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BROCK UNIVERSITYReport to the Capital Projects and Facilities Committee

Information Item

TOPIC: Generative Discussion on Project Management Risk

October 21, 2010Thomas Saint-Ivany – Associate Vice-President, Facilities Management

BACKGROUND

Projects vs. Operational Work1. Organizations perform work to achieve a set of objectives.Generally, work can be categorized as either projects or operations, although the twosometimes overlap. They share many of the following characteristics:

  Performed by people

  Constrained by limited resources

  Planned, executed, and controlled

Projects and operations differ primarily in that operations are on-going and repetitive, whileprojects are temporary and unique. The objectives of projects and operations arefundamentally different. The purpose of a project is to attain its objective and thenterminate. Conversely, the objective of an on-going operation is to sustain the organization.Projects are different because the project concludes when its specific objectives have beenattained, while operations adopt a new set of objectives and the work continues.

The organization of Brock University’s Facilities Management Department can be found atAt t achment 1 . Generally, on-going operations are performed by two of the three ServicesUnits of Facilities Management: Maintenance & Operations (Utilities) Services and Custodial(including Property Management) Services. Projects are performed by the third Services Unit:Campus Planning, Design & Construction Services. At times, the line-Managers ofMaintenance & Operations Services will manage projects related to their specific functionalresponsibilities (i.e. Co-generation Plant, Mechanical, Electrical, Structural, and Grounds).When so doing, they are not readily able to address on-going operations matters related totheir functional areas.

What is a Project2? A project is a temporary endeavour undertaken to create a unique

product, service, or result. Projects are a means of organizing activities that cannot beaddressed within the organization’s normal operational limits. Projects are, therefore, oftenutilized as a means of achieving an organization’s strategic plan, whether the project team isemployed by the organization or is a contracted service provider or a combination of both.Facilities Management generally utilizes a threshold of $10,000 along with whether or not the

1  A Guide to the Project Management Body of Knowledge, 3rd  Edition, Project Management Institute, 2004. 

2 Ibid.

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work needs to be designed/engineered as key determinants of whether or not the work beingrequested is to be categorized as a project and the routing that it is to take:

  Utilizing the standing operating budget accounts and personnel resources (Tradesand Contractors) of Maintenance & Operations Services.

  Utilizing the University’s Mid-Year Review and New Fiscal Year BudgetDevelopment processes to secure funding through University Operating Budgetallocations, Faculty/Department Budgets, Research Funding, and one-time/on-going Federal and Provincial programs (e.g. FRP) and delivering projects byCampus Planning, Design & Construction Services. As noted above, projects couldbe assigned by Campus Planning Design & Construction Services to Maintenance &Operations Services for implementation but remaining under the monitoring andcontrol of Campus Planning, Design & Construction Services.

What is Project Management3? Project management is the application of knowledge, skills,tools and techniques to project activities to meet project requirements. Projectmanagement is accomplished through the application and integration of the project

management processes of initiating, planning, executing, monitoring and controlling, andclosing. The project manager is the person responsible for accomplishing the projectobjectives. Managing a project includes:

  Identifying requirements

  Establishing clear and achievable objectives

  Balancing the competing demands for quality, scope, time, and cost

  Adapting the specifications, plans, and approach to the different concerns andexpectations of the various stakeholders

Project managers often talk of a “triple constraint” – project scope, time and cost – in

managing competing project requirements. Project quality is affected by balancing thesethree factors. High quality projects deliver the required product, service or result withinscope, on time, and within budget. The relationship among these factors is such that if anyone of the three factors changes, at least one other factor is likely to be affected. Projectmanagers also manage projects in response to uncertainty. Project risk is an uncertain eventor condition that, if it occurs, has a positive or negative effect on at least one projectobjective.

The Project Management Institute has identified the following nine project managementknowledge areas for the effective management of projects:

  Project Integration Management

  Project Scope Management

  Project Time Management

  Project Cost Management

  Project Quality Management

  Project Human Resource Management

3 Ibid.

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  Project Communications Management

  Project Risk Management

  Project Procurement Management

Resources for Delivering Projects. The following are resources that can be used for the

delivery of projects or in direct support of that delivery (those in italics are currently beingutilized by the University):

  In-house full-time employees in Campus Planning Design & Construction Services(project managers)

  In-house full-time employees in Maintenance & Operations Services (lineManagers)

  In-house full-time employees in Custodial Services (property management) and FMCentral Services (Administrative Assistant, Real Property Asset ManagementCoordinator)

  In-house full-time employees Financial & Administrative Services

  In-house full-time employees Information Technology Services  In-house contract staff in Campus Planning, Design & Construction Services

(project coordinator, planning assistant)

  Contracted consultants providing project management services (project director, project manager, financial and administrative staff)

  Seconded contracted consultant staff

DISCUSSION

The following are some questions to help initiate discussion on project management risk:

  How many projects can one project manager effectively manage simultaneously?

  What is the right balance of in-house and contract project management resources?

  What is the risk of utilizing on-going operations staff for project delivery?

  Where do we locate our project management resources?

  What are the lessons learned and experiences with contracted consultants?

   Are we able to and how do we effectively sustain projects of long duration andcomplexity in the face of continually emerging new requirements and initiatives?

  What Key Performance Indicators are of importance to the institution?

  What is the optimal balance of projects and resource allocation for space, growthand functional needs vs. deferred maintenance, compliance and renewal needs?