Government priorities, in response to compelling community needs, often require a project to be delivered under extreme time constraints. This can manifest as a need to start construction as soon as possible, with the objective of an early project completion.
Regardless of the time imperative to complete the project, the Owner should:
understand that there may be higher costs associated with using an alliance in these circumstances, due to the reduced time to prepare a robust and comprehensive Business Case and procurement analysis;
ensure that the Business Case for the project addresses the cost premium that may be associated with using an alliance under extreme time constraints and where the Owner is unable to undertake a thorough procurement analysis;
inform the decision makers about the cost premiums and potentially negative VfM impact arising from planning processes being truncated, in order to deliver the project within extreme time constraints; and
ensure that an early start does indeed lead to the early completion required by government.
If there are time constraints imposed upon the project, it is still important to apply the appropriate level of competition to procure the project. If, however, there is a compelling reason for a departure from a fully competitive process, the rationale needs to be set out in the Business Case for approval in accordance with policy.
| Does a shorter procurement process deliver the asset earlier? It should be remembered that if the goal is to deliver a project in the shortest possible timeframe, a shorter procurement process will not necessarily achieve this goal. Indeed, agencies may encounter a longer construction period and a higher TOC due to inefficiencies during procurement, lack of project definition, and lack of innovation. If an acceleration of the works is required so that early project delivery is achieved, the Owner will need to be comfortable that a price premium may be paid. For example, this premium may be paid in the form of an early completion bonus paid to the NOPs, extra work shifts, etc. |