Project Governance

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Definitions

4. Responsibilities

Medium Sized Projects

Project Control Group

PCG meetings are usually held monthly. Minutes of all meetings shall be prepared by the PCG and circulated to all members and invitees no later than three working days (electronically or by hardcopy) prior to the meeting. The PCG may require the attendance of other consultants from time to time to report and advise on specialist matters.

The PCG agenda usually includes the following:

  • Project Status Report
  • The Cost Report
  • Industrial Relations Report
  • Safety
  • Equipment
  • Staffing
  • Decisions and Approvals.

Note: A Quorum should be 75% of membership and a member unable to attend meetings may have a nominee attend.

Oversee the Project

Develop the scope and content of the works to be included in the Project including establishing the budget and program parameters.

Ensure only those functional, cost and program matters contained in the approved brief are implemented and all changes to the brief and budget are sufficiently reported to the Department so as to permit review and approval of such changes.

Develop and endorse the scope and content of the project brief for all Consultants.

Establish User Groups where appropriate.

Direct and monitor the services, responsibilities and duties of the Consultants throughout all stages of the appointment.

To Make Recommendations

PCG should:

  • Endorse recommendations on the appointment and engagement of major consultant appointments such as the Project Manager, Principal Consultant, Architect, Engineer, Quantity Surveyor and other Consultants and entering contracts with Contractors and Suppliers.
  • Approve policy, planning objectives and operational recommendations.
  • Seek funds for proposals to vary the project.
  • Review and endorse project reports submitted by consultants.

Obtain Approvals

  • Seek approval from the Department to advance a project to the next phase.
  • Approve funding sources.
  • Approve the commitment of funds.
  • Approve change in scope and/or additional expenditure.

Establish and Implement Authorisation of Payments

Endorse all payments to its Consultants, Contractors and Suppliers. Determine limits for delegated authority for commitment of funds, expenditure of contingency sums and payments (refer to Section: Authorisation and Payments).

Approve the expenditure of all contingency funds within the authorised commitment levels.

The responsibility of the PCG will be to jointly manage the project on behalf of the Health Service/Agency from inception through to financial completion and post occupancy evaluation.

The PCG will be accountable to the Health Service/Agency Board of Management and Regional Director. Although the PCG will have delegated authority for day-to-day management, approval will need to be sought from the agency and DHS to:

  • Enter into contracts.
  • Commit capital funds.
  • Change scope of works.
  • Increase the budget.

The following is a list of responsibilities for the PCG, principal consultant, subconsultants, quantity surveyor and user groups.

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Large Projects

Steering Group

  • Set timetables for the Project within the Government’s agreed timeframe and monitor progress.
  • Approve and monitor project management arrangements.
  • Manage risks in accordance with the risk management strategy.
  • Monitor quality aspects of the Project within the defined parameters/specifications.
  • Ensure timely and sensitive delivery of planning issues.
Scope
  • Ensure opportunities for collocation, sharing and integration of services and research are appropriately addressed through the Project Team structure.
  • Consider and resolve any Project-related issues referred by any member, including disputes.
  • Ensure a comprehensive consultation and communication strategy is developed and implemented.
  • Ensure clear communication and effective management of Project's interaction with other projects.
  • Seek appropriate external advice.
Reporting and Referral
  • Monitor progress on the project through monthly reports provided by the Project Team.
  • Considers reports from probity, legal and financial advisors, as necessary.
  • Initiate, prioritise and oversee required actions to ensure effective management through the Project Team to deliver the project. 
  • Provide reports to the Minister for Health and Minister for Innovation as required.

The Planning Team

  • Ensure the project is developed in accordance with the philosophy, vision and values.  This will be achieved through an ongoing examination and analysis of key issues in the internal and external environment so that planning approaches and strategies will reflect best practice, innovation and patient focussed models of care.
  • Implement a new model of service delivery is consistent with the directions of the Health Strategy and other relevant policies.
  • Ensure that consultation, communication and engagement with internal and external stakeholders are undertaken to achieve the best possible input and collaboration.
  • Draw on the expertise and input from its clinicians and managers through all stages of the project.  This will include workshops, focus groups and planning teams, and through the use of dedicated resources include portfolio responsibilities in key departments as well as input from other staff.
  • Facilitate the development of an integrated research program and plan for enhanced research facilities that enable laboratory and clinical programs.
  • Ensure close liaison between the Health Service and the Department (and across key departmental divisions).
  • Ensure appropriate and effective representation of all groups and at all levels.
  • Ensure the capital consultants have adequate, appropriate and timely information in relation to the development of the design requirements.

The Project Team

  • Perform actions and respond to requests as directed by the Steering Committee.
  • Develop the preliminary and final business case and develop other documents required for the project.
  • Ensure that timeframes and key objectives of the project are achieved and that adequate and appropriate documentation and information is provided to the steering committee at key decision points.
  • Monitor and manage the collocation teams, PCG and working groups.  The project team must ensure that all groups receive and provide the right information in appropriate timeframes to ensure the development of a robust business case.  This may include co-ordinating and facilitating joint workshops between the clinical services, non-clinical services, research and infrastructure teams and working groups at appropriate points in the project.
  • Continue to develop and monitor the Project planning frameworks, priorities, timelines and responsibilities.
  • Monitor the progress of the project consultants (capital and financial) to ensure timelines are achieved and a high quality outcome is also achieved.
  • Develop and complete business planning phases.
  • Determine linkages and liaise with User Groups.

Clinical Services Collocation Team

This team is responsible for the identification and development of collocation, sharing and integration clinical services opportunities.  The tasks to be undertaken will inform the development of the business case and will therefore be a strategic level of planning.

The tasks are as follows:

  • Develop a set of principles for the identification, development and documentation of collocation, sharing and integration opportunities.
  • Develop an agreed dispute resolution process in relation to collocation issues.
  • Identify, explore and document opportunities for sharing, collocation and integration of services etc. 
  • Consideration of issues and risks associated with collocation, integration and sharing of services (etc.) and develop processes / strategies to address these.
  • Ensure the capital consultants have adequate, appropriate and timely information in relation to the opportunities for collocation, sharing and integration to inform the development of the master planning exercises for this project.
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Research Collocation Team

Scope

Opportunities for integration will be developed by the Research Collocation Team for consideration by the Project Team and Steering Committee. It is intended that opportunities outside the project be considered.

Principles

This Team is responsible for identifying opportunities and developing plans for research collocation, integration and sharing research partners in this project. The primary objective is to maximise capabilities, synergies and efficiencies that can be achieved from the proposed development. The tasks to be undertaken will inform the development of the Business Case for this project and are therefore at a strategic level of planning.

Specific Roles

Project Manager

The Project Manager is to be appointed by the Principal. Services are to include (but not be limited to) the following services, responsibilities and duties (the Architect is normally the Project Manager for projects up to $5 million).

Management
  • Assume overall responsibility for the management and co-ordination of all aspects of the project during the design, documentation, construction, equipping and commissioning stages.
  • Accept delegated authority for specific matters determined by the PCG.
  • Establish and maintain lines of communication and establish a reporting system.
  • Develop procedures for administration, accounting, purchasing, approvals and document circulation.
  • Review all design, documentation construction and commissioning variations to the project to see that they are within the terms of the brief, the agreed design and budget limitations.
  • Keep a photographic record of key elements of the project.
Liaison

Attend all meetings of the PCG, prepare minutes and circulate to relevant groups and follow up as required to maintain project momentum.

Arrange and chair such progress meetings as are necessary for satisfactory co-ordination of the work with consultants, contractor, sub-contractors and suppliers, etc.

Motivate and co-ordinate the work of the principal consultant and associated sub-consultants, quantity surveyor and other specialist groups.

Ensure all statutory and Government policy requirements are complied with and approvals are obtained as necessary from government, local government and other authorities and bodies having jurisdiction over the project within the required time frame. Obtain modifications to the building regulations when required.

Ensure project meets operational performance requirements including DHS policy fee, environmental energy targets, low maintenance and high reliability needs to support service plan needs.

Attend all meetings of the PCG to report, recommend and advise on matters relating to the construction aspects of the project.

Work with the Agency/Health Service and the Contractor to ensure the commissioning and smooth occupancy of the facility if necessary on a staged basis.

Arrange or assist in co-ordinating any opening ceremonies or media during the project in association with the PCG and Project Co ordinator.

Reporting

Report to the PCG (incorporating specialist Consultant reports as necessary) normally occurs at monthly intervals or as required on:

  • Expenditure against budget and estimated cost to completion.
  • Actual progress compared with original program and work still to be completed.
  • Scope and/or design changes.
  • Variations
  • Issues.

Regularly update program schedules and make recommendations on activities to be expedited to meet predetermined completion dates.

Advise the PCG as necessary at all times on public and community relations and industrial relations. Assist in arranging and providing appropriate publicity and promotional material as required.

Budget

Ensure that cost plans comply with the budget prepared for the Project by the quantity surveyor including accurate cash flow projections.

Establish costing systems to monitor the expenditure and provide feedback to the PCG.

Establish procedures regarding the issuing of variations, costs-to-completion and keep the PCG fully informed. Prepare submissions for approval of variations by the PCG in accordance with the relevant delegation.

Check that the designs produced comply with the overall cost budget with consideration to operational and maintenance cost efficiency. The designs also, require demonstrational options in energy saving measures.

Ensure that all final accounts are dealt with according to the contract conditions and that all claims are settled.

Program

Develop the master program for the Project from the planning stage to final completion identifying all critical target dates and milestones to meet the established completion dates. This program will consider priorities and constraints that could interfere with the service provision tasks set out by the Project Liaison Officer.

Assess all planning, design and pre-tender construction programs as well as implementation alternatives and regularly update the current status comparing it to the master program for all stages and communicate to all parties.

Monitor design information flow and PCG approvals and ensure that program requirements are being achieved.

Advise the contractor of program procedures and requirements and ensure that program requirements are achieved and include:

  • Monitoring of all off-site activities including preparation of necessary shop drawings.
  • Ensuring that items with long lead times will be delivered on time.
  • Identify and anticipate problems with the Contractor and take such measures as are necessary to resolve these equitably.
  • Report all potential delays to the PCG.
Consultants

Advise on the scope and content of work to be undertaken by consultants and other specialist services which may be required and assist in the selection, negotiations and agreement of consultant professional services engagements.
Direct and administer the work of the consultant team members, including the certification of their accounts for payment by the PCG.

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Tendering

Advise on alternative methods available for the construction of new or refurbished facilities. Assist in the selection and appointment of contractors.

See that the contract documents are properly executed before work starts on site.

Assist in the Expressions of Interest public or selected tenders in association with the consultant team. Prepare a recommended short list of contractors who will be invited to submit detailed tenders on the main contract for the PCG’s approval.

Call and receive tenders, evaluate all tenders received and make recommendations to the PCG regarding the appointment of the contractor, subcontractors and suppliers.

Ensure that the contractor, any subcontractor and supplier have complied with statutory, insurance and the Code of Practice requirements and are fully aware of security requirements necessary during the construction phase.

Ensure that probity and confidentiality are maintained by consultant team throughout the tender and evaluation process. Prepare reports to PCG and the principal to the contract on the recommended tender including an evaluation of submissions, assessment of alternative offers and outcomes of clarification and negotiation with input from relevant professionals including QS, architect and engineer.

Contractual

Act as Superintendent under the construction contract and ensure all duties are fulfilled such as the issuing of all certificates, ratify any payments required under the Conditions of Contract and Security of Payments Act at the appropriate time.

Ensure that site possession will be available when required (advise on the site requirements including the prior checking of any security, legal or planning restrictions affecting the site).

Ensure all Consultants and Contractors are ‘Registered Building Practitioners’ or suitable equivalent as required by the Building Act 1993 and that they carry appropriate professional indemnity and insurance.

Advise the PCG in writing:

  • When Certificates of Practical Completion and Final Certificates are to be issued to allow the PCG to first have the opportunity to inspect the works.
  • That the project or part of the project is fit for use and/or occupation and/or client training purposes.
  • Ensure provision of suitable prototypes and approval prior to use in works.
  • Place orders on behalf of the principal and negotiate and agree the scope of works relating to public utilities, statutory authorities and other bodies.
  • Investigate and resolve any adjacent owner/occupier situations, preservation orders, rights of way or easements.
  • Ensure that the statutory authorities can provide the basic services required.
  • Ensure certification of occupancy is issued prior to hand over.
Quality Assurance

Undertake assessment of risks and issues of ongoing asset management, minimising recurrent costs and maximising ESD principles.

Co-ordinate and undertake value management processes as required by the PCG.

Oversee the completion of design and contract documents for the construction stage in accordance with the agreed quality plan and warrant that they are checked, co-ordinated and comprehensive.

Ensure that the tender contract documents covers the following Government initiatives:

  • Ministerial Directives 1 and 2 and associated Codes of Practice and Guides.
  • Victorian Industry Participation Policy (VIPP).
  • Inclusion of Principal Controlled Insurance.
  • Security of Payment Legislation.
  • Probity and Disclosure statutory declarations
  • Energy efficiency in public building.

Review the works during the defects liability period and inspect with the architect at the expiration of this time. Release retentions or other form of guarantee at the expiration of defects liability period.

Ensure that adequate access is provided to service installations for ease of maintenance and future replacement.

In conjunction with the Superintendent’s Representative ensure that all quality control and testing requirements are clearly established and documented.

Establish the project requirements on such matters as professional accountability, liquidated damages, insurance requirements, compliance with Government regulations in relation to quality assurance and tendering.

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Commissioning

Ensure that documentation of all necessary construction and equipment operating manuals and ‘as built’ drawings, hard copy and electronic copy are supplied to the Principal.

Ensure ‘Plain English’ guides are prepared for all manuals and prepare the commissioning program at the design stage in the project to form the basis of managing the implementation phase.

Arrange for the preparation of equipment and furniture schedules including the tendering, ordering, final placement and performance testing of all reusable and new items in preparation for handover to the Agency.

Where required by the PCG, prepare operational and/or maintenance contracts as part of the project.

Ensure pre-commissioning checks are carried out for the plant, equipment and buildings. Arrange for training, additional commissioning, testing and implementation phasing to suit the requirements of the users.

Arrange for user training in conjunction with handover following certificate of occupancy. User training is to include operation and maintenance of all essential services as per directions of building certification process.

Ensure adequate provision of consultant services to cover commissioning issues and allow for corrective measures, in order to occupy buildings suitable for service delivery.

Review

Evaluate the various planning and operational options (from a functional, cost and time oriented view). Report on capital and recurrent cost ramifications at appropriate stages though the project design and documentation.

Undertake, co-ordinate and recommend action plans from value management study(ies).

Ensure that appropriate equipment and plant operational policies are developed for agency services with recurrent costs within sustainable levels of funding.

Review and develop procedures for monitoring defects liabilities.

Ensure the preparation and development of an asset management plan for the facility annually and for long-term operation. Ensure the maintenance and technical operating manuals are suitable for the task.

Provide advice and develop a program for the carrying out of a Post Occupancy Evaluation at the completion of the defects liability period of the completed project or at a time suitable to the PCG – generally no less than 12 months after handover.

Advise the PCG on other matters associated with the capital redevelopment of the project as detailed in the master plan including but not limited to the use of the balance of the site.

Resourcing

Ensure that the consultants and contractors make adequate personnel available for the execution of their professional obligations, in both the design and implementation areas.

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Architect

The Architect is appointed by the Principal to provide professional services on the design and implementation phase. For smaller or straightforward projects the Architect will undertake the duties set out above as the project manager responsibilities. The Architect will be a direct appointment by DHS with the day-to-day direction and management by the Project Manager.

The responsibility of the Architect will be as set out in the consultant brief and includes:

  • Prepare designs appropriate to the briefs and associated services including documentation and supervision.
  • Where required architect is to engage sub-consultants and supervise their work and co-ordinate the output of the design documentation team.
  • The architect will be responsible for all activities associated with tendering and contract administration including initiate, respond and recommend design and construction variations to the Project.
  • Arrange and/or attend meetings of the project design and contract teams.
  • If and when requested to report and to attend meetings of the PCG and provide advise on the project.
  • Undertake duties such as Superintendent’ or Superintendent representative, administer the contract and issue relevant certificates.
  • Advise on contractual matters relating to AS 2124, building matters as they arise.
  • Recommend to the project manager the quality of work, progress and acceptance of payments to subconsultants, contractors and suppliers.

Quantity Surveyor

The Quantity Surveyor (QS) is appointed to advise on the cost management aspects of the project, and is directly responsibility to the PCG for audit purposes. The Quantity Surveyor is under the day-to-day direction and management of the project manager. The quantity surveyor is normally directly engaged by the Department.

The responsibility of the QS is to:

  • Develop and update the Project Budget.
  • Monitor and advise the total costs and advise on methods to maintain agreed budgets.
  • Prepare and revise accurate cash flow forecasts, estimates and variations, which may or may not subsequently be authorised.
  • Review and provide an independent assessment of building services estimates developed by the building services consultants.
  • Attend meetings of the project design and construction team, with contractor, and meetings of the PCG to report and advise on all aspects of the project budget affected by functional and time aspects.
  • Assist the principal consultant in evaluation of work related to the functional, cost and time aspects of the project.
  • Assess and reconcile with the pre-tender estimates/budget the tenders received.
  • Prepare, process and recommend for payment all accounts on the project.
  • Measure, value and negotiate the cost of construction variations, extensions of time or claims to the contract.
  • Advise any costs associated with change of scope or client initiated requirements.
  • Warrant to the PCG that the pre-tender estimated costs are within the project budget prior to calling tenders.
  • Prepare financial analysis of capital and recurrent costs for the project as directed by the Department of Human Services.
  • Prepare progressive budgetary statements against the anticipated final cost of the project and submit a certified statement of final cost under the Project.

Subconsultants

Subconsultants are normally engaged and appointed by the project manager or architect and are responsible for the planning, design, documentation and inspection of their individual components of the project (under the day to day direction and management of the project manager or architect). Disciplines involved may include engineer (civil, hydraulic, structural, mechanical, electrical etc) ergonomic, geotechnical, heritage, acoustic, industrial hygienist, investment evaluation, kitchen, landscape, town planning and value management consultants.

The responsibility of these consultants is to:

  • Attend meetings of the project design and construction teams, and when requested to attend meeting of the PCG.
  • To report and advise on specific aspects of their work.
  • Prepare designs and documentation appropriate to the briefs.
  • Administer the individual components of their work during the construction stage and issue all relevant completion certificates.

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User Group(s)

User Groups should comprise staff skilled in the health or service delivery areas. These groups form the main source of user advice to the consultants when determining operational and departmental planning issues around a project. The advice provided by the user group should be fed back through the Health Service/Agency management for review and vetting, where required, prior to reporting the advice to the PCG for their decisions on the outcome.

The user groups are established by the PCG and may be co ordinated by members of the principal consultant. Typical issues that may be discussed and considered are:

  • Outlining their department/unit role.
  • Describing the services they currently provide.
  • Outlining possible changes in these services.
  • Advising on critical relationships between their department/unit and other areas of the Health Service/Agency.
  • Department/unit management structure and staffing.
  • Details on activities carried out in the department/unit.
  • Advising of facility operation and maintenance issues.
  • Information on the rooms and spaces making up the department/unit for it to function efficiently.
  • Sign-off on all design/planning phase prior to proceeding.

User Group input to the project can be sought at several key stages in the project:

  • Functional and Design Briefs.
  • Master Plan/Feasibility Studies.
  • Schematic Design.
  • Design Development.
  • Commissioning.

This process is aimed to ensure that user input is considered at the earliest time, and that all parties have a clear understanding of the project details before proceeding to the next stage.

Staff Liaison with User Groups

Considerable flexibility is used in the liaison between individual staff members and their user group representative. Meetings are held regularly to inform staff of progress and seek staff comments on the project details and/or process.

Consultation also occurs on an individual basis where appropriate and practical.

PCG Report Format

A brief report to the PCG is required in A4 format will be provided which will include a summary of design changes and their implications, confirmation of cost estimate/budget, cash flow, program, equipment schedule, etc.

A full set of reduced tender drawings (A3 size) showing site, floor, roof and reflected ceiling plans, elevations and sections, together with drawings showing scope of engineering services and structural elements, should be included in the report.

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For information relating to this page contact: Capital Management Branch, Ph: 61 3 9096 2030, capital@dhs.vic.gov.au
Site authorised by: Director, Capital Management Branch

Last Updated: 8 June, 2007
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