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