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The Definitive Guide to Building a World-Class Construction PMO PRIVATE SECTOR

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e-Builder.net • 800.580.9322 info@e-Builder.net 2 e-Builder.net • 800.580.9322 • info@e-Builder.net Standard Approaches to Capital Project Management Most owner organizations, whether public or private, have a PMO—a group that manages capital projects (or design and construction departments). In the PMO, there are several approaches to organizational set-up: • Internal Turnkey: These organizations rarely use contractors. The organization will often perform work in-house or directly contract specialty contractors as needed. • External Consultant: Other organizations contract all project management activities to a consultant. • Internal with External Support: The most common type of PMO directly employs a number of internal project managers that coordinate with contractor project managers and maintain enough project controls and administrative staff to ensure the owner organization is being a good buyer of construction services. Inside the PMIS-Enabled Organization In 2018, e-Builder conducted an informal survey of PMIS-enabled public and private sector organizations from different verticals ranging from well-established to emerging owner organizations. When asked if the implementation of a PMIS required a change in project/program management organizational structure, the answer was largely yes. A PMIS requires some restructuring of roles and permissions for internal users and external partners. As one would expect, there are many common organizational elements in the engineering, design, construction, operations, and maintenance space. In all cases, project managers do the work while project controls experts facilitate and administer the system. Additionally, some organizations are optimized around design and preconstruction while others are optimized around operations and maintenance. Every respondent in the survey noted that establishing a PMIS-enabled organization required a clear understanding of—and sometimes an adjustment to—staff skills. The most important addition is a director of project controls or system administrator who works seamlessly with design/construction and operations/maintenance. The project controls professional's job is multi-faceted. It must include the development of customized project controls management tools as well as project controls analysis, monitoring and reporting to program users, customers, and stakeholders. The Definitive Guide to Job Descriptions for Owner Organizations The most challenging task for any owner organization is managing performance. In the world of construction, performance translates into budget and schedule. Too often, projects of all scopes and scales have cost overruns and/or miss significant milestones— mostly because of disconnected and inefficient work processes and the lack of collaborative, connected solutions. A recent KPMG survey (conducted in conjunction with Harvey Nash) of CIOs from global engineering and construction companies found that 63 percent of respondents see technology as an opportunity, and more than 75 percent think technology/innovation will significantly change their business in less than five years. Those same respondents pointed to project management information systems (PMIS) as having the greatest potential to deliver value. The implementation of a centralized, enterprise- wide PMIS has been shown to improve transparency and accountability, provide instant access to real-time project progress, standardize workflows, streamline processes, and drive collaborative relationships with internal/external partners. A PMIS is essentially the bridge to all things digital on a project, establishing an intelligent workflow that automatically routes, alerts, stores, and manages progress, feedback, and approvals. Like any large-scale technology implementation, a successful PMIS must be adapted to workflows and championed by leaders and operators. With that in mind, there are some organizational considerations that will help get the most out of a PMIS. The Definitive Guide to Job Descriptions for Owner Organizations provides an inside look at the key roles and job functions that support a PMIS implementation in a mature program management office (PMO).

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