The document discusses the dynamic capabilities required of public sector clients for effective project definition and delivery. It focuses on three key areas: relational capabilities to interact with suppliers, project capabilities for management and governance, and how clients can develop the needed capabilities. The document proposes several questions for discussion around how much oversight clients require and how capabilities vary by project type and stage.

1. Dynamic Client Project Capabilities
Dr Roine Leiringer
Construction management,
Chalmers University of Technology

2. Background
• Focus mainly on public sector organisations, but line of
argument should be applicable to most large client
organisations.
• Increasingly public sector clients are being asked to do
more for less.
• Large, bureaucratic client organisations which weighed
heavily on project process and stifled innovation
• Alliancing, frameworks, partnering and outsourcing… –
has it gone too far?

3. Capabilities
• Organisational capabilities: the particular combination
of resources, routines, and behaviours which enable
effective performance.
• Relational capabilities: interact effectively with the
supply chain and to select and implement the
appropriate mix of formal (contractual) and trust-based
relations.
• Project capabilities: project management and
programme management.

4. First set of questions
1. What mix of relational capabilities do clients require to ensure the
effective definition and delivery of the projects in which they
invest?
2. What mix of project capabilities do clients require to ensure the
effective definition and delivery of the projects in which they
invest?
3. How much oversight do public sector clients require to ensure the
effective definition and delivery of the projects in which they
invest?
a. How deep should the client’s line of visibility into the project be?
b. How large should the client’s project team be?

5. Second set of questions
4. How should clients develop the relational and project capabilities
they need?
a. What role can third party consultants play in providing client capabilities?
5. How do capabilities vary with type of project and stage in the
project life-cycle?

6. Client capabilities for infrastructure projects
framework
• Investment capabilities
• Commercial capabilities
• Systems integration capabilities
• Stakeholder management capabilities
• Project capabilities
• Innovation capabilities

7. Investment capabilities
• Selecting the most beneficial project
– Evaluation criteria
– Use of cost/benefit analysis
– Establishing feasibility
• Defining the project mission
– What are we trying to achieve
• Raising the capital
– Evaluating alternative funding models
• Managing project cash-flow life-cycle
• Managing overall project portfolio

8. Commercial capabilities
• Selecting the most appropriate contracting strategy
– Packaging the scope
– Selecting appropriate procurement route
– Selecting most appropriate contract type
• Identifying and selecting potential suppliers
– Negotiating the deal
• Administering contract through life-cycle
– Tender documentation
– Settling interim and final accounts
– Responding to claims
– Resolving disputes

9. Project capabilities
• Allocating appropriate managerial resource
• Scheduling and budgeting
– Setting
– Monitoring
• Defining scope
– Managing front end definition
• Governing the project
– Defining stage/gate processes
– Defining single point of accountability
• Managing risk and uncertainty
• Overseeing project execution

10. Innovation capabilities
• Understanding innovative proposals
– Absorptive capacity
• Inter-project learning
• Capability development