Five Dimensional Project Management (Complexity Mapping for Transportation Projects)
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href="Management%20Wiki%20Article%205D_files/colorschememapping.xml"><style></style></head><body lang=EN-GB style='tab-interval:36.0pt'>Five Dimensional Project Management (Complexity Mapping for Transportation Projects)<o:p></o:p>
<o:p> </o:p><p class=MsoNormal>Five
dimensional project management (5DPM) is a framework for handling complexity
transportation projects. In addition to the three fundamental sources of
complexity 1.Cost, 2.Schedule, 3.Technical the framework recognizes and
elevates to the same status two other 4.Context and 5.Financing. Moreover 5DPM
suggests several complex project management tools, one of the most essential
being complexity mapping used in early project planning. <o:p></o:p>
5DPM aims to allow the project manager to take on a holistic approach using proactive tools to deliver complex transportation projects. [3]<o:p></o:p><p class=MsoNormal style='margin-top:8.0pt;margin-right:0cm;margin-bottom:4.0pt; margin-left:0cm;line-height:normal;mso-outline-level:3'>Complexity<o:p></o:p><p class=MsoNormal style='margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal;mso-layout-grid-align:none;text-autospace:none'>The College of Complex Project Management (CCPM) states that routine projects and complex projects differ by “the degree of disorder, instability, emergence, nonlinearity, recursiveness, uncertainty, irregularity and randomness, including a high uncertainty about objectives”. The US Federal Highway Administration (FWHA) offers a more specific description focusing on projects that <i style='mso-bidi-font-style:normal'>“have a high-level of public or congressional interest; are unusually complex; have extraordinary implications for the national transportation system; or are likely to exceed $500 million in total cost.”<o:p></o:p><p class=MsoNormal style='margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal;mso-layout-grid-align:none;text-autospace:none'>Both these definitions recognize that complex projects have factors which lie beyond the control of the PM and as such need to be identified, evaluated and recognized in the PM plan. [4]<o:p></o:p><p class=MsoNormal><i style='mso-bidi-font-style:normal'>“It is worth noting that neither the CCPM nor the FHWA approach mentions technical factors such as the actual engineering design of the complex project. Therefore, a project can have a complicated technical design without becoming complex.”<o:p></o:p><p class=MsoNormal style='margin-top:8.0pt;margin-right:0cm;margin-bottom:4.0pt; margin-left:0cm;line-height:normal;mso-outline-level:3'>Traditional view<o:p></o:p><p class=MsoNormal>In the traditional approach the three main partners: owner, designer and builder assume their isolated duties.
In general the owner (usually a Department of Transportation) secures financing, manages land acquisition (ROW) and handles the communication between shareholders. The designer ensures quality, functionality and compliance with standards. The builder is responsible for managing cost and schedule.<o:p></o:p><p class=MsoNormal>The primary responsibilities of the designer and builder form the traditional project management “Iron Triangle” of quality, cost, and schedule. [5]<o:p></o:p><p class=MsoNormal style='margin-top:8.0pt;margin-right:0cm;margin-bottom:4.0pt; margin-left:0cm;line-height:normal;mso-outline-level:3'>Five dimensional approach<o:p></o:p><p class=MsoNormal>Apart from the traditional three dimensions complex projects are exposed to high levels of uncertainty and dynamic interactions between the management activities of all project partners. A case study of 18 complex transportation projects in Canada, New Zealand, the United States and the U.K found that these external factors, which have a significant impact on the project, can be grouped in two major categories: project context and project financing. One of this study’s conclusions was that given a five dimensional model a complex project is one in which the PM must manage at least four of the five possible dimensions. [6] Therefore a routine project can be complicated, technically, but not complex if the issues of context and financing have an insignificant magnitude.<o:p></o:p><p class=MsoNormal>The aim of 5DPM is to allow for a better optimization of resources to ensure the success of a complex project. <o:p></o:p><p class=MsoNormal style='margin-top:10.0pt;margin-right:0cm;margin-bottom: 10.0pt;margin-left:0cm;line-height:normal;mso-outline-level:2'>Five Dimensions<o:p></o:p><p class=MsoNormal>The five dimensions of complexity can be briefly described as follows:<o:p></o:p><p class=MsoListParagraphCxSpFirst style='margin-bottom:0cm;margin-bottom:.0001pt; mso-add-space:auto;text-indent:-18.0pt;line-height:normal;mso-list:l4 level1 lfo3; mso-layout-grid-align:none;text-autospace:none'><![if !supportLists]>1. <![endif]>Technical: all the typical engineering requirements including scope of design and construction, quality, and need for integrated delivery;<o:p></o:p><p class=MsoListParagraphCxSpMiddle style='margin-bottom:0cm;margin-bottom: .0001pt;mso-add-space:auto;text-indent:-18.0pt;line-height:normal;mso-list: l4 level1 lfo3;mso-layout-grid-align:none;text-autospace:none'><![if !supportLists]>2. <![endif]>Schedule: the calendar-driven aspects of the project;<o:p></o:p><p class=MsoListParagraphCxSpMiddle style='margin-bottom:0cm;margin-bottom: .0001pt;mso-add-space:auto;text-indent:-18.0pt;line-height:normal;mso-list: l4 level1 lfo3;mso-layout-grid-align:none;text-autospace:none'><![if !supportLists]>3. <![endif]>Cost: quantifying the scope of work in monetary terms;<o:p></o:p><p class=MsoListParagraphCxSpMiddle style='margin-bottom:0cm;margin-bottom: .0001pt;mso-add-space:auto;text-indent:-18.0pt;line-height:normal;mso-list: l4 level1 lfo3;mso-layout-grid-align:none;text-autospace:none'><![if !supportLists]>4. <![endif]>Context: external influences impacting project development and progress; <o:p></o:p><p class=MsoListParagraphCxSpLast style='margin-bottom:0cm;margin-bottom:.0001pt; mso-add-space:auto;text-indent:-18.0pt;line-height:normal;mso-list:l4 level1 lfo3; mso-layout-grid-align:none;text-autospace:none'><![if !supportLists]>5. <![endif]>Financing: not cost but the sources of the project’s funding.<o:p></o:p><p class=MsoNormal style='margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal;mso-layout-grid-align:none;text-autospace:none'><o:p> </o:p><p class=MsoNormal>5DPM begins by identifying the project’s requirements and constraints and associating each with a given dimension. The goal is to provide the project manager with knowledge of the projects constraints as early as possible so that s/he can reach out to the affected stakeholders for input, support and resources, and by doing so ensure that the final project can satisfy all parties. The division of requirements and constraints in performed using the following structure.<o:p></o:p><p class=MsoNormal><o:p> </o:p><p class=MsoNormal style='margin-top:10.0pt;margin-right:0cm;margin-bottom: 10.0pt;margin-left:0cm;line-height:normal;mso-outline-level:2'>Factors affecting complexity<o:p></o:p><p class=MsoNormal><o:p> </o:p><p class=MsoListParagraphCxSpFirst style='margin-top:8.0pt;margin-right:0cm; margin-bottom:4.0pt;margin-left:36.0pt;mso-add-space:auto;text-indent:-18.0pt; line-height:normal;mso-outline-level:3;mso-list:l13 level1 lfo1'><![if !supportLists]>· <![endif]>'Context'<o:p></o:p><p class=MsoListParagraphCxSpMiddle style='margin-top:8.0pt;margin-right:0cm; margin-bottom:4.0pt;margin-left:36.0pt;mso-add-space:auto;text-indent:-18.0pt; line-height:normal;mso-outline-level:3;mso-list:l13 level1 lfo1'><![if !supportLists]>· <![endif]>'Cost'<o:p></o:p><p class=MsoListParagraphCxSpMiddle style='margin-top:8.0pt;margin-right:0cm; margin-bottom:4.0pt;margin-left:36.0pt;mso-add-space:auto;text-indent:-18.0pt; line-height:normal;mso-outline-level:3;mso-list:l13 level1 lfo1'><![if !supportLists]>· <![endif]>'Financing'<o:p></o:p><p class=MsoListParagraphCxSpMiddle style='margin-top:8.0pt;margin-right:0cm; margin-bottom:4.0pt;margin-left:36.0pt;mso-add-space:auto;text-indent:-18.0pt; line-height:normal;mso-outline-level:3;mso-list:l13 level1 lfo1'><![if !supportLists]>· <![endif]>'Schedule'<o:p></o:p><p class=MsoListParagraphCxSpLast style='margin-top:8.0pt;margin-right:0cm; margin-bottom:4.0pt;margin-left:36.0pt;mso-add-space:auto;text-indent:-18.0pt; line-height:normal;mso-outline-level:3;mso-list:l13 level1 lfo1'><![if !supportLists]>· <![endif]>'Technical'<o:p></o:p><p class=MsoNormal style='margin-top:8.0pt;margin-right:0cm;margin-bottom:4.0pt; margin-left:0cm;line-height:normal;mso-outline-level:3'><o:p> </o:p>
margin-left:0cm;line-height:normal;mso-outline-level:3'><o:p> </o:p><p class=MsoNormal>The rest of this section defines the factors driving complexity. A proper codification of these factors is essential as it ensures that external stakeholders and project team members understand and use the same terminology. Moreover when each factor is categorized to a single PM dimension it can be further associated with a specific tool for resolution. Lastly a consistent project record makes it a useful reference for future complex project management plans. <o:p></o:p><p class=MsoNormal>The following definitions serve as examples and inspiration and by no means cover the full
range of possible factors. <o:p></o:p>Contents |
Cost
<p class=MsoNormal>The Cost Dimension of complex project management consists ofall factors that must be addressed to quantify the scope of work in monetary terms. According to the Authority for Total Cost Management International (AACEI) Recommended Practice 34R-05: Basis of Estimate, the factors defined for this dimension should satisfy the following performance standards:<p class=MsoListParagraphCxSpFirst style='margin-left:18.0pt;mso-add-space: auto;text-indent:-18.0pt;mso-list:l9 level1 lfo8'><![if !supportLists]>· <![endif]>Document the overall project scope<p class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space: auto;text-indent:-18.0pt;mso-list:l9 level1 lfo8'><![if !supportLists]>· <![endif]>Communicate the estimator’s knowledge of the project by demonstrating an understanding of scope and schedule as it relates to cost<p class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space: auto;text-indent:-18.0pt;mso-list:l9 level1 lfo8'><![if !supportLists]>· <![endif]>Alert the project team to potential cost risks and opportunities<p class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space: auto;text-indent:-18.0pt;mso-list:l9 level1 lfo8'><![if !supportLists]>· <![endif]>Provide a record of key communications made during estimate preparation<p class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space: auto;text-indent:-18.0pt;mso-list:l9 level1 lfo8'><![if !supportLists]>· <![endif]>Provide a record of all documents used to prepare the estimate<p class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space: auto;text-indent:-18.0pt;mso-list:l9 level1 lfo8'><![if !supportLists]>· <![endif]>Act as a source of support during dispute resolutions<p class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space: auto;text-indent:-18.0pt;mso-list:l9 level1 lfo8'><![if !supportLists]>· <![endif]>Establish the initial baseline for scope, quantities, and cost for use in cost trending throughout the project<p class=MsoListParagraphCxSpMiddle style='margin-left:18.0pt;mso-add-space: auto;text-indent:-18.0pt;mso-list:l9 level1 lfo8'><![if !supportLists]>· <![endif]>Provide the historical relationships between estimates throughout the project lifecycle<p class=MsoListParagraphCxSpLast style='margin-left:18.0pt;mso-add-space:auto; text-indent:-18.0pt;mso-list:l9 level1 lfo8'><![if !supportLists]>· <![endif]>Facilitate the review and validation of the cost
estimate (AACEI 2010)Project Estimates
<p class=MsoNormal> Constructionestimating is based on understanding what is included and excluded in a given estimation. It’s a fundamental factor and every transportation agency has a policy for making cost estimates. That said most of these policies were developed considering routine projects and may not adequately cover all the requirements of complex projects. Therefore, while these policies set the groundwork for estimation, it is important to ensure that the project estimate satisfies the following criteria:<p class=MsoListParagraphCxSpFirst style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Be factually complete, but concise<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Be able to support facts and findings<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Identify estimating team members and their roles<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Describe the tools, techniques, estimating methodology, and data used to develop the cost estimate<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Identify other projects that were referenced or benchmarked during estimate preparation<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Establish the context of the estimate, and support estimate review and validation<p class=MsoListParagraphCxSpLast style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Qualify any rates or factors that are referenced
in the estimate (AACEI 2010)<o:p></o:p>Uncertainty
<p class=MsoNormal>There is a direct relation between uncertainty and the riskthat needs to be distributed in the 5DPM plan. There is a multitude of available tools for managing risk and many agencies use a specific toolset on a routine basis. However, again, these tools may not be sufficient for complex projects. AACEI suggests the following set of performance criteria to guide the analysis and quantification of complex project risks:<p class=Default><o:p> </o:p><p class=MsoNormal>Meets project objectives, expectations and requirements <p class=MsoListParagraphCxSpFirst style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Facilitates an effective decision or risk management process <p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Identifies risk drivers with input from all appropriate parties <p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Clearly links risk drivers and cost/schedule outcomes <p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Avoids iatrogenic (self-inflicted) risks <p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l6 level1 lfo12'><![if !supportLists]>· <![endif]>Employs empiricism <p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l10 level1 lfo13'><![if !supportLists]>· <![endif]>Employs experience/competency<p class=MsoListParagraphCxSpLast style='text-indent:-18.0pt;mso-list:l10 level1 lfo13'><![if !supportLists]>· <![endif]>Provides [the input for the] probabilistic estimating results in a way the supports effective decision making and risk
management (AACEI 2008)Contingency
<p class=MsoNormal>Contingencies are used to quantify risk in a cost estimate.Common methods for developing contingencies include sensitivity analysis,
probabilistic estimating and Monte Carlo simulations.Project-Related Costs
<p class=MsoNormal>Project-related costs are those which are necessary tocomplete the project but may not be financed with the project funding e.g.
agency soft costs for personnel or facilities.Project Cost Drivers and Constraints
<p class=MsoNormal>Cost drivers and constraints connect the Cost dimension withthe Context and Financing dimensions. An example of these can be a highway project connecting two existing highways. One of the cost drivers will be the requirement to pave the whole distance and there will be little room for adjusting the pavement thickness based on the forecasted traffic. In such a situation it is essential to detail the pavement design as soon as possible as the project relies on that aspect to be fully operational. Should the scope need adjustment to meet the budget the PM will have to search for savings in
aspects other than pavement.Schedule
<p class=MsoNormal>Schedule includes all calendar-driven aspects of the complexproject. Since many complex projects are delivered at a faster pace than routine projects, ensuring a high quality schedule that accurately reflects the relationships between activities is essential to minimizing or eliminating
delays.Time
<p class=MsoNormal>According to AACEI Recommended Practice 38R-06, acomprehensive schedule and its associated basis document contain the following elements:<p class=MsoListParagraphCxSpFirst style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Scope of work<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Work breakdown structure<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Key assumptions and constraints<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Execution strategy (sequence of work)<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Key project dates (milestones)<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Critical path<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Path of execution (sequencing of multi-activity work packages rather than individual activities)<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Issues and impacts (risk)<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Inclusions and specific exclusions<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Schedule change order process<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>· <![endif]>Integration and progress reporting process<p class=MsoListParagraphCxSpLast style='text-indent:-18.0pt;mso-list:l1 level1 lfo15'><![if !supportLists]>·
<![endif]>Key procurements and submittals (AACEI 2009)Schedule Risk
<p class=MsoNormal>Schedule risk, like cost risk, is handled by establishingcontingencies to address each risk to on-time completion. These contingencies can be expressed either in time (e.g. rainy days) or money required to mitigate
the risk (additional workforce to recover from a delay).Prescribed Milestones
<p class=MsoNormal>Milestones should be connected with the path of execution as they are often used for coordination between stakeholders.Availability of Resources
<p class=MsoNormal>Design and construction activities are resource based.Therefore it is important to ensure the availability of the necessary workforce, materials, equipment and financial resources. The project’s resource profile should also differentiate between critical and noncritical resources. (Critical being e.g. scarce equipment like a very large crane which has to be booked
months in advance and can be available only for a limited period.)Technical
<p class=MsoNormal>Technical dimension includes the engineering requirements,quality of construction, scope of the project as well as the contracting
language and possible implementation of new technologies.Scope of Work
<p class=MsoNormal>Scope is a broad term but it’s essentially the purpose of the project and defines what needs to be built to fulfil that purpose.Internal Structure
<p class=MsoNormal>The internal structure factor focusses on how theagency/owner operates (matrix organisation, traditional hierarchy…) to
effectively manage the complex projectContract
<p class=MsoNormal>A contract is the main legal documentation between the ownerand the projects partners. It includes three factors contributing to complexity
i.e. prequalification, warranties and disputes.Design
<p class=MsoNormal>Different aspects of the design can be presented as factors.These may include reviews and analysis which secure the quality and accuracy of the design or existing conditions referring to the structural limitations which are already in place and need to
be considered in the design.Construction
<p class=MsoNormal>Safety, quality, climate and optimization define the trade-offs and limitations that go into the construction factor.Technology
<p class=MsoNormal>The current technological progress and the fact thatintelligent transport systems begin to become common practice demands that
technology is included when evaluating complexity.Nature of Constraints
<p class=MsoNormal>The projects extremes may be a source of complexity. Thesecan for example include high bridge light to accommodate large transport vessels, extreme topography, crossing areas of high historical or natural significance etc. Recognizing these constraints is a crucial factor for
understanding and managing complexity.Context
<p class=MsoNormal>Context dimension considers the external factors that canimpact the project. These factors can be very difficult to predict before or
during the construction.Stakeholders
<p class=MsoNormal>Stakeholders are the parties affecting or being affected bythe project. The factors include<p class=MsoNormal>The public which is directly affected by and can potentially affect the project. After all the transportation project is made for public interest.<p class=MsoNormal>Politicians are typically involved in during financing yet they will surely step in should the project be seen negatively by the public.<p class=MsoNormal>The owner/agency is the obvious stakeholder. They run and
manage the project as well as have most at stake.Project-Specific
<p class=MsoNormal>Project-specific factors are directly related to the projectand include things like maintaining capacity (e.g. lane closure, detours, time of construction activities) or work zone visualization meaning alerting the public about traffic anomalies due to the construction. It can also consider the necessary cooperation with authorities managing other modes of
transportation.Local issues
<p class=MsoNormal>Local issues is the broadest category, including severalfactors for identification while undertaking a transportation project. These factors are:<p class=MsoNormal>Social equity – focused on maintaining equality between all social classes affected or using the project.<p class=MsoNormal>Culture and demographics – focus on how the project is perceived by the public.<p class=MsoNormal>Growth inducement, land use and economy – a potential transportation project can have a significant impact on the region’s economy. On the one hand it can spur growth and alter zoning plans for the region. On the other hand it can affect businesses relying on that mode of transportation by introducing detours or shutdowns during construction.<p class=MsoNormal>Public services can indirectly impose changes to the project by e.g. requiring emergency routes for fire and medical staff.<p class=MsoNormal>Utilities – including all public and private installations that may need to be repositioned (sewers, power, gas, data etc.). <p class=MsoNormal>Land and ROW – being part of the cost dimension these factors need to be considered contextually as well. Intruding an area of high importance/difficulty can drastically affect the complexity of a project. Identifying
these areas early can allow implementing evasive adjustment to the alignment.Environmental
<p class=MsoNormal>Sustainability and limitations fall under the environmentalcategory. The former considers any requirements for the use of specific materials in construction, the latter defines the scope of necessary environmental studies as well as any site
specific environmental factors that may affect the design and construction.Legal/Legislative
<p class=MsoNormal>Factors here are the procurement law, defining theavailability of alternative delivery methods (Design-Build, Public Private Partnership), and local acceptance, describing the ability and willingness of parties to use these alternative methods should they be unrestricted by the
former.Global/National
<p class=MsoNormal>Global and national economics and incidents may increase the complexity of a project.Unexpected Occurrences
<p class=MsoNormal> UnexpectedOccurrences or unknown unknowns include weather and superior force. Although climate was addressed in the technical dimension in the contextual sense it means unforeseen, abnormal conditions. Superior force can weather induced e.g.
catastrophic weather events but may also include effects such as terrorism.Financing
<p class=MsoNormal>When considering complex projects it’s no longer enough tosimply know the project cost. The owner needs to know how the project is paid for and adjust the scope of work accordingly. To visualize: a small town issues bonds to finance infrastructure improvements. The bond underwriters will not give the owner a blank check, instead they will limit the bonds to an amount that fits with the towns tax base and ability to repay the debt over an acceptable period. The city engineer must then adapt to this situation meaning that the design is no longer driven by technical requirements but by the available funding. It is therefore crucial for the complex project manager to identify the sources and constraints related to financing/debt. However, unlike the four other dimensions which are rather clearly defined, financing is more difficult to specify.<p class=MsoNormal>Public Financing<p class=MsoNormal>Traditional PM assumes that, given a technical scope, necessary money can simply be obtained from public coffers. <p class=MsoNormal>In the U.S. public financing for complex projects comes from two sources: state and federal. State is the traditional source, based on taxes and fees, making it fairly flexible. Federal aid on the other hand puts a set of demands on the project and requires an annual project financial plan in order to qualify. <p class=MsoNormal>Financing a Future Revenue Stream<p class=MsoNormal>A typical example of a revenue stream is a toll road or bridge. In this model the capital cost is financed with a bond which is later repaid using the revenue. This creates three issues.<p class=MsoListParagraphCxSpFirst style='text-indent:-18.0pt;mso-list:l2 level1 lfo16'><![if !supportLists]>1. <![endif]>The size and expiration of the bond is decided very early, using cost estimates which don’t yet include all the contingencies associated with potential cost growth. This means that the project manager must design to a budget and timeframe imposed not by the technical demands but by the financing.<p class=MsoListParagraphCxSpMiddle style='text-indent:-18.0pt;mso-list:l2 level1 lfo16'><![if !supportLists]>2. <![endif]>Post-construction revenues must be sufficient to cover both the debt as well as operation and maintenance. This must be considered in the design since should an element e.g. pavement fail prematurely it would damage the financial plan.<p class=MsoListParagraphCxSpLast style='text-indent:-18.0pt;mso-list:l2 level1 lfo16'><![if !supportLists]>3. <![endif]>Revenues are directly related to the amount of traffic in the future. Therefore financing depends on the traffic estimations and as such may demand increased resources and effort to develop these assumptions.<p class=MsoNormal>Exploiting Asset Value<p class=MsoNormal>This category is a step forward from a simple revenue based financing. One method is to allow a private entity to take over an existing road for a specific period, derive revenue from it and then return it back to the original state before turning it over to the agency or another private entity.<p class=MsoNormal>Another method can be franchising. Here private companies would be allowed to build and operate income-producing facilities on the public land in exchange for a portion of the profits. Common examples are rest areas with restaurants and gas stations.<p class=MsoNormal>Finance-Driven Project Delivery Methods<p class=MsoNormal>Lastly some delivery methods are based on financial considerations. An example being Public-Private Partnerships. Typically these projects are tolling facilities however they differ from a the previous categories by involving both public and private investors in the process. The essence of this category is to gain public access to private capital. <p class=MsoNormal style='margin-top:10.0pt;margin-right:0cm;margin-bottom: 10.0pt;margin-left:0cm;line-height:normal;mso-outline-level:2'>Complexity Mapping Radar Map (tool)<o:p></o:p><p class=MsoNormal>For better clarity and comparison, impact from factors described above can be showed graphically. One of the tools to do this is a radar map. In essence, during early planning, the project leadership should analyze and evaluate the factors driving complexity in each dimension. The results of this analysis are then scored by dimension in a range of 0-100.
Finally the scores can be used to make a Radar Chart in an Excel Spreadsheet. The resulting pentagon provides an overview of both the overall complexity of the project (area of the pentagon) as well as the nature of complexity (skew of the pentagon).
Note that for an individual project it’s important that the team agrees on the relative score for each dimension not the absolute number. However a standardized approach (using surveys, experience) would allow to compare complexity maps across projects.<o:p></o:p><p class=MsoNormal>Moreover it should be remembered that complexity is changing dynamically as the project progresses in time. Therefore as specific factors driving complexity are addressed the complexity map should be revised to realistically depict the current relations. <o:p></o:p><p class=MsoNormal><o:p> </o:p></div></body></html>
Introduction
Complexity
Traditional view
Five dimensional approach
Five Dimensions
Context
Cost
Financing
Schedule
Technical
==Radar Map (tool)==
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