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Pre-Project Planning: Beginning a Project the Right Way

Publication No
RS39-1
Type
Research & Development Product
Publication Date
Dec 01, 1994
Pages
26
Research Team
RT-039
DOCUMENT DETAILS
Abstract
Key Findings
Filters & Tags
Abstract

Research conducted by the Pre-Project Planning Research Team indicates that well-performed pre-project planning can:

  • Reduce total project design and construction costs by as much as 20 percent (versus authorization estimate).
  • Reduce total project design and construction schedule by as much as 39 percent (versus authorization estimate).
  • Improve project predictability in terms of cost, schedule, and operating performance.
  • Increase the chance of the project meeting environmental and social goals.

The team has developed a pre-project planning process model outlining the major sub-processes. This publication gives an overview of the process, as well as guidelines and principles for implementing the process.

Six pre-project planning factors that significantly affect project success are outlined in this publication. Among these are the need to increase total project design work-hours completed to between 10 and 25 percent prior to project authorization; development of a written charter; project control guidelines developed; execution approach prepared; adequate number of organizations participating in pre-project planning, and pre-project planning plan in place.

The research team has also arrived at the following three conclusions:

  • Pre-project planning is an owner-driven process that must be tied closely to business goals.
  • Pre-project planning is a complex process that must be adapted to the business needs of the company, tailored to specific projects, and applied consistently to all projects in order to gain full benefits.
  • Corporate goals and guidelines for both pre-project planning and the project must be well defined and aligned among project participants. Alignment requires involvement of operations, business, and project management early in the pre-project planning process. Key individuals must be empowered by management to act on these goals, as well as be accountable for their actions.

This research indicates a direct relationship exists between the level of pre-project planning effort and project success. The research team therefore encourages owner organizations and other professionals in the construction industry to understand the underlying pre-project planning process and act quickly and effectively to embrace its tenets.

Key Findings
The early stages in the project life cycle, such as business planning and pre-project planning, can have a much greater influence on the project’s outcome than later stages. The “Cost-Influence Curve” shown below illustrates that it is much easier to influence a project’s outcome during the project planning stage when expenditures are relatively minimal than it is to affect the outcome during project execution or operation of the facility when expenditures are more significant. (RS39-1, p. 1)
The research identified six fundamental principles that are important to pre-project planning. First is that pre-project planning is a process that can be standardized and the concepts presented can be adapted to the specific needs of individual organizations. The other five principles are detailed in the research. (RS39-1, p. 21)

Pre-project planning improves project predictability in terms of cost, schedule, and operating performance. (RS39-1, p.22)

  • Improved cost predictability
  • Improved schedule predictability
  • Better attainment of operational and production goals in the first six months of operation
  • Better achievement of business goals
  • Better definition of risks
  • Fewer scope changes
  • Greatly reduced probability of project failures and disasters
Pre-project planning increases the chances of the project meeting environmental and social goals. (RS39-1, p. v)
Filters & Tags
Best Practice
Research Topic
Pre-Project Planning
Keywords
Pre-project planning (PPP), select alternatives, project definition package, Project life cycle diagram, Cost influence curve, front end planning, pre-project planning principles, rt39