Why do we need Project 13 – what are the benefits and how was it developed?
Why we need project 13
The conceptual case for Project 13 was first set out in ICE’s From Transactions to Enterprises report.
The core message is that the transactional model for delivering major infrastructure projects and programmes is broken. It prevents efficient delivery, prohibits innovation and therefore fails to provide the high-performing infrastructure networks that businesses and the public require.
Watch this short video to understand how Project 13 is seeking to change the traditional infrastructure business model for the better.
The enterprise approach
The shift to an enterprise model for infrastructure delivery is fundamental to the Project 13 approach.
What do we mean by enterprise?
- An enterprise can be defined as being a long term relationship between owners, investors, integrators, advisers and suppliers. These organisations are commercially incentivised to deliver better outcomes for users from infrastructure investment. The roles, capabilities and behaviours of an enterprise differ from those in much of the construction industry today.
What are the most significant changes?
The most significant change to the structure are:
- The asset owner is central and leads the enterprise
- Suppliers have direct relationships with the owner
- An integrator actively engages and integrates all tiers of the supply chain
- The owner, key suppliers, advisors and integrator work as one team
The main difference between an enterprise and a traditional construction programme are:
- Reward/profit in the enterprise is based on value added to the overall outcomes, not time spent
- There is greater understanding of cost drivers and risk across all organisations in the enterprise, with commercial incentives for collaboration to jointly mitigate risk, not transfer it
- Establishing a high performing enterprise requires a fundamental shift in leadership, governance, behaviours and skills to succeed