Meeting documents
Cabinet
Wednesday, 13th July, 2005
APPENDIX 1
Opportunities and risks associated with the appointment of an independent project manager:
Strengths
1. the council will not be creating an unlimited insurance risk
2. Transfer of project management risk to third party
3. Council does not need to recruit a large internal specialist project management team to run main scheme
4. can appoint a project management team with extensive commercial NEC contract management and financial control experience
5. Appropriate project management experience for a £154m scheme
6. Centres of excellence that allow each project component to fulfil their core expertise
7. Potentially locally and / or site based consultancy depending on appointees
8. Direct integration of client objectives - PM to manage design team and main contractors (including bat and archaeological contractors)
Weaknesses
1. increased number of interfaces more difficult to manage successfully
2. Potentially higher costs of PM / QS as on-costs / internal infrastructure not shared with current team - less economies of scale with new team
3. Start up and induction - would require a paid learning curve for new PM / QS
Opportunities
1. the council will establish a well resourced internal team with the right skills base to manage a complex project structure
2. Allows spread of best practice project management practices throughout the project team and the council
3. Current timescales allow PM / QS to review and input to the main scheme tender documents (encourages buy-in from those running the project)
4. Reduced induction period if current PM / Cost Advisors win appointment on JV
5. If current PM / Cost Advisors win appointment, negates separate client advisor role and possibly separate QS in project team (cost savings / knowledge retention)
Threats
1. Project team needs time to form and share knowledge
2. Project may be destabilised by introduction of new team members (inductive approach to initiate the PM / QS team will reduce this effect and encourage buy-in)
3. Challenges from market in case of current consultants winning appointments