OCWS Process Overview

The OCWS process involves identification of key capital project competencies, determination of competencies that are core and non-core to the owner, and evaluation of the sourcing approach for each competency. The sourcing approach is described in terms of a qualitative definition of the work relationship between an owner and a contractor, depending on the extent of their individual involvement in performing a competency for a project or a capital program.

The term "owner-contractor work structure", which was coined in the CII research, implies a set of competencies and corresponding work relationships. The term "contractor" may represent a design or construction contractor, a consultant, a supplier, or an entity that provides services to the owner organization. The process was developed from an owner's perspective. A project-focused and a corporate process were developed, depending on whether sourcing decisions are made for a specific project or for a capital program. The key terms of the OCWS process are as follows:

• Owner/Contractor Work Structure: the strategic distribution of roles and responsibilities between the primary project participants, based on key project competencies, measured on the continuum level of involvement of the owner and the contractor.

• Competency: a project work process that is comprised of functions and associated critical capabilities needed to develop and execute a capital project.

• Functions: activities and tasks that describe the work involved in performing a competency.

• Critical capabilities: the knowledge, abilities, skills, and experience that are necessary to perform competency functions.

• Core competency: a competency that must be performed in-house by the owner and is critical to the success of capital projects.

• Non-core competency: a competency that could either be outsourced or performed in-house by the owner, depending on the project circumstances.

• Work relationship: a relationship that defines the extent of involvement of the owner and the contractor in performing, leading, and/or providing input with respect to a competency.

It is important to review the definitions of each of these terms as well as the concept of a work relationship in order to understand how the OCWS process works. The OCWS is characterized in terms of three types of work relationships between the owner and the contractor, and two other possibilities wherein either the owner or the contractor are fully responsible for performing the work. The work relationship typology used to describe roles and responsibilities in the work structure is illustrated in Figure 1.

Figure 1: Owner-Contractor Relationship Continuum

The definition of each work relationship is as follows:

• OP: Owner performs all functions involved in the competency using owner resources and the owner's work process.

• OP/CI: Owner performs most functions using the owner's work process with contractor input. The majority of the work is performed using owner resources. Contractor provides input or acts as a consultant.

• OL/CP: Owner leads overall function performance with contractor performing detailed work using owner's work process. Owner leads by setting guide-lines, directing, reviewing, and approving work. Contractor performs most of the competency work functions according to owner's work process.

• CP/OI: Contractor performs most functions using contractor's work process with input from the owner. The majority of work is performed using contractor resources.

• CP: Contractor(s) performs all functions involved in the competency using contractor resources and the contractor's work process. The owner can still supply input and guidance by performing a project management oversight competency.

The OCWS process includes detailed flow charts illustrating the inputs, actions, decisions, and outputs of the process and a set of worksheets that are used to document decisions and the rationale behind the decisions. Depending on whether the process is used for a specific capital project or for a capital program level application, the steps in the process are somewhat different.

A limitation in the development of the CII OCWS process was that the process was not fully validated. Therefore, there was minimal information available on how the industry would implement the process and how useful owner companies found the OCWS process when managing a capital program or a specific project. Concerns regarding the lack of validation of the OCWS process provided a premise for undertaking follow-up research.