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Section 1 - Roles and Responsibilities

KEY POINTS

• Each project should have an investment decision maker, project owner and project sponsor. They should be clearly identified, have the necessary abilities, receive appropriate training, be given professional/technical support and be adequately resourced
• Where appropriate, the roles of investment decision maker and project owner, or project owner and project sponsor, may be combined
• Investment decision makers, project owners and project sponsors should have a clear understanding of risk management to allow them to make informed decisions.
• Project owners and project sponsors should be given written terms of appointment setting out their responsibilities, authority and the resources at their disposal for each project.
• An appropriately qualified client adviser should be involved as soon as possible after project inception to assist non-technical project sponsors. If a consultant is appointed to provide this role, it should not be combined with that of the project manager or any delivery role but should remain totally independent.

Section 1: Roles and responsibilities

All major works projects should have an investment decision maker, project owner and project sponsor. This section explains their roles and responsibilities, along with those of the project manager and client adviser, and sets out the abilities and training they require, and their relationship to one another (Figure 1, below).

Some projects involve more than one source of funding, in which case each funder, preferably in consultation, must ensure that there are clear written arrangements for the management of the project including:

• how the contribution of each funder is to be calculated
• the monitoring information to be given to funders
• what approvals are required from individual funders at particular stages
• change control procedures
• the arrangements for the apportionment of costs in the event of the project being curtailed, abandoned or increasing in cost
• the arrangements in the event of any of the funders failing to meet its obligations
• the ownership of the assets and arrangements for repayment of grant in the event of the asset not being used for the purpose intended or having been disposed of
• a procedure for the resolution of disputes

In some client organisations and for some projects, the roles of investment decision maker and project owner, or project owner and project sponsor, may be combined. If this should happen:

• the allocation of the three roles should be made clear;
• the three roles must not be combined and allocated to one person; and
• the person taking on a dual role must have at least the authority and status required of the higher function.

Additional guidance is contained in the Appraisal and Evaluation, Major Investment and other sections of the Scottish Public Finance Manual. For specific advice on privately financed projects using the NPD model contact Scottish Futures Trust.

What do they do?

This is the person/committee in the client organisation that decides whether or not the proposed investment in a project should be made, then maintains the visible and sustained senior management commitment to its delivery. The approval may be at ministerial, board or senior official level, depending on the size and complexity of the project. Any risks or proposed changes to the project which may vary the original approval should be referred to the investment decision maker, seeking guidance or re-approval as appropriate.

Who takes on the role?

It may be taken on by an individual or a committee. In practice, on a major project significantly affecting the client organisation's budget, reputation or operation, the task could well fall to an Accountable Officer. When the possible need for a project is raised, the investment decision maker should appoint a project owner.

What's the process?

The generic project flowchart (below) introduces the concept of approval gateways. These are points along the project planning route, beyond which the project should not proceed without specific reviews having been completed. At each approval gateway, the investment decision maker should evaluate the business case and investment proposals and, if justified, give approval for the project to proceed. Further guidance on approval gateways and the (more formal and independent) Gateway Review process is contained in Section 2.

Generic project flowchart

What happens if things change?

If an alteration in the scope or direction of a project is suggested, the investment decision maker must consider the impact on the client organisation in terms of time, cost, performance and risk. Should a decision then be made to change the scope or direction of a project, the brief and the project sponsor's terms of appointment must be amended to reflect the change. All changes must be transparent, properly reasoned and recorded. Changes during construction are likely to have a disproportionately large cost and time impact. They should therefore be avoided as far as possible and where this is not possible, all of the consequences must be evaluated prior to making the change.

Who are they?

This is the named individual who should be appointed by, and is accountable to, the investment decision maker for the project and its budget. The project owner should be a senior officer in the business unit that requires the project, with the status and authority to provide the necessary leadership. They must have clear accountability for delivering the project requirements in accordance with the approvals given.

What do they do?

The project owner's responsibilities are to:

• oversee the preparation of the business case and budget for the project - ensuring the proposals are realistic, meet the business needs and objectives, and that private sector options have been properly considered - and submit them to the investment decision maker for approval. Account should be taken of any asset management plans and estate strategies which should be in place
• establish an appropriate organisational structure and the necessary communication processes
• ensure that users and other stakeholders are involved in, and committed to, the project
• appoint a project sponsor and provide the terms of reference, adequate staff and financial resources, and any necessary support. This might include the appointment of a client adviser and ensuring that appropriate support is available
• ensure that a brief is developed which clearly reflects the project objectives and is agreed by the users
• establish a progress and reporting procedure, ensuring that any changes in circumstances, particularly the exposure to risk, affecting the project are evaluated and appropriate action taken. This includes reporting to Accountable Officers and the responsible Minister where there are serious concerns about the viability of a project
• act as mediator or arbiter on any disputes which occur on the client's side
• approve any changes to the scope of the project, ensuring those which impact on time, costs or objectives are assessed and reported to the investment decision maker as appropriate
• ensure that Gateway Reviews, in-project reviews and post project completion reports are carried out and shared with all stakeholders in the project. The outcome of Gateway Reviews of high risk or mission critical projects should be reported to Accountable Officers and, if the review identifies serious deficiencies, difficulties or budget concerns, to the responsible Minister by the Accountable Officer
• maintain an official record of how Gateway Review recommendations have been implemented (or setting out reasons for not implementing any recommendation)

Who do they work with?

They should be accessible to senior users and, in order to reinforce the commitment to the project, should also be visible to the senior management of the firms working on it. Such contact should provide an opportunity to promote the project and the benefits that it will bring, and should help to avoid any misunderstandings or potential disputes. These activities should not cut across the daily management responsibilities of the project sponsor, however.

The project owner may be assisted by a project board to ensure that other stakeholders are committed to the project, though this board should not have any powers which cut across the project owner's accountability and authority. Project boards should be advisory only, addressing strategic issues and major points of difficulty. If a major issue cannot be resolved with the project owner, board members should have recourse to the investment decision maker. The project owner must form part of a clear reporting line from senior management to the project sponsor.

How does their work progress?

Having identified the user needs, the project owner should draw up the terms of appointment for the project sponsor, setting out the following:

• the user needs to be addressed by the project
• the resources available to the project sponsor both internally and externally
• the authority transferred to the project sponsor
• the project sponsor's responsibilities in relation to health and safety

The project owner should ensure that the terms of appointment are amended promptly in line with any decisions taken by the investment decision maker. The business case and investment proposals, normally prepared by the project sponsor, are then the project owner's responsibility to ensure that they are reviewed and that:

• the recommended option meets the users' needs whilst providing best VFM
• all of the viable options have been properly evaluated
• risks associated with each option are clearly identified together with their impact on the project in terms of time, cost and performance

The project owner should be committed to encouraging good team working practices within the client organisation and, wherever possible, within the other organisations involved with the project. In particular, the project owner should give clear, decisive support where the client organisation enters into partnering or teamworking arrangements with consultants and contractors during the life of the project. Such visible support could include commitment to any partnering agreement that may have been established and attendance at the inaugural partnering workshop.

Along with senior personnel from the other parties involved, the project owner should attend project reviews 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. In addition, the project owner should lead the review of the findings from post project evaluations.

Who are they?

This named individual, responsible to the project owner, is also known as 'the client's representative'. Likely to be the person best placed to manage the client's duties, the project sponsor is a single focal point for the daily management of the client organisation's interest in a project.

What do they do?

The tasks of the project sponsor are to:

• agree a statement of need and project objectives with the project owner. Co-ordinate and rationalise the requirements of all the end-users in developing the project definition, design brief, owner objectives and success criteria for the project
• contact Property Advice Division to check if the requirement can be met from existing UK Government or Scottish Government estates
• put in place a clear written agreement for the management of a jointly funded project in consultation with legal, technical and finance advisers
• ensure a proper appraisal of the project. This will involve the commissioning of option appraisals, analysis of outcomes, and choice of the best option to ensure best value for money is obtained. It will include deciding on a strategy to transfer to the private sector those risks that it is better able to manage
• determine the procurement route. Ensure that the risks and benefits associated with different routes are fully identified, considered and evaluated and, in the case of mission critical or high risk projects, the evaluation and recommendations are presented to the responsible Minister for decision
• secure the appropriate authority for expenditure. This will involve developing the project with all necessary financial and other justification to that stage where it can be confidently submitted for approval. In a timely manner co-ordinate the necessary documentation and present for approval. Secure joint agreements with other funders
• undertake, with appropriate professional advice, the commissioning of those professional services required to implement the chosen procurement route. This may include obtaining tenders for professional design team services and the appointment of the selected consultants. In conjunction with the project manager ensure that these various groups are welded into a team motivated to meeting the success criteria of the project. Ensure that the roles, responsibilities and delegated financial (and other) authorities for each key member of the project team are clearly defined
• in conjunction with the appointed project manager, ensure compliance with all relevant legislation and good practice, covering the procurement of supplies, services and construction works. Ensure compliance with The Public Contracts (Scotland) Regulations 2006, Procurement Policy Handbook, Procurement Policy Manual, Procurement Toolkit, Health & Safety and other relevant legislation
• with the assistance of the project manager prepare, and obtain approval from the project owner for a detailed, on-going project execution plan for the project
• ensure the installation and operation of a communication, control and monitoring system to inform management decisions throughout the life of the project. Ensure stringent costs, content and change control procedures are utilised during project execution (particularly by the project manager). This includes maintaining records for audit purposes, quality control, etc. If it becomes apparent that the project budget will require to be increased then authority should be obtained in good time
• be aware of tools available to improve cost-effectiveness of projects, such as risk assessment, in-project reviews, value engineering and life cycle/whole life costing and sustainability issues, and ensure that these tools are applied by the project manager
• monitor carefully through progress reports and review pro-actively project progress with the project manager, intervening as necessary through him whenever the project is perceived to deviate from the established plans (such as on cost, content, time and quality)
• make promptly, or obtain, those decisions necessary to ensure that the project success criteria are attained. In particular, exert stringent, formal control over all decisions involving material variations and changes in scope to the currently approved project. Where such decisions affect project costs, standards, programme or content, ensure adequate justification is provided, and approval obtained from the project owner, or investment decision maker, where the effect of such changes exceeds his or her delegated authority. In the event that changes are approved, then ensure project budgets and programmes are adjusted accordingly
• where delegated power is given to the project manager and Design Team then the limits of such authority should be established and effective change control and monitoring procedures put in place to ensure adequate cost control is exercised
• ensure that satisfactory arrangements are established for financing the project to ensure that money is always available to meet timeously the demands of the project. Ensure systems are in place to enable all monies to be paid on due dates according to the terms of contract and in compliance with the policy on prompt payment
• ensure that any technical and financial audits of the project are implemented at the pre-planned strategic stages of project execution. Take any necessary corrective action resultant upon the findings of such audits
• plan the organisation and resources needed to execute both the pre-start up testing and the commissioning of the completed project. This may include participation in the selection and training of permanent operating staff and, in close liaison with the project manager and end users, ensuring appropriate commissioning of facilities
• with the project manager, review the handover documentation and operating instructions requirements of the client organisation and ensure these are prepared and delivered on schedule
• ensure the production of all post completion reports analysing the procurement process and the end product, noting whether the project has met the brief and all users' requirements. All lessons learnt should be shared among interested parties in order to inform future project planning
• in the light of experience with the project, draw the attention of senior management to any weaknesses in policies, procedures and methods in respect of capital projects. Define where they need modification to better permit utilisation of efficient project execution techniques, justify these modifications to senior management and, on approval, implement where appropriate

Who does the project sponsor work with?

The role, for some projects, may be undertaken wholly within an outside body. In other circumstances project sponsorship may have to be shared between the Directorate General's project sponsor and a sponsor appointed within the outside body. If the latter, sponsored bodies will appoint their own project sponsors (the non departmental project sponsor), normally within their own senior management, to undertake responsibility and be accountable for the client interests in the project (a function that the Directorate project sponsor cannot perform) and to answer to the Directorate project sponsor.

In some instances, it may be appropriate for the sponsored body to carry out the full range of project sponsorship duties.

In cases where the sponsorship role is shared, then the respective roles should be defined and agreed at the outset to avoid any possibility of ambiguity, and the Directorate General's project sponsor should ensure that an effective monitoring and reporting system is established.

Where the project sponsor is not a technical expert, and such expertise is not available in-house, they should involve a client adviser as soon as possible. This person should have substantial technical and professional expertise in the field of construction, and will act as a consultant providing advice on all construction matters, particularly those which must be carried out before the appointment of the project manager.

The project sponsor has personal responsibility to the project owner for the entire project and should expect to stay until its completion. Maintaining continuity in this role is essential.

How does their role change if there is a project manager?

Where a project manager is appointed, the role of the project sponsor, the client adviser and the project manager are as described in Annex A Table 1.

Where a project manager is not appointed, the project sponsor should retain the responsibilities that would otherwise be delegated to this post. Alternatively, the project sponsor may delegate some of these responsibilities to a lead consultant. The project sponsor should be a suitably qualified construction professional having the abilities and experience appropriate to the project if he/she is to act as the project manager. Where the project sponsor adopts this joint role, Annex A Table 2 describes the duties to be undertaken by all parties.

What is the client's responsibility to the project sponsor?

The Construction (Design and Management) Regulations 2007 (CDM) require health and safety to be taken into account at every project stage, including planning, design, construction, maintenance and demolition. Duties are placed on clients, designers and contractors. Regardless of delegation, the client's duties and responsibilities cannot be transferred. The client must appoint competent people to act as:

• the CDM co-ordinator, whose role is to advise the client on measures needed to comply with the Regulations and to ensure that:

• project details are notified to Health & Safety Executive
• health and safety is taken into account in the design
• relevant information is identified and made available to consultants and contractors before they carry out their contracts
• a health and safety file is maintained and handed to the client on completion of the project (essentially as part of an operation and maintenance manual)
• the principal contractor (normally the main contractor), who will plan and co-ordinate health and safety issues during the construction phase of the project, including developing the health and safety plan

Section 5 sets out other client responsibilities in respect of health and safety matters, beyond the statutory obligations.

The role of CDM co-ordinator may be combined with that of the project manager or a member of the design team. Everyone who appoints others to design, manage or undertake construction work, must ensure that they are competent and have the resources to deal with health and safety in relation to the project.

Who are they?

This is the named individual responsible for the day-to-day detailed management of the project, who provides the interface between the project sponsor and the supply side of the project team. Good project management is crucial to the success of a project.

Are they always required?

For most projects an external or in-house project manager should be appointed. However, it needn't be an automatic requirement and should take account of the individual and the circumstances. For example, with the appropriate support, the project could be managed by a suitably competent project sponsor providing they are construction professionals with abilities and experience appropriate to the project.

Who decides which contractors/consultants to employ?

Where the role of project manager (or any other role in the management structure) is filled by personnel who have been seconded or temporarily engaged under a framework agreement or "agency" contract arrangements, decisions about which other contractors, consultants or service providers should be appointed must be taken by a more senior permanent employee in the client chain of command (usually the Project Sponsor or Project Owner).

Who are they?

An appropriately qualified client adviser should be involved as soon as possible after project inception to assist non-technical project sponsors. If a consultant is appointed to provide this role, it should not be combined with that of the project manager or any delivery role but should remain totally independent.

What do they do?

The need for such specialist technical advice is very much demand led. A client adviser may be required by a project sponsor due to a number of inter-related factors including the stage, size, complexity and duration of the project; the experience of the project sponsor; and the extent to which a project runs smoothly. The client adviser, then, should be used on a call-off basis, allowing a varying degree of input during the project lifecycle. The client adviser does not become responsible for delivering the project: this remains the responsibility of the project sponsor.

When are they required?

With regard to project stage, for example, it is likely that input from a client adviser will be required at Inception/Feasibility, prior to the appointment of a project manager. They should then be retained to give further advice, as needed, during the later stages of the project. There is probably least correlation between the project size and duration, and the need to appoint a client adviser. Of more relevance is the complexity of issues faced and the experience of the project sponsor.

Can there be more than one client adviser on any project?

Occasionally advice is sought from more than one individual during the course of the same project. 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. 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.

Ability and Training

What is required?

An intelligent client with well defined objectives and needs and a clearly identified project sponsor is critical to success. The possession of relevant skills, particularly for project sponsors, is important and so it is essential that they receive proper training.

The required management abilities are similar for investment decision maker, project owner and project sponsor. On the technical side, the topics on which the three levels are expected to have understanding or competence remain the same although project sponsors are required to be competent in a greater number of areas.

How can we improve?

The list of management skills at Annex B should be used to highlight areas where further management training is necessary. Advice within Scottish Government on sources of training is available from Construction Advice and Policy Division and Corporate Learning Services. Annex C lists the technical skills, and the technical requirements, under subject headings.

Directorates should assess the individual skills and knowledge of project sponsors (both new and existing staff) in relation to the requirements described in both Annexes, and the other skills and expertise that will be provided by the client adviser. This will help identify any skill gaps in management ability and technical ability. Client organisations should ensure that:

• new or existing post holders possess the required skills
• they should undertake to be trained to acquire them as soon as possible after they take on their responsibilities
• a client adviser is appointed at the earliest opportunity

ANNEX A - ROLES AND RESPONSIBILITIES

ANNEX B - MANAGEMENT ABILITY

INTRODUCTION

Managing and controlling construction projects require a high degree of management skills. Accordingly, project owners, project sponsors and project managers are required to possess the range of skills described below:

Decisiveness:

• 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
• have 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 measures
• act quickly
• make sound and reasoned decisions when guidelines and procedures are unclear, consulting Construction Advice and Policy Division where necessary

Be challenging:

• be prepared to question project team's proposals in order to bring about improvements
• generate discussion of alternative designs and require investigation and presentation before deciding on the solution
• be innovative and look for other ways of achieving results 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'), project owner and senior management
• 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:

• establish clear lines of responsibility with 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 clear measurable 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
• at initial meetings with different parties, 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:

• set a good example
• 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:

• 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:

• 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 on the client side

Interviewing:

• define project objectives and ensure that relevant information is distributed to interviewees well in advance of 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:

• 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 which will give an auditable "quick win"
• be open, honest and fair in dealing with others

Assertiveness:

• set the agenda
• deal sensitively but firmly with difficult issues
• ask in-depth questions and seek responses before agreeing to action
• focus the team's view on what the client wants/needs to achieve
• make decisions in the face of competing demands
• take informed risks
• challenge any discrepancy or lack of clarity and ensure quick correction

Objective setting:

• 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

ANNEX C - TECHNICAL COMPETENCE

INTRODUCTION

Construction projects are highly technical ventures, and those responsible for their delivery need to be aware of a wide range of technical subjects. Accordingly project owners, project sponsors and project managers are required to have an understanding of, or where appropriate, be competent in certain key technical subjects.

This table indicates the level of awareness required for each of the client-based roles relative to specific subjects. 'Understanding' refers to the need to be able to understand the key issues of each subject heading and their implications for the client department, and to be able to ask informed questions on the subject. 'Competence' means having the ability to do what is required at each stage of the project, or being able to direct someone to carry out the detailed requirement. The remainder of this Annex is intended to provide a general indication of the sort of knowledge that may be acquired in respect of each of the subjects listed above.

The Construction Industry and processes

• overall size of the industry, its make up, processes, 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
• appreciation of aesthetics, the planning process and architectural policy
• inherent dangers of the construction process and the client's contribution to improved health and safety performance

Value for Money

• understanding the context and interpretation of procurement policies, rules and regulations
• value for money versus cost/price
• life cycle and whole life costing techniques
• optimising the supply chain
• managing risk
• achieving VFM while ensuring health and safety of all concerned

Value Management

• overall understanding of Value Management concepts
• defining and developing a VM plan
• roles of all parties e.g. project manager/project team/contractors and suppliers
• outline of VM reviews, how to set up and what to expect
• objective-setting techniques

Whole Life Costing

• what is whole life costing?

• the "iceberg" effect - capital expenditure and future commitments
• what does it include?

• acquisition
• design
• construction
• operation
• maintenance
• disposal
• when should whole life costing be introduced?

• as early as possible
• once design and specification permits
• client input crucial
• investment appraisal techniques:
• net present value/whole life costing calculation
• spend profiles:
• capital cost
• operating cost:

• maintenance:

• types of maintenance; planned and reactive
• maintenance planning and forecasting life cycle costs/charges

Procurement Strategies

• nature of, and risks associated with, principal types of strategy:
• non profit distributing model of private finance
• private developer scheme
• leased building
• new build
• extension, refurbishment
• professional advisers for cost, timescale, quality, and risk control
• who makes the decision and on what basis

Risk Management

• what is risk management?
• why employ risk management?
• when should risk management be undertaken?
• how is risk management carried out?
• who is responsible for the management of risk?
• risk management strategy:
• risks affecting cost, time, quality and health and safety
• strategic risks
• political and business implications of risks
• risk and selection of appropriate contract strategy
• risk management process:
• identification
• qualitative and quantitative assessment techniques
• response and mitigation
• outcome
• reporting and presentation
• risk transfer
• risk retention and management of risk allowance
• definition and understanding of different types of risks, e.g. 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; what constitutes a risk averse culture
• the process: integration of risk management within financial approval, contract strategy
• identification of risk from project inception:
• unique nature of construction projects
• produce a schedule of risks (risk register) from consensus of opinions gained from stakeholder participation
• qualitative assessment:
• description and categorisation of risks
• initial assessment of identified risks
• formal registration (sample proforma)
• interdependencies
• potential impact
• probability
• focus on areas of greatest concern
• ownership
• quantitative assessment
• calculate time, cost and quality effects to give risk allowances and compare with base estimates
• simple assessment/probabilistic analysis/Monte Carlo Simulation/sensitivity analysis
• response and mitigation:
• avoidance
• transfer or sharing
• reduction
• elimination
• outcome:
• residual risk
• dissipated risk
• resultant risk
• risk efficiency
• reporting and presentation regime:
• continual monitoring, review and reassessment
• reporting responsibilities
• budgetary responsibilities
• criteria - must be understandable, recognisable, concise, logical, consistent, updateable
• markers - future commitments, potential liabilities, trends
• status - initial, considered, final

Business Case and Investment Appraisal

• who is responsible for the business case and investment appraisal?
• the meaning and importance of investment appraisal:
• Scottish Government's financial and procurement procedures and guidance
• HM Treasury "Green Book", Appraisal and Evaluation in Central Government
• structure of an investment appraisal: objectives, options, costs (including life cycle and whole life costs) and benefits, net present cost calculations, risk (treatment of and quantifying), presentation of results, evaluation, and VFM and net present value considerations
• relationship between the business case and investment appraisal
• business functional analysis
• identification, evaluation and presentation of options
• time frame for decisions

Project Brief

• Writing a project brief is a formal method of defining the client/user's requirements and objectives, in sufficient detail to enable the proposed facility to be designed and specified

EC Procurement Directives

• understanding of the EC procurement directives, the related World Trade Organisation Government Procurement Agreement (GPA) rules and the implementing Scottish legislation (Regulations)
• organisation of GPA
• how the Regulations relate to Scottish Government's procurement policy, in particular the need to achieve VFM and to acquire goods and services by competition unless there are convincing reasons to the contrary
• implementation of the Directives in Scotland by means of the Regulations: the need for legislation, benefits of the approach adopted (e.g. clarity, a step by step format and supplier's rights)
• main elements of the Regulations: coverage (definitions of a contract, a contracting authority and an economic operator), 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, competitive dialogue, negotiated, accelerated, advertising requirements - prior information notices, contract notices and contract award notices, selection of tenderers, criteria, debriefing of suppliers, standstill periods and 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 Public Contracts (Scotland) Regulations and the Utilities Contracts (Scotland) Regulations
• the obligation of 'adequate publicity'
• use of approved lists (approved lists are not provided for under the EC Directives)
• "green" procurement (i.e. 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 countries subject to other trade agreements (e.g. GPA, Europe Agreements, Eastern European Agreements)
• contracts also subject to the GPA

Construction (Design and Management) Regulations (CDM) and Health and Safety Requirements

• background of key Health & Safety legislation
• requirement to appoint competent persons to provide advice
• requirement for risk assessments
• the CDM Regulations 2007 and Approved Code of Practice - 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), CDM co-ordinator, principal contractor, and sub-contractors
• item to be included in the health and safety plan

• knowledge and understanding of the Construction (Health, Safety & Welfare) Regulations 1996

Teamworking and Partnering

• types of teamworking and partnering - strategic alliancing/project specific
• the implications of Public Contracts (Scotland) Regulations 2006 on partnering
• key requirements of successful partnering
• selecting a partner(s)
• problem resolution procedures
• performance measurement and continuous improvement
• attitude and behavioural changes

Contract Strategies

• principal types of contract strategy, including:
• traditional
• construction management
• management contracting
• design and build
• design, build, operate
• develop and construct
• prime contracting
• turnkey
• cost plus
• risks and responsibilities under each contract strategy
• payment methods (lump sum, variation of price, 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
• dispute avoidance, administration and reconciliation
• which contract strategy is appropriate for each project
• who decides which strategy to follow and on what basis

Tenderer/Tender Evaluation

• 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:
• EC procurement directives (thresholds etc)
• advertising for expressions of interest
• tender selection criteria:

• contract award criteria:
• setting award criteria
• publishing weightings
• inviting tenders:
• return and receipt of tenders
• security
• evaluation of tenders:
• setting transparent criteria
• seeking bid clarification
• tender board procedures and practices
• post tender negotiation (where permissible)
• standstill period, award of contract and tender debriefing

Forms of Contract

• types, and forms, of contract
• use of standard forms of contract
• where each form is, and is not, appropriate
• the need for professional advice
• effect of each form of contract on tender prices
• case law and legal considerations
• letters of intent
• disputes and claims
• consultants' appointments

Project Execution Plan

• the function of a Project Execution Plan
• how the client brief defines the Project Execution Plan
• cost controls:
• control budget
• risk analysis
• programme:
• fixed deadlines
• milestone activities
• organisation and resources:
• responsibilities and roles of team members
• delegations
• recommending the contract strategy
• co-ordination procedures:
• quality control
• change procedures
• service life strategy and occupation plan:
• commissioning
• facilities management
• maintenance
• feedback and post implementation review

Specification

• different types of specification:
• output based, performance or prescriptive
• developing and structuring specifications:
• legal obligations under procurement directives
• scope of user requirement
• performance characteristics and quality
• technical characteristics, standards and evaluation criteria
• value management
• structure of specifications
• whole life cost implications of specifications
• approval of specifications

Programme/Project Planning

• programming and project planning techniques

Design - Understanding the Design Process

• impact of design decisions upon achieving VFM in all aspects of building provision
• importance of developing a comprehensive brief and the required input from the client to facilitate the design process
• key stages of the design process and the extent to which clients can influence the process to meet their objectives at each stage
• evolving nature of the design process; how to assess and review design proposals and how to manage pre and post contract change
• professional support required by the client relative to specific contract strategies
• importance of allowing sufficient time at the design stage and early discussion with consultants and contractors
• opportunities for efficiency within the manufacture, supply, and construction process
• effect of alternative contract strategies on liability and the means of providing protection such as single project insurance, professional indemnity insurance and latent defects insurance
• statutory requirements that building designs have to comply with such as planning and building control, fire, and CDM regulations

See also Section 5 Health and Safety.

Design - Quality

• the key design objectives of the facility: this might involve the client forming a view on the relative importance of matters such as:- the relationships between key activities; the required circulation patterns; the need for flexibility; the priorities of users; the quality of public and private spaces; the need for design innovation; the civic function of the facility: place-making
• the potential for good design to provide added value in terms of the effects of the finished project on staff, customers, other users and the public
• the principles of whole life costing, VFM and costs in use
• the relationship between design and sustainability issues taking into account such matters as use of natural resources, transport issues, construction waste, emissions and how these contribute to the whole life environmental impact of a facility

See also Section 6 Design Quality.

Energy Management/Environmental Issues

• effective energy-efficient practice
• building structure and insulation:
• construction materials
• glazing
• ventilation and air conditioning:
• mechanical v natural ventilation
• health hazards, for example legionella
• environmental hazards, for example CFCs
• heating, lighting
• water management
• building management systems
• electrical services
• environmental considerations:
• waste disposal
• recycling and waste targets
• transport
• landscaping and grounds maintenance
• energy audit standards
• energy efficiency targets

Space Management

• importance of effective space management and development of strategies
• definition of the brief
• programme
• organisation and management:
• selection of participants
• criteria for success
• establishing requirements:
• methodology
• planning concepts

• signal Value Management as an issue

Claims

• the legal basis of claims
• the difference between contract and delict
• claims for extensions of time
• claims arising from changes in contract
• the principles of liquidated damages
• acceleration
• financial claims:
• 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 (Scotland) Regulations 1998
• claims management and dispute resolution (formal and informal, through individuals or boards)
• negotiation
• mediation/conciliation
• adjudication
• arbitration
• litigation
• how to avoid disputes arising

Project Evaluation

• methods of assessing performance
• the project cycle
• on-going management and control
• key milestone points for evaluations
• pre-project evaluation
• in-project evaluation
• post-project and post-occupancy evaluations
• independent reviews
• evaluation of systems, procedures etc
• timing

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