Delivery Partnership Model Execution Flow

Based on the sources, the execution flow of the Delivery Partner model for a PMC company managing a project "a to z" on behalf of the client involves several phases, gates, and tasks. It's important to remember that the PMC, acting as a Delivery Partner, manages this process for the client who retains overall accountability and contracts directly with work package contractors.

Here is a detailed breakdown:

1.0 Pre-Engagement / Model Selection Phase 1.1 The client determines the appropriate delivery model, considering factors like project complexity, desired control over design, budget, time constraints, internal capability, market depth, size, and external stakeholder requirements. 1.2 The client undertakes an analysis of its internal project delivery capability and capacity to identify gaps. 1.3 The client defines the supplementary project delivery skills and experience required from a potential Delivery Partner. 1.4 Based on these factors, the client decides to consider or adopt the Delivery Partner model.

2.0 Delivery Partner Selection & Initial Engagement Phase 2.1 The client initiates a process to engage one or more Delivery Partners. This often involves a competitive tender process, potentially including an Expression of Interest and Request for Tender. 2.2 The client evaluates and down-selects potential Delivery Partners based on capability, access to personnel, and other factors. 2.3 Preferred candidate(s) are selected for further negotiation. 2.4 Often, a two-stage engagement process is used. 2.4.1 The client initially engages the Delivery Partner for an early phase (e.g., feasibility, business case preparation) under a professional services agreement, typically with a fixed or capped fee. 2.4.2 During this initial phase, the client and Delivery Partner assess and agree on the project organizational structure and the required Delivery Partner resources and scope for subsequent phases. 2.4.3 Commercial terms, including incentives, for the balance of the project are negotiated. 2.5 A formal Delivery Partner contract is awarded. This contract is typically a bespoke professional services agreement. 2.6 The contract award may be subject to conditions precedent, such as client investment committee approval or project financial close. 2.7 The respective roles, responsibilities, and accountabilities of the client and the Delivery Partner are clearly defined and documented (e.g., in an accountability matrix). 2.8 The Delivery Partner's personnel integrate with the client's existing team. 2.9 Project governance and delivery systems and processes are established, often leveraging the Delivery Partner's systems integrated with the client's.

3.0 Business Case / Feasibility / FEED Phase (Stage 1 Execution) 3.1 The Delivery Partner supports or is responsible for delivering the project business case that underpins the investment decision. 3.2 Tasks: 3.2.1 Conduct basic and detailed engineering and design (pre-feasibility/concept design and FEED). 3.2.2 Develop the project scope and client requirements in detail. 3.2.3 Incorporate constructability assessments and analysis of operations, maintenance, and procurement early in the design process. 3.2.4 Progress design development to support capital cost and program estimates (e.g., 20-40% design). 3.2.5 If existing designs are used, assist the client in verifying and correcting potential errors or deficiencies. 3.3 Conduct materials and resource availability assessments and market sounding. 3.4 Prepare the capital cost budget and program for the business case. 3.4.1 Develop cost and schedule estimates based on experience and ongoing design/scope definition. 3.5 Recommend the project work package breakdown structure and procurement approaches for each package. 3.6 Develop a project-wide risk analysis and mitigation strategy. 3.7 Define the client's key project targets (time, capital cost, operating cost, performance, environmental/social outcomes, quality, safety, community satisfaction, local industry participation). 3.8 Define Key Result Areas (KRAs) and Key Performance Indicators (KPIs) that will form the basis of the Delivery Partner's incentive regime, aligned with the client's objectives.

4.0 Gate 1: Investment Approval Stage Gate 4.1 The client reviews the outputs of the Business Case/Feasibility/FEED phase, including project plans, cost estimates, and risk assessments. 4.2 The client makes an investment decision and decides whether to proceed to the next stage of the project lifecycle (Procurement and Implementation). 4.3 The client has the option to terminate the Delivery Partner engagement at this gate if the project does not proceed or the relationship/performance is unsatisfactory. 4.4 If the decision is made to proceed, the client gives instruction to the Delivery Partner to commence services for the next phase.

5.0 Procurement Phase (Stage 2 Execution) 5.1 The Delivery Partner leads procurement planning and package preparation on behalf of the client. 5.2 Tasks: 5.2.1 Continue FEED and detailed design development for specific work packages, aiming for a high level of design maturity (e.g., Issued for Construction) before going to market where possible. 5.2.2 Manage the end-to-end design and systems integration across the separate work packages. 5.2.3 Refine the work package breakdown structure and associated procurement approaches based on market conditions, design maturity, and critical path sequencing. 5.2.4 Optimize work package sizes to match contractor specializations, increase competition, and broaden the pool of potential bidders. 5.2.5 Conduct further market sounding to inform strategy. 5.2.6 Prepare comprehensive tender packages, including scope of work, technical standards, and commercial terms. 5.2.7 Prequalify suitable contractors, suppliers, and consultants. 5.2.8 Implement and manage the competitive tendering processes or negotiate sole-source packages where appropriate, following agreed procedures. 5.2.9 Conduct tender evaluations and provide recommendations for contract awards to the client. 5.2.10 Assist the client in the negotiation and finalization of direct contracts with numerous individual contractors and suppliers for each work package. The client is the direct contracting party. 5.2.11 Define and document clear roles, responsibilities, and interface points between different work package contractors. 5.2.12 Prepare for interface management during the construction phase.

6.0 Gate 2: Financial Close (If applicable and not already achieved) 6.1 For projects requiring external funding, achieving Financial Close is a critical milestone. 6.2 The Delivery Partner contract may be conditioned on Financial Close, and the full scope of services for the Implementation phase commences thereafter.

7.0 Implementation Phase (Construction & Delivery) 7.1 The Delivery Partner provides overall project and construction management services. 7.2 Tasks: 7.2.1 Administer the numerous direct contracts between the client and the work package contractors/suppliers. This includes managing initial contract obligations, variations, claims, warranty issues, and closeouts. 7.2.2 Act as the client's representative for contract administration. 7.2.3 Act as an independent valuer for routine matters like progress claims. 7.2.4 Potentially act as an initial independent determiner for more complex claims like extensions of time or variations. 7.2.5 Monitor and manage progress against the overall project critical path. 7.2.6 Implement and manage project-wide systems and procedures, including planning, programming, cost control, quality assurance, safety protocols, and reporting. 7.2.7 Provide regular cost and program updates to the client. 7.2.8 Implement cost controls, often incentivized through the fee structure. 7.2.9 Manage and coordinate design and systems integration between all work packages. This includes reviewing detailed designs from contractors and resolving design issues. 7.2.10 Coordinate the activities and interfaces between all separately contracted parties. 7.2.11 Monitor conformance to technical specifications and project schedule using inspection and expediting personnel. 7.2.12 Actively assist the client in managing retained risks, particularly the complex interface and integration risks arising from disaggregation. 7.2.13 Monitor and supervise the performance of work package contractors. 7.2.14 Manage the process for client approvals of expenditures. 7.2.15 Manage communication and information flow across the project, acting as the central point for project information. 7.2.16 Monitor and report on anticipated costs and construction progress. 7.2.17 Assist with dispute resolution processes.

8.0 Testing & Commissioning Phase 8.1 Contractors undertake precommissioning activities for their respective work packages. 8.2 Manufacturers and equipment suppliers provide assistance for precommissioning. 8.3 The Delivery Partner assists the client in managing and coordinating the full commissioning process, including load commissioning and performance testing, often with assistance from contractors and suppliers. 8.4 The Delivery Partner attends testing and commissioning activities. 8.5 The Delivery Partner reviews and verifies testing and commissioning data. 8.6 The Delivery Partner verifies the achievement of various completion stages defined in contracts. 8.7 The Delivery Partner plays an active role in monitoring and reporting during testing and commissioning.

9.0 Project Completion & Close-out Phase 9.1 Achievement of defined completion stages (e.g., Conditional Mechanical Completion, System Mechanical Completion, Steady State Operation). 9.2 Handover of completed works or systems occurs. 9.3 The Delivery Partner manages project close-out activities. 9.4 Final contract closeouts for work packages are completed. 9.5 The Delivery Partner assists the client in managing defects and warranty periods. 9.6 Knowledge transfer activities from the Delivery Partner team to the client's team occur. 9.7 Final assessment is made against agreed KRAs and KPIs to determine gainshare or painshare entitlement.

10.0 Post-Completion 10.1 The Delivery Partner engagement may end upon practical completion or extend through defect liability periods and final close-out. 10.2 Final payment settlements occur, including any gainshare/painshare amounts. 10.3 Securities may be progressively reduced or returned based on achievement of completion milestones.