GOLDEN RULES OF PROJECT MANAGEMENT IN THE FIGHT AGAINST CORRUPTION

Transparency, the decompartmentalizing of projects, the presence of a project manager, the creation of a centralized database, intelligent risk management, as well as reviewing contracting practices are some solutions considered in this memorandum. In total, PMI-Montréal identifies six key findings and proposes eight recommendations.

Building on the expertise of its Board of Directors and of its Board of Governors, as well as on the analysis of best practices in governance and construction project management across the globe, PMI-Montréal proposes better management of public funds.

Key findings

1. Functional management, also known as silo management, does not allow for an integrated overall view of the project.
2. The practice of awarding contracts to the lowest bidders encourages contract amendments, which in turn leads to cost overruns.
3. The management of project amendments brings forth inadequate planning and weak management and monitoring mechanisms.
4. Certain firms offer both project management and project execution services creating a conflict of interest.
5. Project portfolios are kept secret up until the project begins, which enables decision-makers to influence the execution of the project, unconstrained.
6. The absence or lack of data regarding project performance leaves municipal officials at the mercy of the expertise of the firms with which they do business.

 

Recommendations

 

1. Adopt interdisciplinary working methods where the project manager is responsible for managing and coordinating the entire project from A to Z.
2. Apply a project management methodology based on trade practices and adapted to real circumstances of public bodies.
3. Take risk management into account for all projects and provide protection mechanisms and appropriate contingency measures.
4. Review certain contract awarding practices, particularly regarding amendments and extras.
5. Abolish the practice of awarding contracts to the lowest bidder.
6. Develop a centralized database on lessons learned during projects, statistics on the cost of delays, supplier performance, and so on, in order to provide a readily available set of guidelines for municipalities.
7. Include project management experts in all infrastructure projects who are not involved with the execution of the project.
8. Consider the implementation of a more rigorous and transparent project portfolio management process.

“By adopting sound management practices, Quebec businesses contribute not only to protecting the interest of the public, but also to improving the effectiveness of their own activities. Good project management can only help to fight against corruption and collusion within the construction industry and many other sectors of activity in Quebec”, confirms Benoit Lalonde, President of PMI-Montréal.

The memorandum is signed by Benoît Lalonde, PMI-Montréal president and submitted by all members of the board of directors, including Executive Vice-President Jean-Michaël Breton, Treasurer Patrick Perras, Business Development Vice-President Benoit De Grâce, as well as Administrators Alejandro Romero Torres and Sylvie Prud’homme. It is also approved by the members of the Board of Governors, including Roger Croteau, Clément Demers, Pierre Ménard, Martin Sheehan and Lucie Tremblay.

 

To consult the memorandum submitted by PMI-Montréal in its complete version, click here.

 

About PMI and PMI-Montréal

PMI (Project Management Institute), a non-profit organization, is the largest professional association for project management practitioners in the world. In Quebec, PMI-Montréal is comprised of more than      3 700 project managers from all professional sectors. Led by a Board of Directors composed of volunteers elected by the members, PMI-Montréal organizes numerous activities and offers an array of services to its members, including public and private preparation courses for certification exams.

 

 

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Source:         PMI-Montréal

Information: Isabelle Paquette,

Communications Infrarouge

isabelle.paquette@cominfrarouge.com

(514) 849-4554