Construction “mega-projects” live up to their reputations in many ways, including mega-size, mega-cost, mega-complexity, and mega-risk. Africa is home to a wealth of resource, and this paired with fast-growing economies, translates to a continent with unlimited industrialization potential. A lack of sufficient infrastructure such as railways and roads has hindered any extensive development on the continent in the past, however, with increased investment and interest from foreign parties such as China, things are looking up.
We turn our attention to the first phase of mega-project management by unpacking the eight best practices of early planning and organising. We believe that the planning and organisation of a project sets the stage or blueprint for everything that is to follow proceeding the project receiving go-ahead. During planning and organization, you set a course for the project—and make course corrections. Once equipment, materials, and manpower enter the picture, much of the planning flexibility disappears.
#1 – Assign the project team early
Assign members of the project team right from the very start. Too often, construction owners make the mistake of utilizing different teams during the various stages of a project (e.g., concept, prefeasibility, feasibility, execution, start-up and turnover). It’s best to assign a core team that will remain involved throughout the project to promote accountability, transparency, and responsibility.
#2 – Choose the right project delivery strategy
Once the project clears strategic planning and moves into the prefeasibility stage, the project team will need to decide on a specific project delivery strategy. Selecting the right delivery strategy will drive the project’s cost, schedule, quality of design, construction approach, and long-term maintenance demands.#3 – Develop realistic estimates
Project teams need to be both cautious and realistic when developing project estimates. Because company executives are naturally enthusiastic about a project’s anticipated benefits, they also can be overly optimistic about cost and time constraints. Have your core team validate initial concept estimates and identify significant estimating errors and omissions. During the design development stage, rely on parametric cost estimates and benchmark data that are recognized industry-wide, rather than on your own internal estimates. Develop pricing models based on a range of possible outcomes.#4 – Actively manage project risks
Risk management is a buzzword in business today! Risk management is about identifying risks, both internal and external, to the successful completion and implementation of the project. Early risk planning and identification of risks during the prefeasibility and feasibility stages of the project are essential in the development of a complete and accurate estimate of the project’s time and cost. Some risks are within the direct control and influence of the project team, while others are wholly outside the project team’s control. Good stakeholder communication and risk management practices can mitigate many project risks, whether internal or external to the project.
#5 – Obtain senior management buy-in
Every corporate mega-project must have strong senior management buy-in to be successful. Before the project is approved, a complete project charter, project execution plan, baseline budget, and baseline schedule must be prepared and vetted by the project team. Engineering designs to approximately 35 percent completion, cash flow models, financial analysis, and funding methods all must be evaluated and developed to the point that the project can be visualized and built “on paper.” Most importantly, the project must be strategically aligned with the company’s and stakeholders’ current goals and objectives. The project must be relevant, considered to be the best use of capital funds by senior management, and designed to deliver tangible results.#6 – Develop project-specific policies and procedures
As any experienced project manager knows, the success of a mega-project depends on successful collaboration within the extended project team. Collaboration requires a robust set of policies and procedures, clear roles and responsibilities, and frequent communication through approved channels. While your company may have policies, guidelines, and procedures for managing large capital projects, it is recommended that the project team develop tailored policies and procedures appropriate to the specific needs and circumstances of the mega-project.#7 – Assign project-specific roles and responsibilities
Your project team will function most effectively if each member understands his or her specific roles and responsibilities. In construction, as in other industries, what appears to be self-explanatory at face value is actually more complex when pen goes to paper. Develop the organizational chart so that all the key players and third-party resources are clearly and fully identified, and include clear indication of hierarchical reporting relationships.#8 – Have frequent team meetings
Your project team will function most effectively if each member understands his or her specific roles and responsibilities. In construction, as in other industries, what appears to be self-explanatory at face value is actually more complex when pen goes to paper. Develop the organizational chart so that all the key players and third-party resources are clearly and fully identified, and include clear indication of hierarchical reporting relationships.Early planning and organizing will pay off
You can’t manage a mega-project simply by drawing on industry experience, following project management principles, and applying technology. A successful mega-project is the result, in part, of an effective planning and organizing effort. Africa brings her own unique sets of complexities to projects, and having a thorough understanding of this through effective early-stage project management will greatly facilitate a smooth-running mega-project, minimizing the potential ‘mega risk’.Source
For your self written publication for this Article/News/Advice/Editorial/Questions relating to real-estate or construction. Kindly call 08188499594 or e-mail: constructionng@gmail.com
No comments :
Post a Comment