The Owner's Role in Project Success
The successful execution of capital projects depends on the effectiveness of project teams—team members with diverse backgrounds, conflicting goals, and who answer to different employers. The relationships among team members and between the owner and contractors evolve throughout the project’s life. Just as the process of design and construction calls for the input of different disciplines and trades at various points, many owners—different entities (for example executives, technical personnel, and end users)—within owner organizations participate at various times over the life cycle of a capital project. With all these players and variables, determining the “right” level of owner involvement is the key to success.
CII established the Owner’s Role in Project Success Research Team to identify management approaches used for different types of projects, delivery systems, and team structures to determine how the owner contributed to project success. This research summary describes the team’s effort.
The research team also developed the Project Priority Calculator (CII Implementation Resource 204-2) to assess the value being added by the owner based on recommended roles and responsibilities. Using this tool will help to determine the key owner functions that will contribute to project success and define the level to which the owner organization can or should be involved in managing the project.
Those metrics that lead to a successful outcome are defined by these four drivers of system performance.
- Pre-Planning Index (PPI) – measures the ability to adhere to the following description of pre-project planning. It involves the process of developing sufficient strategic information that owners can address risk and decide to commit resources to maximize the chance for a successful project. Pre-project planning includes putting together the project team, selecting technology, selecting project site, developing project scope, and developing project alternatives.
- Owner’s Involvement Index (OII) – measures the level and quality of owner involvement in the project process. The owner’s influence is better understood by analyzing the categories of oversight, participation, and decision making.
- Leadership Performance Index (LPI) – measures the adherence to basic leadership principles that allow the elimination of adversarial environments as well as fill the team with emotional intelligence.
- Project Management Index (PMI) – measures how effective the project management system was on the project as far as controlling the safety, quality, cost, and schedule.
Each driver of system performance is made up of a collection of actions the owner either does or does not perform. Each driver was analyzed to determine those actions having the most significant impact on the reported outcome. Those critical actions for each of the four drivers are detailed in the research.
Duration Performance Rating
- Limit owner initiated scope changes that increase the project duration
- Focus on the owner’s expectations and motivate the team to achieve those expectations
Cost Performance Rating
- Focus on scope adherence
- Limit the impact of unforeseen site conditions
Business Performance Rating
- Thoroughly plan the capital expenditures prior to project selection
- Continually update the business plan
Quality Performance Rating
- Monitor labor market conditions that could impact project duration
- Use qualified professionals to review both construction methods and procedures
Project Success Rating
- Foster communications among team members
- Be prepared to handle unforeseen market conditions that may impact material prices or availability increase the original contract amount
