Starting the Construction Project (The Project Manager Kick Starts the Project)
The following document outlines the key deliverable’s and activities required during
the early stages of the project to facilitate the project’s three pillars (cost,
schedule and quality) are satisfied successfully.
1. Creating the Culture
It is the responsibility of the PM to create a culture on the project that fosters
1.1 Quality, Health Safety and Environment
The Project Manager must ensure that safety is an integral part of the work processes
used on the project. The PM should reinforce QHSE as a value through personal example
and pro-active attention to project QHSE both in the home office and at the job site.
They can immediately start with beginning each meeting with a value moment, establishing
a schedule for tool box talks. It is the responsibility of the PM to see that a Project
HSE Plan is established and implemented. The HSE Plan should become part of the Project
1.2 Client Relationships
A company’s continued success in worldwide markets depends on in great part in the
ability to develop and maintain an exceptional professional business relationship
with clients that will help win future repeat business. Actions for building good
client relationships are as follows:
Build and maintain strong business relationships based on mutual trust.
Create mutually agreed objectives.
Develop client relationships that will result in repeat business.
Meet or exceed client expectations.
The project manager is responsible for specific project client relationships and
each employee is responsible for fostering professional client relationships with
the client they come in contact with.
1.3 Risk Management
The Project Manager is responsible for ensuring all project risks are identified
and managed throughout the cycle of the project. Risk discovery and management is
a continuous process and all members of the project team need to be engaged in the
risk management process. The Proposal Manager is responsible for ensuring all project
information upon contract award is handed over to Operations. Handover of the risk
register is one of a number of key turnover items summarized as follows:
Scope of Project
Project Objectives and Project Drivers
Scope of Services
Joint Ventures, Subcontracts, Agreements
Proposed Execution Plan including Schedule, Responsibility Matrix, Proposed Organization
and project resource needs, and Information Management strategies.
Contract Synopsis with key contractual obligations and any contract interpretation
issues backed with an "intent paper".
Risk Register that includes major operational risks, schedule, procurement and HSE
risks as well as liquidated damages, process guarantees and any other Contract risks.
Bid Negotiation meeting minutes.
Estimating basis for bid including qualifications, assumptions, and contingency exclusions.
Commercial basis and payment mechanism (or include in Contract Synopsis).
Key Success Factors for Client and Company and identification of any "gaps".
Previous projects with Client and any applicable Lessons Learned.
The success of the project will be brought about by people who create new ways of
working, new and improved products and new markets opportunities. Innovation means
change for the better. It means looking out for the new methods used in different
industries. It requires an open minded approach to suggestions and ideas, sometimes
from people who know less about a subject than the experts. The Project Manager is
responsible for encouraging and recognizing innovation.
2. Project Starter Plan
During the start-up phase, there are many administrative meetings and activities
that must be completed for the project to effectively start. The general purpose
of this procedure is to outline the key administrative activities and meetings that
must be accomplished early in a project. The Project Starter Plan should address
these activities in detail.
3. Early Meetings
After the Project Starter Plan is established there are several key activities and
meetings that form the basis for the Project Execution Strategy.
3.1 Project Award Meeting with Client
The Project Manager (PM) should meet with the client to discuss the project as defined
by the Company's Technical Proposal and Client's objectives, and to cover open questions
and data requirements Project Alignment/ Teambuilding Sessions with Project Leadership
Team. The client project manager and the PM plan a series of sessions that clarifies,
defines and facilitates agreement on Driving Forces, Critical Success Factors, identification
of barriers, actions to mitigate the barriers, and other external influences that
affect project success.
The Alignment Process is not a single event only, but a continual project-long process
which monitors and assures compliance with alignment strategies. The Alignment Process
is the basis for all downstream activities and is used to develop the Project Execution
Strategy. The initial alignment session should be facilitated by an approved facilitator
from either Project Management or Quality Departments. The alignment session is the
beginning of team building. Team Building utilizes the output of the alignment session,
and should be used to build team dynamics and enhance needed skills. Team Building
is the responsibility of the Project Manager and can take several forms, with different
durations and occur at any time during the execution of the project.
While there is structured team building sessions, team building is a continuing process
throughout the duration of the project.
3.2 Project Kick-Off Meeting with Project Team
The PM should conduct an internal Company meeting held with the project team, discipline
management and Management to discuss Project, answer questions and provide clarifications
within the project requirements. The contract review and risk register review may
be part of the agenda of this meeting or may be held in a separate meeting(s). Also
included in this meeting should be the schedule and the cash flow plan developed
during the proposal or the FEL stage.
4. Value Improving Processes (VIPs) with the Project Team
The VIP should be initiated within the traditional work process and culminated in
a facilitated workshop. Any changes from the workshop should be reflected in the
work processes or project scope which is then carried forward by the project team.
The Project Execution Strategy should be formally presented to Operations Management.
The intent of the meeting is to ensure that Company’s management is fully aligned
on the expectations of the project just awarded. The strategy should be sent to Contract
Management for their distribution as required.
The subjects for the meeting are:
As-sold project definition.
Contract Issues & Risk.
Risk Mitigation Strategies.
Incentives & Targets.
Revenue and Profit Expectations and Strategies.
Systems implementation (Engineering Systems, Project Controls Systems, and Information
6. Project Execution Plan
The final step of Project Initiation is to produce a Project Execution Plan (PEP).
The PEP is a detailed written plan describing the How, What, When, and Where of all
project functions, and is really the culmination of the above steps. It is the Project
Managers responsibility to ensure that the Project Execution Plan is completed for