- design and manage
- design and build
- design, build, operate
- develop and construct:
- prime contracting
- frameworks
- turnkey
- cost plus
• risks and responsibilities under each contract
• strategy
• payment methods (lump sum, variations, stage,
• milestone etc)
• advantages and disadvantages:
- timing, programme and completion
- cost control
- quality requirements
- variations
- complexity of building
- professional responsibilities
- risk transfer
- recovery of damages
- buildability
• which contract strategy is appropriate for each

project? and
• who decides which strategy to follow and on
• what basis?
Tender and Tender Evaluation
Definition
Comprehensive evaluation of the tenderer and the tender will identify the best supplier to
provide the standard ofservice specified at optimum VFM.
Aim
To provide a thorough understanding of the principles and process of supplier and bid
evaluation to achieve VFM.
• the policy of competitive tendering for government procurement:
• purpose of tendering:
- getting the best from the market
- encouraging the best in the market
• selecting suitable tenderers:
- EU directives (thresholds etc)
- advertising for expressions of interest
- tender selection
- selection criteria:
• technical ability
• financial ability
- inviting tenders:
• return and receipt of tenders
- security
- dealing with late receipt of tenders
• evaluation of tenders:
- setting criteria
- assembling the team
- bid clarification
• tender board procedures and practices
• post tender negotiation
• award of contract and tender debriefing.
Forms of contract
Forms of Contract: Type
Forms of Contract: Terms and Conditions
Aim
To be aware of the main types of contracts used on government construction projects and
their advantages and disadvantages from a department’s perspective.
• what do we mean by ‘form of contract’?
• use of standard unamended forms of contract
• example forms:
- “GC/Works”
- standardised PFI.
- PPC2000
- Joint Contracts Tribunal
- New Engineering Contract
- British Property Federation
- others such as Institution of Civil Engineers, Institution of Chemical Engineers etc
• brief history of each of the above example forms
• where each form is, and is not, appropriate
• implications of each form of contract for:
- department’s responsibilities
- areas where departments might be vulnerable
- areas where departments are protected
• terms and conditions and the need for professional advice
• effect of each form of contract on tender prices
• case law and legal considerations
• disputes and claims
• who decides and on what basis?
• consultants’ appointments
Partnering – Establishing better relationships
Definition
A management approach used by two or more organisations to achieve specific business
objectives by maximising the effectiveness of each participant’s resources. It is based on
mutual objectives, an agreed method of problem resolution and an active search for
continuous measurable improvements.
Aim
To provide an understanding of the partnering approach.
• the project sponsor’s role in facilitating:
- types of partnering - strategic alliancing/project specific
- the implication of EU Directives on partnering
- key requirements of successful partnering
- selecting a partner(s)
- problem resolution procedures
- performance measurement and continuous improvement
- attitude and behavioural changes
- management skills and techniques required.
Task 3 Ensure Effective Delivery of the Project
Specification
Definition
A specification is a formal description in objective and measurable terms of the
characteristics of the goods or services required.
Aim
To provide an understanding of the preparation of a specification as a true and accurate
statement of requirements in order to observe the principles of open and effective
competition and obtain VFM.
• different types:
- output based
- client requirement
• developing specifications:
- user requirement
- profiling the requirement
- performance characteristics
- technical characteristics
• refining specifications
• value management
• structure of specifications:
- inclusions
- exclusions
- scope
- standards
- security
- definitions / abbreviations
• whole life costs
• quality requirements
• approval of specifications
• technical evaluation criteria.
Project Execution Plan
Definition
The project execution plan is the document governing strategy, organisation, control
procedures and responsibilities for the project.
Aim
To provide an understanding of the formulation, key components and use of the project
execution plan.
• importance of the project execution plan
• client brief
• constraints
• cost controls:
- control budget
- risk analysis
• programme:
- fixed deadlines
- milestone activities
• organisation and resources:
- responsibilities
- delegations
• recognising the contract strategy chosen
• roles and responsibilities of team members
• coordination procedures:
- quality control
- change procedures
• occupation plan:
- commissioning
- facilities management
- maintenance
• feedback and post implementation review.
Construction Process
Definition
The application of practical construction methods to achieve the completion of the
facility in accordance with the design drawings and specification.
Aim
To provide information regarding the operational methods adopted in the contracting
environment.
Training
Training to be in the form of lectures providing information on a checklist of the
contracting processes through estimating/tendering, award of contract, CDM, site set-up,
subcontracting, direct labour, methods of measurement, variations/claims, to the final
account.
Training evaluation/testing
This subject is one that is primarily providing information on a relatively lengthy process.
There should be handouts relating to the various stages of operation. It is useful to
investigate examples in case study form.
Environmental Issues and Energy Management
Definition
Effective energy management and environmental awareness can contribute to a reduction
in both the depletion of non-renewable natural resources and unnecessary environmental
damage.
Aim
To describe good energy-efficient practice and to facilitate the reduction of energy
consumption and promote environmental awareness.
• building structure and insulation:
- construction materials
- glazing
• ventilation and air conditioning:
- mechanical v natural ventilation
- legionella
- CFCs
• heating
• hot water
• lighting:
- energy-efficient
- EU lighting regulations
• building management systems
• electrical services
• water economy
• environmental considerations:
- waste disposal
- recycling and waste targets
- transport
- landscaping and grounds maintenance
• energy audit standards
• energy efficiency targets.
Design – Understanding the Design Process
Definition
The knowledge and skills of the design process from inception to practical completion of
a building involve:
• inception
• feasibility/option appraisal
• outline design
• detailed design
• tender documents and contract documents
• construction
• technical commissioning
• practical completion.
The design and construction process will be dependent on the chosen form of contract
strategy. Each of the above stages may therefore require different considerations for
different contract strategies. The project sponsor must be aware of when and to what
extent they can influence the process to meet their objectives without affecting the
liability of their consultants/contractors.
Aim
To provide project sponsors with sufficient knowledge of the design process as it relates
to alternative contract strategies. This will enable them to:
- understand what is required of the client to enable the design process to take place
(briefing etc)
- understand the time required to enable them to formulate a realistic programme for
the design and construction of the proposed building
- understand what professional support they require in respect of the design process
relating to a specific contract strategy
- have an understanding of design liability in respect of alternative contract strategies
and the alternative methods of providing protection eg professional indemnity
insurance, latent defects insurances
- understand both to what extent and when they can influence the process to meet their
objectives without affecting the liability of their consultants/contractors.
The training would need to ensure that project sponsors understand:

• design process/stages - pre contract/post contract - who does what/when/how/why
relating to different contract strategies - the stages are usually similar although some
clients have their own structures/names
• what is required from the client to enable the design process to be carried out
efficiently eg briefing material, communication with designers as part of the “team”
• overview of statutory requirements that designs have to comply with during
preparation of design - planning, building regulations, fire regulations etc
• overview of design liability (may be covered by other skill group)
• how to manage post-contract client change
• when and to what extent they can influence the process to meet their objectives
without affecting the liability of their consultants/contractors.
Programme and Project Planning
Definition
A technique used to establish the minimum time necessary to complete a project by
calculating the longest sequence of activities which forms the “critical path”.
Aim
To determine the duration of each specific activity on a sequential basis and to link them
as a network to achieve the optimum time scale.
Training
The training should be directed specifically at project sponsors and set out the appropriate
steps to create a network by analysis of each constituent activity of the project, charted in
a logical sequence. Then the estimated duration of each sequence is used to formulate the
network diagram and assess the total duration.
Training evaluation / testing
Present the basic information within small groups and create work examples to test the
way that the network diagram can evolve. The exercises should be varied to commence
with a simple network and progress to a more complex one.
Space Management
Definition
Effective space management will provide cost efficient accommodation which matches
business need and has the flexibility to respond to operational change. It will satisfy the
requirements of both client and staff and assist operational efficiency.
Aim
To recognise the importance of effective space management and develop strategies which
explore the interface
between the organisation and the work environment to provide flexible accommodation.
• defining the brief
• programme
• organisation and management:
- user involvement
- internal participants
- external participants
- criteria for success
• establishing requirements:
- methodology
- planning concepts:
• blocking, stacking and zoning
• generic proposals
• furniture selection
• implementation
• signal VM as an issue and its importance in PFI projects.
Alternative Dispute Resolution including Claims
Definition
Claims are usually disputes arising out of, or under, the contract.
Aim
To understand the legal basis of a claim. How it is dealt with under and outside the terms
of the contract. To understand the roles of the project sponsor, the project manager, the
contractor and the advisors/consultants in disputes. To understand and appreciate the
informal and formal methods of dispute resolution. (Note that Alternative Dispute
Resolution procedures are recommended for all public sector contracts – see the OGC
website and Successful Delivery Toolkit for the full text of this guidance.)
• what is a claim?
• what is a claim under the contract?
• claims under the terms of the contract and contract forms
• claims for breach of contract
• what is a claim arising out of the contract?
• the difference between contract and tort
• claims for extensions of time
• claims arising from changes in contract
• the principles of liquidated damages
• acceleration
• financial claims:
- cost of “instructions”
- breadth of contract claims
- prolongation costs
- disruption costs
- finance charges
- other potential heads of claim
• procedure for dealing with claims under the terms of the contract and the contractual
roles of the project sponsor, project manager and the contractor
• the Housing Grants, Construction and Regeneration Act 1996
• the Scheme for Construction Contracts
• claims management:
- negotiation
- mediation/conciliation
- adjudication
- arbitration
- litigation
• dispute resolution
• examples of different types of claim
• how to avoid disputes arising.
Task 4 Ensure Effective Delivery of the Project
Project Evaluation: Pre Project
Project Evaluation: In Project
Project Evaluation: Post Project
Definition
Project evaluation is a key component of performance measurement to enable
comparison of what is being achieved against plan and to identify any management
action requirements.
Aim
To enable the sponsor to assess performance costs and outputs independently against plan
and take any necessary measures to improve future outcomes.
• the project cycle
• on-going management and control
• key milestone points for evaluations
• pre-project evaluation
• in-project evaluation
• post-project evaluation
• independent reviews
• evaluation of systems, procedures etc
• timing.
About OGC
OGC – the UK Office of Government Commerce – is an office
of HM Treasury.
OGC Service Desk


Telephone: 0845 000 4999
www.ogc.gov.uk
Press enquiries
Telephone: 020 7271 1318
Fax: 020 7271 1345

Trevelyan House
London SW1P 2BY
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Annex C: Assessing Management Requirements
Procurement Guide
Project
Organisation
Annex C
Resource Management
Assessing Management Requirements for:
• Investment Decision Makers
• Senior Responsible Owners
• Project Sponsors
• Project Managers
• Independent Client Advisors
Achieving Excellence in Construction Procurement Guide 02: Project Organisation: roles and responsibilities
OGC Crown copyright 2003
Off ice of Gove rnment Comm erce
Annex C: Resource Management: Assessing Management Requirements
02 Annex C
Contents
Contents .............................................................................................................................. 2
The AE Guides.................................................................................................................... 3
Introduction......................................................................................................................... 4
Key Points For Management .......................................................................................... 4
Scope................................................................................................................................... 5
Resource Assessment.......................................................................................................... 5
Project Sponsor and Project Manager Resources ........................................................... 5
Assessing Project Complexity ........................................................................................ 5
Assessment of Project Sponsor Resource ....................................................................... 6
Requirement for Independent Client Adviser ................................................................. 9
Factors Influencing the Appointment of an Independent Client Adviser ....................... 9
Project Stage ................................................................................................................. 10
Summary........................................................................................................................... 11
Project Sponsor Resources for Civil Engineering Projects........................................... 12
Further Information....................................................................................................... 14
The AE Guides

The new series reflects developments in construction procurement over

recent years and builds on government clients’ experience of implementing
the Achieving Excellence in Construction initiative.
High Level Guides
Core Guides
Supporting Guides
Introduction
This Annex supplements AE 2 Project Organisation: roles and responsibilities. This Annex
provides advice on the assessment of management requirements. The essential roles (as
detailed in AE 2) within management and associated requirements are:
§ Investment decision maker (IDM) – takes the investment decision for use of resources
(including capital, operational and manpower resources) based on justification of the
business need, affordability, cost-effectiveness, and whole-life value for money.
§ Senior responsible owner (SRO) – defines the scope of the project for delivering the
business benefits; personally accountable for the success of the project (may be referred to
as the project owner). They should have the status and authority to provide the necessary
leadership and must have clear accountability for delivering the project outcome. They
should also ensure that sufficient resources are made available for a successful outcome.
§ Project sponsor (PS) – provides interface between ownership and delivery, ongoing day-to-
day management and decisions on behalf of the SRO to ensure that the project objectives
are delivered. They must have adequate knowledge and information about the business
and the project to make informed decisions.
§ Project manager (PM) – leading, managing and coordinating the integrated project team
(IPT) on a day-to-day basis (may be external). The senior responsible owner must ensure
that the project manager is appropriately qualified and experienced for the role.
§ Independent client adviser – independent advice may be required on a range of issues,
including business strategy, investment appraisal, financial, legal, and technical aspects.
They should be independent from suppliers to avoid any conflict of interest.
The purpose of this guidance note is to assist the IDM, SRO and PS to identify the skill mix,
competencies and level of resource required for the successful delivery of the project. The
guidance will also assist in determining areas of skills or level of resource which need to be
augmented by the appointment of an Independent Client Adviser or Project Manager.
Key Points For Management

§ It is important to foster a consistent approach to best practice in construction procurement
across government.
§ Making choices as to the range of duties undertaken by Project Sponsors (PS) requires
careful consideration both of the required skill mix and demands on time.
§ Broad measures of PS and Project Management resource requirements can be derived from
an assessment of project size and complexity.
Scope
In defining the role of the PS there should not be an automatic requirement for the appointment
of an internal or external PM. A suitably competent PS with the right support could manage
the construction project. The point is made, however, that only a project sponsor who is a
construction professional with the appropriate level of experience and range of abilities should
take on the project management role.
It is also accepted that for some projects the same individual may take on the role of the SRO
and PS. In making choices as to the roles to be undertaken by in-house staff, there must be
careful consideration of the required skill mix but also of the demands on an individual ’s time
in order to perform effectively.
AE 2 has already indicated the range and mix of skills that are a prerequisite of a successful
SRO, PS and PM. The appropriate level of resources required is determined through analysing
and quantifying the extent to which a named PS will require support by the appointment of an
Independent Client Adviser and a separate, usually external, PM.
Resource assessment addresses the project requirements of Project Sponsors and Project
Managers of a particular project, depending on size and complexity. From this an indication
can be gained of the level of support required and the desirability of extending the PS role to
include PM duties.
Resource Assessment
Project Sponsor and Project Manager Resources

Having established that competent staff are available to undertake the required duties, it is
necessary to confirm the likely resource loading inherent in any particular project. The
demands on the time of a PS and PM will vary with the size, duration and complexity of the
project and whether the PS is also fulfilling the role of SRO. The procedures described below
provide a means of determining an approximate indication of the resource demands of the PS
and PM roles.
Assessing Project Complexity

Included in the table below is a list of possible project characteristics, which may be used to
obtain a broad measure of the project complexity. SRO and Sponsors may wish to revise the
attributes shown in order to tailor the list to the sensitivities of their particular Department. The
markings shown below, for example, may be assumed to be those made in assessing a highly
serviced refurbishment project for an office building in Whitehall. On balance the project
would be considered to be one of high complexity.
Table C1 Indicative Complexity Ratings
Description Complexity Rating*

Low Medium High
New building (tends to be lower) ü ü
Refurbishment (tends to be higher) ü ü
Technical
- Low rise office ü
- Repetitive design ü
- Limited security, IT, AC, etc. ü
- Design innovation ü
- Structural innovation ü
- Innovative / zoned services ü
Small stakeholder group ü
Standard stakeholder group ü
Fast-track programme ü
Tight cost constraints ü
Politically sensitive ü
Large stakeholder group ü
Large number of long lead procurement items ü
Site conditions
- Level site ü
- Extensive landscaped areas (good storage capacity) ü
- Low volume traffic in vicinity ü
- Close to the sea or other harsh environments ü
- High traffic volume ü
- Restricted working hours ü
- City site, no storage areas, JIT** delivery employed ü
- Steep site, ground stability, drainage ü
- Soft / sandy ground with ‘floating’ boulders ü
Restricted range of specialist suppliers ü
* **
Indicative rating only Just In Time (JIT)
The procurement strategy and the form of contract have an impact on the complexity rating of
the project. These have been described in detail in AE 5. The project profile model is useful
for assessing project complexity, especially when Gateway Reviews may be required, this can
be found on either of the following links:
www.ogc.gov.uk/sdtoolkit/reference/tools/techniq.html#muscat_highlighter_first_match
http://www.ogc.gov.uk/ sdtoolkit/reference/tools/ppm.xls
Assessment of Project Sponsor Resource

The second element in assessing the level of PS resource requirement is project size and
duration. For the purposes of the valuation method demonstrated below, size and duration are
deemed to be commensurate with project cost. The following graphs are based on previous
construction project experience. They are not applicable to Civil Engineering projects - a
separate graph, figure [X], has been produced to show this.
The graphs shown in figure 4 below indicate the average level of demand for a PS. This
assumes the PS has no PM duties. The PS requirement is expressed as a percentage of a full-
time equivalent (FTE) PS. OGC's Property and Construction Directorate provides direct
support to departments through their pool of project sponsors, who can be seconded to
departments’ project teams.
Figure C1 Project Sponsor Requirement
From the above graph it can be seen that if a project had been rated as highly complex and had
a value of £2m the PS requirement would be in the region of 50% or 2½ man days a week.
Table C2 Results at a glance
Role Indicative Complexity Rating

Low Medium High
PS ½–2 1–3 2–5
SRO & PS 1 – 2½ 2 – 3½ 2½ – 5½
PM 1–5 2 – 10 2 – 12
PS (Civil Eng.) 1–3 2** – 5 1½** – 13½
**
Resource of medium complexity higher than the high complexity project, as some low cost data not available.
Denotes the number of man days per week required to successfully resource the project
PS Project Sponsor (Civil Engineering PS separate form construction PS)
SRO & PS Senior Responsible Owner
PM Project Manger
Figure C2 Combined Project Sponsor and Senior Responsible Owner Requirement
The same high complexity £2m project would have required 60% or 3 man days a week to execute the
combined role of project sponsor and senior responsible owner.
Figure C3 Project Manager Resources
The project management requirement for a highly complex project with a value of £2m would be 75%
or 3¾ man days a week. It can be seen that if one doubles the man power resource to 7½ man day a
week, the value they would be able to handle triples to £6m. There are synergies to be enjoyed by
larger projects.
Departments should measure and record their individual performances and requirements on projects in
order to benefit from their experience in the future. There are obvious synergies to be enjoyed by
combining the role of the senior responsible owner with that of the project sponsor on certain projects.
The projected number of man days per week required should be used to forecast resource requirements
and monitored. If the requirement is not going to provide full time employment the number of projects
a given manager is able to undertake should be estimated. It should be remembered and explained to
the managers involved that work load with each different project will fluctuate, therefore when
forecasting resources do not try to have management occupied 100% to avoid over commitment.
Requirement for Independent Client Adviser

The requirement for an independent client adviser is not envisaged to be full-time. Rather, it is
recognised that the need for specialist technical advice is very much demand led, through necessity and
individual requirements of a project. In addition to the demands of the project it is also dependent on
the experience of the project sponsor. The intention therefore is for the Client Adviser to be appointed
on a call-off basis, allowing a varying degree of input during the life of the project. It is unlikely that
any one company will be able to provide a complete service through out the project’s life, so several
companies may have call off contracts. Typically the types of advisers that may be required will
include technical, financial and legal.
Advice may be sought for more than one individual, or one company, during the course of the same
project. It may be worth forming a framework in order to quickly ‘call off’ relevant ICAs as they are
needed. For example a complicated contractual claim may require an experienced quantity surveyor
for legal or financial advice or, additionally, advice from a planning specialist who is expert at
compiling and interpreting critical path programmes. Independent client adviser input is particularly
valuable where an impartial assessment is required concerning the performance or professional liability
of the project manager and design team members.
Where a project sponsor is an experienced construction professional it is not the intention to offer
advice as to the areas in which assistance may be required. It is assumed that such project sponsors can
form their own judgement.
Where the project sponsor does not have that experience and knowledge base, the guidance below is
offered as an indication as to when a Client Adviser appointment should be considered.
Factors Influencing the Appointment of an Independent Client Adviser

The need for an independent client adviser is influenced by a number of inter-related factors:
§ The stage at which the project is at
§ Complexity of the project
§ Experience of the project sponsor and project manager
§ Extent to which a project runs smoothly
§ Size and duration of the project
With regard to project stage, for example, it is likely that input from an independent client adviser will
be required at conception stage (as indicated in AE 3 Project Procurement Cycle, The integrated
Process) prior to the appointment of the project manager. The appointment is least influenced by the
project size and duration. Of more relevance is the stage of the project’s life cycle, the complexity of
issues faced and the experience of the project sponsor.
Table C3 below indicates the likely need for the involvement of an independent client adviser at the
various stages of a project, depending on project complexity and assumes that the project sponsor has
some previous experience.
Table C3 Likely Involvement of Client Adviser
Project Stage Project Complexity

Low Medium High
Pre Gate 0, Concept stage and identify business needs üüü üüüü üüüü
Gate 0 – 1, Strategic assessment, prepare SOC üüü üüüü üüüü
Gate 1 – 2, Business justification, project brief, üüü üüü üüüü

feasibility, procurement route, OBC and specifications
Gate 2 – 3, Procurement strategy, contract form (maybe ü üüü üüü
framework), produce tender and circulate, procure IST
Gate 3 – DP1, Investment decision, award IST ü üüü üüüü
contract(s), outline design begins
DP1 – DP2, Produce detailed design from outline design ü ü üüü
DP2 – Gate 4, Construction, independent certifier üüü üüüü üüüüü
Gate 4 – 5, Facility ready for use, contract management üüü üüüü üüüüü
Gate 5 – Disposal of facility üüü üüüü üüüüü
More ticks represent a higher likelihood that an ICA will need to be appointed
SOC Strategic Outline Case

OBC Outline Business Case
IST Integrated Supply Team
DP1 Decision Point 1
DP2 Decision Point 2
Gate Gateway, type of project ‘health’ check
Summary
The following Flow Chart, Figure C4, summaries the circumstances in which consideration is given to the appointment of an external
Project Manager and Client Adviser.
Figure C4 In-House or External Resource Acquisition
Identify Appoint project

Identify
Identify business Appoint SRO duration & sponsor or
complexity of
need value of the combine the role
the project
project with the SRO
Are many Must the Assess

YES companies YES YES Will
requirements capability & Issue / complication /
required to ICA(s) be
be resourced capacity of change arises
provide required?
externally? the PS
ICA(s)?
NO NO
NO
Interview for
Brief the project sponsor on
internal resource
his responsibilities,
for the role
Go to tender & appoint including managing the
external ICA, framework is ICA. Even if the PS is Continue project
the preferred process capable he may not have lifecycle
Procure ICAs
capacity to carry out all the
under a
work necessary.
framework
agreement Key to meaning of shape:
Start or finish
Action
Operation
Decision
Project Sponsor Resources for Civil Engineering Projects
Table C1 above, with indicative complexity ratings is equally relevant to Civil Engineering projects.
The graph given below in Figure C5, shows the time required by project sponsor to manage a project
and has again been given in terms of percentage of time.
The graph represents new build, refurbishment and maintenance Civil Engineering projects. They have
been separated from other projects shown in previous figures as the management resource requirement
for high cost, high complexity projects is so much greater. The scale for the projects has been shown
as low medium and high.
By their nature, Civil Engineering schemes will always require both a Project Sponsor and a separate
Project Manager. It is not deemed necessary therefore to consider graphs other than for Project
Sponsor resources.
Figure C5 Project Sponsor Resources for Civil Engineering Projects
Further Information
OGC’s Successful Delivery Toolkit provides practical advice and guidance on all aspects of the project
delivery lifecycle. It is available on the OGC website at www.ogc.gov.uk/sdtoolkit and on CD-ROM –
call the OGC Service Desk for a copy.
The toolkit includes references to external sources of help and information, such as the NAO and HM
Treasury.
Strategic Forum for Construction Toolkit: www.strategicforum.org.uk/strategicforum/

home/home.html
Partnering in the Team - Construction Industry Board (ISBN 0 7277 2551 3)
Partnering in the Public Sector: a toolkit for the implementation of post award, project specific
partnering on construction projects - European Construction Institute (ISBN 1 873844 34 4)
Constructing Improvement: the clients’ pact with the industry – Construction Clients’ Forum
The Seven Pillars of Partnering – Reading Construction Forum (ISBN 072772690 0)
Trusting the Team – Reading Construction Forum (ISBN 0 7049 0503 5)
Partnering Arrangements between the Ministry of Defence and its suppliers: a practical guide to
creation agreement management – Ministry of Defence (e-mail DGCommercial@dawn.pe.mod.uk)
Partnering toolkit - Building Services Research and Information Association (see BSRIA website at
www.bsria.co.uk)

Trevelyan House
London SW1P 2BY
www.ogc.gov.uk
About OGC
OGC – the UK Office of Government Commerce – is an office of
HM Treasury.
OGC Service Desk

Designed by Format Information Design www.format-info.co.uk

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www.ogc.gov.uk
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Achieving Excellence in Construction

01 The Achieving Excellence Procurement Guides

21 Annexes (electronic only)

OGC would like to thank all who have contributed.

© Crown Copyright 2003.

The OGC logo ® is a Registered Trade Mark of Her Majesty’s Treasury.

The Achieving Excellence suite of procurement guides replaces the Construction

Achieving Excellence in Construction

Construction projects Pocketbook

Achieving Excellence in Construction

Procurement Guide Procurement Guide Procurement Guide

Procurement Guide Procurement Guide Procurement Guide Procurement Guide

Procurement Guide Procurement guide Procurement guide Procurement guide

02 Project organisation: roles and responsibilities

There are obvious benefits to applying a consistent approach and common

Wherever possible, the project should be delivered by an integrated project team

02 Project organisation: roles and responsibilities

interface between ownership and delivery – ongoing day-to-day management

1 Equivalent terms for key roles

Function OGC term Also known by this term

Managing the project and project team Project manager

In addition, but often outside the client organisation are:

There may also be a requirement for a project board – an advisory panel

02 Project organisation: roles and responsibilities

2 The integrated approach

Key roles under an

Integrated supply team

delegations and individual responsibilities for decision-taking are clearly

3 The integrated project team

Client team: Managed by: Supply team:

02 Project organisation: roles and responsibilities

A traditional project structure is not integrated; it separates out the responsibili-

Separate responsibilities following

Senior responsible owner Project board

Integration should be aimed for if the

Following a detailed options appraisal in line with the principles of HM

success criteria have been defined

02 Project organisation: roles and responsibilities

The SRO’s responsibilities are:

the resources available to the project sponsor, internally and externally

the authority delegated to the project sponsor for decision-making

the project sponsor’s responsibilities in relation to health and safety regulations

02 Project organisation: roles and responsibilities

appropriate advice has been sought from suppliers and/or advisers

The SRO should be committed to encouraging good teamworking practices

The tasks are to:

– preparing business case and investment appraisals and updating as required

– ensuring that Gateway reviews are undertaken

– managing the resources allocated by the SRO

– working within delegated authorities including health and safety

manage the department’s interests in the project by:

– coordinating and directing user input

– appraising options (with assistance from independent client advisers, as

– managing the project budget, including the risk allowance

02 Project organisation: roles and responsibilities

secure professional services for delivery of the project by:

ensure effective delivery of the project by:

A project sponsor should have understanding of:

the functional activity that the project is to support

the impact of different procurement routes

risk analysis and risk management

value management and value engineering