Project management focuses on finite resources on the completion of assigned work, and it identifies project activities needed to ensure project success. The push towards outsourcing project management is coming from customers themselves who are saying that their projects are not coming in on time, on target, or on budget. Signs are that companies are recognising the importance of a more formal process of project management. This has generally resulted from the realisation that a company’s work processes are becoming corporate assets in that they can be a distinct competitive advantage in a mature business environment. However, the change towards project management requires a shift in thinking and orientation within the work place.

Outsourcing vs In-House
Engineering and construction projects, by their very nature, are often not the core business of many of the companies who undertake them. Most in- house engineers are used to working within departments, divisions or offices and being primarily responsible for their functional work. As involvement in project work continues to grow, companies are increasingly considering hiring experienced, temporary project teams to represent their interests in major engineering and constructions projects.

Why use a Project Team?
As companies are entering into one of today’s contractual agreements such as alliance and partnering with a contractor, an independent project team provides the following services:

• Provide the sponsor organisation with a representative in direct control of a project
• Works directly for the sponsor organisation to protect corporate and financial interests in the project
• Guarantees the sponsor organisation’s presence in decision making and ensures staff needs and preferences are considered
• Avoids costly surprises and ensures large capital sums are not signed off to contractors without authorisation of the sponsor organisation

Ideally, project teams are brought in at the beginning of the project. The project team’s first task is to create a detailed organisation and execution plan together with general project authorisation for expenditure for the sponsor organisation’s comment and approval. A clear and direct project management structure eliminates contractor feuds, missed steps and mutual blame essentially aligning the goals of all the project stakeholders involved.

Using experienced, temporary project teams can be effective if:

• A straightforward, well- defined organisation is established
• Adequate time is allowed for development of good- quality, detail project execution and scope documents.

Project Killers
The number one killer of project budgets and schedules is not taking the time to properly set up a project during the conceptual and design phases. The company’s management needs to be made aware that it is far more prudent to spend time on scope development at a controlled and deliberate pace than to let work proceed without it.

This element, more than any other, is the key to successful project management and project execution within schedule and budget. With adequate attention to the preparation of good-quality front- end documents, the potential for problems and cost overruns decrease dramatically.