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					Chapter 3: Business Requirements          Department of Main Roads
                                   Preconstruction Processes Manual




                                                                      3
                                   Chapter 3

                                 Business
                             Requirements
               (Processes, Procedures &
                             Approvals)




June 2005                                                         i
    Department of Main Roads                               Chapter 3: Business Requirements
    Preconstruction Processes Manual


                              Manual Contents

                                           Chapter 1
                             Planning and Design Framework

                                           Chapter 2
3                                      Pre-Project Planning

                                           Chapter 3
                                  Business Requirements

                                           Chapter 4
                               Design Development Process

                                           Chapter 5
                                         Project Scoping

                                           Chapter 6
                                       Design Management




    ii                                                                             June 2005
Chapter 3: Business Requirements                                      Department of Main Roads
                                                               Preconstruction Processes Manual


                             Table of Contents

     3.1     Business Processes, Procedures and Approvals (Project Pre-Construction
             Delivery)                                                       3-1
             3.1.1   General                                                            3-1
             3.1.2   Objectives                                                         3-1
             3.1.3   Delivery Management                                                3-2


                                                                                                    3
     3.2     Process Management Requirements                                            3-2
             3.2.1   Selection of Project Team                                          3-2
             3.2.2   Delivery Process Approvals                                         3-5
             3.2.3   Application of Client Leadership Principles                        3-5
             3.2.4   Project Management Templates                                       3-7
             3.2.5   Roads Implementation Program (RIP)                                 3-9
             3.2.6   Estimating Process                                                3-11
             3.2.7   Scope and Cost Management                                         3-11
     3.3     Value Management                                                         3-16
             3.3.1   Value Management Objectives                                       3-16
             3.3.3   The Value Management Process                                      3-17
             3.3.4   Job Plan                                                          3-20
     3.4     Risk Management                                                          3-20
             3.4.1   What is Risk?                                                     3-20
             3.4.2   What is Risk Management?                                          3-20
     3.5     Quality Management                                                       3-22
     3.6     Project Management Methodology                                           3-23
             3.6.1   Concept Phase (Concept Planning and Project Scoping)              3-25
             3.6.2   Development Phase                                                 3-40
             3.6.3   Implementation Phase                                              3-56
             3.6.4   Finalisation                                                      3-60
     References                                                                       3-68




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    Department of Main Roads                                                 Chapter 3: Business Requirements
    Preconstruction Processes Manual


                           Chapter 3 Amendments - June 2005

                                               Revision Register

      Issue/     Reference                                                               Authorised
                                               Description of Revision                                  Date
     Rev No.      Section                                                                    by
         1                     First Release                                              D. Hicks    Apr 2003
                               Overall reshaping following feedback and a review.
         2     Chapter 3                                                                  D. Hicks    Jan 2004


3
                               Content basically just updated.
                             Previous Chapter 3 - Project Delivery Processes,
               New Chapter 3
                             totally rewritten to incorporate original Chapter 4 - The
         3     - Business                                                                 D. Hicks    Feb 2005
                             Concept Phase, and Chapter 5 - The Development
               Requirements
                             Phase and renamed to reflect the new content.

         4                     First Edition Release                                      D. Hicks    June 2005




    iv                                                                                                  June 2005
Chapter 3: Business Requirements                                        Department of Main Roads
                                                                 Preconstruction Processes Manual


                                                                               Chapter 3
               Business Requirements
3.1 Business Processes,                               • The "best for project" approach in the delivery
    Procedures and                                      of the project.
    Approvals

                                                                                                              3
    (Project Pre-Construction                         3.1.2 Objectives
    Delivery)
                                                      The key objective of this chapter is to explain
3.1.1 General                                         Main Roads business processes and procedures
                                                      that specify the requirements for identifying and
It is important for the project manager and the       developing the 'right' project that satisfies the
planner / designer to have a clear understanding of   particular network functionality need. There is a
the business processes adopted by Main Roads for      close relationship between the pre-project
the delivery of Road Infrastructure Projects.         network planning activities in assessing the
                                                      justification for the project, its priority and place
Main Roads delivers its projects using a business     in the RIP.
model framework comprising:
                                                      Project cost management
• The Road System Manager - See Chapter 1 for
  more details,                                       Accurate project Scoping and Cost Estimating are
                                                      fundamental       requirements      for     project
• The project team appropriately qualified and        justification, budgeting and cost control. The
  experienced,                                        department maintains a system of total project
                                                      cost control that will ensure, with a high level of
• The OnQ Project Management Methodology,
                                                      confidence, that actual costs will not exceed the
• The Preconstruction Processes - see Chapter 4,      approved project budget. This will ensure the
                                                      integrity of earlier decisions of project
• The delivery approvals (ministerial, technical,     justification, government priorities and program
  progress and financial),                            allocations.

• The appropriate application of independent          Risk management
  Peer Reviews,
                                                      Risk management is an essential element the
• The RIP Rules, and                                  control of project scope and cost. Risks that
• The concept of "Client Leadership" in the           cannot be adequately mitigated during the design
  delivery of projects.                               development process are either accounted for in
                                                      the scheduled work (as provisional items) or
This section provides the linkages between these      included in the contingency amount in the
business requirements. In addition, the project       estimate (non-contract item) for use by the Project
team is expected to behave in a manner that           Manager when any of these risks actually occur.
supports:
                                                      The application of value management (value
• The establishment and maintenance of good           engineering) processes at the appropriate stages of
  working relationships between team members,         the process is an essential requirement to ensure:
  and
                                                      • The right solution is selected in the options
                                                        analysis step, and


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    • The individual design components are the most       • A project team comprising:
      appropriate solutions in terms of functionality
      and economics.                                        - An appropriate blend of technical skills and
                                                              experience over the whole supply chain,
    The application of quality management principles
    will ensure the requirements of the quality             - Members committed to establishing and
    standard are carried out and recorded. The project        maintaining good relationships to achieve
    team at regular progress meetings must not only           successful project outcomes,
    inspect the relevant quality records but also
                                                            - Members who have a 'best for project' focus

3
    ensure that they are actually based on the actions
                                                              to achieve the best possible project
    being appropriately carried out. The most
                                                              outcomes.
    important records in this respect are:
                                                          • A risk management approach in seeking
    • The work was performed using appropriately
                                                            reliable project cost estimates,
      qualified and experienced personnel,
                                                          • A quality management approach in seeking
    • The project team is fully representative of the
                                                            quality design, documentation and outcomes,
      project lifecycle,
                                                          • A value management approach in seeking the
    • The designs have been fully verified, and any
                                                            most appropriate solutions (outcomes and
      unusual features of the design have been
                                                            design), and
      appropriately addressed and validated,
                                                          • A peer review is performed to confirm that all
    • The design interfaces have been checked for
                                                            of the critical issues have been identified and
      compatibility especially where different
                                                            appropriately addressed.
      disciplines are involved.
                                                          A range of project management templates have
    Main Roads defines clear lines of responsibility
                                                          been developed to specifically support the
    and accountability for preparing, checking and
                                                          development, delivery and approval of Main
    approving infrastructure preconstruction activities
                                                          Roads road infrastructure projects in compliance
    and project budgets.
                                                          with the project management methodology and
                                                          the RIP Business Rules.
    3.1.3 Delivery Management                             The overall relationship between the project
                                                          management methodology, the preconstruction
    The preconstruction delivery processes are
                                                          process and the Road Implementation Program
    tailored to meet the specific requirements of Main
                                                          (RIP) is shown in Figure 3.1 - Application of the
    Roads. They employ practices and procedures
                                                          Project Management Methodology to the
    that enhance quality design, documentation and
                                                          Preconstruction Process.
    efficiency of the delivery processes. The
    mandated requirements imbedded in the Main
    Roads delivery processes for all road
    infrastructure projects are:                          3.2 Process Management
                                                              Requirements
    • A project management approach to ensure an
      efficient and effective delivery of project         3.2.1 Selection of Project Team
      deliverables in the achievement of the specified
      operational performance outcomes,                   The composition of the project team must be
                                                          carefully selected to ensure the appropriate mix of
    • A collaborative approach using client
                                                          technical (i.e. team members that collectively
      leadership to model the way forward with
                                                          represent the whole process from conception
      regular project meetings and progressively
                                                          through to construction) and management skills
      approving solutions as they evolve,

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Chapter 3: Business Requirements                                                                                                                                                                                                 Preconstruction Processes Manual

       Figure 3.1 – Application of the Project Management Methodology to the Preconstruction Process
                                                                                                                                               Printout from risk management computer program
                                                                                   Risk Mitigation Activities – Form M4213
                                                                                     Design Development Report - Form M4211 (Short Form) OR M4212
            Delivery Activities                                                                      PRECONSTRUCTION                                                                                            CONSTRUCTION

                Project                                                     CONCEPT                                                                     DEVELOPMENT                                IMPLEMENTATION            FINALISATION                Phase
              Management
                                                                                 Options                   Business         See Note 3        Preliminary                   Detailed                     Process                  Wind-up
              Methodology                   Proposal                             Analysis                    Case                               Design                      Design                       Control                  Control                Phase Steps

                                      Need (Network Planning)                                                                                                                                                              Performance – Delivery
       Project Management             Strategic Fit                                              DELIVERY - Monitoring and Control using the 9 Project Management Functions
           Application                Required Outcomes                                  Integration, Scope, Time, Cost, Quality, Human Resources, Communication, Risk, Procurement                                                    – Outcome
                                                                                                                                                      Printout from Risk Management Computer Program
                                                                                     Risk Management Activities – Form M4213
       Proforma Templates                                                                                               Project Plan - Template R2001 OR R2002 (Simplified) OR R2003 (Minor)
             for Road                  Project Proposal                Options Analysis                   Business Case                     Preliminary Design           Detailed Design
          Infrastructure               R1001 1                               2
                                                                       R1002 Type 1 Projects         R1003 3 Type 1 Projects
       Phase Deliverables                                              R1004 4 Type 2 Projects       R1004 4 Type 2 Projects
                                                                                                     R1005 5 Type 3 Projects                                                                                             Finalisation Activities See Note 5
                                                                       R1005 5 Type 3 Projects
                                       ------------------------- --------------------------          -------------------------        ---------------------------    ---------------------------                         R4001 - Handover Report
                                         Project Proposal.              Identify Options              Develop preferred option.           Develop Preliminary         Develop Detail Design,                             R4002 - Completion Report
             Progressive                 The Need or Problem            Develop Options               Identify, commission and            Design, incl. Electronic    including Electronic model                         R4003 - Simplified Handover and
                                                                                                      manage the delivery of              model.                      Conduct Road Safety Audit                                   Completion Report
            Deliverables of              The required outcome           Value Management Report.                                          Prepare Preliminary Design – Detailed Design.
                                                                                                      additional Work Packages.
            Phase Activities             Link to MR Strategies.         Select Preferred Option.                                          Estimate                    Prepare Detailed Estimate See Note 6
                                                                                                      Conduct Road Safety Audit
                                         Concept Phase                  Identify, commission and      – Feasibility/Concept               Prepare Preliminary Design Prepare Scheme Prototype
                                         Investigation Budget.          manage the delivery of        Prepare Concept Estimate.           Report                      Update Project Plan.
                                         Include in RIP as a 900        relevant Work Packages.                                           Conduct Road Safety Audit • Continue Risk Mitigation
                                         series Job No. where                                         Nat. Hwy. Planning Project          – Preliminary Design.
                                                                        Commence:                     Proposal Report, if relevant.                                   Process and Risk
                                         appropriate                     - Risk Mitigation Process                                        Update Project Plan.        Management Activities
                                         Risk Profile Identification                                  Draft Project Plan.
                                                                         - Risk Management            Continue Risk Mitigation            Continue Risk Mitigation    (Update Report – Form
                                                                            Activities, and                                               Process and Risk            M4213).
                                                                                                      Process and Risk                    Management Activities
        PROFORMA TEMPLATE USE:                                           - Risk Management            Management Activities                                           Update Design Development
                                                                            Report - Form M4213)      (Update Report – Form               (Update Report – Form       Report (Form M4211 or
        1
          Template R1001 - A stand alone Project                                                      M4213).                             M4213).                     Form M4212).
                                                                        Start Design Development
          Proposal template. Used for all projects.                     Report (Form M4211 or         Update Design Development           Update Design Development Prepare Tender documents,
        2                                                               Form M4212).                  Report (Form M4211 or               Report (Form M4211 or       call tenders and assess
          Template R1002 - A stand alone Options                                                      Form M4212).                        Form M4212).                tenders                              -   Milestones
          Analysis template. Used for Type 1




                                                                                                                                                                                                                                                                 As Relevant
                                                                                                                                                                      Award Construction                   -   Hold Points
          Projects - significant projects that are                                                                                                                    Contract.                            -   CSA Tools application
          complex, high risk or expensive and thus                                                                                                                                                         -   Project Justification
          require higher amounts of rigour and                                                                                                                                                             -   Reviews (Technical & Process + Learnings)
          control.                                                                                                                                                                                         -   Recommendations & Approvals
        3
           Template R1003 - A stand alone                                        Business Case must be
          Business Case template. Used for                                                                                                                                                 Preliminary Design must be completed and
                                                                                 completed and approved                                              RIP Year 3      RIP Year 2            approved prior to entering the firm years of the
          Planning Projects, High Risk or                                        prior to entering year 5 of                                                                               RIP (i.e. before entering year 2)
          Complex Projects.                                                      the RIP
        4
           Template R1004 - Use for Type 2                                                  2.1.1.1.1.1.1              PRECONSTRUCTION PROCESS – (ROAD INFRASTRUCTURE)
          projects - relatively straight forward, low         NOTES:
          risk, projects for which a lesser amount                 1. Planning Projects should have adequate lead time to deliver an approved business case for inclusion in year 5 of the RIP.
          of rigour and control is appropriate.                    2. Construction Projects will normally enter the RIP in year 5 however urgent or political projects could enter in years 4 and 3 also.
        5
           Template R1005 - Use for Type 3                         3. Sufficient work needs to be done in the Business Case to give the Customer confidence that the Concept Estimate is of the required degree of accuracy, i.e. within ± 20%.
          Projects - small, simple projects of low                    This means that the Business Case and Preliminary Design interface is not a rigid demarcation.
          cost that progress quickly through the                   4. The District Director is responsible for initiation of the project timings as they relate to the RIP formulation requirements/timings.
          concept phase.                                           5. Use the intent of the Finalisation Phase to progressively close-out activities if/when they are completed, e.g. Performance Reports for Consultant Services.
        Note: Project Types are described in                       6. Sufficient work needs to be done in the Detailed Design to give the Customer confidence that the Detailed Estimate is of the required degree of accuracy, i.e. within ± 10%.
             Section 3.2.4.


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3-4                                1                         June 2005
Chapter 3: Business Requirements                                           Department of Main Roads
                                                                    Preconstruction Processes Manual


for the project concerned. The concept phase             Stage 2: Funding for pre-construction activities
would include team members from the upstream             necessary to develop the project to the stage of
processes, the designers and representatives from        calling tenders for construction.
other specialist areas whilst the Development
Phase would have fewer team members from the             Stage 3a: Funding for the construction of the
upstream process but strengthened with members           project. All projects must have Stage 3a approval
from the construction area. In addition, the team        before tenders are called.
members must be prepared to act in the best
                                                         Stage 3b: (Also referred to as a Stage 3a
interest of the project (i.e, to put the project above
                                                         variation) Covers requests for funding of

                                                                                                                3
self interest advantages) together with a
                                                         variations that occur between obtaining Stage 3a
willingness to operate in a relational way in the
                                                         approval and finalising the total cost of the
delivery of the project. The adoption of a client
                                                         project. Stage 3b is normally submitted after the
leadership approach is essential to achieving
                                                         total project costs are finalised. However, in some
required project outcomes (refer Section 3.2.3).
                                                         cases project costs may not be finalised (for
                                                         example, resumption compensation can take
3.2.2 Delivery Process                                   several years if contested through the courts).
      Approvals                                          These requirements may change as the AusLink
                                                         processes mature.
There are many approval requirements built into
the delivery process. These business procedures
ensure the project progresses smoothly through all       3.2.3 Application of Client
steps of the delivery process. These approval                  Leadership Principles
requirements are:

• project prioritisation,                                Client Leadership

• preferred solution,                                    Client leadership is the process of the client being
                                                         involved in the decision making process on a
• ministerial, (state and federal),                      regular basis. Accordingly, the frequency of
                                                         project meetings should be such that the client is
• technical,
                                                         able to have the necessary regular input into the
• progress, and                                          decision making process and also to approve
                                                         solutions as they evolve. This process should
• financial                                              contribute to:

Figure 3.2 - Project Delivery Approvals puts the         • Reduced rework;
approvals into the context of the delivery process.
                                                         • Improved quality of decisions;
Estimate Approvals
                                                         • Improved efficiencies; and
For significant projects the estimates are to be
                                                         • Better working relationships.
approved as specified in Table 3.1 - Estimate
Stages.                                                  Fundamentally, client leadership is more than just
                                                         being involved - it is about modelling the way
AusLink National Land Transport                          forward to achieve the desired state through
Network Requirements
                                                         strong leadership and progressively addressing
Federal DoTaRS approvals are:                            risk throughout the whole process.

Stage 1: Funding for strategic planning studies for
road corridors and certain major work proposals.


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    Department of Main Roads                                                                           Chapter 3: Business Requirements
    Preconstruction Processes Manual



             Process Step                                             Approval Type                                              Approval By
                                     Stage 1 (AusLink National Land Transport Network Planning Projects) –
                                                                                                                       DD (District Prioritisation)
    Pre-project                      Strategic Planning Report to Federal Government for approval to conduct
                                                                                                                       ED (Regional Prioritisation)
                                     project concept planning.
                                     Project Proposal Template (Proposal Prioritisation, allocation of resources and   DD (District Prioritisation)
                                     funding for delivery of the concept phase).                                       ED (Regional Prioritisation)
    Project Proposal
                                                                                                                       ED (Type 1 Projects)
                                     Inclusion of 900 series (concept planning) projects in the RIP.
                                                                                                                       State Minister(PPP consideration)
                                                                                                                       DD (Types 2 & 3 Projects)
                                     Options Analysis Template (Preferred option and progression to the business       ED (Type 1 or politically sensitive or
                                     case).                                                                            realignment Projects)
                                                                                                                       (PPP submission confirmation)



3
    Options Analysis
                                     Award Consultant Contract*
                                                                                                                       PM (Progress Claim accuracy)
                                     Progress Claims:
                                                                                                                       * (Person with required level of
                                       -    Progress Claim Accuracy
                                                                                                                       financial delegation).
                                       -    Financial*
                                                                                                                       DD (Types 2 & 3 Projects)
                                     Business Case Template (Project viability to progress the project to the
                                                                                                                       ED (Type 1 or politically sensitive
                                     Development Phase).
                                                                                                                       or realignment Projects)
                                     Award Consultant Contract*
                                                                                                                       PM (Progress Claim accuracy)
                                     Progress Claims:
    Business Case                                                                                                      * (Person with required level of
                                       -     Progress Claim Accuracy (Itemised)
                                                                                                                       financial delegation).
                                       -     Financial*
                                     Stage 2a (AusLink National Land Transport Network Planning Projects) –
                                                                                                                       Federal Minister (Recommended
                                     Project Proposal Report to Federal Government for progression to preliminary
                                                                                                                       by ED)
                                     design.
                                                                                                                       DD (Types 2 & 3 Projects)
                                                                                                                       ED (Type 1 or politically sensitive
                                     Project Planning Report, including confirmation of project viability
                                                                                                                       or realignment Projects)
                                                                                                                       State Minister for AIS Conditions
                                                                                                                       * (Person with required level of
                                     Award Consultant Contract*
    Preliminary Design                                                                                                 financial delegation).
                                     Progress Claims for consultant contract:                                          PM (Progress Claim accuracy)
                                       -     Progress Claim Accuracy (Itemised)                                        * (Person with required level of
                                       -     Financial*                                                                financial delegation).
                                     Stage 2b (AusLink National Land Transport Network Project) Project Planning       Federal Minister (Recommended
                                     Report to Federal Government for progression to contract formation                by ED)
                                                                                                                       DD (Types 2 & 3 Projects)
                                                                                                                       ED (Type 1 or politically sensitive
                                     Detailed Design Report, including confirmation of project viability
                                                                                                                       or realignment Projects)
                                                                                                                       State Minister for AIS Conditions
                                                                                                                       * (Person with required level of
                                     Award Consultant Contract*
    Detailed Design                                                                                                    financial delegation).
                                     Progress Claims for consultant contract:                                          PM (Progress Claim accuracy)
                                       -    Progress Claim Accuracy (Itemised)                                         * (Person with required level of
                                       -    Financial*                                                                 financial delegation).
                                     Stage 3a (National Highway Projects) - Funding request to Federal                 Federal Minister (Recommended
                                     Government for progression to contract formation.                                 by ED)
                                                                                                                       * (Person with required level of
                                     Call Tenders for Construction Contract.
                                                                                                                       financial delegation),
    Establish Construction                                                                                             * (Person with required level of
    Contract                         Acceptance of Preferred Tenderer (Tender analysis report)
                                                                                                                       financial delegation),
                                                                                                                       * (Person with required level of
                                     Recommended preferred tenderer for awarding.
                                                                                                                       financial delegation),
                                     Progress Claims for Construction Contract:                                        Project Manager
    Implementation                     -    Progress Claim Accuracy (Itemised)                                         * (Person with required level of
                                       -    Financial*                                                                 financial delegation).
                                                                                                                       * (Person with required level of
                                     Award Consultant Contract*
                                                                                                                       financial delegation).
                                                                                                                       DD (Design appropriateness)
                                     Approve design changes                                                            * (Person with required level of
    - Design Changes                                                                                                   financial delegation).
                                     Progress Claims for Consultant Contract:                                          PM (Progress Claim accuracy)
                                       -    Progress Claim Accuracy (Itemised)                                         * (Person with required level of
                                       -    Financial*                                                                 financial delegation).
                                                                                                                       Superintendent (Progress Claim
                                     Progress Claims for Construction Contract:
                                                                                                                       accuracy)
    - Progress Payments                -    Progress Claim Accuracy (Itemised)
                                                                                                                       * (Person with required level of
                                       -    Financial*
                                                                                                                       financial delegation).
    - Practical Completion          Acceptance of Work                                                                 Superintendent
    AusLink National Land Transport Stage 3b (also known as Stage 3a variation) (AusLink National Land Transport       Federal Minister (Recommended by
    Network Requirements            Network Projects) Report to Federal Government for funding approval                ED)
    Finalisation


    Figure 3.2        Project Delivery Approvals


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Chapter 3: Business Requirements                                       Department of Main Roads
                                                                Preconstruction Processes Manual


Relations Management                                 common goals and acceptable outcomes. It does
                                                     this through increased integration of the supply
Relations management requires establishing and       chain in which there is increased participation by
maintaining good relationships. This approach        downstream end users in the upstream processes.
requires both parties to develop and maintain        The use of group solving processes will provide
good relationships to ensure optimum outcomes        Main Roads with better 'whole-of-life' outcomes.
for Main Roads, the consultant, the community        Figure 3.3 - 'Integrated Supply Chain' shows the
and Government by aligning the efforts of the        full integration of processes for a whole project.
parties and making best use of the expertise and


                                                                                                           3
resources available. A start up meeting must
always be used to agree to Key Performance           3.2.4 Project Management
Indicators (KPI) for monitoring the health of the          Templates
relationship. Regular project meetings are
necessary to ensure relationships are consistently   The mandated project management methodology
addressed againts the KPI’s.                         must be used to deliver all Main Roads Road
                                                     Infrastructure projects - See Section 3.7. A series
Client Leadership and Relations                      of project management templates have been
Management Interaction with the                      developed to support the use of this methodology
Supply Chain                                         for the delivery of road infrastructure projects.
The supply chain for any project requires strong     They are also the key process requirements to
client leadership of all parties working towards     approve the inclusion of a project in the RIP.




Figure 3.3   Integrated Supply Chain


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    Department of Main Roads                                                   Chapter 3: Business Requirements
    Preconstruction Processes Manual


    The Purpose of Templates for Road                               (d)   The Preliminary Design is a stage
    Infrastructure Projects                                               submission of the Project Plan for approval
                                                                          to allow the project to progress into Year 2
    Templates support the project management
                                                                          of the RIP.
    methodology by:
                                                                    (e)   The Detailed Design is a stage submission
    • Incorporating the project management
                                                                          of the Project Plan for approval to allow the
      methodology for each step in the concept
                                                                          project to progress to forming a construction
      phase,
                                                                          contract.


3
    • Acting as a project management methodology
                                                                    Templates and Project Type
      checklist,

    • Providing an explanation of the intent of each                Template selection requires the user to first assess
      project management methodology requirement;                   the project Type using the following descriptions:

    • Providing a place to document the results of the              1 Type 1 Projects: - significant projects that are
      considerations for each methodology                             complex, high risk or expensive and thus
      requirement with document control provisions,                   require higher amounts of rigor and control
      and                                                           2 Type 2 Projects: - relatively straight forward,
    • Delivering     the    Project    Management                     low risk, projects for which a lesser amount of
      consistency required by the department.                         rigour and control is appropriate

    NOTE: For the use of templates, their relationship to project
                                                                    3 Type 3 Projects: - small, simple projects of low
    type and how they integrate into the design development
                                                                      cost that progress quickly through the concept
    process is shown in Figure 3.1 - Application of the Project
                                                                      phase
    Management Methodology to the Preconstruction Process.          The Template Selection Process is outlined in
                                                                    Figure 3.4 - Project Management Template
    The Role of Templates in the
                                                                    Selection.
    Preconstruction Process

    Templates support the preconstruction process                   Project Management Methodology
                                                                    and Project Type
    because of their alignment to the RIP
    development process as follows:                                 The project management methodology requires a
    (a)    The completed Project Proposal template                  business case to justify and seek approval for the
           requires approval to allow the project to:               project. Main Roads projects range from very
                                                                    simple projects of a very short time duration to
       • Proceed to the Options Analysis and                        projects that require significant investigations and
         Business Case,                                             sometimes years to develop a business case where
                                                                    the estimated cost of the project is to within
       • Be included in the RIP as a Planning                       ± 20% of the final project cost.
         Project, as appropriate.
                                                                    The impact on the preconstruction processes is
    (b)    The Options Analysis template requires                   that the business case for Type 3 projects may take
           approval of the Preferred Option before                  less than a week to prepare whereas Type 1
           further work is committed.                               projects may take several years. For a Type 1
                                                                    project the development of the business case may
    (c)    The Business Case template requires
                                                                    approach a completed preliminary design in order
           approval to allow the project to be included
                                                                    to prepare a project estimate to the required
           in RIP as a Construction Project (Year 5).
                                                                    accuracy. For Type 2 projects the development of
                                                                    the preferred solution to meet business case



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Chapter 3: Business Requirements                                        Department of Main Roads
                                                                 Preconstruction Processes Manual




Figure 3.4   Project Management Template Selection                                                           3
specifications will range between the                 criteria before they become eligible for inclusion
requirements for Type 1 and Type 2 projects.          on the RIP. These are:

                                                      (a)   Planning Projects (900 Series RIP Projects)
3.2.5 Roads Implementation
                                                      The project concept phase (planning) budget must
      Program (RIP)
                                                      be based on an approved project proposal and
                                                      include the cost of completing the Concept Phase
Overview                                              (that is conducting the options analysis and
                                                      preparing the business case). Planning projects
The RIP business rules specify the requirements
                                                      will be created for more complex, expensive or
for including road infrastructure projects in the
                                                      high risk projects where significant funds need to
RIP (Project Codes 1-99, 300 and 800, and 700
                                                      be committed to develop the business case.
where the estimated cost is greater than $200,000)
Check these rules in the RIP Help database for        The larger of these projects could be up to
currency before use.                                  15 years before they enter the RIP in Year 5 as a
                                                      construction project. Where significant time
An overview of the RIP Framework is illustrated
                                                      lapses occur between the preparation of the
in Figure 3.5.
                                                      business case and its proposed inclusion in the
                                                      RIP then a project review, including the cost
Roads Implementation Program (RIP)
                                                      estimate must be undertaken to ensure project
Each year, MR prepares the RIP in consultation        specified outcomes, considerations, inputs, and
with local government, industry and other             cost are still valid.
stakeholders. It is a public statement of the
                                                      (b)   Construction Projects (RIP Projects)
planning, construction and maintenance activities
which the state government intends to progress        A construction project is only authorised to be
over the next five years. It contains firm            included in the RIP after a business case has been
(committed) funding for the first two years and       approved. This would usually be an output of
planned (indicative) funding for potential projects   districts and region prioritization process. In most
in the subsequent three years. The program may        cases the project would be included in Year 5 of
be amended during its annual review to reflect        the RIP.
changed priorities or circumstances.
                                                      The project budget must be based on an approved
To provide confidence for the program                 business case and include the total cost of the
management process, projects must meet certain        project (that is planning, design, construction,
                                                      alteration to public utilities and ROW
                                                      acquisition). The budget is presented in out-turn


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3




    Figure 3.5   Overview of RIP Framework


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dollars based on the expected period for              completed in the immediate future.       This is a
construction.                                         Current Dollar Estimate.

Budget estimates must be based on the rigorous
process of cost planning outlined in Section 4.4.2    3.6.2.2 Estimate Stages
of the Project Cost Estimating Manual.                The pre-construction framework provides for
The project stages and preferred timing at which      estimates to be prepared at intervals during the
estimates are required are detailed in Table 3.1.     concept and Development Phases of a project to
                                                      monitor and control project cost. The project

                                                                                                             3
This framework provides for estimates to be           stages at which estimates are required are detailed
prepared at intervals during the concept and          in Table 3.1.
Development Phases of the project to assist
planning and maintain control over the cost of the    It is acknowledged that projects can vary
project.                                              substantially in terms of their size and complexity,
                                                      and therefore may have varying requirements as
                                                      to the number and staging of estimates.
3.2.6 Estimating Process
                                                      The full range of estimates as listed in Table 1
                                                      would be typical of a major project of high
3.2.6.1 Overall Framework
                                                      complexity where significant development
Good estimating is fundamental to the process of      activities take place between stages. There might
project cost management, providing the basis of       even be a need to review estimates within these
project justification, budgeting and cost control.    stages to provide the necessary control
                                                      particularly if the development of the project
The Main Roads estimating requirements and            extends over a long period of time. The
practices are detailed in the "Project Cost           mandatory estimates correspond to:
Estimating Manual". It covers the preparation of
estimates over the total life cycle of a project to   • Business Case
provide reliable cost information for:
                                                      • Preliminary Design, and
(a)   Initial justification of a project in the
                                                      • Detailed Design
      business case, (e.g. cost/benefit analysis);
                                                      It is recommended that completely revised and
(b)   Ongoing cost control during the project's
                                                      updated estimates are prepared at each of the
      development,        implementation   and
                                                      mandatory stages to ensure the scope of the
      finalisation phases;
                                                      project, which has been refined over time, is
(c)   Program management                              accurately reflected in the estimate under
                                                      preparation.
It also provides information on a range of
processes and techniques to suit the varying
circumstance under which estimates are to be          3.2.7 Scope and Cost
developed. Planners and designers must consult              Management
the Project Cost Estimating Manual for guidance
when preparing their estimates.                       3.2.7.1 The Process

Project budgets and publicly announced estimates      The main objective of cost management is to
are in out-turn dollars (see Section 1.7 -            manage and control project cost from the Concept
Terminology Convention).                              Phase to the Implementation Phase within the
                                                      program limit imposed by the Business Case, i.e.
Project estimates are initially developed using       Concept Estimate. The principle is to design to a
current day costs as if all works were to be          fully validated budget.


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    Table 3.1   Estimate Stages

                       Stage of Cost
     Project Stage                                          When Prepared                               Approved By
                         Estimate
                     Proposal           The investigation estimate is the budget required for
                     (Investigation     approval to produce the options analysis and business Regional Executive
                     estimate           case, and where relevant for inclusion of a planning  Director.
                     Mandated)          project in year 5 of the RIP.
                                        Comparative Costs of each option for comparison
                                        purposes only. These estimates are not refined since
                     Options
                                        the total scope and all of the risks are not necessarily


3
                                        known at this stage.
    Concept Phase
                                      The concept estimate (within ± 20%) is an output from
                                      the Business Case (based on developing the preferred
                                      option to the extent necessary to establish a reliable
                                      project cost estimate). It is the first project estimate
                     Concept Estimate                                                           Regional Executive
                                      produced and includes the outcomes from community
                     (Mandatory)                                                                Director(All Projects)
                                      consultation, environmental studies, geotechnical
                                      studies, etc. based on the preferred option. Approval
                                      at this stage allows the project to proceed for inclusion
                                      in the RIP.
                                        The preliminary estimate (within ± 12-15%) is an
                                        output of the Preliminary Design Stage of the
                     Preliminary
                                        Development Phase and confirms the scope and cost           Regional Executive
                     Estimate
                                        justification for the project. All risks should have been   Director.(All projects)
                     (Mandatory)
                                        identified and accounted for in the estimate. Approval
    Development                         required before inclusion in the RIP at Year 2.
    Phase                              The Detailed Estimate (within ± 10%) is an output of
                                       the Development Phase (at the end of the detailed
                     Detailed Estimate design stage). It includes the construction estimate    Regional Executive
                     (Mandatory)       and all other costs associated with development         Director(All projects)
                                       activities. All risks should be addressed and accounted
                                       for at this stage.



    The approach is to provide a procedure to                     Under the project management methodology the
    establish project scope control that is the basis for         first project estimate produced is the concept
    project cost estimation and management over the               estimate. It is produced as part of the business
    project life cycle which also interfaces with the             case and has an ongoing influence on all
    Main Roads project management system and all                  subsequent phases. All estimates include the
    departmental procedures.                                      whole spectrum of cost activities which make-up
                                                                  the total project cost i.e. cost of design, surveys,
    The project scope and cost control procedure                  consultant fees, materials testing, supervision,
    commences as soon as the Project Proposal has                 construction, project management, closeout, etc.
    been approved at the start of the Concept Phase.
    Project Scope and Cost Management applies over                Using this approach, there is a requirement to:
    all of the project lifecycle Phases.
                                                                  • Provide resources for the delivery of the
    The full Concept Phase development cost for                     Development Phase and manage them
    routine projects is considered to be part of the                efficiently in order to meet the project's
    network planning activities. For major projects,                objectives;
    the options analysis and the business case
    development costs are sourced through the RIP as              • Identify costs associated with the delivery of:
    planning projects.
                                                                     - Concept Phase (Options Analysis and
                                                                       Business Case);



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  - Development Phase (Preliminary Design              Resources
    and Detailed Design); and
                                                       Defining the scope and preparing cost estimates
  - Implementation Phase (Construction); and           must be undertaken by experienced competent
                                                       personnel familiar with delivering infrastructure
• Forecast the final project costs in order to         projects.
  develop the project budget, and manage these
  costs to make sure the objectives developed in       From the outset of involvement in the project, it is
  the business case are met.                           critical that the Project Manager engages staff
                                                       and/or agents who have an appropriate extent of

                                                                                                               3
The above approach necessitates revision of the        experience and proven capability for the various
total project cost at each phase/ phase stage after    functions and specialties that the project will
the concept phase, to determine the variance           comprise. An example of this arises in the project
between the revised estimate to completion and         appreciation where engagement of very
the concept estimate (project budget).                 experienced assistants, probably with a range of
                                                       backgrounds and perspectives, can provide the
The intention of the above exercise is to provide
                                                       means for timely recognition of all relevant
for an early detection of possible cost overruns, so
                                                       information needs, areas of vagueness or
the Project Manager can take necessary corrective
                                                       uncertainty, and the extent of risk which exists
action in order to bring the project cost within the
                                                       and which has to be accommodated in project
programmed budget.
                                                       management time tables and estimates.
If at any stage of the project's lifecycle the
estimated project cost forecasted at project           Cost Estimating
completion exceeds the project budget, re-
                                                       Production of an accurate cost estimate requires
justification is required. Alternatively, a revised
                                                       clear definition of the project scope. Scope
solution meeting the budget could be developed
                                                       definitions and project estimates are undertaken
and considered.
                                                       or reviewed at each phase in the project life cycle.
                                                       Refer to Section 3.7 of this manual and to the
3.2.7.2 Scope Management                               Project Cost Estimating Manual for more details.
See Chapter 5 - Project Scoping.                       When the preferred outcome option has been
                                                       developed, a concept estimate of its total cost is
3.2.7.3 Cost Management                                required so that the project can be evaluated on
                                                       the basis of benefits and costs. This estimate must
Preamble                                               be itemised (Construction, Planning and Design,
                                                       Project Management, and Administration) to
The Project Cost Estimating Manual (Main Roads         show the relevant cost components of delivery.
2004) provides detailed guidelines on cost
management (Section 4.5 of that Manual). The           The concept estimate needs to forecast the final
procedures described therein should be followed        project cost with sufficient accuracy for the
in controlling a preconstruction project. The          business case evaluation decisions to be valid and
processes include:                                     the total budget allocation to be realistic. For this
                                                       reason, a substantial itemized contingency
• Resource planning;                                   amount might need to be included in the concept
                                                       estimate to cover the high inherent risks and
• Cost estimating;                                     uncertainties in estimating costs at this stage of
                                                       the project.
• Cost budgeting; and
                                                       Thorough appreciation of the project, its
• Cost control.
                                                       complexities and the extent of uncertainty that
                                                       prevails at any stage is essential when preparing


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    the implementation cost estimates and estimates        project objectives. If the variances are large
    for investigation and design activities.               enough they might prompt a review of the
                                                           business case and re-justification of the project.
    Project managers are accountable for the accuracy
    of project estimates and for ensuring that projects    Project cost control commences with the concept
    are delivered in accordance with the approved          estimate, which establishes the project budget.
    scope.
                                                           The purpose of the Concept Estimate is twofold.
    Cost Budgeting                                         Firstly, it is used to establish the project budget.
                                                           Secondly, it forms an integral part of the project

3   The project budget is a summation of the Concept
    (Options Analysis and Business Cases Stages, as
    relevant) Development, Implementation and
                                                           justification process, when benefit cost ratios are
                                                           calculated.

    Finalisation budgets.                                  The estimate of project costs includes an item to
                                                           cover the cost of risk in the event of risk actually
    The first step towards reduction of the risks and      occuring as follows:
    uncertainties arise in the process for handover by
    the client to the chosen Project Manager. Ideally      • Risk Contingency Amount
    at this point the client requirements are fully
                                                           Risk Reserve and Variation Reserve are included
    defined and available for reference in the
                                                           in the project estimates as itemized contingencies.
    handover process.
                                                           Although the project's budget is formed from the
    Irrespective of the completeness of the formal
                                                           combined value of both the Base Estimate and the
    brief at this point, it is critical that the Project
                                                           Contingency Allowance, these two components
    Manager formally enters into a period of
                                                           should be monitored and project managed
    appreciation of the project dimensions, objectives
                                                           separately.
    and background. The more thorough this
    appreciation, the more will risks and uncertainties    Consequently, when producing the Earned Value
    be reduced.                                            Chart, there should be two graphs presented, one
                                                           representing Basic Estimate, and the second
    Project Cost Control
                                                           referring exclusively to the Contingency
    Project performance must be measured regularly         Amounts.
    to identify variances from the project plan. These
                                                           Bear in mind also that the project budget always
    variances are fed into change control processes
                                                           refers to the forecasted costs at project
    for the project. Variances that threaten the
                                                           completion. Furthermore, at any time, when
    objectives of the project will trigger an adjustment
                                                           assessing the project progress, the costs associated
    to the plan by repeating the appropriate planning
                                                           with the remaining activities should be projected
    process. This could result in an adjustment to the
                                                           to the project completion date and if any
    plan in areas other than the area where the major
                                                           discrepancies (overruns/ under runs) between the
    variance occurred.
                                                           original project budget and the forecasted cost at
    Cost control is concerned with influencing the         completion are detected, the appropriate
    factors which create changes to the cost baseline,     management action should be undertaken.
    identifying when changes have occurred, taking
                                                           As the project progresses through the
    corrective action to correct cost overruns or
                                                           Development Phase, revised and updated
    prevent their reoccurrence and informing
                                                           estimates are required to be prepared to reaffirm
    appropriate stakeholders of authorised changes.
                                                           project justification and affordability, which is
    For example cost overruns could be occurring
                                                           easy to do if the estimated cost does not increase
    through scope creep. This may prompt action to
                                                           beyond the budget. The project scope and risk
    review the process of scope control as well as
                                                           assessments need to be accurately documented in
    reviewing the design strategy for achieving the


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order to justify a change in scope and hence the        referred to Project Development Office (PDO)
project cost.                                           include:

Project cost control concentrates on the Concept        • State funded projects with an estimated cost
and Development Phases, each of which contains            greater than $20 Million,
a number of tasks and deliverables. The mandated
estimates provide review opportunities to assist in     • Federally funded projects with an estimated
project cost management. The estimating stages            cost greater than $10 Million,
are shown in Table 3.1 - Estimate Stages.
                                                        • All high risk or complex projects.
Project Cost Peer Review

The objective of peer reviews is to confirm that all
                                                        Estimate reviews are to be performed by peer
                                                        review groups as detailed in Table 3.2.
                                                                                                                   3
of the critical issues have been identified and
appropriately addressed at each stage of the
                                                        Table 3.2    Peer Review Group Composition
preconstruction process in order to give
                                                         Project
confidence that the project cost is to the required
                                                          Value     Leader                Team
accuracy. Reviews should be undertaken at the            $M (OT)
start of each phase of the process at the least. In                          DD M(TP) M(ID) Functional Leaders
the Development Phase, reviews should be done                                                As appropriate from
                                                                    M(TP)/
at the start of the Detailed Design as well as at the     < $5M                              RS&E, PDO and
                                                                    M(ID)                    region/district
start of the Preliminary Design to ensure that the
project is in scope.                                     $5M to
                                                                     DD
                                                          $20M
These reviews target the key issues of the
                                                                                             Functional Leaders/
project e.g.:                                                                                EDs/GMs from:
                                                                    D-DG/
                                                         > $20M                              - RS&E
• The identification and treatment of project risks                  RED
                                                                                             - SP&D
  ensuring mitigation on a progressive basis;                                                - F&BS

• The identification of all relevant stakeholders
  and addressing of their requirements;

• The appropriateness of the solution in relation       3.2.7.4 Project Evaluation
  to the need and operational performance
                                                        In order to be included in the Road
  outcome; and
                                                        Implementation Program, candidate projects for
• The rigour of scope and estimating with respect       evaluation must be generated from the directions
  to project costing.                                   included in the approved Transport Infrastructure
                                                        Strategy (Federal, State or Regional).
Project estimates are to include the costs of all
resources and activities required to deliver the        According to the current "Evaluation Guidelines
project.                                                for Road Projects" prepared by Infrastructure
                                                        Development Division, the initial project
Estimates are a prediction of the final cost of the     justification is a two stage process.
project and as such should be rounded up to the
nearest $1000 in recognition of the level of            The first stage of the evaluation process involves
uncertainty in the final outcome.                       a Cost Benefit Analysis (CBA) carried out in
                                                        accordance with the Cost Benefit Analysis
Review of estimates is mandatory and should be          Manual for Road Infrastructure Investment (Main
undertaken by an experienced estimator                  Roads 1999).
independent of the project team. Projects to be



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    It was recognized that CBA alone could not             3.2.7.5 Financial Management
    provide the full basis for evaluation because of its
    inability to take account of a number of relevant      The numbers used for projects and jobs are to be
    factors. Therefore, a set of guidelines for the        determined using the Road Program Management
    second stage of the project evaluation process was     System (RIPA). A project can have one or many
    developed.                                             subsequent job numbers.

    The relevant parameters of Stage 2 evaluation are      These project and/or job numbers are to be opened
    as follows:                                            in the Queensland Government Financial
                                                           Management System (QGFMS) after notification

3   • General Considerations
      * Policy / strategy match
                                                           of the pre-construction phases of the project has
                                                           been given. The job number for each phase will
                                                           include a character that identifies that project
      * Risk / feasibility                                 phase in the QGFMS. The owner's costs for
           - Socio / political                             activities in each phase will therefore be available
                                                           for monitoring or review purposes.
           - Technical / delivery
      * Network effects                                    A business unit costing system shall be used by
                                                           business units to record their actual costs for each
    • Development Outcomes                                 item of work in each of the phases for pre-
                                                           construction and/or construction work. This
      * Economic
                                                           system shall be capable of providing data and
      * Trade                                              analysis results, and be linked to the QGFMS for
      * Regional                                           sharing specific information to aid in monitoring
                                                           or review of performance and cost control.
      * Sensitivity test of travel time

    • Social Justice Outcomes
      * Equitable access
                                                           3.3 Value Management
      * Community viability e.g. Rural Employment          Main Roads have been designing and constructing
                                                           roads for decades. Over this time roads have
    • Environment Sustainability Outcomes                  progressed from old narrow dirt tracks, to paved
      * Impacts on Natural environment                     roads, and on to the modern motorways of today.
                                                           Continuing funding pressures has made it
      * Impacts on built environment
                                                           increasingly important to develop processes that
      * Impacts on cultural environment                    help us to achieve greater value for the available
                                                           funds. One way we can do this is to apply the
    • Safety Outcomes
                                                           Value Management (VM) to our process for
      * Hazardous goods                                    developing road infrastructure projects.
      * Vulnerable groups

    These requirements are fully incorporated in the       3.3.1 Value Management
    project management templates for the Concept                 Objectives
    Phase Stages of Project Proposals (authorises
    planning project to be included on the RIP), and       The goal of a VM study is to achieve design
    the Business Case (authorises a construction           excellence in the delivery of road infrastructure.
    project to be included on the RIP).                    Its objectives are to improve quality, minimize
                                                           total ownership costs, reduce construction time,
                                                           make the project easier to construct, insure safe
                                                           operations, and assure environmental and
                                                           ecological goals. The VM team is looking for the


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optimum blend of scheduling, performance,             • Achieving the best value in the development of
constructability, maintainability, environmental        the preferred option. (There is a strong focus on
awareness, safety, and cost consciousness.              engineering functions in this part of the
                                                        process),
Main Roads defines Value Management (also
referred to as Value Engineering) as the              • Identifying the best physical packaging method
systematic application of recognised techniques         to maximise value in the construction process.
by a multi-disciplined team to:
                                                      To maximise benefits VM must be an integral and
• Identify the function of a product or service,      essential part of the delivery process scheduled

• Establish a worth for that function,
                                                      routinely into the design development process in
                                                      areas offering the greatest potential for
                                                      improvement and/or value. Also, see Figure 3.3 -
                                                                                                             3
• Generate alternatives through the use of
                                                      Integrated Supply Chain.
  creative thinking, and

• Provide the needed engineering functions to
  accomplish the specified purpose (required          3.3.3 The Value Management
  operational outcomes) of the project.                     Process

This process should deliver these objectives          Main Roads is responsible for getting the best
reliably, and at the lowest life-cycle cost without   overall project value for the taxpayer. Applying
sacrificing safety, specified quality, and            the VM process to suitable projects will help
environmental attributes of the project. This         achieve this purpose. Simply stated, VM is an
section on value management has been tailored to      organized application of common sense and
the delivery of road infrastructure and               technical knowledge directed at finding and
consequently it has a strong value engineering        eliminating unnecessary costs in a project.
emphasis.
                                                      A team of 5 to 8 persons with diverse backgrounds
                                                      seems to work best. The length of time required
3.3.2       Value Management                          for a study varies and is dependent upon the
            Application to Road                       complexity of the project. The VM team effort
            Infrastructure Projects                   should be done at one time rather than spreading
Volume 1 of MRPDS requires VM application to          it over several weeks or months. By doing this the
all large or complex projects and for the physical    team members do not have to become
packaging for projects estimated to cost more than    reacquainted with the project and momentum is
$20M.                                                 maintained.

VM can be applied at any point in the design          The most frequently heard first response to a
development process, but to obtain maximum            presentation on VM is "we do it all the time, but
effectiveness, VM studies should be undertaken        we don't use that name!" However, it is highly
as early as possible when the impact of decisions     unlikely that they do, do it all of the time. Value
(on life-cycle costs) is the greatest.                Management has many elements, such as, team
                                                      work, functional analysis, creativity, cost-worth,
For road infrastructure projects VM can provide       and the systematic application of a recognized
benefits in the development and delivery phases       technique. Unless all of these elements are used, it
with respect to:                                      isn't VM and it will not yield the results that a VM
                                                      study will yield.
• Identification of the best solution 'preferred
  option' to the need/problem and achieving the       The "systematic application of recognized
  required required outcomes (For identifying         techniques," referred to in Section 3.3.1 is
  and developing options and conducting options       embodied in the VM Job Plan. The Job Plan is an
  analysis),                                          organised plan of action for accomplishing VM


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    studies and assuring the implementation of the          that we identify the elements that have the greatest
    recommended changes. The Job Plan contains the          potential for value improvement.
    following 9 stages:
                                                            The Investigation stage immediately brings the
    1. Selection                                            three fundamental concepts of VM (function,
                                                            cost, and worth) to bear on the problem. It is these
    2. Investigation                                        concepts that make the VM process different from
                                                            all other management and cost control techniques.
    3. Analyse
                                                            This stage requires the team to ask and answer the


3
    4. Speculation                                          following basic questions:

    5. Evaluation                                           • What is it?

    6. Development                                          • What does it do? (what is the function?)

    7. Presentation                                         • What must it do? (is its function basic?)

    8. Implementation                                       • What is it worth?

    9. Audits                                               • What does it cost?

    Stages 3 to 7 inclusive are performed by the VM         Most of the information required in this stage is
    team. The other three Stages should be carried out      readily available. The length of the project, traffic
    in accordance with Section 3.3.2 and the criteria       projections, design speeds, and the major
    shown in Stage 1.                                       elements designed into the project can be easily
                                                            identified from a review of the plans and other
    The intent of each Stage is described as follows:       documentation. The projects cost estimate would
                                                            only be known if the VM study is performed after
    Stage 1 - Selection:                                    the Business Case has been completed.
                                                            Sometimes the VM team must dig harder for other
    Project selection is outside the control of the value
                                                            information to adequately complete the
    study team. In general, the criteria used to select
                                                            investigation stage.
    projects includes:
                                                            Applying Pareto's Law of Distribution will give
    • high cost projects,
                                                            you an idea of where to start looking for potential
    • projects where the Business Case just does not        savings. It states that 80% of a project's cost will
      stand up,                                             be in 20% of the work. Preparing a project cost
                                                            model will begin to identify your targets of
    • projects with large risks exposure,                   opportunity.

    • important, but low priority projects that fail to     Stage 3 - Analyse:
      meet budget affordability, and
                                                            Identifying the engineering functions your project
    • problem projects.                                     and its elements perform is the next step in the
                                                            VM process. Function denotes the specific
    Stage 2 - Investigation:
                                                            accomplishment to be achieved by an element or
    The investigation stage is where the value study        combination of elements in the overall design.
    team first becomes involved. In this stage, the         The value methodology requires that we describe
    team determines what they know about the project        a function by the use of two words - an action verb
    from readily available information and what they        and a measurable noun (that is acted upon).
    must know in order to really define and / or solve
                                                            For example, the function of a bridge is to "cross
    the problem. It is in this stage of the VM study
                                                            obstacle." The bridge doesn't care (nor do we)


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whether that obstacle is a drain, river, creek,        Each advantage and disadvantage is described in
railroad, another highway or a building. Its basic     general terms. The team can perform a weighted
function is to provide a means to cross that           matrix analysis to determine which alternative is
obstacle. If it does not accomplish that function,     best based upon the relative importance of each of
we wouldn't buy it, therefore the cross obstacle       the desirable criteria which must be addressed.
function is basic. We want to be as non-specific as    This analysis satisfies the VM objective to
possible to leave us many options to perform the       achieve the best blend of performance, cost, and
generalised problem or function that we have           schedule. The objective is not to gain perfection.
before us.

                                                                                                                  3
                                                       Stage 6 - Development:
By the end of the Analysis Stage we have
identified our high-cost elements, functionally        Once the team selects the best alternative, it is
analysed them, and assessed their cost / worth         fully developed through sketches, cost estimates,
relationships. This phase of the VM job plan           validation of test data, and other technical work to
identifies the areas of a project that are ripe for    determine if any assumptions made during the
further value study.                                   study are in fact valid. The final step before
                                                       presenting the teams recommendations to
Stage 4 - Speculation:                                 management is to formulate an implementation
                                                       plan which describes the process that the agency
The speculation or creativity stage is next. This is   must follow to implement any recommendations.
where the power of the VM technique manifests
itself. The team applies brainstorming techniques      The final product of a value study is the formal
to develop good alternatives to the way the project    VM report and the presentation of the team's
is currently designed. Brainstorming forces            recommendations.
people to be creative. The mechanism that
produces this phenomena is called synergism -          Stage 7 - Presentation:
which means that one idea triggers other ideas or
thoughts through: similarities or like ideas;          Once the team has completed its VM Report it is
contiguous or adjoining ideas; contrasting or          necessary for the team to present its findings to
opposite ideas; and sound alikes.                      management/ Project Manager. Where project
                                                       improvements and/or cost savings are identified
The value study team applies creativity to its         these need to be supported by relevant evidence
functional statements which it has selected from       and supportive dialogue where necessary.
the cost/worth estimates. It uses the generic
format of the function to speculate on all possible    It is important to realise that it is the responsibility
solutions to the problem presented in that             of management/ project manager to either accept
functional statement.                                  or reject the findings of the team. It would be most
                                                       unusual for recommendations not to be accepted
The team uses brainstorming to generate a large        but political considerations may dictate the final
list of potential solutions to the problem described   position.
by the two-word function and then in the next
phase are able to rapidly pare the universe down       Stage 8 - Implementation:
to a manageable few ideas through the feasibility
                                                       No recommendation for a savings is a savings
analysis.
                                                       until it has been implemented. In this respect it is
Stage 5 - Evaluation:                                  the responsibility of management/ project
                                                       manager to take the appropriate action to ensure
Evaluation of the best alternatives is next. The       that the accepted suggestions are incorporated
advantages and disadvantages of each remaining         into the project at the earliest opportunity.
alternative are listed. Of course, if the
disadvantages far outweigh the advantages of any
alternative, it is dropped at this point.

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    Stage 9 - Audits:                                       risk mitigation strategy to eliminate or minimise
                                                            the risks during the development process of the
    This stage determines the amount of savings             project.
    generated by the VM study based on the amount
    of recommendations implemented in the                   It is not always possible to eliminate all risks but
    construction project. A cost benefit analysis on the    they can be managed appropriately and this
    value of the VM Study could also be worthwhile.         should occur at that part of the overall process that
                                                            is best situated to manage then. Risk should not be
                                                            managed by off loading to another party when it
    3.3.4 Job Plan

3
                                                            can be best managed some where else. Because
                                                            risk is an inevitable consequence of change, the
    Each stage of the Job Plan includes several tasks.      best time to manage risk is as part of planning
    It is the melding of the various tasks and              change. Where risks cannot be eliminated it is a
    techniques, coupled with finesse in their               requirement to provide a risk contingency amount
    application that makes the VM process work. An          to cover the likelihood of a risk occurring in the
    example of a Job Plan is shown in Table 3.3 -           project cost estimate.
    Value Management Job Plan.

                                                            3.4.2 What is Risk Management?
    3.4 Risk Management
                                                            Risk Management (RM) has been described as
                                                            "all the things you need to do to make the future
    3.4.1 What is Risk?
                                                            sufficiently certain". RM is regarded as the
    A risk is any exposure to potential loss or damage      rational processes that will allow risk to be
    that can impact on a project. The risk of a             managed well and can be defined as "the culture,
    proposal may include both potential benefits and        processes and structures which are directed
    potential costs. In most cases, risks are taken so      towards the effective management of potential
    as to achieve some advantage and managing risks         opportunities and adverse effects." RM is
    is associated with making decisions.                    systematically identifying threats (risks) to the
                                                            organisation and developing ways to minimise
    Risks can generally be grouped under four               those that do occur.
    headings:
                                                            RM is not designed to stifle innovation or change
    • Physical - injury or damage to persons or             but to ensure that the associated risks are
      property.                                             understood and treated in a way that will make the
                                                            desired outcome more likely and at the lowest net
    • Legal - breaching legal obligations.                  cost. The RM process provides for the systematic
                                                            application of management policies, procedures
    • Moral/Ethical - harm to the organisation's
                                                            and practices to the tasks of establishing the risk
      reputation.
                                                            context, identifying, analysing, evaluating,
    • Financial - loss of assets of the organisation.       treating, monitoring and communicating risk.

    • Risks are made up of two elements:                    Typically, good RM will be proactive. Equally,
                                                            good RM will be a routine activity and will
      - the likelihood of something happening, and          therefore be integrated into general management
                                                            activity. RM should be a part of the organisation's
      - the magnitude of the consequences if it did.
                                                            culture rather than being seen as something
    It is a requirement for all Main Roads projects to      separate. Even if the process used is informal, it
    be delivered using a risk management approach.          should be documented and based on a known
    This requires all external and internal project risks   system.
    to be identified and continually managed using a


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Table 3.3                             Value Management Job Plan
                     Objective
 Stage




                                              Key Questions                         Techniques                                 Tasks


                                        What is to be sudied?               Solicit project ideas                Speculate on project sources
                     Select Project




                                        Who is best able to study           Identify high cost / low value       Develop plan to identify projects
 Selection




                                        problem?                            areas                                Evaluate projects for potential
                                        What must be kown to start          Plan the project                     Present projects to management


                                                                                                                                                           3
                                        study?                              Obtain authorisation to proceed      Select projects for VM studies
                                                                            Allocate resources                   Implement study plan
                                        What is the project?                 Get information from best           Speculate on data sources
 Investigation




                                        What is the problem?                 sources                             Develop plans to gather data
                  Investigate
                    Project




                                        What is the cost?                    Get all facts & available costs     Implement data search plan
                                        What is accomplished now?            Work with specifics                 Investigate project - audit data
                                        What must be accomplished?           Identify the functions              Speculate on functions performed
                                                                             Challenge everything
                                        What is the basic function worth?   Evaluate by comparison               Analyse costs
                                        What are secondary functions        Put $ on specifications &            Analyse functions
                  Function &
 Analyse




                                        worth?                              requirements                         Evaluate function cost / worth
                    Cost




                                        What are the high cost areas?       Put $ on key tolerances &            Evaluate project potential
                                        Can any functions be eliminated?    finishes                             Select specific study areas
                                                                            Put $ on key standards
                                        What else will perform the          List everything - be imaginative     Select techniques to be used
                                        function?                           Use creative techniques              Speculate on alternatives
                  Speculate on
                  Alternatives
 Speculation




                                        Where else may function be          Defer judgement - do not criticise   Speculate on parameters
                                        done?                               Be courageous
                                        How else may function be done?


                                        How might each idea work?         Weigh alternatives                     Speculate on evaluation criteria
                  Alternatives
 Evaluation




                                        What might be the cost?           Choose evaluation criteria             Evaluate alternatives
                   Evaluate




                                        Will each idea perform basic      Refine ideas                           Select the best alternative
                                        function?                         Put $ on each main Idea
                                                                          Evaluate by comparison
                                       How will the new idea work?        Get information from best              Speculate on information needed
                                       How can disadvantages be            sources, specialists & suppliers      Speculate on information Sources
 Development

                  Alternatives




                                       overcome?                          Consider specialty material,           Develop a plan of investigation
                    Develop




                                       What will Be the total cost?        products & processes                  Develop selected alternatives
                                       Why is the new way better?         Consider standards                     Select preferred alternatives
                                       Will it meet all the requirements? Use new Information                    Develop implementation plan
                                       What are the life-cycle costs?     Compile costs - work with              Audit data
                                                                           specifics
                                       Who must be sold?                  Make recommendations                   Develop a written proposal
                                       How should idea be presented?      Use selling techniques                 Speculate on roadblocks to
 Presentation

                  Alternatives




                                       What was the problem?              Be factual                             acceptance
                    Present




                                       What is the new way?               Be brief                               Present VM study alternatives
                                       What are the benefits? / savings? Give credit
                                       What is needed to Implement        Provide an implementation plan
                                       Idea?
                                       Who is to implement change?        Translate plan into action             Develop change document
 Implementation




                                       How will plans / contract be       Overcome problems                      Implement approved alternatives
                  Alternatives
                  Implement




                                       amended?                           Expedite action                        Evaluate process
                                       Have all resources been            Monitor project
                                       allocated?


                                        What were the outcome benefits? Evaluate against expectations            Confirm operational functional
                  Effectiveness




                                        What were the solution benefits Evaluate functionality                   Confirm engineering functionality
 Audits




                                        What were the cost savings?     performance                              Analyse cost benefits
                       VM




                                                                        Evaluate by cost savings




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    The long term maintenance of structures (e.g.          requirements will be incorporated into normal
    bridges) and civil works (e.g. drainage) are           business procedures. Quality design and design
    serious issues for the department. The design must     documentation is a requirement for all
    incorporate good design practices that minimise        planning/design projects prepared for Main
    the future maintenance requirements of the             Roads. The specific requirements where records
    completed works together with detailing that           are required to be produced and made available all
    prevents water running down the exposed faces of       through the delivery process are:
    abutments and piers of bridges and the like.
                                                           • The name of the person responsible for


3
    There are three main stages in RM namely                 supervision of drawing production, including
    identification, assessment and treatment. In             the layout and suitability for its intended
    summary, the ten steps to develop a risk                 purpose,
    management plan are:
                                                           • The name of the person responsible for
    1. Make a commitment as an organisation,                 checking the readibility, accuracy and
       particularly at the executive level, to RM.           suitability for construction purposes,
    2. Identify all possible threats and risks.            • The name of the primary designer,
    3. Assess the likelihood and consequences of           • The name of the design verifyer (verification as
       each risk.                                            per AS/NZS ISO 9001-2000), including
    4. Decide to accept or treat each risk.                  records of this verification,

    5. Determine treatment          options    for   all   • The name of the design certifying person who
       unacceptable risks.                                   supervised the design as required by the
                                                             Professional Engineers Act 2002,
    6. Formalise the RM action plan.
                                                           • Records of design interfaces being checked
    7. Implement the treatment options.                      where different design disciplines are involved,
    8. Communicate information to everyone                   especially where the design(s) are prepared by
       affected.                                             independent sub- consultants,

    9. Review the RM action plan at appropriate            • Records of how any unusual features of design
       points.                                               have been addressed.

    10. Identify any new risks and update your plan.       Planning and design is a very complex process
                                                           that requires skill, care and diligence to be
    The RM process is outlined in the diagram below.       exercised in the preparation of engineering
                                                           drawings and specifications in accordance with
    The prime test of good RM is whether the
                                                           the ethics of the Engineering Profession. It is very
    measures taken will protect achievement of goals
                                                           important for the consultant undertaking design
    within the accepted tolerance of risk. A
                                                           services to:
    secondary, but still important test is whether this
    is achieved in the most efficient (lowest cost) way.   • Conform with the provisions of the Contract
    The risk management process is recorded in Form          Documents,
    M4213 - Risk Management Record.
                                                           • Check relevant safety aspects of the design;

                                                           • Consider the relevant environmental issues in
    3.5 Quality Management                                   the design, including the long term impact of
                                                             the constructed works on the environment;
    All designs are required to be delivered using a
    fully certified Quality System that complies with
    AS/NZS ISO 9001-2000. In most instances these

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• Consider the relevant economy of the design         review of project performance to date. The
  using a value management approach; and              deliverables, and hence the phases, are part of a
                                                      generally sequential logic designed to ensure
• Review the design and design detailing for          proper definition, scope and cost control of the
  constructability appropriateness relevant to the    project.
  construction site concerned.
                                                      The project phases adopted by Main Roads
Designs must fulfil the stated requirements of the    (including RoadTek) and Queensland Transport
brief and comply with the requirements of             are:
relevant Codes of Practice and Australian
Standards. In addition, the design must comply
with the requirements of the relevant Main Roads
manuals and the Brief/ Operational performance
                                                      • Concept

                                                      • Development
                                                                                                            3
Specification.
                                                      • Implementation
Aspects of design that do not comply with the
                                                      • Finalisation
requirements specified in the departments
manuals of design must be submitted for               Preconstruction activities are performed in the
specialist approval before being incorporated into    Concept and Development Phases only. However,
the design.                                           the intent of the Finalisation phase is also
                                                      applicable to the closeout of each of these two
The design control process requirements are
                                                      phases.
specified in Chapter 6 - Design Management.
                                                      The methodology also requires project
                                                      management activities and work management
3.6 Project Management                                activities to be separated to ensure the project
    Methodology                                       management actives are fully understood and
                                                      implemented. History shows us that technical
                                                      people have a very strong focus on work
General
                                                      management as one would expect but this usually
All expenditure or organizational resources need      comes at the expense of project management.
to be formally controlled and documented. The         Figure 3.6 shows the project management
first step in that process requires individuals and   activities and work management activities
organizations to understand the customer's need,      separated by phase steps.
think about how it can be satisfied and justify why
                                                      The delivery processes for project management
it should be satisfied by their organization.
                                                      and work management activities are referenced by
Developing a clear and common understanding of
                                                      a 'P' and 'W' prefix respectively as shown in
the problem is fundamental to achieving customer
                                                      Figure 3.6.
satisfaction.

Projects are undertaken in an environment of risk,    Use of Project Proposal Templates
because all factors that might impacts on the
                                                      It is important to understand that road
project are not generally known, resulting in a
                                                      infrastructure projects range in complexity, size
degree of uncertainty. Projects are divided into
                                                      and cost with project risk ranging from low to
several project phases to provide better
                                                      high commensurate to the project complexity
management control of project scope and cost.
                                                      and/or available information. Because of this a
Collectively, the project phases are known as the
                                                      series of project management templates have been
project delivery life cycle.
                                                      developed to assist in the appropriate application
Each phase is marked by the completion of one or      of project management to road infrastructure
more milestones and usually incorporates a            projects, i.e. the intensity of application will be



June 2005                                                                                          3-23
                                                                                                                                                                                                                                                                                                         3




3-24
                                                                                                                                                                              GENERIC ROAD INFRASTRUCTURE PROJECT




            Figure 3.6
                                                                                                          CONCEPT                                                                          DEVELOPMENT                                                         IMPLEMENTATION                                               FINALISATION
                                                                                                                                                         Project Administration                           Establish Contract                       Project                       Manage Project Plan          General                   Close-out
                                                                                 Project Proposal                      Business Case                      Appoint Project Manager                                                                                                                             Acceptance
                                                                                                                         Review Project Team                                                                Survey Market                          Administration                 Monitor Progress                                       Close Project Office
                                                                                  Project Initiation                                                      Form Project Team                                 Prepare Contract Documentation          Project Initiation            Manage Issues                Confirm Physical          Close Project Files
                                                                                  Form Project Team                      Prepare Outline Project Plan                                                                                                                                                          Completion
                                                                                                                                                          Setup Project Office                              Invite Offers                                                         Manage Change                                          Close Financial
                                                                                  Determine Functional                   Develop Concept Estimate                                                                                                   Re-establish Project Team
                                                                                                                                                          Establish Advisory Group                          Evaluate Offers                                                       Report Progress              Confirm Receipt of all    Accounts
                                                                                  Requirements                           Prepare Two Stage Project                                                                                                  & Office                                                   Documentation
                                                                                                                                                          Setup Financial Management Structures             Negotiate                                                             Prepare consultant                                     Value and Register
                                                                                  Develop "Concept Phase                 Evaluation, incl. (BCR)                                                                                                    Review Handover
                                                                                                                                                                                                P4                                                                                performance reports          Confirm Maintenance       Asset
                                                                                  Investigation Budget"                  Prepare Business Case                                                              Develop Schedule                        Package                                                    Arrangements
                                                                                  Review & Approval                                                                                                         Develop Estimate and Cash Flow                                                               P9                              Disband Team
                                                                                                                         Produce Consultant              Project Plan                                                                                                      P8                                  Prepare Handover
                                                                                  Identify, develop and submit Work      Performance Report(s)                                                              Obtain Approvals                                                                                   Report
                                                                                                                                                                                                                                                                                                                                                          P12
                                                                                                                                                          Review Documentation
                                                                                  Package Briefs                         Review & Approval                                                                                                   P6                                                                Review and Approval
                                                                                                                                                          Confirm Scope
                                                                                  Develop plan to deliver concept        Prepare Handover Package
                                                                                                                                                                                                                                                                                                                                                                Department of Main Roads




                                                                                  phase                                                                   Determine/Develop, implement & manage:                                                                                                                                P10
                                                                                                                                                  P3      - Implementation Plan                                                                                                                                                         Post
                                                                                  Setup Financial Management                                              - Resource Management Plan
                                                                                  Structure                                                                                                                                                                                                                   Evaluate Project          Implementation
                                                                                                                                                          - Risk Management Plan                                                                                                                              Performance               Review
                                                                                                               P1                                         - Delivery Schedule
                                                                                                                                                                                                                                                                                                                  Evaluate against       Convene a Post-
                                                                                                                                                          - Estimate and Cash Flow                        Pre-Construction Review                                                                                 Success Criteria       Implementation
                                                                                 Options (Solutions) Analysis                                             - Reporting processes                             Brief Team/ Contractors
                                                                                                                                                                                                                                                                                                                                                                Preconstruction Processes Manual




                                                                                                                                                                                                                                                                                                                  Prepare                Review Team
                                                                                  Review Project Team                                                     - Procurement Plan                                Brief Customer and Key
                                                                                                                                                          - Quality Plan                                                                                                                                          Completion Report      Plan and Review
                                                                                  Evaluate Options                                                                                                          Stakeholders                                                                                          (PCR)                  Undertake the Review
                                                                                                                                                          - Communications Plan
                                                                                  Prepare Report                                                                                                                                             P7                                                                   Review and             Prepare Post-
                                                                                                                                                          Document Project Plan
                                                                                  Produce Consultant Performance Report(s)                                                                                                                                                                                        Approval               Implementation
                                                                                                                                                          Review and Approval
                                                                                  Review & Approval                                                                                                                                                                                                                              P11     Review Report
                                                                                                                                                          Performance Reporting
                                                                                                                                                   P2-                                          P5                                                                                                                                       Review and Approval
                                                                                                                                                                                                                                                                                                                                                          P13
                                                                                                                                                                                    PROJECT MANAGEMENT

                                                                                                                                                                                        WORK MANAGEMENT
                                                                                                                                                                                            Preliminary Design
                                                                                                                                                                                             Further Develop Preferred Option, including Design
                                                                                                                                                                                             Options Investigations
                                                                                 Develop Options                      Develop Preferred Option                                               Commission and Manage Delivery of Work Packages       Design Changes                Test and Review
                                                                                  Identify Options                      Develop Preferred Option                                             Prepare Planning Report                                  Develop Brief                Prepare for Testing         Note: The references in the bottom
                                                                                  Develop Options for                   Identify, Commission &                                               Establish ROW Requirements                               Commission & Manage          Test Elements               right hand corner of each activity
                                                                                  comparison purposes                   Manage the delivery of           Options (Design)                    Produce Electronic Model                                 the delivery of relevant     Test System                 group are used for cross referencing
                                                                                   Commence Risk Management             relevant Work Packages           Analysis                            Conduct Community Engagement and Consultations           Work Package(s)              Prepare for
                                                                                                                                                          Review functionality of
                                                                                                                                                                                                                                                                                                               to text that describes the purpose of
                                                                                   Program                              Present the preferred option                                         Produce Road Safety Audit Preliminary Design             Seek appropriate             Commissioning
                                                                                                                                                          design components                                                                           approvals where extra                                    each listed point, as follows:
                                                                                   Identify Options                     for community consultation                                           Develop Preliminary Design Estimate                                                                     W9
                                                                                  Identify, Commission &                and/or targeted feedback, as      Analyse Technical, Delivery,       Conduct Design Review                                    funds are required                                               Process Activities Reference
                                                                                  Manage the delivery of                appropriate                       and Value aspects of                                                                                           W7                                     Project Management Work Management
                                                                                                                                                                                             Update Design Development Report (M4211 / M4212)
                                                                                  relevant Work Packages                Prepare AusLink Project           Options
                                                                                                                                                                                             Update Risk Management Record (M4213)                                                                               Ref. Section          Ref.   Section
                                                                                   Conduct Targeted                     Proposal Report, if relevant      Adopt most appropriate
                                                                                                                                                          design option solution for the     Check Design Interfaces                                                                                             P1     3.6.1.1.1      W1     3.6.1.2.1
                                                                                   Consultation                         Develop Concept Estimate




            Generic Road Infrastructure Project - Activity Breakdown Structure
                                                                                                                                                          relevant function                  Appropriate Treatment of Unusual Features of Design   Produce Outputs               Commission                      P2     3.6.1.1.2      W2     3.6.1.2.2
                                                                                   Develop Option                       Update Design Development                                            Conduct Design Verification
                                                                                                                        Record (M4213)                                            W3                                                                 Establish Workplace/ Site     Commission                    P3     3.6.1.1.3
                                                                                   Update Risk Management                                                                                    Check Drawings
                                                                                   Record (M4213)                       Update Risk Management                                                                                                       Construct project                             W10           P4     3.6.2.1.1      W3     3.6.2.2.1
                                                                                   Commence Design                      Report (M4211 or M4212)                                                                                              W5                          W8
                                                                                                                                                         Components/Work                                                                                                                                         P5     3.6.2.1.2      W4     3.6.2.2.2
                                                                                   Development Report (M4211                                    W2       Package Requirements                                                                                                                                    P6     3.6.2.1.3      W5     3.6.2.2.3
                                                                                   or M212)                                                                                                 Detailed Design
                                                                                                                                                          Define Element                     Complete Design of Preferred Option                                                                                 P7     3.6.2.1.4      W6     3.6.2.2.4
                                                                                                           W1                                             Requirements                       Produce Road Safety Audit Preliminary Design                                                                        P8     3.6.3.1.1      W7     3.6.3.2.1
                                                                                                                                                          Establish Cultural Heritage        Produce final Electronic Model
                                                                                                                                                          Requirements                                                                                                                                           P9     3.6.3.1.2      W8     3.6.3.2.2
                                                                                                                                                                                             Develop Detailed Design Estimate                                                                                                          W9     3.6.3.2.3
                                                                                                                                                          Determine Environmental
                                                                                                                                                          Management Requirements            Complete Engineering Drawings & Specifications
                                                                                                                                                                                                                                                                                                                                       W10 3.6.3.2.4
                                                                                                                                                          Determine Safety                   Prepare Scheme Prototype
                                                                                                                                                                                             Finalise Design Verification                                                                                        P10 3.6.4.1.1
                                                                                                                                                          requirements
                                                                                                                                                                                             Finalise Design Development Report - M4211/ M4212                                                                   P11 3.6.4.1.2
                                                                                                                                                          Prepare the Requirements
                                                                                                                                                          Specification                      Finalise Risk Management Record – M4213                                                                             P12 3.6.4.1.3
                                                                                                                                                          Detail Work Packages               Conduct Design Review                                                                                               P13 3.6.4.1.4
                                                                                                                                                                                  W4                                                         W6
                                                                                                                                                                                                                                                                                                                                                                                Chapter 3: Business Requirements




June 2005
Chapter 3: Business Requirements                                           Department of Main Roads
                                                                    Preconstruction Processes Manual


less for small low risk projects than large high risk   during this phase that the major decisions on the
projects.                                               scope of the project are made and the greatest
                                                        ability to influence the project outcomes exists.
The project management templates and their
application sequencing for Type 1, 2 and 3              The three steps are:
projects is shown in Figure 3.7 - Project
Management Templates.                                   • Project Proposal

The project management Project Proposal                 • Options Analysis
template (Template R1001) has been developed as

                                                                                                             3
                                                        • Business Case
a mandatory requirement to initiate a project.
Refer to Section 3.2.4 - Project Management
Templates.                                              3.6.1.1 Project Management

                                                        3.6.1.1.1    P1 - Project Proposal
3.6.1 Concept Phase (Concept
      Planning and Project                              The need for the project will be determined by its
      Scoping)                                          origin or initiating factors normally identified
                                                        during the district road network management and
The concept phase is a three-step delivery              road link strategy process. The network and link
process, which requires a sequential project build-     strategies in turn support the state network
up from network planning/ pre-project planning to       objectives and Integrated Regional Transport
a project budget and inclusion in the RIP. It is        Plans (if available).




Figure 3.7   Project Management Templates


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    Department of Main Roads                                          Chapter 3: Business Requirements
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    The project should be based on the higher order         government priorities, political imperatives,
    strategy documents, their identified future actions     industry requirements, local and other
    and desired outcomes. These actions may include         stakeholder requirements all within the
    regional    development      and      employment        framework of Main Roads strategic objectives;
    objectives.
                                                          • Preparing a budget (planning) to deliver the
    The need for a road construction project will also      business case (based on information from pre-
    be balanced against other network priorities and        project activities, e.g., link studies, analysis of
    fiscal allocations.                                     environmental constraints/opportunities based


3
                                                            on Road Corridor Environmental Assessment
    General                                                 data);

    All expenditure of organisational resources needs     • Validating application of the Public Private
    to be formally controlled and documented. This          Partnership (PPP) policy to the project.
    activity, the first step in that process, requires
    individuals and organisations to understand the       • Provide a plan for the development the concept
    customer's need, think about how it can be              phase,
    satisfied and justify why it should be satisfied by
                                                          • Preparing a proposal report (all projects) by
    their organisation. Understanding the problem is
                                                            completing Template R1001 to:
    the key to the solution.
                                                            - Justify why the organisation should proceed
    Scope                                                     with the project;
    This activity covers the tasks required to initiate     - Secure funding for delivering the next
    the project, understand and articulate the need,          stages (e.g. for the Options Analysis and the
    assess this against the organisation's business           Business Case);
    objectives and priorities, then develop a plan for
    conducting the options analysis and producing the       - Seek approval to proceed to the next stage
    business case.                                            (i.e. the Options Analysis) with assignment
                                                              of appropriate resources; and
    Purpose
                                                            - Seek approval to proceed as a planning
    The project proposal step includes:                       project on the RIP, if applicable.

    • Accept and initiate the project;                    Responsibility
    • Defining and understand the problem,                The customer & sponsor have prime
      including the current situation (Check that the     responsibility for initiating this activity. A project
      road Functionality has not changed since            manager will be appointed and assume
      original design);                                   responsibility for management of the tasks.
    • Identifying the operational performance
                                                          Communication and consultation
      outcome required to be achieved when solving
      the problem (See the Operational performance        It is important to adequately communicate and
      Specification);                                     consult in the preparation of the proposal. Many
                                                          customer needs are often not entirely unique and
    • Defining the scope of the project deliverables
                                                          it may be possible to satisfy a number of
      and outcomes;
                                                          customers under the one proposal. Alternatively a
    • Linking the project to the strategic business       similar problem may already have been addressed
      plans (e.g. confirming strategic fit)               which could eliminate or reduce the need for a
                                                          new project. If the project is approved then the
      Project evaluation is carried out in the context
                                                          proposal sets the baseline from which scope can
      of road network needs, government and local

    3-26                                                                                             June 2005
Chapter 3: Business Requirements                                        Department of Main Roads
                                                                 Preconstruction Processes Manual


be controlled and project performance measured.      • Accept and initiate the project;
It is fundamentally important to actively
communicate and consult widely with all key          • Understand and articulate the need;
stakeholders in the preparation of the proposal.
                                                     • Conduct an initial stakeholder analysis and
Both the sponsor and project manager must take
                                                       impact assessment;
an active role in this regard.
                                                     • Outline the risks;
Tasks
                                                     • Provide a plan for the conduct of the next


                                                                                                               3
1. Project Initiation                                  (options analysis) stage of the project;
2. Prepare Proposal                                  • Justify why the project should proceed; and
3. Prepare Briefs for Work Packages                  • Seek the release of the required resources.
4. Review and Approval
                                                     Scope
A. Private Public Partnership (PPP)                  The completed Template R1001 together with its
Consideration
                                                     attachments, e.g. operational performance
For projects to which the PPP process is to be       specification, budget, risks, etc. assist in the
applied the Concept phase mirrors Stages 1, 2 and    decision of whether the proposed project is to be
3, the "feasibility" phase of the PPP Policy and     developed to a business case stage. This is
VFM Framework (see www.sdi.qld.gov.au).              because all project proposals need to be
There are a number of common activities in both      prioritised and approved as not all project
with the PPP process relying heavily on the many     proposals will get approval particularly if their
investigations done in the Concept phase.            priority is low.

To aid in the validation that the PPP process        Apart from the details provided from network
should or should not be applied to a particular      planning details will not be known for all features
project the PPP Unit (SP&D) should notified prior    of the project. The purpose of the options analysis
to commencing this phase, even as early as           is to identify the preferred solution and therefore
network planning activities.                         the project proposal must avoid identifying the
                                                     solution. To reasonably satisfy the question of
B. Project Initiation                                whether the project should precede it will be
                                                     necessary to provide detail commensurate with
Prior to commencing work on the project it is        the level of risk.
necessary to identify and appoint:
                                                     Cost Estimates
• The Project Manager (Concept)
                                                     A project proposal is about defining and
This will clarify roles and responsibility of        understanding the problem and then identifying
various parties and avoid disputes and               the operational performance outcomes and
misunderstandings.                                   therefore it should be clearly understood that a
                                                     project estimate is not possible at this stage.
The Concept Phase Project Manager is the person
                                                     However, a budget does need to be established to
responsible for the management of all activity
                                                     undertake the planning activities as required by
necessary to deliver the project proposal, options
                                                     the options analysis and the business case. Pre-
analysis and business case.
                                                     project activities will assist in the identification of
Objectives                                           required work packages to assist in the
                                                     preparation of a planning budget.
The objectives of the project proposal are to:



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    C. Project Proposal Template                          (viii) Executive Summary

    Below is a step-by-step description of the            Summarises the key points of the proposal with a
    requirements and issues for each section in the       clear focus on describing the problem or
    Concept Project Proposal template.                    opportunity, the scope boundaries, outlining the
                                                          risks and provide a summary of the approach and
    Details of the project:                               resources required to the next stage.
    (i)    District Name
                                                          Purpose of the Project Proposal Document


3
    The name of the Main Roads District
                                                          The purpose of the project proposal is to identify
    (ii)   Local Government name                          the need for the project, establish the expected
                                                          operational performance outcome including
    The name/s of the local government/s in which         potential benefits based upon the current state of
    the project is located e.g. Banana Shire.             knowledge and understanding.

    (iii) Road name                                       Outline the processes to be used to develop the
                                                          concept phase.
    The name of the road and if the name changes
    within the project area refer to both names and the   Ensure funding and senior management support
    road number e.g. Leichhardt Highway, 26A.             for the concept phase development.

    (iv) Road Section                                     Establish link to the strategic/business plans.
                                                          Project evaluation is carried out in the context of
    The section of the road between two known
                                                          road network needs, government and local
    townships, urban areas or place names e.g.
                                                          government priorities, political imperatives,
    Westwood - Taroom.
                                                          industry requirements, local and other stakeholder
    (v)    Project Number                                 requirements all within the framework of Main
                                                          Roads strategic objectives.
    The number allocated to the project, normally
    associated with a shire / road / project, series of   The need for the project will be determined by its
    numbers e.g. Banana Shine / Leichhardt                origin or initiating factors normally identified
    Highway / (specific link) … 8 / 26A / 305.            during the district road network management and
                                                          road link strategy process. The network and link
    The shire number is constant within the shire and     strategies in turn support the state network
    the road is a constant for the length of the road,    objectives and Integrated Regional Transport
    however the project number will normally be           Plans (if available).
    associated with a link or intersection along the
    road.                                                 The project should be based on the higher order
                                                          strategy documents, their identified future actions
    (vi) Project location                                 and desired outcomes. These actions may include
                                                          regional    development      and      employment
    The place name or location descriptor e.g. Banana     objectives.
    Floodway; or West of Ranch Road; or 94.7-
    101.4km from Block Creek                              The need for a road construction project will also
                                                          be balanced against other network priorities and
    (vii) Project Name                                    fiscal allocations.
    Some projects are large enough to warrant an
                                                          References
    individual name usually based on local names.
                                                          In the development of the Project Proposal there
                                                          are many potential references most will usually
                                                          relate to pre-project activities such as, Link


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Studies, Regional Investment Strategies, Traffic     • Road traffic noise amelioration.
Studies, etc.
                                                     The proposal background may influence the type
Stakeholders                                         of solution and it is therefore important to
                                                     understand the associated safety/ functionality/
Understanding the current situation may provide      road network/ previous maintenance history/ etc.
an insight into the problems, needs and/or           Also update with any relevant information from
opportunities along with their associated impacts    the options analysis development.
on internal and external stakeholders.


                                                                                                             3
                                                     Current situation
Identify stakeholders (internal and external) who
may now or in the future have an interest in the     Understanding the current situation may provide
proposed project, illustrating the consultation      an insight into the problems, needs and/or
undertaken in the development of the proposal.       opportunities along with their associated impacts
Consultation with these stakeholders may impact      on internal and external stakeholders.
on the project acceptance or influence the type of
solution.                                            Purpose/Objectives of the Project

Notwithstanding a project technical justification    This is a brief description of what the project is
or acceptable cost, if the community is not likely   aimed to achieve in terms of:
to support the proposal then delivery will be
difficult. If community acceptance is not evident    • What initiated the project?
then consultation and project outcomes and           • What are the desirable outcomes?
outputs may need to be revisited.
                                                     For example, the traffic volumes and number of
Consultation should be carried out pursuant to the   accidents on a road warrant some action to
Departments 'Community Consultation Policy           improve levels of service; the solution however
and Guideline'.                                      may or may not involve works within that
                                                     corridor.
Project background
                                                     If a development project is initiated but not
The project may be initiated for any number of
                                                     already addressed within the district strategies
reasons, however most will originate through the
                                                     then the strategies will need to be revisited. For
road network management process. Examples of
                                                     example, if a new primary industry required route
initiators will be:
                                                     upgrading and the project was initiated within the
• State, Regional and National road network          network planning context then the Link Strategy,
  management needs.                                  Investment Strategy and Statements of Intent (if
                                                     available) should be amended. The amendment
• Integrated Regional Transport Planning (IRTP)      must reflect if not the new intended use of the link
  outcomes and deliverables.                         and network, but the reprioritisation of funds and
                                                     the potential delay to projects on the original
• Local government planning schemes and              program.
  infrastructure agreements.
                                                     Outcome Scope of the Project (Operational
• Large private development, such as a shopping      performance Specification as an appendix to the
  centre; new export opportunity, or mine.           project proposal)
• Public reaction to road traffic conditions.        To get the 'right' project and to reduce rework it is
                                                     critical that the project scope be made as clear and
• Safety.
                                                     unambiguous as possible. At the proposal stage
• Road condition.                                    the solution may not be defined and so the scope
                                                     should be expressed in terms of:


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    • The need or problem to be solved                      implementation of the project e.g. restricted
                                                            working hours or limited vegetation clearances,
    • The expected         operational     performance      need to be identified.
      outcomes.
                                                            (v)    Urgency
    (i)    In Scope Specification
                                                            If there are any aspects of the project or the
    The purpose of a scope statement is to define the       project itself that are urgent they should be
    project boundaries to facilitate effective              identified stating reasons for such urgency and
    management of deliverables on time and to               what action is required.

3
    agreed/approved cost. Typically these could be:
                                                            (vi) Assumptions
    • Improve flood immunity.
                                                            It is very important for all assumptions made in
    • Reduce traffic congestion on a nominated part         producing this proposal be itemised and
      of the road network.                                  documented.
    • Improve the rideability of a nominated section        Assumptions can encompass resourcing,
      of road.                                              authorities' permits, weather and constructability.
    • Improve trafficability during the wet season.
                                                            Impacts
    The scope outlined in any previous document
                                                            (i)    Internal
    should be confirmed here or updated as necessary.
                                                            Describe when, where and how the project will
    (ii)   Out of Scope Specification
                                                            impact on areas within Main Roads and include
    To clearly define the project scope it can be           an outline of both positive and negative
    helpful to list works that will not be delivered as     influences, e.g. better vehicle movements in and
    part of the project. This is important, as it will      out of weigh in-motion sites, weigh in-motion site
    minimise the potential for rework or additional         not considered during project development.
    work and is a critical aspect in managing/avoiding
                                                            (ii)   External
    project scope 'creep'.
                                                            Describe the impact that the project will have
    Some out of scope items may well be deemed
                                                            outside Main Roads and includes both positive
    necessary but the work needs to be procured via
                                                            and negative impacts on external stakeholders,
    other means and this interface needs to be well
                                                            e.g. rearranged traffic movements, improved
    managed.
                                                            traffic flow.
    (iii) Related Projects
                                                            Method to Date
    Any related projects impacting on this project
    need to be identified, e.g. joining to a bridge under   The steps taken so far in the development of this
    construction.                                           proposal consist of data and information
                                                            gathering, targeted consultation, including the
    Impacts such as timing, availability of materials       procurement of supporting work packages, as
    or workforce, may also pose significant risks to        appropriate. 'Template R2002 - Project Plan' gives
    the project unless they are identified and managed      a listing of generic considerations that should be
    in possibly a broader context.                          used as a check list to ensure all potential risks are
                                                            addressed.
    (iv) Constraints

    Restrictions that will limit the way the objective is
    to be achieved and includes anything that might
    impact on the successful development and/or


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Risks/Issues                                            proposal. The overall purpose of this options
                                                        analysis activity is to select a preferred solution
Risk is the chance of something happening that          from the partially developed options that flow
will have a detrimental impact upon the agency,         from the previous activity and document the
project or other objectives. Risk events can be         entire options analysis process. Once the preferred
related to the project management process (e.g.         option is agreed a business case is developed to
fiscal, time or resources) or project planning          justify the inclusion of the project in the corporate
activities (e.g. community pressure, cultural           program of work. It is important that the 'do
heritage or geological). It is extremely important      nothing' option is evaluated as part of this analysis

                                                                                                                3
that the identification process is thorough and         to provide a baseline against which the costs and
includes both external issues and technical risks.      benefits can be assessed.

Findings                                                Scope
Outline the key findings, both financial and non-       This activity covers the comparative evaluation of
financial, that support the recommendation. At          the option solutions identified in work
this stage a cost / benefit will not be have been       management activity Develop options and the
accurately quantified. However, some indication         selection of the preferred option for further
of possible cost / benefit should be given to justify   development under work management activity
continuance of the project to the options analysis.     Develop preferred option. The scope includes the
                                                        preparation, review and approval of the options
Recommendations                                         analysis report.
At this stage information should be sufficient to
                                                        Purpose
make a recommendation to proceed to options
analysis and to include the project in the RIP as a     The Options Analysis step includes:
planning project only. Where the project is a
planning project it will require the establishment      • Reviewing the project proposal and developing
of a planning budget for RIP purposes. In the             a clear understanding of the problem and the
event where the proposal is not approved revisit          outcomes required by the customer (outcome
the expected operational performance outcome              specification);
and rework with a view to achieve approval of the
proposal.                                               • Identifying all plausible problem solution
                                                          options (technical and non-technical) using a
Plan to next Stage                                        value management approach that will satisfy
                                                          the specified requirement(s) (options could
A documented plan is required to guide both               include alternative alignments, different
options analysis and business case development.           layouts, coordination of traffic signals, or
It should facilitate communication among                  public transport schemes);
stakeholders, and to document approved scope,
and identify the dates and milestones in the next       • Developing and assess solution options using a
two stages. Resources required to complete this           value management approach that assesses
work together with their cost must also be                impacts, benefits and cost to a level of detail
documented.                                               that enables a comparative evaluation to clearly
                                                          determine the preferred option, including
3.6.1.1.2      P2 - Options (Solutions)                   conducting Road Safety Audit (Feasibility) for
               Analysis                                   each option, where relevant. (It is important
                                                          that the 'do nothing' option is considered as part
General
                                                          of this analysis to provide a baseline against
The solution options analysis is to be conducted in       which the costs and benefits can be measured);
accordance with the plan detailed in the approved


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    • Ensuring project environmental sustainability       and professional support either internal or
      through appropriate environmental assessment        external to the organisation.
      and management (refer to the Road Project
      Environmental Manual for guidance);                 Communication and consultation

    • Selecting the 'preferred solution' to satisfy the   Considerable communication and consultation
      required operational performance outcome            between the customer, project team and the
      described in the project proposal, ensuring that    appropriate technical and professional staff in
      it is within the defined outcome scope of the       identifying and developing the options is required.


3
      project;                                            The customer and other stakeholders must be
                                                          actively involved in the option analysis process to
    • Defining the solution scope of the preferred        generate a sense of participation in and ownership
      option (refer Chapter 5); and                       of the final solution. Independently selecting an
                                                          option and imposing it upon the stakeholders will
    • Preparing the Options Analysis Report and
                                                          create resistance and lead to project failure.
      completing Template R1002 for Type 1
      Projects, Template R1004 for Type 2 Projects
                                                          Tasks
      and Template R1005 for Type 3 Projects to:
                                                          1. Comparative evaluation of options
      - Seek approval of the preferred option;
                                                          2. Prepare options analysis
      - Seek approval to proceed to the next stage,
        i.e. the Business Case;                           3. Review & approval
      - Confirm planning budget requirements;             A. Private Public Partnership (PPP)
                                                          Consideration
    The approved options analysis report authorises
    the project to move to the business case stage        The work done here mirrors of the PPP process at
    together with an approved preferred option.           Stage 2 "Preliminary Assessment' except that only
                                                          a range of viable technical solutions are
    The options analysis is to be conducted in
                                                          developed. The recommended option referenced
    accordance with the plan detailed in the approved
                                                          below is one of the viable technical solutions that
    proposal. The overall purpose of the options
                                                          go into Stage 3 of the PPP process "Business Case
    analysis activity is to select a preferred option
                                                          Development'.
    from the partially developed options that flow
    from the previous activity and document the           B. Options Analysis Process
    entire options analysis process. Once the preferred
    option is agreed a business case is developed to      The options analysis is to be conducted in
    justify the inclusion of the project in RIP. It is    accordance with the plan detailed in the approved
    important that the 'do nothing' option is evaluated   proposal. The overall purpose of the options
    as part of this analysis to provide a baseline        analysis activity is to select a preferred option
    against which the costs and benefits can be           from the partially developed options that flow
    assessed.                                             from the previous activity and document the
                                                          entire options analysis process. Once the preferred
    The deliverable from this activity is the options     option is agreed a business case is developed to
    analysis report.                                      justify the inclusion of the project in RIP. It is
                                                          important that the 'do nothing' option is evaluated
    Responsibility
                                                          as part of this analysis to provide a baseline
    The project manager is responsible for this           against which the costs and benefits can be
    activity. and will need to consult widely with        assessed.
    stakeholders and with all appropriate technical
                                                          The deliverable from this activity is the options
                                                          analysis report.

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Options Analysis Compilation Process                   2. Project Customer, Sponsor and Project
Requirements/ Considerations                              Manager

The requirements and considerations that the           3. Stakeholders
planners/ designer must take into account, assess
and include as relevant in the compilation of the      4. Background
options analysis are:
                                                       5. Current Situation
Objectives                                             6. Purpose/Objectives
The objectives of this activity are to:

• Select the best solution for satisfying the need;
                                                       7. Scope of Project

                                                       8. Impacts
                                                                                                              3
• Obtain agreement of the selected option; and         9. Method to Date
• Obtain approval to proceed              with   the   'Template R2002 - Project Plan' gives a listing of
  development of the business case.                    generic considerations that should be used as a
                                                       check list to ensure all potential risks are
Scope of The Solution (Preferred Option)               addressed.
The scope of this activity covers the comparative
                                                       Risks/Issues
evaluation of the options, prepare options analysis
and review and approve the deliverables                The review should focus on what has changed
identified in work management activities:              since the preparation of the project proposal,
                                                       including any issues that may have been
• Develop       operational           performance
                                                       overlooked at that time. Where a change has
  requirements;
                                                       occurred up-date the relevant details and include
• Identify Options; and                                in the options analysis template. Include any risks
                                                       identified in 'Out of Scope' and 'Related Projects'.
• Develop options                                      All risks should be recorded in Form M4213 -
                                                       Risk Management Record.
The use of Templates R1002 or R1004 or R1005
together with its attachments will assist in the       D. Options Analysis Report
decision on whether the project is to proceed to
the business case.                                     This section should explain in full all options
                                                       identified in response to the proposal, including
Cost Estimates                                         those not recommended.

Only comparative cost estimates are prepared as        Risks at this stage may not be fully understood
part of the options analysis development.              however with the development of the preferred
                                                       option they will progressively get sharper.
C. Options Analysis Template
                                                       Each option should be analysed separately. The
Below is a step-by-step description of the             following subheadings should be used for
requirements and issues for each section of the        evaluation of each option. The information should
Concept Options Analysis template.                     be presented in order of ranking. The same
                                                       information should also be presented in serial
Review of Project Proposal                             format or in a table comparing each option. The
                                                       basis for ranking options should be detailed in this
A review is required of the project proposal for all
                                                       section.
items up to and including Risks/Issues, i.e.
                                                       • Strategic Fit
1. Introduction

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    • Feasibility                                            Plan to Next Stage

    • Costs                                                  Describe the next step recommended in this
                                                             Options analysis. Identify the key dates/
    • Benefits                                               milestones in the next process (e.g. Business
                                                             Case).
    • Option Specific Risks/Issues
                                                             Also, describe the resources (specific item and
    • Impacts
                                                             names where available) and the associated costs
                                                             to complete the next step (e.g. Business Case) and

3
    • Timing
                                                             where/how funded. This does not include total
    • Deliverables                                           project costs or benefits at this stage.
    • Others                                                 E. Use of Project Options Analysis
                                                             Templates
    • Assumptions
                                                             It is important to understand that projects range in
    • Dependencies/Constraints
                                                             complexity, size and cost with project risk ranging
                                                             from low to high commensurate to the project
    Recommended Option
                                                             complexity. In the context of the requirements and
    This section should give the reasons why that            considerations that need to be addressed project
    option is recommended. Where an option involves          management project Options Analysis template
    a number of steps or actions, each should be             (Template R1002 or R1004 or R1005) have been
    detailed in the recommendation.                          developed as a mandatory requirement to initiate
                                                             a project. Refer to Section 3.2.4 Project
    This section should also outline the costs incurred      Management Templates.
    to date on previous stages of the project (i.e. for an
    Options Analysis, expenditure incurred for the           3.6.1.1.3     P3 - Business Case
    preparation of the Project Proposal and for the
    Options Analysis and the resources required, cost,       General
    and time frame for the next deliverable (Business
                                                             This is the final activity in the concept phase. The
    Case).
                                                             sole purpose of the business case document is to
    A recommendation could also include changing or          present a case for including the project in the RIP.
    redefining project scope.                                Main Roads have an array of potential projects
                                                             competing for limited resources and will be
    Business Processes/Operational performance               endeavouring to put together a RIP that offers the
    Requirements                                             greatest benefits in terms of value for money and
                                                             advancing the organisation's strategic objectives
    Provide a summary of the Business Process                and priorities. To support the organisation, it is
    changes and the Business Operational                     critical that the business case presents a complete
    performance      Requirements       Specifications       and unbiased justification of the project.
    completed to this point. Also refer to the Business      Embellished, inflated or under resourced
    Process Analysis (BPA) and the Business                  justifications could lead to significant
    Requirements Specification (BRS).                        departmental        embarrassment       and      lost
                                                             opportunities.
    The operational performance requirements need
    to be clearly identified in terms of existing and        To facilitate the transition from the concept phase
    desired conditions, e.g. existing capacity vs            to the Development Phase, a handover package is
    proposed capacity, existing safety record vs             required. This package is particularly important
    targeted safety proposal.                                when a time delay or change in project manager
                                                             may occur between phases.


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Included with the business case is the preliminary      Projects , Template R1004 for Type 2 Projects
project plan, this document is included to provide      and Template R1005 for Type 3 Projects to
direction and control of project activities post        seek approval for:
project approval. The plan should also include
provision for the orderly termination of the            - Delivering the preferred solution option;
project if approval is not given.
                                                        - Delivering the construction budget;
Scope                                                   - Including the project on the RIP as a
                                                          construction project; and


                                                                                                            3
This activity covers the tasks necessary to develop
                                                        - Proceeding to the next phase, i.e. the
and present a justification for the project's
                                                          Development Phase.
continuation and the tasks necessary to prepare a
plan to progress the project once the business case   • Develop the justification for including the
has been considered.                                    project in the RIP.

Purpose                                               • Put together a handover package to facilitate
                                                        the transition to the next phase.
The purpose of the Business Case is to:
                                                      • Develop a draft project plan for directing and
• Review:                                               controlling project activities after the business
  - the proposal to develop a clear                     case has been accepted.
    understanding of the customer's requirement
    (outcome specification);                          • Develop a plan for the orderly termination of
                                                        the project if the business case is not accepted.
  - the solution options analysis report to
    understand the reasons for selecting the          Responsibility
    preferred option (solution); and
                                                      The project manager is responsible for drafting
  - the scope of the preferred option.
                                                      and submitting the business case. The customer is
• Develop the preferred option as a documented        responsible for timely approval.
  single problem solution ensuring that it is
  within the scope of the project, including          Communication and consultation
  conducting Road Safety Audit (Feasibility).
                                                      It is important that the project manager maintains
  The business case will include appropriate
                                                      close communications with stakeholders. It is
  investigations, consultations and development
                                                      particularly important that all stakeholders are
  to establish the project cost to within ± 20% of
                                                      aware of the importance of an honest justification
  final project cost);
                                                      and provide the project manager with unbiased
• Ensure development of the preferred option          advice. The business case, if accepted, provides
  achieves:                                           an important baseline in determining project
                                                      scope. Effective communication at this stage will
  - Environmental sustainability through              ensure that all stakeholders make a contribution to
    appropriate environmental assessment and          developing this important document and that, if
    management (refer to the Road Project             accepted, the business case will produce outputs
    Environmental Manual for guidance).               and outcomes that will satisfy the customer need.
  - Economic solution through good design
    practice.                                         Tasks
  - Constructability practically and efficiency.      1. Prepare preliminary project plan
• Preparing the Business Case report and              2. Prepare business case
  completing Template R1003 for Type 1
                                                      3. Review and approval

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    4. Prepare handover package                           Include any risks identified in 'Out of Scope' and
                                                          'Related Projects'.
    A. Business Case Template
                                                          The process requires a sound understanding of the
    Below is a step-by-step description of the            risks, including how they are mitigated during
    requirements and issues for each section of the       preparation of the Business Case.
    Business Case template.
                                                          13. Issues
    The paragraph number corresponds to the
    Templates R1003 and R1004.                            Also, review what has changed since the

3
                                                          preparation of the options analysis, including any
    Details of Business Case                              issues that may have been overlooked at that time.
                                                          Where a change has occurred up-date the relevant
    A review of the options analysis is required of the   details and include in the business case template.
    project options analysis for all items up to and
    including - Risks/Issues, i.e.:                       List all known issues to be resolved.

    1. Introduction                                       14. Business Processes/Operational performance
                                                          Requirements
    2. Project Customer, Sponsor and Project
       Manager                                            Confirm summary of the Business Process
                                                          changes and the Business Operational
    3. Stakeholders                                       performance      Requirements       Specifications
                                                          completed to this point. Also refer to the Business
    4. Background
                                                          Process Analysis (BPA) and the Business
    5. Current Situation                                  Requirements Specification (BRS).

    6. Purpose/Objectives                                 The operational performance requirements need
                                                          to be clearly identified in terms of existing and
    7. Scope of Project                                   desired conditions, e.g. existing capacity vs
                                                          proposed capacity, existing safety record vs
    8. Impacts                                            targeted safety level.
    9. Method to date                                     15. Delivery Approach
    10. Overall project risks/issues                      Outline of steps to complete project
    'Form M4211 or M4212 - Design Development             (Development and Implementation Phases), i.e.
    Report' gives a listing of generic considerations     the steps to be taken to implement the business
    that should be used as a check list to ensure all     case, including the procurement of supporting
    potential risks are addressed.                        work packages, as appropriate:

    11. Options                                           • Detail the resources required to deliver the
                                                            project;
    Provide a summary of the options considered and
    why the recommended option was chosen. Where          • Detail any standards which are applicable;
    available, an executive summary of the options        • Describe how the project schedule (timeline)
    analysis paper should provide this information.         will be managed;
    12. Options Analysis                                  • Outline the consultation process to be used;
    Identify the risks associated with the project        • Describe how project change will be managed;
    development and implementation. Document in
    the Risk Management Record (Form M4213).              • Describe how project issues will be managed;


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• Described how project risks will be managed;        18. Product Benefits Realisation

• Provide a high level schedule containing key        Include the actions that will ensure that the
  activities and milestones (Refer Chart 1 in         benefits are realised. Nominate the stages or
  Chapter 2 for guidance); and                        decision points at which assessments should be
                                                      made or corrective actions taken within the
• Identify major items that need to be procured       project.
  and any significant supply time delays that may
  be expected.                                        Detail how the benefits of the project will be
                                                      measured. This may or may not be during the life

                                                                                                                 3
Also, review the proposed implementation              of the project. An example table format is shown
method, e.g. Design and then construct, Design        below.
and construct.

16. Financial Issues                                    Success                     Measurement
                                                                   Responsibility                 KPI   Target
                                                        Criteria                      method
(i)      Financial Costing Requirements

All projects must have a fully itemised cost of the
project by phase step, as follows:

• Concept Phase for the preparation of:
      - the options analysis; and
                                                      19. Recommendation
      - the business case;
                                                      Provide a summary of reason why the project
• Business Case for the preparation of:
                                                      should proceed to the next stage and identify the
      - the design development; and                   impacts of not proceeding.
      - the detailed design;
                                                      Justification for the project could be based on a
The acquisition cost of all work packages is to be    combination of the following factors:
included in the relevant phase step.
                                                      • Benefits to the business operations
The expected year for programming of funds is
                                                      • Strategic direction
included in the RIP.
                                                      • Cost/Benefit analysis
(ii)     Funding
                                                      • Technology
Identify source, timing and cost distribution by
financial year, as appropriate.                       • Legal Costs to the Project should be given.
17. Project Performance Measurement                   Also include the costs incurred to date on
                                                      previous phases of the project (i.e. for a Business
Detail how the performance of the project will be
                                                      Case, the expenditure incurred for the preparation
measured during the project's life. An example
                                                      of the Project Proposal, the Options Analysis and
table format is shown below.
                                                      the Business Case) and the resources required,
                                                      cost and time frame for the next deliverable (the
       Success Criteria         Responsibility
                                                      project outcomes through to completion).

                                                      Note: A recommendation could also include changing
                                                      or redefining project scope.




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    3.6.1.2 Work Management                                Purpose

    General                                                The purpose of this activity is to:

    To ensure stakeholder's needs and expectations         • Determine the        operational    performance
    from a project are delivered it is essential that        requirements.
    proper management of project deliverables is
    performed.                                             • Identify the options.

    The work management activities in the concept          • Develop and cost the options.


3
    phase are:                                             • Present the options for comparative evaluation.
    • Develop options
                                                           Responsibility
    • Develop preferred option
                                                           The project manager is responsible for the
    3.6.1.2.1     W1 - Develop Options                     coordination of this task. External personnel may
                                                           conduct the work elements.
    General
                                                           Communication and consultation
    Having developed a plan, and gained approval for
    the conduct of an options analysis, the next step is   Communication and consultation between the
    to develop a clear and thorough understanding of       project manager and the work teams is critical in
    the problem to be solved. Understanding the            determining that all plausible options are
    problem is the key to the solution. It is critically   identified and developed to a level of detail just
    important to identify the stakeholders and obtain      sufficient to support their comparative evaluation.
    their assistance and involvement with identifying      Effective communication and consultation with
    and developing the options.                            the customer and users is important to ensure that
                                                           the solutions identified and developed will satisfy
    A cost estimate is required for each option. Cost      the customer's need.
    estimates at this stage are not estimates of the
    project cost and must not be released outside the      Tasks
    project. The estimate is only developed to a level
    that enables a comparative evaluation of options       1. Develop operational performance requirements
    to occur and an informed selection to be made.
                                                           2. Identify solution options
    Scope                                                  3. Develop options
    The scope of this activity covers the work
                                                           A. Develop Operational Performance
    necessary to:                                          Requirements
    • Develop a clear understanding of the customer        Guidance
      requirement.
                                                           The operational performance specification/Brief
    • Identify all plausible options that could satisfy    details the requirements and specifications for all
      the requirement.                                     elements of the intended delivery process.
    • Develop and cost those options to a level that       Requirements should be reviewed for purpose,
      enables a comparative evaluation to clearly          necessity, feasibility and tolerances.
      determine the preferred option.

    The level of detail required in this activity is
    governed by the requirement to clearly determine
    a preferred option.


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Responsibility                                          baseline against which the project's performance
                                                        will be assessed. This activity develops the
The project manager, component managers and             preferred option information to a level that
team leaders have responsibilities in accordance        supports development of the business case.
with the project plan.
                                                        Scope
References
                                                        The scope of this activity covers the work
Product       development           methodologies       necessary to develop the preferred option to a
Organisational procedures

                                                                                                                 3
                                                        level sufficient to support the submission of the
                                                        business case. Cost estimates produced during this
B. Identify Solution Options
                                                        activity are likely to be made available to
Identifying solution options is the first step in the   personnel external to the project and must
design development process. It is a creative            therefore possess a commensurate confidence
process of synthesising and implementing the            level, i.e. to within ± 20% of the total projecr cost.
knowledge and experience of humanity to
                                                        Estimate accuracy is dependent upon:
enhance the welfare, health, and safety of all
members of the community, with due regard to the        • Correctly identifying all of the work items
environment in which they live and the                    necessary to deliver the project
sustainability of the resources employed. The
planner/designer must display detailed technical        • Accurately calculating the work item quantities
and professional understanding and the wise
                                                        • Appropriately assessing and applying Market
application of that understanding in the
                                                          Forces to the unit rate cost.
identification of options that appropriately satisfy
the problem or need being addressed. The
                                                        Purpose
identification of options must be within the
context of the processes and technical                  The purpose of this activity is to conduct:
requirements identified in Chapter 4 - Planning
and Design Processes.                                   • Conduct an appropriately detailed scope
                                                          definition.
C. Develop Options
                                                        • Provide a detailed list of assumption and
The development of solution options is a                  constraints.
continuation of the identification process
complying with the requirements of Chapter 4            • Conduct an appropriately detailed risk analysis.
that specifies the requirements and considerations      • Conduct an appropriately detailed stakeholder
for the design development process applicable to          and impact analysis.
all of the technical options.
                                                        • Conduct a detailed business process analysis.
3.6.1.2.2     W2 - Develop Preferred
              Option                                    Responsibility
General                                                 The project manager is responsible for the
                                                        coordination of this task. External personnel may
The development and definition of the preferred
                                                        conduct the work elements.
option that flows from the options analysis will
not be sufficiently rigorous or reliable to support
                                                        Communication and consultation
the definition of the business case. The scope,
cost, quality and schedule information presented        Communication and consultation between the
in the business case is used to select the              project manager and the work teams is critical in
organisation's program of work; it sets the initial     determining that the option is developed to a level


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    of detail just sufficient to support the submission    solution design and contract formation. The major
    of the business case. Effective communication          products in terms of project management are the
    and consultation with the customer and users is        project plan and arrangements for contracts.
    important to ensure that the solution described
    and justified in the business case is what is needed   Objective
    to satisfy the need.
                                                           The overall objective of the Development Phase is
    Tasks                                                  to set up the mechanisms for effective
                                                           implementation and management of the project.


3
    1. Develop Preferred Option
                                                           Key Activities
    A. Develop Preferred Option
                                                           The Development Phase consists of the following
    Developing the preferred option is a continuation      key activities:
    of the design development process based on more
    information and data becoming available from           Project Management:
    various work packages. The extent of
    development is set by the requirement to achieve       • Project Administration
    an estimated project cost within ± 20% of the total    • Manage Project Plan
    project cost.
                                                           • Establish Contract

    3.6.2 Development Phase                                • Pre-Construction Review

    The Development Phase is a two-stage process to        Work Management:
    suit RIP timing / alignment and Right-of-Way
    (ROW) acquisitions. These stages are:                  • Design Options Analysis

    • Preliminary Design; and                              • Requirements Definition

    • Detailed Design.                                     • Preliminary Design

    This section provides a detailed description of the    • Detailed Design
    tasking to be undertaken during the Development
    Phase of the project lifecycle.                        3.6.2.1 Project Management

    The Development Phase commences following
                                                           3.6.2.1.1     P4 - Project Administration
    the approval of the business case and the
    allocation of organisational resources. For some       Each project, regardless of size, requires the
    projects the approval of the business case and the     project team and its management structure to be
    allocation of resources occur simultaneously. For      formally established.
    many projects however, the allocation of
    resources occurs as an independent process some        The scope of this activity covers all tasks
    time after the approval of the business case. It is    associated with raising and establishing the
    not uncommon for there to be a time delay of           project team and project office. The output from
    many months or even years between the concept          this activity is a formal project control structure.
    phase and the Development Phase.
                                                           The major objectives of this activity are to set in
    Scope                                                  place the mechanisms and the people to facilitate
                                                           project management, including:
    The scope of the Development Phase includes the
    establishment of the project management                • Appointing a project manager
    organisational structure, project planning,

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• Setting up the project team structure                then they will, at times, be placed in a position of
                                                       attempting to satisfy competing interests.
• Establishing the project office and control
  structure                                            These arrangements propose advisory committees
                                                       rather than steering committees. This recognises
• Establishing a Project Advisory Group                that the State Purchasing Policy (SPP), and
                                                       normal administrative arrangements require there
• Establish Financial Management Structure
                                                       to be one accountable officer. This officer may
This activity follows the approval of the business     well seek advice from a group that is currently


                                                                                                                3
case. However, preliminary work, such as               called a steering committee. However, such
identification of skills and personnel, and the need   officer cannot justify arrangements outside the
for an advisory group, should be commenced in          SPP simply because a committee voted for it. If
parallel with development of the business case         the committee cannot authorise spending, it isn't
and included in the draft project plan that            steering, it is really advisory in nature. These roles
accompanies the business case.                         relate to the project organisation model (see
                                                       Figure 3.8 - Project Organisation Model
(a)   Appoint Project Manager                          Diagram).
Select the best person based on appropriate
technical and management skills matching the
complexity and size of the project.

(b)   Establish Project Team

Select a project team that has technical and
management skills matching the complexity and
size of the project. It is essential for the project
team to include representatives of the key
technical disciplines. It is important for the
Project Team to be established early in the process
to ensure resources are available when required.

(c)   Establish Project Office

If the project is to be managed from its own
dedicated office rather than the normal workplace
it's important for a suitable project office be
established to conduct the project management
affairs of the project. This could include provision
for meetings, model and other graphic displays,        Figure 3.8 Project Organisation Model Diagram
and be suitably located for meeting attendees, site
access and suitably equipped with appropriate
office equipment.                                      Business support staff for major or significant
                                                       projects may also be required.
(d)   Project Advisory Committee
                                                       The Role of this group may vary from project to
These roles and their relationship to the
                                                       project and this needs to be established at the first
organisational management structure need to be
                                                       meeting. Typical responsibilities of the group are:
determined for each project or type of project,
taking into account its scale and nature. The          • Are good working relations being maintained?
interests of the various roles differ. If any one
person is allocated more than one of these roles,      • Are defined outcomes being achieved?



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    • Reviewing function                                  The project scope may need to be further defined
                                                          to ascertain if changes are required as a result of
    • Could perform the function of a peer review         further information being obtained.
      group
                                                          This is a critical requirement in the control of
    • Could be used as a 'sounding board'                 project 'creep' and 'over' design.
    • Internal Project Management review for              (c)   Determine Implementation Strategy
      PM/QA/supervisor/cost clerk/etc.
                                                          Produce a Work Breakdown Structure (WBS) that

3
    • External interfaces                                 identifies a logical sequence of activities to
                                                          achieve the outcome, i.e. geotechnical
    (e)    Establish Financial Management Structure
                                                          investigation, survey, community consultation,
    It is important for project cost to be tracked to     environmental investigations, cultural heritage,
    permit proper monitoring of project expenditure       traffic reports/data, hydraulic studies, risk
    for the various stages of the project, e.g. options   identification and assessment, etc.
    analysis, business case, design development and
                                                          (d)   Allocate Resources
    detail design. The adoption of corporate cost
    codes must occur to provide uniformity across the     Only human resources that are appropriately
    department.                                           educated, experienced and relations oriented shall
                                                          be appropriately assigned to perform the work.
    3.6.2.1.2     P5 - Project Plan
                                                          This is a critical aspect in the assignment of tasks.
    The project plan is the vehicle to guide the
                                                          Human resources need to be supported by
    delivery of the Development Phase in two steps:
                                                          appropriate site conditions and 'tools of trade', e.g.
    • Preliminary Design, and                             computers with the relevant software.

    • Detailed Design                                     (e)   Perform Detailed Risk Analysis

    The requirements of a project plan are:               At this stage it is very important to identify all of
                                                          the potential risks which might either stop the
    (a)    Review Current Documentation                   project progressing to construction or cause an
                                                          expansion of scope during the delivery of the
    The outputs from the concept phase (Business          project. A risk analysis with appropriate
    Case) and the supporting data/information and         allowance made in the project cost estimates is an
    assumptions (e.g. traffic counts and analysis, link   important requirement in calculating a realistic
    studies, surveys, etc.) are critical inputs to the    project 'scope' estimate.
    Development Phase, Stage 1. It is very important
    to understand how the preferred option was            The risk identification checklist is a guide to assist
    arrived at as its acceptance is necessary before      in the process of identification and assessment,
    commencing the Development Phase (Stage 1).           and the development of contingencies.

    Also, information from similar projects such as       (f)   Produce Draft Schedule
    problems and adopted solutions could assist in
    minimising the risk to project outcomes.              Extend the WBS to include task duration, cost and
                                                          resource requirements together with task
    (b)    Confirm Scope Definition                       dependencies and hold points, e.g. a Gantt Chart
                                                          or network diagram. The schedule provides the
    The project definition delivered from the concept     basis against which a projects performance is
    phase needs to be understood and confirmed as         measured. Float should be built into the schedule
    part of the project acceptance process.               to allow for contingencies and downtime.



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Resource levelling may be required for major         The shire number is constant within the shire and
projects.                                            the road is a constant for the length of the road,
                                                     however the project number will normally be
(g)   Produce Budget Estimate                        associated with a link or intersection along the
                                                     road.
This is the approved budget in outturn dollars for
the project. The project costs must not exceed the   Project Location: The place name or location
Project Budget. The Client approves the Project      descriptor e.g. Banana Floodway; or West of
Budget at key stages throughout the Project Life     Ranch Road; or 94.7-101.4km from Block Creek
cycle and this budget is normally based on the
Project Estimate or Anticipated Final Cost
submitted for consideration. The Project Budget
may also include:
                                                     Project Name: Some projects are large enough to
                                                     warrant an individual name.                          3
                                                     Executive Summary: Summarises the key points
• The stage at which it was approved;                of the proposal with a clear focus on describing
                                                     the problem or opportunity, the scope boundaries,
• A submission, review or approval date;             outlining the risks and provide a summary of the
                                                     approach and resources required to the next stage.
• A comment where applicable;
                                                     (a)    Introduction
• Assumptions made; and
                                                     (i)    Purpose of this Document
• A brief description of the scope of work.
                                                     The purpose of the project plan is to detail how
A. Project Plan Template
                                                     the project will be managed and to provide a
Below is a step-by-step description of the           baseline for the measurement of progress.
requirements and issues for each section of the
                                                     (ii)   References
Project Plan template (R2001).
                                                     List any documents to which this document refers
The front cover provides the Details of              and could include reports on any previous
Proposed Project:                                    investigations carried out. Include all previous
                                                     documents prepared as part of this project.
District: The District name
                                                     (b)    Project Customer, Sponsor and Project
Local Government: The name/s of the local
                                                            Manager
government/s in which the project is located e.g.
Banana Shire.                                        Enter the name of the project customer together
                                                     with the name of the project sponsor and the
Road Name: The name of the road and if the
                                                     project manager on the front cover of the project
name changes within the project area refer to both
                                                     plan.
names and the road number e.g. Leichhardt
Highway, 26A.                                        (c)    Stakeholders
Section: The section of the road between two         Understanding the current situation may provide
known townships, urban areas or place names          an insight into the problems, needs and/or
e.g. Westwood - Taroom.                              opportunities along with their associated impacts
                                                     on internal and external stakeholders.
Project Number: The number allocated to the
project, normally associated with a shire/road/      Review previously identified stakeholders and
project, series of numbers e.g. Banana Shine/        update as appropriate (internal and external) who
Leichardt Highway/(specific link) …..8/26A/305.      may now or in the future have an interest in the
                                                     proposed project, illustrating the consultation
                                                     undertaken in the development of the proposal.


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    Consultation with these stakeholders may impact              (f)    Purpose/Objectives
    on the project getting up or influence the type of
    solution.                                                    (i)    The Purpose

    Illustrate the consultation undertaken with                  Provide a statement of what the project is
    stakeholders in developing this document and the             expected to achieve including potential benefits
    key findings of that consultation. List all                  based upon the current state of knowledge and
    stakeholders with an interest in this document               understanding.
    including internal and external stakeholders.
                                                                 For example, the traffic volumes and number of

3   Consultation should be carried out pursuant to               accidents on a road warrant some action to
    the Department's 'Community Consultation                     improve levels of service; the solution however
    Policy and Guideline'.                                       may or may not involve works within that
                                                                 corridor.
    The stakeholders are:
                                                                 (ii)   Links with the Department's Strategic
                                                                        Objectives
     Stakeholder    Stakeholder                      Interest/
                                    Responsibility
        Area       Representative                    Context
                                                                 The proposal background may influence the type
                                                                 of solution and it is therefore important to
                                                                 understand the associated safety/ functionality/
                                                                 road network/ previous maintenance history/ etc.
                                                                 Also update with any relevant information from
                                                                 the options analysis development.

                                                                 The need for the project will be determined by its
    (d)    Background                                            origin or initiating factors normally identified
                                                                 during the district road network management and
    Provide a brief history to bring the reader up to
                                                                 road link strategy process. The network and link
    date on the subject matter and associated business
                                                                 strategies in turn support the state network
    issues.
                                                                 objectives and Integrated Regional Transport
    This section should describe the history of the              Plans (if available).
    project. It should include details of:
                                                                 The project should be based on the higher order
    • Who initiated the project and how it was                   strategy documents, their identified future actions
      initiated.                                                 and desired outcomes. These actions may include
                                                                 regional     development     and      employment
    • Describe the products and/or services.                     objectives. Establish and document link to the
                                                                 strategic/business plans.
    • Describe any other initiatives carried out
      previously to address related issues.                      The need for a road construction project will also
                                                                 be balanced against other network priorities and
    (e)    Current Situation                                     fiscal allocations.
    Describe the current situation and the problems,             If any project is initiated but not already addressed
    needs and/or opportunities along with their                  within the district strategies then the strategies
    associated impacts on internal and external                  will need to be revisited. For example, if a new
    stakeholders.                                                primary industry required route upgrading and the
                                                                 project was initiated within the network planning
                                                                 context then the Link Strategy, Investment
                                                                 Strategy and Statements of Intent (if available)
                                                                 should be amended to reflect if not the new
                                                                 intended use of the link and network, but the

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reprioritisation of funds and the potential delay to   (iii) Related Projects
projects on the original program.
                                                       Any related projects or proposals impacting on
Project evaluation is carried out in the context of    this project needs to be identified together wit its
road network needs, government and local               relationship to this project, e.g. joining to a bridge
government priorities, political imperatives,          under construction.
industry requirements, local and other stakeholder
requirements all within the framework of Main          Impacts such as timing, availability of materials
Roads strategic objectives.                            or workforce, may also pose significant risks to
                                                       the project unless they are identified and managed
(g)    Scope of Project

To get the 'right' solution and to reduce rework it
                                                       in possibly a broader context.

                                                       (iv) Constraints
                                                                                                                 3
is critical that the project scope be made as clear
and unambiguous as possible.                           Restrictions that will limit the way the objective is
                                                       to be achieved and includes anything that might
(i)    In Scope                                        impact on the successful development and/or
                                                       implementation of the project e.g. restricted
The purpose of a scope statement is to define the      working hours or limited vegetation clearances
project boundaries to facilitate effective             etc., should be identified early in the process.
management of deliverables on time and to
agreed/approved      cost.   The     operational       (v)   Urgency
performance outcome is arrived at by the analysis
of operational performance outcome options.            If there are any aspects of the project or the
Typically these could be:                              project itself that are urgent they should be
                                                       identified stating reasons for such urgency and
• Improve flood immunity.                              what action is required.

• Reduce traffic congestion on a nominated part        (vi) Assumptions
  of the road network.
                                                       It is very important for all assumptions made in
• Improve the rideability of a nominated section       producing this proposal be itemised and
  of road.                                             documented.

• Improve trafficability during the wet season.        Assumptions can encompass resourcing,
                                                       authorities permits, weather and constructability.
The scope outlined in any previous document
should be confirmed here or updated as necessary.      (h)   Impacts
All items included in the scope of this project
should be itemized and documented.                     Identify areas of potential impact, the nature of
                                                       impact and who will be impacted (internal and
(ii)   Out of Scope                                    external). Include both the impacts envisaged
                                                       during the life of the project (i.e. costs, disruptions
To clearly define the project scope it can be          to traffic, temporary local traffic arrangements,
helpful to list works that will not be delivered as    etc.) and ongoing impacts resulting from the
part of the project. This is important, as it will     project's implementation, e.g. traffic noise, heavy
minimise the potential for rework and                  loads, etc.
misunderstanding and it is a critical aspect in
managing/avoiding project scope 'creep'.               (i)   Internal

Some out of scope items may well be deemed             Describe when, where and how the project will
necessary but the work needs to be procured via        impact on areas within Main Roads and include
other means and this interface needs to be well        an outline of both positive and negative
managed and documented.                                influences, e.g. better vehicle movements in and


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    out of weigh in-motion sites, weigh in-motion site   the strategy to produce a Work Breakdown
    not considered during project development.           Structure that identifies a logical sequence of
                                                         activities required to achieve the project
    (ii)     External                                    objectives.
    Describe the impact that the project will have       Activities to cover include:
    outside Main Roads and includes both positive
    and negative impacts on external stakeholders,       1. Investigation.
    e.g. rearranged traffic movements, improved          2. Design.
    traffic flow.

3   (i)      Method to Date
                                                         3. Preparation.
                                                         4. Procurement
    The steps taken so far in the development of this
                                                         5. Building.
    proposal consist of data and information
    gathering, targeted consultation, including the      6. Testing.
    procurement of supporting work packages, as
                                                         7. Implementation.
    appropriate. 'Template R2002 - Project
    Development Details' gives a listing of generic      8. Review.
    considerations that should be used as a check list
    to ensure all potential risks are addressed.         Break the project down into phases, activities and
                                                         tasks. As more information becomes available and
    (j)      Business Processes / Operational            uncertainties are reduced, further work
             performance Requirements                    breakdown can occur.

    Provide a summary of the business process            (i)    Project Control
    changes and the Business Requirements
    Specifications.                                      Project control is the coordination of planning,
                                                         organising, monitoring and controlling of all
    (a)      Business processes needing addressing:      aspects of a project in a continuous process to
                                                         achieve its objectives, both internal and external.
          - does the recommended option require the      It is a discipline requiring the application of skills,
            district to modify any of its existing       tools and techniques and the balancing of
            business procedures?                         competing demands of product or service
                                                         specification, time and cost, within prescribed
          - Are the existing district processes and
                                                         constraints.
            procedures for managing projects adequate
            for this project?                            (ii)   Integration
          - Are any special requirements required for    Describe how the various elements and their
            the management or implementation of this     impacts on each other will be controlled to
            option?                                      achieve successful project outcomes. In particular
                                                         review impacts on scope, time, cost and quality.
    (b)      Operational performance      requirements
             documentation:                              (iii) Scope Management
          - Existing and desired conditions.             Describe how changes to scope will be managed
                                                         (including software tools to be used, paper
    (k)      Broad Strategy
                                                         system, etc, as relevant).
    During development of the business case and
                                                         (iv) Time Management
    preliminary plan, a broad strategy for producing
    project outputs and outcomes should have been        Describe how changes to time and resources will
    documented. This step now requires refinement of     be managed (including software tools to be used,


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paper system, etc, as relevant). Refer to attached    confirmed by the verification of design, customer
project schedule breaking the project into            approvals, etc.
activities (Work Breakdown Structures)
displaying start, finish, internal resources,         (vii) Human Resources Management
external resources and major milestones.
                                                      Describe the approach to be taken with the
(v)   Cost Management                                 deployment of internal and external resources.
                                                      Provide a project team organization structure and
Describe how changes to cost will be managed          describe roles and responsibilities.
(including software tools to be used, paper

                                                                                                              3
system, etc, as relevant). Refer to attached budget   Provide details of any project specific training
estimate breaking the project into activities (Work   required.
Breakdown Structures) displaying the estimated
                                                      Refer to a responsibility matrix, if required.
cost for internal resources and external resources.
                                                      (viii) Communication Management
(vi) Quality Management
                                                      Describe the approach to be taken with the
Describe what quality systems are being used to
                                                      deployment of internal and external resources.
manage the project. If the standard corporate
                                                      Provide a project team organization structure and
systems are being used, document any changes or
                                                      describe roles and responsibilities.
modifications specific to the project. This could
include quality plans, project specific work          Provide details of any project specific training
instructions,    safety     or    environmental       required.
management.
                                                      Refer to a responsibility matrix, if required.
Quality requirements are expressed in the
expected project outcomes, the brief from the         All projects will require regular meetings to
concept phase, relevant standards, manuals and        address:
references, quality assurance systems (ISO 9000)
                                                      • Relations issues
and human resource selection.
                                                      • Progress issues
Project review requirements are specified in the
project plan. The types of reviews that should be     • Expected project outcomes
performed are:
                                                      • Technical issues
• Reviews by the project team
                                                      All meetings shall have approved documented
• Peer reviews by experts external to the project     minutes circulated to an approved distribution list.
  team
                                                      All requests, submissions and approvals shall be
• Value management reviews                            in writing.
A final review must be performed for all projects     For major projects a              communications
and in addition any learnings for use in future       management plan is essential.
projects should be documented and circulated.
                                                      (a)   Internal Communication
All design activities are to undertaken in
accordance with the requirements of a fully           Detail the project reports to be produced. Identify
certified Quality Assurance System.                   who will produce them, who will receive them
                                                      and what action is required from the receiver.
Also, allowing appropriate time to deliver the
project together with appropriate remuneration
are critical success factors. Quality can also be



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    (b)    External Communication                         In all cases procurements must use standard Main
                                                          Roads procurement methods, including
    Describe the communication processes for all          procurement management practices.
    internal parties including Executive Management,
    Advisory Group Members, Stakeholders,                 (xi) Environmental Management
    Sponsor, Director, team members, and users.
    Refer to a detailed communication plan, if            Describe the approach to be taken with the
    required.                                             deployment of internal and external resources.
                                                          Provide a project team organization structure and
    (ix) Risk and Issues                                  describe roles and responsibilities.

3   (a)    Risk                                           Provide details of any project specific training
                                                          required.
    Describe how the project will manage risks
    (including software tools to be used). Refer to the   Refer to a responsibility matrix, if required.
    Risk Management Record (Form M4213)
    showing identified risks, severity, likelihood and    (xii) Cultural Heritage Management
    mitigation actions. A listing of typical risks
                                                          Describe the approach to be taken with the
    encountered on civil engineering projects is
                                                          deployment of internal and external resources.
    included in the Risk Record for user guidance
                                                          Provide a project team organisation structure and
    purposes only.
                                                          describe roles and responsibilities.
    Risk is the chance of something happening that
                                                          Provide details of any project specific training
    will have a detrimental impact upon the agency,
                                                          required. Refer to a responsibility matrix, if
    project or other objectives. Risk events can be
                                                          required.
    related to the project management process (e.g.
    fiscal, time or resources) or project planning        (xiii) Safety
    activities (e.g. community pressure, cultural
    heritage or geological).                              Describe the approach to be taken with the
                                                          deployment of internal and external resources.
    (b)    Issues                                         Provide a project team organisation structure and
                                                          describe roles and responsibilities.
    Describe how the project will manage issues
    (including software tools to be used). Refer to an    Provide details of any project specific training
    attached listing of issues.                           required. Refer to a responsibility matrix, if
                                                          required.
    A risk or opportunity will become an issue if the
    event occurs.                                         (xiv) Operational Issues

    Issues can be resolved either within the scope of     Identify any known operational issues. This could
    the project as currently defined or via a change to   include asset transfer/ownership, commissioning,
    the project.                                          handover support, maintenance, warranty.

    (x)    Procurement Management                         Relations management is an integral part of
                                                          establishing and maintaining good operations
    Identify how external goods and services will be
    procured, e.g. by sole invitation, RCC, D&C,          All projects will require regular meetings to
    Alliance, etc. This includes contract/subcontract     address:
    management, ROW acquisitions, material
    procurement, contract administration.                 • Relations issues

    The timing of going to tender needs to be             • Progress issues
    reviewed against the schedule.
                                                          • Expected project outcomes


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• Technical issues                                         Consultation with industry associations is DMR
                                                           policy. All districts should discuss proposed
All meetings shall have approved documented                methods of delivery with industry associations
minutes circulated to an approved distribution list.       during the decision making process.
All requests, submissions and approvals shall be           (b)   Undertake Market Survey
in writing.
                                                           Main Roads uses a prequalification system to
For major projects a                  communications       obtain the best value for money but with minimal
management plan is essential.                              overall cost to government and industry.
(xv) Project Performance Measurement                       • Preconstruction                                       3
Detail how the performance of the project will be          Generally, Main Roads uses a Prequalification
measured during the project's life. An example             System for the engagement of consultants on
table format shown below is acceptable.                    engineering projects. These engagements are
                                                           private selections on rotation from the
  Success                     Measurement
  Criteria
             Responsibility
                                method
                                            KPI   Target   prequalification system. An agreed and
                                                           documented brief is a mandated outcome of this
                                                           process. This system is administered by the RS&E
                                                           group.

                                                           For other acquisitions, e.g. geotechnical,
                                                           environment, community consultation, land
                                                           surveys (terrain, features), etc. the Main Roads
(xvi) Project Benefits Realisation                         uses standard procurement system is used
Detail how the benefits of the project will be             "Manual for the engagement and use of
measured. This may or may not be during the life           consultants". E.g. how tenders are to be called for
of the project. An example table format is shown           the type of contract selected, eligible tenderers,
below.                                                     tender analysis & selection.

                                                           • Construction
  Success                     Measurement
             Responsibility                 KPI   Target
  Criteria                      method
                                                           Generally, eligibility of organisations to tender for
                                                           open Main Roads Major Works Projects is
                                                           determined by the Major Works Prequalification
                                                           System. This system is administered by the RS&E
                                                           group.

                                                           The Main Roads Project Delivery System manual
                                                           documents the various delivery options available
3.6.2.1.3      P6 - Establish Contract                     for construction works. E.g. how tenders are to be
                                                           called for the type of contract selected, eligible
(a)   Review Project Acquisition Strategy                  tenderers, tender analysis & selection.
The acquisition strategy (in-house, outsourced,            (c)   Formalise Agreements
partially outsourced, prequalified suppliers etc)
should have been identified in the Business Case.          Where project development is to be undertaken
The strategy adopted should be reviewed against            internally, formal agreement to proceed is given
the criteria of providing efficiency and value for         by management in the form of signatures on the
money. Confirmation from higher management                 relevant internal documents. This task also
may also be appropriate.                                   includes formal commitment of resources within



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    your organisation, as indicated in the Project Plan     3.6.2.1.4     P7 - Pre-Construction
    and relevant supporting plans.                                        Review

    If the project is to be covered by a formal contract,   (a)   Submit Project Plan for Approval
    that is, when implementation is to be undertaken
                                                            Management needs to be satisfied that an
    by external contractors, Local Governments or
                                                            appropriate plan has been established for efficient
    internal commercial units, ensure that all
                                                            conduct of the project through the lifecycle.
    proposed contractual arrangements have been
                                                            Approval of the Project Plan will provide the
    agreed and all required signatures obtained.
                                                            basis for approval to proceed to project

3   (d)    Initiate Supplier Selection Process

    Suppliers need a clear understanding of the
                                                            implementation. Approval of the plan will also
                                                            signify agreement by key stakeholders with
                                                            respect to their commitments to the project in
    requirements and contractual conditions set by the      terms of provision of resources and support.
    organisation. This task is necessary to ensure that
    appropriate documentation is developed to enable        The Project Plan should be submitted to the
    suppliers to provide detailed proposals for             Advisory Group or the delegated approving
    meeting the requirements.                               authority for consideration. The approving
                                                            authority will view the plan to confirm
    A detailed brief should be developed where              consistency with management policies and
    required and should include such requirements as:       procedures, and to ensure that all probable issues
                                                            have been identified.
    • The Solution Specification (The brief)
                                                            (b)   Setup Financial Management
    • Standards to be adopted.
                                                            Prior to committing RIP funds, it is essential that
    • A list of deliverables
                                                            appropriate measures are established to enable
    (e)    Conduct Evaluation                               management of project funds. The Organisation's
                                                            financial management procedures will need to be
    All responses need to be evaluated to determine         followed.
    which supplier best meets the requirements of the
    brief/tender. This task is essential to maintaining     (c)   Brief Project Team
    public accountability.
                                                            This is probably the first opportunity that the
    (f)    Conduct Contract Negotiations                    Project Manager has to address the team as a
                                                            team. It is therefore an important basis for
    All proposed amendments, concessions, waivers,          building a team identity. It is essential that each
    and standards need to be negotiated and agreed by       member of the team understands the scope and
    both parties to remove ambiguities and                  objectives of the project in outline, and is aware of
    uncertainties from contractual document. Just as        project constraints. Only on this basis will there
    the organisation has gone through the process of        be informed review by the team of their individual
    reviewing contractual issues and preparing for          roles, Terms of Reference and assignment briefs.
    negotiations, so too has the potential contractor.      This will enable any remaining errors to be
    Now is the time for all issues and differences to be    identified. It is also important that team members
    resolved in order to minimise risks associated          understand where they fit in the project and how
    with the contract.                                      they can contribute to the success of the project
                                                            and benefits to the organisation.

                                                            Ensure that all team members are fully conversant
                                                            with all standards and procedures relating to
                                                            technical deliverables, project requirements and
                                                            quality management, and to the administration of
                                                            the project.

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(d)   Brief Customer and Key Stakeholders              are also necessary for development of an
                                                       unambiguous Scope Definition.
The Project Manager should conduct a meeting
with the customer. The members of the project          In some instances the customer, internal or
advisory and management teams, and contractors,        external, may be uncertain as to the actual
should also be invited to attend this meeting.         requirement. This might also be evident from the
Items for the agenda will include:                     options analysis undertaken to raise the Business
                                                       Case. The documentation of the technical
• Relations management.                                understanding of the requirement and the


                                                                                                            3
                                                       validation of this understanding with the customer
• Project Plan.
                                                       through negotiation can provide an effective
• Contracts.                                           means of focusing attention on areas of
                                                       misunderstanding or uncertainty.
• Project Budgets.
                                                       In reviewing the Business Case, the Project
• Administrative Procedures.                           Manager should address the following:
This meeting should identify any remaining             • The customer's problems (real or perceived) as
anomalies which can be corrected prior to moving         these must be solved in any solution that is
to the Implementation Phase. Meeting Minutes             offered.
are to be recorded and distributed to all
stakeholders.                                          • The operational performance requirements.

A project plan detailing the project execution and     • The size and location of the project.
project control shall be produced and include
                                                       • Timing of the requirement.
documented planning assumptions and decisions.
It must also facilitate communication among            • Constraints that may apply to the project, such
stakeholders and document approved scope, cost,          as cost or related activities.
and scheduled baselines. The extent of the detail
included in the project plan must be relevant to the   • Justification for proceeding.
project size and complexity.
                                                       Conduct Design Options Analysis
3.6.2.2 Work Management                                In conducting options analysis, the following
                                                       guidelines need to be observed:
3.6.2.2.1      W3 - Options (Design)
               Analysis                                a) Technical Viability

Review Business Case                                   Need to:

The Business Case and supporting documentation         • Confirm the functionality of the option.
will provide a wealth of information relating to
the current system and the user requirement. It is     • Ensure all technical standards have been met.
essential that this documentation be reviewed as it
                                                       • Determine the best design option for meeting
has a client focus and should emphasise the
                                                         the outcome requirements.
functionality (what the solution is to do). The
Project Manager must develop and maintain a            b) Resource Viability
comprehensive understanding of the actual
requirements in respect of a product, service or       Ensure the right mix of management and technical
combination of both. The Business Case provides        skills for analysis of each option.
the baseline definition for the development of a
                                                       Implementation agencies have been consulted to
solution. Clearly defined and agreed requirements
                                                       determine:


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    • Any specific lead-times for studies,                fully documented at this time and as necessary
      investigations, consultation, inputs from other     detailed in the tender or documentation.
      government departments, industry and local
      government, etc.                                    Define High Level Statement of Works

    • Any constraints that may apply to the timing of     The preferred solution needs to be defined in
      specific support to deliver the above.              terms of the work required to implement the
                                                          solution. This may include a summary of the work
    • Specific needs of other parties in respect of the   supported by drawings, aerial photographs, etc.
      format and type of data provided.

3   c) Cost Benefit
                                                          3.6.2.2.2     W4 - Components/Work
                                                                        Package Requirements

    Initially, only broad estimates for cost might be     Define Sub-Solution Requirements
    available; notwithstanding, all cost elements need
    to be considered (e.g.: capital, training,            Estimating requirements on the total solution is a
    documentation, management, maintenance and            difficult task. The solution must be broken down
    whole of life costs, etc).                            to components against which specific
                                                          requirements can be allocated, e.g Pavement
    Similarly all benefits, including those that cannot   design, drainage systems, traffic signals, etc. This
    be given a dollar value, are determined, based on     process will also assist in determining process
    available information.                                flows and interface requirements. Breakdown (the
                                                          big lumps already identified) into work packages
    The cost or benefit to the organisation is
                                                          using functionality as a guide. Each functional
    determined in accordance with current financial
                                                          (discipline/major task) area satisfies an allocated
    management policies (Net Present Value, Internal
                                                          portion of the basic solution functions.
    Rate of Return, Payback Period, etc).
                                                          For each sub-solution defined, requirements are
    d) Safety
                                                          allocated in terms of:
    Check that the option complies with documented
                                                          • Outputs and technical requirements.
    safety standards. An options safety audit is a
    required output from this process. The option         • Design constraints.
    should also be tested to determine its
    compatibility to adjacent sections.                   • Interface requirements.

    e) Risk                                               • Availability.

    Risk is to be determined with respect to such         • Maintainability.
    issues as cultural and organisational aspects,
    technology, finance, schedule and scope.              Establish Cultural Heritage Requirements

    For projects that are large or complex, by nature     For certain projects cultural heritage can have a
    of the customer's requirement or the combination      significant impact in developing the solution
    of services and products being proposed, it may       requirements and producing the solution design. It
    be necessary to conduct a formal briefing of the      is important that any cultural heritage issues are
    implementation agencies/divisions. This will          identified in the planning processes and the
    ensure a common understanding of the                  appropriate requirements developed and
    requirement and hence technical, resource and         incorporated.
    financial implications.

    It is important that any constraints that may apply
    to the delivery of the project to the customer be



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Determine Environmental Management                   For projects involving business process changes a
Requirements                                         Business Requirements Specification is used to
                                                     record and obtain agreement on the new or
For certain projects environmental issues can        changed business requirements resulting from the
have a significant impact in developing the          project. The Business Requirements Specification
solution requirements and producing the solution     addresses not only the "what" but the "how" of the
design. It is important that any environmental       project's implementation. Although specifically
management issues are identified in the planning     tailored to business process projects the Business
processes and the appropriate requirements           Requirements Specification has broader

                                                                                                               3
developed and incorporated. Prepare an               application and should be considered by all
environmental management plan in accordance          projects.
with departmental policy documents.
                                                     A Business Requirements Specification template
Safety Requirements                                  is provided for this purpose.

For certain projects safety issues can have a        Define Detailed Statement of Works
significant impact in developing the solution
requirements and producing the solution design. It   The detailed design brief is reviewed to determine
is important that any safety management issues       the tasks required to complete the design. The
are identified in the planning processes and the     individual tasks are then sorted into the detailed
appropriate requirements developed and               work packages required to complete the final
incorporated.                                        solution.

Prepare Solution Requirements Specification          Solution Design

A detailed design brief is prepared in accordance    This is the last of a series of three activities in the
with the standard format defined in our policies     Development Phase that takes the preferred
and procedures. The document is an aggregation       option and develops and refines it to a state
of the sub-solution requirements developed           suitable to commence the implementation phase.
during the previous task. When completed the         Having defined the operational performance
following checklist needs to be applied to confirm   requirements for the solution in the previous two
conformance with expected outcome of preferred       activities this activity now finalises the solution
option:                                              design. This is the final opportunity for the
                                                     customer to influence the design before contracts
• Confirmation of the requirement (is the            are formed for its supply.
  requirement necessary?).
                                                     The scope of this activity covers the tasks
• Confirmation that the requirement is not over-     associated with and preparing the final solution
  specified (limiting solutions, leading to          design.
  potentially higher costs).
                                                     The deliverable from this activity is an agreed
• Confirmation that compliance with the              solution design.
  requirement can be tested and verified.
                                                     The objectives of this activity are to:
• Assurance that adequate margins             and
  tolerances have been identified.                   • confirm the understanding of the customer's
                                                       requirement
• Ambiguity checks.
                                                     • identify current or previous projects that can
• Confirmation that standards have been tailored       assist the design process
  sufficiently.
                                                     • conduct a market review to establish what the
                                                       market can provide


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    • design the solution in sufficient detail to         Identify Departmental Standard Solutions
      support the procurement plan
                                                          Development effort is both time consuming and
    • obtain customer agreement to the design             expensive. Existing departmental standards such
                                                          as Standard drawings, standard specifications,
    Communication between the design agency,              contract provisions, and standard systems should
    project manager and customer is critically            be adopted, where relevant. Use of non standard
    important during this activity. This is the final     solutions requires approval from the client.
    opportunity for the customer to ensure that the
    project staff understands their need and how the

3
                                                          Prepare Design
    solution is to be employed. Understanding the
    requirement is the key to the solution.               Drawings,      electronic     design     models,
                                                          specifications, contract provisions, design
    Joint Scope Definition                                estimate, and electronic schedules are completed
                                                          in accordance with the solution specification.
    In formal consultation with the client, review the    Design is undertaken in accordance with
    project documentation developed to date,              Departmental Policies, Processes and Technical
    including:                                            Manuals.
    • Needs Analysis.
                                                          Submit to Customer for Review
    • Options Analysis.
                                                          The client must be satisfied that the Solution
    • Requirements Definition.                            Requirements Specification and the Solution
                                                          Design, are appropriate, comprehensive,
    • Business Case.                                      complete, and reflects the stated and agreed need,
                                                          and that the specification/design is in accordance
    • Recommended       Solution      Requirements        with the agreed project scope.
      Specification (completed form including
      attachments approved by the relevant position).     The Solution Requirements Specification/Design
                                                          is reviewed with the client, or client
    • The Project Plan.                                   representatives, usually as a formal Solution
    The purpose is to confirm the understanding of        Design Review, to confirm that all needs have
    the customer's requirement and how the solution       been met. It is also appropriate to indicate to the
    will be operated and supported. The customer is       client where opportunities exist for alternative
    briefed on the implementation strategy, method of     solutions and cost savings. This process should
    procurement, and solution design and their            happen throughout the development of the design
    agreement obtained.                                   and the client should take a lead role by
                                                          progressively approving the design as it evolves.
    Review Technical Precedents                           This process is best undertaken in a face-to-face
                                                          meeting to minimise the probability of omission
    Existing design solutions can provide a useful        or misunderstanding of the requirement. Once the
    starting point for defining a new or improved         specification/design is complete, the client should
    system. This task will minimise the possibility of    sign-off to this effect.
    duplication of effort and outcomes.
                                                          External Communications
    Review the corporate repository for information
    on recent projects, including variations which        a) Scope:
    might be similar to the current requirement.
    Determine if any of the elements or components        The scope of this task is the actions necessary for
    of the system being reviewed could be used as         generating support for the project from external
    part of the solution or as the basis for developing   stakeholders and other interested parties.
    the new solution requirements.

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b) Objective:                                          2. Develop community relations strategies/actions

The objective of this task is to increase awareness,   3. What & How
encourage acceptance and to develop support for
the project.                                           These requirements will assist the contractor in
                                                       preparation of an acceptable Community Liaison
c) Deliverable:                                        Plan as per Clause 13 of the Supplementary
                                                       Conditions of Contract (Form C6838) of Road
The deliverable from this task is an external          Construction Contract (RCC).
communications plan that specifies all the

                                                                                                             3
communication activities covering stakeholder          • Design      Development          Requirements/
consultation and community relations on the              Considerations
project in sufficient detail to enable successful
completion and implementation of the project.          Design Inputs

External Stakeholder Consultation                      Generally speaking design considerations are
                                                       contained in Form M4211 or M4212 - Design
It is important to consult with affected               Development Report. These considerations are
stakeholders external to the project team to ensure    identified through Legislation, Investigations,
that the project reasonably accommodates the           Studies and Consultations. They also identify
needs of affected stakeholders and that project        risks and issues that need to be addressed during
development is not adversely affected by external      the development of the project.
issues. Successful project outcomes often rely on
the cooperation of external parties. This is           Also refer to Chapter 4.
achieved by the use of a Communications Plan.
                                                       NB For some projects these considerations may
Key elements of the Plan are:                          need to be known for the development of options
                                                       and for the development of the preferred option.
• Identifying the stakeholders, including LG,
  other Government Departments, Business               3.6.2.2.3    W5 - Preliminary Design
  Groups and relevant community groups.
                                                       Design development is an iterative process that
• Developing the methods for dealing with the          often involves changes when output from a
  community and industry groups                        particular step indicates the need to revisit an
                                                       earlier decision (e.g. in the investigation and
• Preparing display materials                          design activities, any of the listed items can
                                                       provide outputs which indicate that a review of
• Selecting appropriate personnel in order to
                                                       options or a previous decision is warranted).
  explain effectively the project details, including
  technical details such as assumptions, reasons       The Development Phase Manager is the person
  for aspects of the design solution, etc.             responsible for the management of all activity
                                                       necessary to deliver the preliminary design, and
• Seeking support from other agencies /
                                                       the detailed design. The first task of the project
  individuals
                                                       manager is to preview the preliminary Project
                                                       Plan and update as appropriate. The project plan is
Community Relations
                                                       used as the control mechanism for the delivery of
Develop the requirements for an implementation         the Development Phase. Selecting an appropriate
community relations plan.                              team to deliver the Development Phase is a
                                                       critical success factor in the achievement of a
Key Steps:                                             successful project.

1. Identify external parties requiring information     The Preliminary Design stage develops the
                                                       preferred problem solution (approved in the


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    business case), keeping within the scope of the        including conducting Road Safety Audit
    project. For a road infrastructure solution            (Detailed Design);
    activities include:
                                                         • Designing routine cross drainage together with
    • Finalising the geometric design solution             associated environmental treatments;
      produced in the business case, e.g. horizontal
      and vertical alignments, cross sections, and       • Designing other miscellaneous items (e.g. gully
      major intersection layouts, including                pits);
      conducting Road Safety Audit (Preliminary
                                                         • Project environmental certification (refer to

3
      Design);
                                                           Road Project Environmental Manual for
    • Conducting design options analysis for major         guidance).
      design solutions, e.g. a bridge vs. a large
                                                         • Documenting the design (Scheme Prototype),
      culvert;
                                                           and
    • Designing major components (e.g. pavement
                                                         • Establishment of the construction contract.
      details, bridges, retaining walls, storm water
      drainage systems);                                 The detailed design step produces engineering
                                                         drawings and an electronic model for construction
    • Preparing electronic models;
                                                         purposes. It also delivers final project schedules
    • Preparing the Preliminary Estimate; and            and estimates and all other construction contract
                                                         documentation relevant to the type of contract
    • Determining ROW requirements (e.g.                 proposed.
      resumption drawings, lease requirements,
      native title arrangements).                        ROW acquisitions occur during the preparation of
                                                         the detailed design. This is necessary to ensure the
    • Ensure project environmental sustainability        project may be constructed during the RIP
      through appropriate environmental assessment       timeframe.
      (refer to the Road Project Environmental
      Manual for guidance).
                                                         3.6.3 Implementation Phase
    • Ensure the design is an economic solution.
                                                         The Implementation phase is used for
    • Ensure that functionality of design components     constructing the works. This section describes the
      are appropriate for their intended purpose         activities & tasks required in the implementation
                                                         phase.
    • Ensure the constructability of the project is
      practical and efficient.                           This phase covers the activities necessary to
                                                         produce, test and commission project deliverables
    • Confirm the project cost is within the limits of
                                                         in accordance with the project plan. The scope
      the business case cost estimate. This is very
                                                         may also include the decommissioning of any
      important as ROW acquisitions may be held up
                                                         existing or legacy systems and the migration to
      due to project re-justification requirements if
                                                         the new system if included in as part of the
      the project cost has increased during the
                                                         project.
      preliminary design step.
                                                         The purpose of this phase is to ensure that:
    3.6.2.2.4    W6 - Detailed Design
                                                         • project implementation occurs in accordance
    The Detailed Design step finalises the design by:
                                                           with the project plan
    • Completing details of all components
                                                         • project progress is monitored and tracked
      (geometry, bridges, road furniture, etc),
                                                           against the planned schedule



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• unacceptable variance is identified early and        project team and project office. The output from
  action taken to bring the project back on track      this activity is a formal project control structure.
                                                       The major objectives of this activity are to set in
• the products and deliverables are produced to        place or confirm the mechanisms and the people
  the required standard and specification              to facilitate project management.
• the product or service is commissioned and
                                                       Tasks
  brought into operation
                                                       1. Project initiation
Major activities are:

Project Management: -
                                                       2. Establish project team and office

                                                       3. Review handover package
                                                                                                              3
• Project Administration

• Manage project plan                                  A. Project Initiation

Work Management :-                                     Prior to commencing work on this phase of the
                                                       project it is necessary to identify and appoint/
• Design Changes                                       confirm the Project Manager and project team.

• Produce outputs                                      This will clarify roles and responsibility of
                                                       various parties and avoid disputes and
• Test and Review                                      misunderstandings.
• Commission                                           The Implementation Phase Project Manager is the
                                                       person responsible for the management of all
Responsibility                                         activity necessary to monitor and control the
The customer, sponsor & project manager have           construction process.
responsibilities in this phase.
                                                       Objectives

3.6.3.1 Project Management                             The objective of the implementation phase is to:

General                                                • Accept and initiate the project;

The discipline of planning, organizing,                • Understand the need and how the contract
monitoring, and controlling all aspects of a project     documents require this need to be satisfied;
in a continuous process to achieve its objective,
both internal and external.                            • Understand requirements and conduct impact
                                                         assessment in relation to:
3.6.3.1.1     P8 - Project Administration
                                                         - The stakeholders
Each project, regardless of size, requires the
                                                         - The environment, and
project team and its management structure to be
formally established. Where all phases are               - Any other project specific issues
delivered by the same project manager and project
team the requirements of this activity are usually     • Outline the risks;
a continuation from the previous phase. Where
                                                       • Seek the release of the required resources.
this is not the case the project administration
activity will need to be reestablished.
                                                       Scope
The scope of this activity covers all tasks
                                                       To ensure the administration requirements are
associated with raising and establishing the
                                                       established and set-up to facilitate contraction


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    administration and to support the project              track. In an ideal world the activities will occur as
    superintendent, e.g. project office, project files,    planned and the project manager will have little to
    payment process, etc.                                  do. In reality risks eventuate and issues arise that
                                                           threaten the project's success. The project
    B. Establish Project Team and Office                   manager must address those issues and guide the
                                                           project through to a successful conclusion. This
    Establish Project Team
                                                           management work may involve supervision of
    Select a project team that has appropriate             internal & outsourced or contracted resources and
    management skills matching the complexity and          may involve developing and administering

3   size of the project. It is essential for the project   various forms of contract.
    team to include representatives of the key
    technical disciplines to ensure the intent of the      Scope
    design is not compromised. It is important for the     This activity covers all tasks associated with
    Project Team to be established early in the process    implementing the plan, tracking progress,
    to ensure resources are available when required.       managing issues and controlling change. This
                                                           activity produces several outputs:
    Establish Project Office
                                                           • Regular project update reports
    If the project is to be managed from its own
    dedicated office rather than the normal workplace      • Updated issues, risk and learnings registers
    it's important for a suitable project office be
    established to conduct the project management          • Approved change requests
    affairs of the project. This could include provision
                                                           • Records of meetings
    for meetings, model and other graphic displays,
    and be suitably located for meeting attendees, site
                                                           Purpose
    access and suitably equipped with appropriate
    office equipment.                                      The purpose of this activity is to:

    C. Review handover package                             • Control the project so it is completed on time
                                                             and within budget:
    The project manager and superintendent must
    review the contract documents and the project          • Control changes
    proposal to develop a clear and common
    understanding of the need for the project together     • Manage risk and issues
    with the required outcomes. It is most important
                                                           • Keep stakeholders informed
    that the intent of the design is not compromised in
    any way. This is the fundamental basis for the         • Capture learnings
    accepted price.
                                                           Responsibility
    This review is an essential requirement if the
    project manager is to guide the project through to     The project manager is responsible for this
    a successful conclusion.                               activity.

    3.6.3.1.2     P9 - Manage Project Plan                 Communication and consultation

    General                                                It is important that the project manager maintains
                                                           effective communication to enable the early
    Activities and tasks are conducted in accordance       identification of problems. Early identification
    with the project plan. The project manager             will enable remedial action to be taken before the
    monitors the project's progress against the            problems develop into issues.
    schedule and plans to ensure activities remain on



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Tasks                                                 Communication and consultation

1. Monitor progress                                   The project manager should consult with the
                                                      sponsor and customer to determine how the
2. Manage issues                                      activity will be conducted and exploited.
3. Manage change
                                                      Tasks
4. Report progress
                                                      1. Redesign required aspects of the works


                                                                                                            3
3.6.3.2 Work management                               3.6.3.2.2    W8 - Produce Outputs

General                                               General

The management of project deliverables, eg            This activity is the "do it" activity. Whatever
options, in order to meet stakeholders needs and      output the project was raised to produce is
expectations from a project.                          produced here. The work may be carried out in-
                                                      house or produced externally under contract.
3.6.3.2.1     W7 - Design Changes
                                                      Scope
General
                                                      This activity covers all tasks necessary to produce
This is an activity of the implementation phase       the project deliverables.
that is only used when there is an approved
change to the design. This could be a result of any   Purpose
number of issues such as unexpected:
                                                      The purpose of this activity is to produce the
• ground conditions,                                  required project outputs.
• location of public utility services,
                                                      Responsibility
• error in original design,
                                                      The project manager, component managers and
• etc.                                                team leaders are responsible for this task as per
                                                      the responsibility assignment matrix in the project
Scope                                                 plan.

This activity covers the work required to provide     Communication and consultation
a new or modified design to suit the current
circumstances.                                        Close communication and consultation between
                                                      the various production agencies and project team
Purpose                                               during production will assist in keeping progress
                                                      on track and help identify problems early.
The purpose of this activity is to ensure that the
design meets the new requirements of the site and     Tasks
the actual design function to allow the
construction to continue without comprising the       1. Establish workplace/ site
required outcomes.
                                                      2. Deliver project outputs
Responsibility

The project manager and customer are jointly
responsible for this activity.




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    3.6.3.2.3     W9 - Test and Review                    3.6.3.2.4     W10 - Commission

    General                                               General

    Testing is an essential element of quality control.   This is the final activity of the implementation
    It ensures that you get what you asked and paid       phase and transitions the product/solution from
    for. The solution design specification should         development and production to operational
    contain acceptance criteria for all the works,        service.
    whether delivered internally by component
    project managers or by external contractors.          Scope

3   A testing regime should be developed covering all
    items in the design specification.
                                                          This activity covers the work required to confirm
                                                          that the product/service functions as intended and
                                                          can be accepted onto the organisation's asset
    Scope                                                 register.

    This activity covers the tasks associated with        Purpose
    testing components, products and services to
    ensure they meet the required specifications.         The purpose of this activity is to ensure that the
                                                          final product/service is ready to be placed into
    Purpose                                               operation, producing the intended benefit.

    The purpose of this activity is to:                   Responsibility
    • Confirm the acceptance testing criteria.            The project manager and customer are jointly
                                                          responsible for this activity.
    • Ensure that all deliverables are tested prior to
      acceptance and commissioning.
                                                          Communication and consultation
    • Ensure products comply with              defined
                                                          The transition of the product/service to
      requirements and specifications.
                                                          operational use is a key milestone and offers good
                                                          community relations and marketing opportunities.
    Responsibility
                                                          The project manager should consult with the
    Individual testing tasks will be assigned in the      sponsor and customer to determine how the
    project plan Responsibility assignment matrix.        activity will be conducted and exploited.

    Communication and consultation                        Tasks

    Communication between the production teams,           1. Commission
    test agencies and project office will speed up the
    test and evaluation process.
                                                          3.6.4 Finalisation
    Tasks
                                                          3.6.4.1 Project Management
    1. Prepare for testing
                                                          General
    2. Test elements
                                                          The discipline of planning, organizing,
    3. Test system                                        monitoring, and controlling all aspects of a project
                                                          in a continuous process to achieve its objective,
    4. Prepare for commissioning                          both internal and external.




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The project management activities in the               2. Confirm receipt of all documentation
finalisation phase are:
                                                       3. Confirm maintenance arrangements
• General Acceptance
                                                       4. Prepare handover report
• Evaluate Project Performance
                                                       5. Review & approval
• Close-out
                                                       A. Confirm physical completion
• Post Implementation Review


                                                                                                              3
                                                       Guidance
3.6.4.1.1     P10 - General Acceptance
                                                       The purpose of this activity is to prove to the
This activity signifies the formal completion of
                                                       customer's satisfaction that all deliverables agreed
the project manager's obligations to the customer.
                                                       to as part of the project have been delivered in
Once the product or system has been delivered to,
                                                       accordance with the approved plan. This activity
and accepted by, the customer, the project
                                                       is usually conducted as a formal meeting between
manager responsibility to the customer ceases.
                                                       the project manager, the customer and major
                                                       stakeholders.
Scope
                                                       The project manager needs to demonstrate that the
This activity covers the tasks required to hand the
                                                       delivered product(s)/services(s) are completed to
project over to the customer, and to ensure
                                                       the required standard, documented, ready for
ongoing maintenance/support arrangements are in
                                                       immediate use, operating properly and to the
place.
                                                       customer's satisfaction.
A handover report is signed that transitions
control of the product from the project office to      Responsibility
the customer.
                                                       The project manager and customer are responsible
                                                       for this activity.
Purpose

The purpose of this activity is to ensure customer     References
satisfaction with and acceptance of the project
                                                       - Project plan
deliverables and handover package, including the
handover report.                                       - Contract documentation

Responsibility                                         - Proposal and business case

The project manager and customer are responsible       B. Confirm receipt of all documentation
for this activity.
                                                       Guidance
Communication and consultation
                                                       The following documentation, as appropriate,
Communication and consultation between the             needs to be assembled, ready for handover to
stakeholders is important to ensure that all of the    operations and asset management:
customer's requirements and concerns are
                                                       • As constructed plans
identified and addressed. This is the last practical
opportunity for the customer to voice their views.     • Operations manuals

Tasks                                                  • Guarantees and warranties

1. Confirm physical completion                         • Training packages



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    • List of outstanding defects                           • The service support arrangements are in place.

    Responsibility                                          Responsibility

    The project manager and customer are responsible        The project manager is responsible for this task.
    for this task.
                                                            References
    References
                                                            - Project plan
    - Project plan

3
                                                            - Contract documentation
    - Contract documentation
                                                            E. Review and approval
    C. Confirm maintenance arrangements
                                                            Guidance
    Guidance
                                                            The handover report needs to be reviewed by the
    The project manager should confirm that                 sponsor prior to presentation to the customer for
    responsibilities and procedures for ongoing             signature. Presentation to the customer usually
    maintenance are established and that the terms          occurs at a formal meeting. In preparing for the
    and conditions of maintenance agreements and            meeting the project manager should:
    contracts are documented, understood and agreed.
                                                            • Provide early warning to the customer of the
    Plans should be in place to handle any remaining          intention to commence preparation of the
    defects, or defects that may arise during the initial     handover report.
    operating period.
                                                            • Schedule a meeting with the client to review
    Responsibility                                            and agree the handover report;

    The project manager and customer are responsible        • Provide a copy of the handover report to the
    for this task.                                            client a reasonable time ahead of the meeting.

                                                            • At the meeting, be prepared to discuss any
    References
                                                              issues that may have influenced the client's
    - Project plan                                            satisfaction with the way the project was
                                                              delivered, and which may impact on
    - Contract documentation                                  acceptance of the products and services.

    D. Prepare handover report                              Responsibility
    Guidance                                                The project manager, sponsor and customer have
                                                            responsibility for this task.
    Prepare a handover report that identifies all
    variations to the original contract and seeks
                                                            References
    acknowledgment from the customer that:
                                                            - Handover report
    • All deliverables have been delivered.
                                                            - Project plan
    • All training has been completed.
                                                            - Contract documentation
    • The product/service has been fully tested and
      operates to specification.                            - Proposal

    • All appropriate documentation has been                - Business case
      provided.


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3.6.4.1.2     P11 - Evaluate Project                 Responsibility
              Performance
                                                     The project manager is responsible for this
General                                              activity.
The project manager's direct responsibility to the
                                                     Communication and consultation
customer ended with the sign off of the handover
report however the project manager still bears       Communication and consultation with all
considerable responsibility to the sponsor and the   stakeholders is important to obtain a fair and
delivery organisation. Of particular importance is   honest appraisal of the project's performance. It
this review and evaluation activity which seeks to
evaluate the project performance in terms of the
success criteria and key performance indicators
                                                     may be appropriate to use a method of
                                                     communication that protects the identity of people
                                                     to help elicit useful criticism.
                                                                                                            3
established in the concept phase. In addition the
review seeks to identify changes to organisational   Tasks
processes and procedures that should be fed back
into the strategic, business and project planning    1. Evaluate against success criteria
processes to improve organisational performance.
                                                     2. Prepare Completion Report (CR)
Scope                                                3. Review & approval
This activity covers the actions necessary to
review and evaluate the project's performance and    A. Evaluate against success criteria
produce a project completion report.
                                                     Guidance
Purpose                                              Project success criteria specified in the business
                                                     case should be reviewed. This task reviews the
The purpose of this activity is to:
                                                     project's actual performance against those
• Identify and document how the project              measures to determine project success.
  performed in terms of the success criteria and     Performance should be reviewed against both
  key performance indicators established in the      initial and final baselines. Any variance between
  concept phase.                                     the initial versions and final versions of the
                                                     schedule, plan and contract need to be identified
• Evaluate the organisational processes and          and justified. The review seeks to identify
  procedures used throughout the project,            changes to organisational processes and
  identify where problems occurred, and              procedures that should be fed back into the
  recommend improvements.                            strategic, business and project planning processes
                                                     to improve organisational performance.
• Identify and explain any variance between the
  initial baseline plan, contract and schedule and   This task also includes, in effect, an audit to
  their final versions.                              ensure that all project finalisation activities have
                                                     been completed. Final costs are determined and
• Assess how well the individual management
                                                     compared with the various estimates produced
  plans performed (risk, safety environment, etc)
                                                     throughout the project lifecycle to determine how
  and identify procedural modifications that
                                                     well the estimation process performed.
  would improve their performance.

• Document the evaluation in a project               Responsibility
  completion report.
                                                     The project manager has responsibility for this
                                                     task.




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    References                                          C. Review and approval

    - Handover report                                   Guidance

    - Project plan                                      The completed project completion report should
                                                        be circulated to all relevant stakeholders for
    - Contract documentation                            review prior to submission to the sponsor for
                                                        approval.
    - Proposal
                                                        On completion, the signed project completion

3
    - Business case
                                                        report is stored in a way that makes it accessible
    B. Prepare Completion Report (CR)                   to other project managers as required.

    Guidance                                            Responsibility

    The project completion report documents the         The project manager is responsible for
    complete project's performance and provides a       coordinating the review. The sponsor is
    succinct history of changes to the originally       responsible for a timely consideration and
    justified proposal. The report further documents    approval of the report.
    lessons learnt for use by subsequent projects.
    These lessons should be fed back into the           References
    organisations strategic, business and project
                                                        - Project completion report
    planning processes to ensure mistakes are not
    repeated and provide the opportunity for things     - Handover report
    that worked well to be repeated in subsequent
    projects.                                           - Project plan

    This report includes the results of the previous    - Contract documentation
    steps evaluation of project performance against
    the pre-determined success criteria. It also        - Business case
    evaluates project governance arrangements.
                                                        3.6.4.1.3        P12 - Close-out
    The project completion report template appears
    under the templates tab.                            General

    Responsibility                                      This activity closes down the project office and
                                                        disbands the project team. It is critically important
    The project manager is responsible for this task.   that this activity is thought through and conducted
                                                        thoroughly. The project team must maintain their
    References                                          vigilance to ensure that all the work is completed
                                                        in a timely and efficient manner. There is a
    - Handover report                                   significant risk that motivation and the level of
    - Project plan                                      effort put into the project can drop off
                                                        considerably after the product or service has been
    - Contract documentation                            handed over to the customer and some team
                                                        members start looking toward the next project.
    - Proposal                                          This activity involves the handling and disposal of
                                                        assets and finances and must be conducted in
    - Business case
                                                        accordance with the appropriate organisational
                                                        instructions, regulations and legislation. The data
                                                        and information generated under the project is a
                                                        very valuable corporate asset and must be sorted,


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indexed and stored appropriately. It is particularly    Tasks
important to provide appropriate reward and
recognition for the efforts of project staff. The       1. Close project office
project manager must provide adequate references
                                                        2. Close project files
for staff members and assist with their placement
in new positions.                                       3. Close financial accounts

Scope                                                   4. Value and register asset



                                                                                                                3
This activity covers the tasks associated with          5. Disband team
closing down the project office including
administrative and financial closure and the            A. Close project office
disbandment of the project team.
                                                        Guidance
Purpose
                                                        If the project team has been working from a
The purpose of this activity is to ensure that:         project office, this office needs to be closed or the
                                                        space reallocated. This may involve ending
• All stakeholders are informed of the imminent         leases, removing furniture and equipment,
  project closure.                                      disconnecting power or removing site offices.
• All project office assets are appropriately
                                                        Responsibility
  disposed of
                                                        The project manager is responsible for this task.
• Project ledger accounts are closed off.

• Project information is stored and archived            B. Close project files
  appropriately.
                                                        Guidance
• All applicable financial and administrative
  legislation, regulations and instructions are         In addition to all of the key project documents
  complied with.                                        produced during the course of the project,
                                                        substantial amounts of paper and electronic
• All project staff are debriefed and assistance        correspondence will have been received and
  provided for subsequent placement.                    generated which constitute a valuable corporate
                                                        asset and form an important historical and
Responsibility                                          auditable trail for the project.
The project manager is           responsible      for   It is of vital importance that this information is
coordinating this activity.                             sorted, indexed and stored in an appropriate
                                                        manner in accordance with applicable legislation,
Communication and consultation                          regulations and instructions. Much of this wealth
                                                        of information will be of great use for future
Communication         and    consultation      with
                                                        projects and needs to be readily available to staff
organisational administrative, financial and
                                                        within the organisation. It may be necessary to
human resource staff is essential to ensure that the
                                                        place appropriate controls over sensitive,
necessary requirements and regulations are met. It
                                                        commercial or personal information to prevent
is important that all stakeholders are informed of
                                                        inappropriate access.
the intention to close the project office to allow
them to raise any issues that still remain.             Arrangements need to be made for storing/
                                                        archiving both paper and computer files.




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    Responsibility                                      E. Disband team

    The project manager is responsible for this task.   Guidance

    References                                          Endings can be difficult. Appropriate community
                                                        recognition and reward should be given for the
    - Applicable administrative regulations and         efforts of the team. It is also important for the
                                                        team to maintain their vigilance to ensure that all
    - Procedures                                        work is conducted and standards of work don't fall
                                                        away while looking for other work. It is generally

3
    - Project plan
                                                        beneficial to have a wrap up function/wake.

    C. Close financial accounts                         Project team members will posses vital
                                                        information on the project that needs to be
    Guidance                                            captured and recorded as part of the project
    Project cost centres/internal orders need to be     record. Feedback should be sought from them.
    closed and paper financial records appropriately    Final performance reviews should be carried out,
    stored/archived. Assets, both office assets and     and any certification of experience for
    project deliverables need to be returned to their   professional bodies/qualifications should be
    owner. Records of all disposals need to be kept     completed.The project manager should assist
    and any proceeds credited to the project ledger.    project staff with placements after project closure.
    Any remaining lease, rent or hire agreements must
                                                        Responsibility
    be terminated.
                                                        The project manager is responsible for this task.
    Responsibility
                                                        References
    The project manager is responsible for this task.
                                                        - Organisational human resource management
    References                                            procedures
    - Applicable financial management procedures        - Project plan
    - Project plan
                                                        3.6.4.1.4        P13 - Post Implementation
                                                                         Review
    D. Value and register asset
                                                        General
    Guidance
                                                        The Post Implementation Review (PIR) is an
    Any new assets need to be recorded and valued in    activity conducted after the project has been
    such a way that makes subsequent                    closed down and the project's product or service
    revaluation/depreciation possible.                  has been in operation for some time. The activity
                                                        is not strictly a project activity as the project no
    Responsibility                                      longer exists. It is more an organisational activity
                                                        designed to evaluate the outcomes generated by
    The project manager and customer are responsible
                                                        the project in relation to the original need and
    for this activity.
                                                        identify lessons for improving organisational
                                                        processes and procedures.
    References
                                                        Not all projects require a formal post
    - Organisational asset valuation guidelines
                                                        implementation review; the sponsor must exercise
                                                        judgement in selecting which projects to review.
                                                        The conduct of the review should be considered as


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a project in its own right and planned and            Tasks
managed accordingly. In many cases the
personnel conducting the review will not be from      1. Convene post implementation review team
the original project team staff who will have since
                                                      2. Plan the review
moved on.
                                                      3. Undertake the review
Scope
                                                      4. Prepare post implementation review report
The scope of this activity covers all tasks


                                                                                                          3
associated with the post implementation review        5. Review & approval
from the raising of the implementation team
through to the approval of the review report          A. Review and approval

The deliverable from this activity is a post          Guidance
implementation review report.
                                                      The post implementation review report needs to
Purpose                                               be circulated to stakeholders for review prior to
                                                      submission to the sponsor for approval.
The purpose of this activity is to:
                                                      Responsibility
• Raise a review team and conduct the review.
                                                      The project manager is responsible for
• Identify the outcomes and benefits generated
                                                      coordinating the review and submission of the
  by the project.
                                                      report. The sponsor is responsible for a timely
• Determine the final cost of the project.            consideration and approval.

• Evaluate the outcomes in terms of the original      References
  need.
                                                      - Post implementation review report.
• Identify lessons learnt in terms              of
  organisational processes and procedures.

• Document the review.

Responsibility

The project manager, sponsor and customer are
responsible for this activity.

Communication and consultation

The post implementation review is a project in its
own right and requires the level of
communication and consultation necessary to
raise any project. Stakeholders must be identified
and their views and concerns canvassed.
Considerable communication between the
implementation team and the sponsor is necessary
to understand the requirement and plan the
review. Where possible the review team should
consult with the original project team to gain a
greater understanding of the original project.



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    References
    Road Planning and Design Manual
    Queensland Department of Main Roads

    Road Policy Manual
    Queensland Department of Main Roads

    Project Cost Estimating Manual
    Queensland Department of Main Roads

3   Project Estimating
    Road Transport Authority of New South Wales

    A Guide to the Project Management Body of
    Knowledge
    Australian Institute of Project Management

    Project Management Manual
    Queensland Department of Main Roads

    Value Engineering
    United States Department of Transportation
    (Federal Highway Administration -
    Infrastructure)




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DOCUMENT INFO
Description: Project Management Finalisation Report document sample