Independent examination of the project: Check-up - assessment of the "health" of the project

Independent project management expertise plays an important role in domestic large-scale projects. For investment projects with state participation, conducting technological and price audits was even mandatory in accordance with Decree of the Government of the Russian Federation dated April 30, 2013 N 382 "On conducting a public technological and price audit of large investment projects with state participation." It is currently suspended until December 31, 2024 by Resolution 421 of April 2, 2020. Nevertheless, the issue of independent assessment of the status of projects is still relevant, both for large-scale projects with and without government participation.

In our work with many customers during the implementation of large-scale projects and megaprojects, we see examinations/audits carried out by specialized companies - technical consultants. Consultants are hired by banks that finance these projects: they need to have an objective, real picture of the state of the projects. Consultants evaluate the technical side of project implementation (80%), as well as project management (20%).

PM Excellence also provides services for independent assessment of projects, and our audit service Check-up covers all aspects of implementation and project management processes. By analogy with a human health check, which includes checking the operation of all systems and organs, Check-up allows you to thoroughly study the "health" of the project.

In this article I want to talk in more detail about how PM Excellence conducts an examination of the implementation of large-scale projects and megaprojects - Check-up.

What is included in the Check-up?

Check-up is a comprehensive assessment of the components of the implementation of a large and megaproject. The standard set includes the following components (but is not limited to them):

1. Organizational structure, including roles and staffing, taking into account the current stage and strategy of project implementation: functions, responsibilities, powers, occupancy, conflicts of interest.
2. Competencies of key personnel involved in project management.
3. Regulations of processes and key areas of knowledge: we study, evaluate the availability and quality of documents and regulations, as well as their application in practice.
4. Tools and technologies used: level of automation of processes and work in them.
5. Analysis of the schedule network model (CNM), including a detailed check based on the best Russian and foreign practices, as well as the extensive experience of our experts.
6. Detailed report and summary results with operational and systemic recommendations for management.

When does it make sense to conduct a project audit and with what resources?

We recommend carrying out independent examinations - a "check-up" of the project when passing each gate (gate) - the point at which a decision is made to move to the next stage of the project. You can get an idea of gates and the gate management model by reading the megaproject implementation program management standard PM GATE.

Large oil and gas companies, such as Rosneft, Gazprom Neft, etc., include in their internal standards and regulations for the management of large-scale projects mandatory requirements to conduct an examination of project implementation when moving to the next stage. An audit can be carried out either by an internal department responsible for quality control or by external specialized companies. The main thing is that the personnel who conducts the examination (checkup) are independent of the project team, and also have sufficient qualifications, the necessary tools and technologies.

What is the cost of the examination and how long does it take?

It all depends on the scale, volume and stage of implementation of the large investment project at which the check is being carried out. On average, the examination takes from one to two months, the cost varies in the range of 2-5 million rubles. These expenses pay off very quickly when working with large-scale projects and megaprojects, the budget of which can exceed 100 billion rubles.

If you still have questions, or you need to conduct an independent examination of the project, we at PM Excellence are ready to answer and estimate the cost, scope and timing of the Check-up for your project.