How to Build the Structure of PMP and PEP Document

It is very import document which shall be prepared and submitted to the High level stakeholders and your management to let them understand how you will manage your project .

These documents must be updated periodically when necessary and get a proper approval from your management upon each changes you made.

Things to consider while preparing the document and the content must be very clear to the reader.

• Document Title

• Document History: Mention the version of the update, date, issued by whom (This is a live document and will be visited periodically and by whom will distribute the revised document to the distribution list when necessary.)

• Table of content

• Definitions and Interpretations

• Project Information: Must contains the Project name, ID, Owner and his representative, Main Consultant (PMO/PMC), Project Lead Consultants, Timeline, Locations, Area, Total Budget and any other details if deemed necessary.

• Introduction

  • Scope of the Plan: Describes the framework, intent and guidance of the day-to-day activities.

  • Amendments: Since this is an evolving document, a disclaimer must be clearly defined. 

  • Access to Document: How this is stored and who will be given access.

• Key Project Information

  • The Project:  Write a detailed description of the project which includes the area, location, incorporation of the MAP, main stakeholders and their relations.

  • The Project Scope of Work: What are all the Scope involved in this project which includes the ongoing, committed and anticipated. List all of them in bulletin

• Organizational Chart : Must have a hierarchy from the main stakeholders to the appointed Main consultants with a legend to describe their direct and indirect relations.

• Scope Management Plan: A scope management plan is essential for the successful delivery of projects, ensuring that all tasks are aligned with the project goals from start to finish. 

  • Plan starts with collecting requirements to understand what needs to be attained.

  • The scope is clearly defined to set project boundaries and deliverables.

  • Resources are then allocated, whether through assignment or 3^rd party awarding, to meet these objectives.

  • Upon commencement, continuous validation checks are applied to ensure alignment with the initial scope.

  • Finally, the project culminates with the acceptance and sign-off of upon achieving the final agreed deliverables.

  • Stages of Scope: details of Preliminary, Precontract, post contract, operational (Pre opening and post operations)etc.

• Time Management Plan: A time management plan is essential for ensuring that projects are completed efficiently and within their designated deadlines. This plan outlines the process for creating a detailed project timeline that allocates specific durations to each task and milestone. By establishing a clear schedule, progress can be effectively monitored, and necessary adjustments can be made to stay on track. This proactive approach helps in identifying potential delays early and allows for timely interventions, thus optimizing the overall project flow and ensuring timely completion.

  • Creating and Maintaining a timeline Process: The project timeline is essential for managing schedules, coordinating resources, and ensuring project milestones are met. It provides a visual roadmap, helping teams stay informed and aligned, facilitating timely adjustments and effective execution.

  Prepare a flow chart to describe how you will create and maintain schedule

  • Programme: Programme charts are to be considered as the baseline for the delivery of the Project and all changes are to be monitored against such a baseline.

  Attach a Simple or detailed milestone chart/schedule. 

• Cost Management Plan : Cost Management Plan outlines the processes and procedures used to manage costs throughout the project lifecycle. It serves as a crucial component of the overall project management plan, providing a blueprint for monitoring, controlling, and ensuring that all project costs are managed as efficiently as possible.

  • Cost Planning:  Who? will furnish thorough cost planning and analysis at every stage of the design development process. This entails delivering a comprehensive report encompassing direct and indirect costs, including preliminary and general costs, contractor profit margins, management reserves, contingencies, risks, construction costs, design, and consultancy costs, as well as equipment costs. Furthermore, the basis of estimation is in accordance with the best practices and international standards.

  • Who? will, where applicable, optimize cost efficiency by conducting value engineering assessments across all project scopes during various stages, advising the employer on the most cost-effective solutions.

  • Cost Control: Defines the processes for monitoring, measuring, and controlling project costs to ensure they remain within the approved budget. This involves tracking actual costs against planned costs, identifying variances, and implementing corrective actions as needed.

  • Cost Reporting: Who? will undertake the frequency, format, and recipients of cost-related reports. Outlining cost data, providing, and reporting the financial information to the relevant stakeholders.

  • Change Management: Who? will Addresses how changes to the project scope, schedule, or resources will be assessed for their impact on project costs. Defining the procedures for evaluating change requests, estimating their cost implications, and obtaining approval for changes to the budget.

  • Contract administration: Who? will monitor and control the flow of financial transactions related to a project/scope and activities such as invoicing, receiving payments, issuing payment certificates, and managing payment schedules as per the agreed terms and conditions. To ensure that the payments are processed accurately, securely, and in a timely manner, while also maintaining compliance with relevant regulations and employer financial policies.

  • Quantity Survey & BOQ preparation: by Whom? in collaboration with main consultant (s), will conduct surveys and assessments to precisely measure and quantify the project's quantities. Additionally, who? in collaboration with main consultant (s), will prepare a comprehensive BOQ detailing all necessary requirements and materials for the project where applicable and upon request from the employer for effective procurement and cost estimation.

  • Risk Management: Identifying potential cost risks and outlining strategies for mitigating or responding to them are crucial steps in minimizing the impact on project costs. Specifically, in the context of the BOQ, specification plays a critical role in ensuring accuracy and consistency. However, the absence of specific divisions or categories within the BOQ can present challenges in terms of clarity and completeness, potentially leading to discrepancies in cost estimation and procurement processes, which may result in budget overruns or delays. To address this, by Whom? , where applicable and upon request, will regularly monitor and review the BOQ throughout the project stages to identify any emerging issues or changes. 

• Stake Holders Management Plan : It is a critical aspect of project success, ensuring that the interests, needs, and expectations of all stakeholders are identified, understood, and addressed throughout the project and it serves as a strategic framework that outlines how stakeholders will be engaged, communicated with, and managed to achieve project objectives effectively. By proactively identifying stakeholders, analyzing their influence, and defining engagement strategies, the plan aims to foster positive relationships, minimize conflicts, and maximize support for the project.

  Include both internal and external stakeholders, with each having different roles and designations.

  • Stake Holder Management Principles:  

    • Excessive and multiple direct reporting should always be limited, as multiple stakeholders requesting different lines of reports could lead to confusion.

    • Continuously monitor the stakeholder engagement and adjust strategies as needed based on project developments and stakeholder dynamics.

    • Proactively identifying and resolving conflicts among stakeholders to prevent disruption to the project.

    • Utilizing the approved DOA as the ultimate source for decision making and approvals.

  • Internal stakeholders: Describe with a table contains the Entity and their Responsibility.

  • External stakeholders: Describe with a table contains the Entity and their Responsibility so far on the stage. Any special Entity such as influential and Government entity must be detailed in a separate table for easy understanding and identification.

    This section shall be updated in due course following successful collaboration to carry out the required scope and in accordance with any demand.

    Create a link to project directory template and attach to the appendix at the bottom of the document with a proper naming (e.g. Appendix x-Project Directory Template)

• Project Organizational chart :  create a chart with details of a hierarchal approach to communication in this project with a Connection from bottom to top. Additionally, create a link to Stakeholder management plan for their roles and responsibilities. 

• Communication Management Plan :  A communication management plan is essential for project success, ensuring that information flows smoothly and effectively among stakeholders. By establishing clear objectives, defining communication channels, and outlining roles and responsibilities, the plan facilitates transparent and timely exchange of project-related information. Through proactive engagement and regular updates, it fosters collaboration, alignment, and stakeholder satisfaction to achieve the goal and completion of the scope/project in timely manner.

  • Communication Principles:

    •  The overall aim of all communications is to be efficient, timely and accurate.

    • All parties are encouraged to verbally discuss issues and then formally confirm the outcomes.

    • Generally, the use of email is to be encouraged for transfer of correspondence and documents as it is swift and efficient. However, contractual documents must follow signed official formats.

  • Project Communication Guidelines: 

    • Open communication between members of the delivery team will be vital to the success of the Project.  Over and above the formal lines of communication and with due regard for commercial (and other sensitive information), informal discussion and communication is to be encouraged.

    • Day-to-day communication should preferably be verbal by telephone/online meetings.  The use of e-mail can also be a positive and efficient way of exchanging information due to the logistics of the Team, though this should never be used as an alternative to oral discussion.

    • Each company/team group is charged with maintaining their own project filing in a manner that allows for a clear auditable trail and ready access.

    • Flow of communication is based on a need-to-know basis.  Timely communications are essential for the successful execution of the Project.  It is vital that PMO/Development Manager to be informed of / copied into correspondence relating to all aspects of the project.

    • In general, communication should follow the structure as indicated in the organization chart and should, unless otherwise appropriate and agreed, be between the key individuals identified as the key contact within the varying Agreements and /or Contracts.  Where responsibilities are delegated to subordinates or other personnel, this must be appropriate and clearly communicated to the PMO and other team members.  The named key individuals will remain responsible for implementing effective communication within their own organization.

    • All communications between the contractor / consultant team and the Client must be channeled through the PMO.

    • Any instruction from the Contract Administrator to proceed should be channeled through the PMO for the tracking and maintenance of tasks.

    • Instructions to Contractor can only be issued by the Project Director/Manager, PMO must be copied for tracking and managing with the task.

    • Communication Protocols as refer to in the Project Organization Chart shall always dominate all communications.

    • PMO will coordinate with all 3rd Parties to ensure that all the performance reports are timely shared and updated. Furthermore, all milestone/stage meetings shall be minuted and recorded.

  • Communication Hierarchy: The hierarchy for project communications shall be as set out below with (Formal Instructions’) taking precedence in terms of communicating the most important information.

    • Agreements/contracts

    • Letters

    • Memorandum

    • Emails

    • Telephone/Online meeting.

    • Verbally (Face to Face)

All correspondence shall be managed and stored in accordance with the quality assurance procedures of each individual organization utilizing, where appropriate, a filing register supported by electronic back up.

• Progress Reporting: Detail with reporting format to whom will be directly responsible for review and how the document shall be submitted.

  • Daily Reporting: with whom?

  • Weekly Reporting: with whom and mention the day and time

  • Monthly Reporting: with whom and mention the day and time

• Project Meeting: Weekly project coordination and monitoring meeting between whom and will generally include the following:

  • Meeting title

  • Meeting time

  • Frequency of meetings

  • Location/Venue

  • Attendees

• Procurement Management Plan: Every project comes with its unique set of requirements. These are concisely defined by gathering pertinent information from stakeholders and experts, providing a clear understanding of what needs to be acquired and the expected deliverables.

All Contracts generated out of the agreed tendering process under the PMO will be part of the PMO area of responsibility and will be managed and stored as per the defined Document Controlling process.

Typically, the procurement policy is established and coordinated according to the client/employer's procurement needs. If the employer/client chooses to avoid the single bid approach, the following processes and procedures will be implemented.

• Procurement Method: Based on the scope demand and as per employer Procurement Policy PMO/PMC will follow the following procurement methods to select the potential vendor and in full compliance with the employer’s DOA.

  • Competitive Bidding - When Both budget and scope are significant exceeding certain threshold defined in the employer's DOA.

  • Sole sourcing - The employer opts for sole sourcing when the scope and budget are within the defined thresholds of the DOA.

• Procurement Schedule: The procurement schedule is contingent upon the following activities and may vary depending on the size of the scope and approval:

  • Identify the requirements.

  • Collect all the information and prepare the scope with deliverables.

  • Prequalification/shortlisting potential bidders.

  • Signing the non-disclosure agreement with the interested bidders.

  • RFI & Bid submission. 

  • Evaluation and Selection of the bidder.

  • Commercial & Technical Negotiation (Initial)

  • Commercial & Technical Negotiation (2nd round)

  • Tender Recommendation Report.

  • Appointing the selected bidder.

  • Contractual process and payment.

Prepare a flowchart below reflects the tendering process.

• Procurement Budget: A procurement budget helps control and allocate funds for purchasing goods and services, ensuring that spending remains within planned limits and to ensure that expenditures are in line with future financial commitments.

The goal of budget planning is to prepare the company/Employer to handle all operating costs while keeping the profits in good health.

Ideally, there should be an open and fluid relationship between budget holders, the finance department, and the procurement team. 

Budget holders own the spending and are accountable for savings against the budget. Finance business partners work for the budget holder to account for the Savings in the budget and track through delivery. 

Procurement works with the budget holder to identify the savings opportunities and account for it in the budget.

The PMO/PMC monitors and controls the entire budget and procurement operation, ensuring the integrity of the process. This encompasses all contractual commitments, transactions, savings, and overruns.

• Procurement Risk Management: identify the following in terms of risk assessment: -

  • Legal and Compliance Risk – This will be mitigated by evaluating the company's government documents such as the company profile, Commercial Registration (CR), Zakat Certificate, Saudization Certificate, General Organization for Social Insurance (GOSI) registration, National Address, Chamber of Commerce registration, and other relevant documents. If the bidder is located outside the kingdom, we will request legal documents obtained from their government, as well as proof of their partners in Saudi Arabia and out of the box, experience with any stakeholders within the company.

  • Performance Risk – This will be mitigated by evaluating their prequalification documents, which include previous experience similar to the scope, client references, budgets of completed projects, lists of current and ongoing projects, client background, company and project organizational charts, etc.

  • Financial Risk – This will be mitigated by Preparing a cash flow strategy to optimize the utilization of deposit interest effectively, defining payment terms in accordance with the Employer's DOA within the specified threshold, and obtaining bank guarantees from the vendors.

  • Indirect Risk – Indirect risk refers to potential surprises or exclusions listed in the bidder's terms and conditions or technical proposal that could arise in the future. This will be mitigated by thorough evaluation and arranging a post-tender meeting with the bidder to address any concerns or ambiguities and upon signing a compliance statement before awarding the scope. Participants who fail to adhere to the RFP terms and conditions will be disqualified from bidding.

• Procurement Quality Requirements: For all projects and scopes, quality is paramount. In addition to risk management considerations, we are also requesting the following, which will be reviewed and evaluated by an experienced technical team: -

  • Detailed Communication Plan – This will ensure clear and timely communication with the client, project team, third-party consultants, stakeholders, and others involved in the project. The evaluation will include assessment of communication channels, presentation formats, meeting minutes, and other methods to enhance communication.

  • Team Research – PMO/PMC will request the Curriculum Vitae of the project team and management to understand their experience, track records, and ability to handle the project effectively. 

  • Method of Statement – A detailed, step-by-step procedure for executing the scope. A typical bidder will be able to describe this procedure comprehensively, ensuring that the scope is carried out effectively and in compliance with relevant regulations and standards.

  • Detailed Schedule – A detailed schedule will demonstrate how the bidder plans and manages the scope within a specific timeframe. A typical bidder will consider resource management, time management, risk management, and communication plans in their schedule, including milestones for each activity.

  • Budget – The commercial proposal may also reflect the quality of the bidder in terms of detail, exclusions, and consistency. A typical bidder will provide proper detailing and estimate a reasonable price for the scope. Overestimation or underestimation can also indicate the quality of the bidder's proposal.

• Supplier Selection Criteria: The following criteria and factors will be taken into consideration to select the supplier/bidder: -

  • Level of Understanding the full scope of the work.

  • Previous experience in similar projects.

  • Schedule.

  • Organizational chart and CVs of the team members.

  • Proposed Budget.

The scoring system and weighing of the above criteria will be agreed upon with the employer as per the procurement requirements and would highly depend on the nature of the services required prior to the bidding process.

Upon the client’s final decision, an LOA will be sent to the selected bidder as formal confirmation of the contract award. Furthermore, in accordance with PMO/PMC policy, an official regret letter will be shared with all unsuccessful participants.

• Contractual Terms And Conditions: Employer has its own contractual terms and conditions that will be addressed during the tendering process and mutually agreed upon once the bidder is appointed for the scope. By clearly defining the following subjects:

  • Services.

  • Team Members and Due care.

  • Fees and payments.

  • Durations and Term.

  • Termination and withdrawal of work.

  • Suspension of the services.

  • Tax issue.

  • Conflict of Interest.

  • Subcontracting.

  • Liability and Indemnity.

  • Confidentiality.

  • Intellectual property rights.

  • Representations and Undertakings.

  • Assignment of Contract.

  • Waiver of Rights.

  • Force Majure.

  • Modifications.

  • Notice and language.

  • Comprehensiveness of the contract.

  • Survival Articles.

  • Applicable Law and Settlement of disputes.

  • Counterparts.

  • Obligations.

• Procurement Communication Plan: To achieve effective collaboration and transparency throughout the project with the bidders and stakeholders, PMO/PMC will:

  • Identify all relevant stakeholders, vendor team members, and other parties involved in the scope.

  • Collect contact information, roles, and responsibilities of stakeholders and vendor team members.

  • Conduct daily briefings within the internal team to share project updates, address issues or concerns, obtain feedback, and ensure alignment with project goals.

  • Hold periodic meetings with the vendor to gather project updates, address issues or concerns, obtain feedback, and ensure alignment with project goals.

  • Organize periodic meetings with stakeholders to share project updates, address issues or concerns, obtain feedback, and ensure alignment with project goals.

  • Document all information from vendors such as submittals, and Requests for Information (RFIs), and share updates with stakeholders to keep them informed about progress and ensure alignment with the schedule.

  • Schedule a meeting with the employer for project decision-making. Coordinate presentations to address concerns, receive feedback, and discuss any further requirements.

  • Communicate via the convenient communication channel, as stated in the Communication Management Plan, in case of emergencies with all team members involved in the scope and follow up as necessary.

• Local Content Policy Adherence: In case Employer is committed to strictly adhering to the Local Content Policy in alignment. collaborating with government and semi government sectors and subsidiaries to promote the participation of local businesses, workers, and communities in economic activities. PMO/Development Manager approach will promote:

  • The involvement of local residential vendors in the bidding process possible, giving them priority consideration.

  • Suggesting or mandating the awarded bidder to maximize the utilization of locally available materials in their scope of work.

  • Establishing robust mechanisms for monitoring, reporting, and verifying compliance with Local Content Policies to ensure transparency and accountability.

  • Implementing requirements mandated by authorities and additional measures to enhance business operations and foster expansion opportunities within the local market.

• Change Management Plan: All project activities will be subject to changes, and it is fundamental that we enable management and control to be brought into the decision-making process. Change management is not intended to prevent change but to enable parties to be able to make informed decisions with a high degree of predictability of outcome.

  • Project Changes & Responsibilities: Any changes to all Consultants, service provider and Contractors are to follow the agreed Change Management Process:

  Prepare a Flow chart to describe the change management process

PMO / Development Manager for the Project will manage the process and will communicate the approved Changes, if any, maintaining seamless management workflow.

• Risk Management Plan: Risk Management is a process whereby the risks associated with the project are identified, assessed, and managed in order to reduce the potential impact on the project constraints. Effective Risk Management will require the involvement of the Employer and the Project Team. By integrating Risk Management into the day-to-day management of the project, risks will be more effectively identified and managed.

  • Risk Objectives: The objectives of the risk management process are to :

    • Recognize and identify the potential impact of the risk on the project objectives,

    • Allocate a risk owner and formulate a mitigation measure,

    • Assess the impact of the identified risk. Where applicable include any cost and/or Programme impact within the Weekly Project Report,

    • Register the risk, track and analyze any impact it will have on the project,

    • Prioritize and plan how to manage and control the risks, and

    • Provide feedback and lessons learnt on process of mitigating the risk.

  • Risk Identification, Assessment And Response: PMO / Development Manager will manage a live, High level Risk Register for the Project. Risk Register will be incorporated in the PMO dashboard and can be discussed on Weekly manner, as required. Contractors/Consultants, once appointed, will be responsible for highlighting and identifying risks for their scope of work and this will also be contained within the regular reporting process.

Prepare a Flow Chart below illustrates the risk identification and mitigation process

Create a link and name it Appendix x for Risk Register Template.

Furthermore, the lesson learned in risk management is the significance of learning from both successes and failures. By looking back at past projects, the team can get useful insights for handling risks better in the future. These lessons highlight the importance of early identification, thorough assessment, and proactive mitigation of risks to prevent them from disrupting projects. Continuous improvement allows the team to adapt and refine their risk management practices over time, ultimately increasing the ability to navigate uncertainties successfully.

Create a link and name it as Appendix x for the Lesson Learned Template.

• Engineering, Procurement & Construction Development: 

  • Execution Plan: Contractors are required to issue a Construction and Execution Management Plan in accordance with the (Employer) Requirement. Ensuring that comprehensive HSE plan is incorporated and well adopted. Elements in this Construction Management Plan will be defined in due time, once contractors are appointed. 

  • Construction Standards: 

    • Contractors are responsible to state within the specification and Construction drawings the standards are to be followed in accordance with the local authorities’ regulations and in full compliance with the consultant/employer to review and approve.

    • Implementing and following these standards are the responsibility of the Contractors to follow and the Technical Supervision Team to confirm and verify.

    • Always to consider that Saudi Building Codes and international standards are to be followed as per the Government regulations announced locally.

    • Implementing and complying with environmental constraints in construction projects to ensure environmentally sustainable practices and minimize adverse impacts on the environment. This involves integrating environmental regulations, guidelines, and best practices into all phases of the project, from planning and design to construction and operation.

  • Logistics : A project logistics plan will be required from the Main Contractor detailing the methodology of how the project will be completed, taking in to account the Manager’s requirement might be added for considerations. The approval of the logistics plan is required from the Manager/consultants and coordinated with relevant authorities.

  • Construction Interface Management: Construction interfaces will be managed by the Project Management team/consultants and reported to the Manager on a register for tracking and further discussions.

The Manager is required to approve the templates/processes of the Interface Management. 

• Project Completion & Handover: The Completion Strategy is a reference document that will be used by all members of the Project Team in understanding their role in achieving a quality handover on the Project.  As such, it will be concise and easy to use.  It will therefore be made up largely of clearly presented schedules and checklists.

The Completion Strategy will be proposed by the Contractor, approved by the consultant or suggested by the Employer/Manager to follow. This Completion Strategy will be prepared and established during the time of preparing the Employer/Manager schedule of Requirement.

• Roles & Responsibilities At Completion:

  • Each Stakeholder group involved with the project will have their schedule of services as defined within their appointment agreement documents. However, with regards to the Completion of the Project, it is important that roles & responsibilities of each company/team group are agreed.

  • Each Stakeholder group is responsible for submitting their Completion strategy and approaching the PMO and the Manager for approval upon the completion of all works.

• Commissioning

  • The planning and implementation of the commissioning process runs through all phases of the project, from conception to operation, with on-going checks at each key project stage.

  • Developer/contractor is required to submit a Commissioning & Testing plan for the PMO and Manager to review, comment and approve.

• O&M Manuals / As-Built Drawings

  • In general, As-Built Drawings depict the final installed configuration (whether physical or functional).  They indicate any construction deviations and show all features of the project as actually built.  These drawings provide a permanent record of as-built conditions and aid as key references for future maintenance purposes.

  • List of Manual / As-built drawings shall be submitted to the PMO and the Manager prior to the Commissioning phase.

  • The PMO will ensure that the Manager/Consultant reviews, comments on, and approves the list of deliverables.

Finally, the PMO will ensure that all deliverables are successfully submitted, and a completion certificate is communicated to both the employer and the service provider to effectively close the scope.

Appendix: Attach the template of Project directory, Risk register, Lesson Learned and any additional template if deemed necessary which shall be linked to the document.

Note: Try to prepare a flow chart for each and every management as per your PMO/PMC company policy, if not create and follow as per the PMI guidelines