10 Ways to Deliver Better Projects in Your Smart City

By Werner Maritz

Werner Maritz is a member of the Industry Strategy team in Oracle Primavera Global Business Unit with a specific focus on Public Sector and Infrastructure development programs. He holds a masters degree in engineering from the University of the Witwatersrand in Johannesburg, is a Project Management Professional (PMP) and Certified Cost Professional (CCP). Werner is also a certified Oracle Primavera Implementation consultant, integrating the theory, tools and techniques of cost engineering with the functionality presented in the oracle Primavera solution.

The world is watching – 10 Game Changing Characteristics

Globally city managers are faced with an ever-increasing city population and a decrease in financial and human resources to deliver adequate services across the city region. The challenge of ensuring the city’s sustainability must be seen against a backdrop of increased environmental and social awareness, economic pressure and competition for public and private investment in and around the city. City managers are often faced with challenges related to ensuring basic human rights, dignity, safety and security for the poorest of residents while delivering on the life style demands and expectations from the richest of residents. Often these diverse groups are living in close proximity of each other and resources must be allocated and shared. Given this familiar situation, city management need to prioritize capital and social investment to deliver on the strategic objectives of the city, a fine balancing act indeed.

City managers need to take a holistic approach in planning the future growth and improvements across the city to ensure not only cost-effective services delivery of and new infrastructure but also ensure synergy across the city responsibilities related to Built Environment, Economic and Social Infrastructure to ensure the economic, environmental and social sustainability of the city. From breaking down the traditional silo approach of the City departments to having real-time insight of the transversal infrastructure demand and backlog across these departments is critical to effective investment planning in the city. Eliminating duplication of effort between departments and leveraging synergy to achieve common objectives is key to a successful Smart City Transformation Roadmap.

Leveraging continuous technology advances and improving cost-benefits ratio of technology to improve the productivity of the city’s infrastructure, city managers face an ever-increasing portfolio of new projects to be delivered across the city. Often these are complex, long term programs consisting of multiple sub-projects to plan, co-ordinate, and implement with due regard to operational effectiveness improvements in the process. Monitoring performance and taking timely corrective action is critical in delivering these long-range programs on time and within budget in a complex delivery environment with multiple stakeholders.

Effectively transitioning the city’s new assets into the operations and maintenance phase is critical to ensure early value generation from these investments, and to manage and maintain these assets at their design capacity and capability over many years to come.

Drawing on more than 30 years of industry experience, the Oracle Primavera Smart City Projects solution provides an integrated project delivery platform to help city managers deliver transformational infrastructure projects.

Oracle Primavera Smart City Projects Solution

10 Game Changing Characteristics

A significant challenge in the implementation of Smart City Transformation Roadmaps across the world is related to securing adequate funding for the projects on the roadmap. Development Financing Institutions (DFI) and potential Public Private Partnerships (PPP) indicate that adequate funding is available to realize the Smart City Transformation goals but they have two main investment decision considerations:

  • The availability of investment grade project opportunities, and
  • The assurance that adequate financial control and governance processes are in place during the project implementation phase.

The Oracle Primavera Smart City Projects Solution delivers 10 characteristics, which will significantly contribute to meeting these requirements:

  1. Implement a detailed project portfolio management process to show the alignment of the investment opportunity with the overall strategic objectives of the city. Track the development and approval of deliverables across project development phases. Show how the business case for the project supports the longer term vision of the Smart City transformation roadmap and how benefits realization will be tracked once in operation;
  2. Establish a standard platform for program and project set-up, project management and project close-out processes. Ensuring predicable and repeatable project processes and structures facilitate effective project administration;
  3. Set a standard for project performance monitoring and reporting. Standard performance reporting across all projects enables decision makers to take early corrective action based on real-time metrics indicating deviation from planned cost and schedule objectives. Poor performance from contractors and suppliers is a leading cause of project failure
  4. Enforce project and financial governance processes through configurable workflow for change requests and financial approvals. Ensure the auditability of actions taken by project team members and tracking of contractual deliverables;
  5. Implement a formal project scope and contract change management processes. Align the interim contract payments with a formal schedule of values under the contract terms and conditions. Only make payments for work actually completed and certified;
  6. Enable electronic correspondence management, document tracking, document control and electronic document handover across all project team members, city operating divisions and external stakeholders. Create a full electronic record of the project to ensure proper project hand-over, close-out and dispute resolution support;
  7. Leverage transactional control data in the City’s ERP to enable informed cost and cash-flow management and forecasting. Integrating the Oracle Primavera Smart City Project Solution with the City’s ERP solution will promote operational efficiency and financial data integrity.
  8. Implement a formal program and project risk management platform, integrated with the cost and schedule management of the project. Effective program and project risk management is one of the most under-estimated forward looking management tools within the overall project governance framework;
  9. Establish a collaborative environment between the city project owner’s team, engineers, consultants, main contractors and sub-contractors. Clear and timely communication between team members reduce project schedule delays due to delayed decisions caused by slow communications;
  10. Implement a formal post contract award management environment in support of the chosen contract format. This will facilitate contracts administration, contract change management, interim payment certification, partial and full contract deliverables handover and acceptance. Ensuring compliance with the conditions of the contracts between the city and the contractor will reduce the project cost growth due to uncontrolled contract changes. Preventing litigation related to contested contract changes is an effective manner to contain cost growth and wasteful expenditure on a project.

Due to the improved visibility, automation, and visibility that PPM solutions provide, travel and transportation organizations spend 19% less on a typical change order.” 1

Easy to deploy

In todays fast passed city environment the deployment of integrated management systems need to provide the agility the Smart City Transformation Roadmap demands. Unfortunately city IT managers often face challenges to deploy any form of integrated management systems to stakeholders outside of the city administration. In part, this may be due to cost consideration, the city’s procurement policies or data security considerations.

The Oracle Primavera Smart City Projects Solution is a fully web based solution which can be deployed as a Software-as-a-Services (SaaS) solution from Oracle or as an on-premise solution in the city’s own IT environment. The Oracle Primavera solution is designed for the extended enterprise. Cost effective licencing models put the solution within reach of all project stakeholders. The user access and security model is designed to enable deployment outside of only the city administration, allowing the operational efficiencies of a truly integrated project delivery platform across the city and its stakeholders.

The Oracle Primavera solution supports the use of mobile devises to facilitate a productive workforce across the city. Leveraging the city’s communication networks allow project team members and stakeholders to access project planning and contract information, status activities and contracts, and access reports and dashboards while on the go from their mobile devices.


 

1PPM for Intermodal Transportation & Infrastructure Organizations: Select, Manage and Maintain Transformative Projects. Aberdeen Group, March 2015

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