MAJOR INVESTMENT: ANNEX 2
PROJECT OWNERSHIP, SPONSORSHIP AND MANAGEMENT RESPONSIBILITIES
Project Ownership Responsibilities
1. Oversee the preparation of the business case and budget for the project, ensuring the proposals are realistic and meet the business needs and objectives, that private sector options have been properly considered and submitting 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.
2. Establish an appropriate organisational structure and the necessary communication processes.
3. Ensure that users and other stakeholders are involved in, and committed to, the project.
4. 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.
5. Ensure that a brief is developed which clearly reflects the project objectives and is agreed by the users.
6. 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 the Accountable Officer and the responsible Minister where there are serious concerns about the viability of a project.
7. Act as arbiter on any disputes which occur on the client's side.
8. Approve any changes to the scope of the project, ensuring that any which impact on time, costs or objectives are assessed and reported to the Investment Decision Maker as appropriate.
9. Ensure that Gateway Reviews / in-project reviews and post project completion reports are carried out and shared with all stakeholders in the project. The outcomes 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, these should be reported by the Accountable Officer to the responsible Minister.
10. Maintain an official record of how Gateway Review recommendations have been implemented (or setting out reasons for not implementing any recommendation).
Project Sponsorship Responsibilities
(Shared project sponsorship responsibilities that might be appropriate in relation to projects where such responsibilities are shared between a Project Sponsor in a sponsored body and a designated individual within the SG sponsor Directorate are shown in bold.)
11. 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.
12. Contact the SG's Property Advice Division to check if the requirement can be met from existing public sector holdings.
13. Put in place a clear written agreement for the management of a jointly funded project in consultation with legal, technical and finance advisers.
14. 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 a strategy to transfer to the private sector those risks that it is better able to manage.
15. Determine the procurement route. Ensure that the risks and benefits associated with different procurement 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.
16. 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 framework agreements with other funders.
17. Undertake, with appropriate professional advice, the commissioning of those professional services required to implement the project including, where appropriate, the appointment of a Project Manager. 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.
18. In conjunction with the Project Manager, ensure compliance with all relevant legislation and good practice, covering the procurement of supplies, services and construction works. Ensure compliance with EC Directives, the Scottish Procurement Policy Handbook, the Scottish Public Procurement Toolkit, the Construction Procurement Manual, Health, Safety and other relevant regulations.
19. 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.
20. Ensure the installation and operation of a communication and control system to inform management decisions throughout the life of the project. Ensure stringent costs, content and change control techniques 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.
21. Be aware of tools available to improve cost-effectiveness of projects, such as risk assessment, in-project reviews, value engineering and life cycle costing and sustainability issues, and ensure that these tools are applied by the Project Manager.
22. Monitor carefully through progress reports and review pro-actively project progress with the Project Manager, intervening as necessary through him/her whenever the project is perceived to deviate from the established plans (such as on cost, content, time and quality). This includes in-project reviews and the continuous management of risk.
23. 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.
24. Establish appropriate delegated authorities to the Project Manager and arrange for monitoring procedures to be put in place to ensure adequate cost control.
25. 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 compliance with the policy on prompt payment.
26. 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.
27. 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.
28. With the Project Manager, review the handover documentation and operating instructions requirements of the client and ensure these are prepared and delivered on schedule.
29. Ensure the production of all post completion reports analysing the procurement process and end product, noting whether the project has met all user requirements. Any lessons learnt should be shared among interested parties in order to inform future project planning.
30. In the light of experience with the project, draw to the attention of senior management any weaknesses in policies, procedures and methods. 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.
Project Management Responsibilities
31. Preparing the brief for designers (using professional advice where appropriate).
32. Advising the Project Sponsor on the appointment of consultants and contractors appropriate to the chosen procurement route.
33. Preparing a Project Execution Plan governing the project strategy and organisation.
34. Ensuring that variations and the scope of changes identified are adequately costed before approving them, or submitting them to the Project Sponsor for approval.
35. Setting up, and operating throughout the life of the project, a communication and control system to ensure sound and regular reporting. This should include periodic review of risk assessment.
36. Settling claims on behalf of the Project Sponsor, seeking his or her approval.
37. With the Project Sponsor, evaluating the performance of the completed project.
Page Published / Updated: December 2005