Review of capital works function and project delivery
Redesigning the Capital Works Operating Model to Support Scalable Capital Delivery
Grosvenor partnered with a property portfolio organisation to review and redesign its capital works operating model, assessing end-to-end capex planning, procurement and delivery processes to improve governance, flexibility and capability, and developing a future-state model that enabled scalable delivery through advisory panels, hybrid resourcing and strengthened project oversight.
Situation
The client has a small, dedicated team that oversees the planning, procurement and delivery of minor capital works, which largely cover capital works to maintain, extend, upgrade or refurbish existing properties. This includes:
- major capital replacements
- larger compliance rectification works
- room and unit refurbishments
- capital improvements and upgrades.
Task
With capital expenditure forecast to increase significantly, there was a need to ensure the capital works function had the right capability and operating model to support increased demand. Grosvenor was engaged to carry out a review of the capital works function and end-to-end processes, including:
- capex program planning
- project scoping and documentation
- governance and cost control
- procurement
- stakeholder management
- project delivery.
Approach
Grosvenor reviewed all elements of the model for managing capital works projects, including capital works project data and trends to identify opportunities for improvement, and identify future capability requirements. The approach included:
- stakeholder consultations and data collection across all projects,including stakeholder feedback data
- high-level processing mapping
- benchmarking against industry standards, including:
- resourcing levels
- use of external project management
- construction costs
- identification of improvement themes
- capex better practice guidance
- preparation and presentation of report and transition plan.
Recommendations and roadmap covering:
- detailed current state analysis
- options regarding for a future-fit capital works delivery model,including with consideration of inhouse or outsourced capabilities
- improved governance through greater oversight and performance management of capital works projects
- process improvements and capability uplift, leveraging external capabilities and systems.
Result
The project delivered:
- a model that is far more flexible than the client was planning to implement, by using an advisory panel for
- technical advice (e.g. architects, engineering, QS)
- project management of some projects (particularly large or technically complex projects)
- site supervision of some projects
- short-term secondments, to enable Uniting to flexup and down to a changing capex program.
- a more integrated team with aligned process and structure
- a funding model that is both flexible but enables some certainty in funding fixed internal resources.
Explore this for your organisation.
Start a conversation with Peter Macfarlane, Property Lead