Infrastructure owner organisations are entities that take ultimate accountability for the procurement and delivery of the expected value to the community or end-clients.  This includes local councils and government, transport infrastructure organisations, central government, major mining companies, pipelines, ports etc.  Increasingly, relationship with construction firms is moving away from the simple procurement of an asset, towards a longer-term value-add and total cost approach.  Simply, this means that we are moving away from a simple and short-term procurement approach, towards move value-adding and collaborative relationships.

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Yet, while cost and value are key drivers, infrastructure owners are particularly serious about the wellbeing of the local community.  Government organisations are ultimately there to serve the local community, and the wellbeing impact that can be gain through infrastructure investment is enormous.  Maximising the wellbeing impact on the local community, while also serving the commercial interest of the council and the local business sector, is arguably the greatest differentiator and strength of the Lumus solution-set.

 

It is ideal for the following situations:

• Where there is a more mature infrastructure owner organisation, who wish to maximise the wellbeing impact that can be created in the local community through infrastructure investment.  Wellbeing includes local economic development and the creation of more local jobs while maximising the amount of money that is spent within local companies, and;

• Infrastructure owner organisations willing to work with the private sector on a more collaborative basis to achieve this.

 

The following is a brief description of the solution-set for infrastructure owner organisations:

• The solution based on the use of a common development framework (i.e. the Lumus practices maturity framework), which aligns procurement organisations (typically the infrastructure owner organisations and the major contractors), the contractor community and development organisations;

• The process normally starts with a round table discussion of the pipeline of current and future local projects and deciding on an appropriate phased implementation plan;

• A network of trained internal performance champions take responsibility for the internal assessments and development plan formulation within their respective organisations, supported by a network of local training, consulting and mentoring organisations.  Local development is therefore not dependant on only a single training and implementation support organisation, which means change can be driven on a regional basis across the construction supply chain;

• A local steering committee is set up with the key infrastructure owners, key contractors and local sub-contractors who drive the initiative on a collaborative basis;

• A collaborative end-to-end evaluation is done of the whole infrastructure delivery process, which typically spans the infrastructure owner organisation, key contractors and local sub-contractors, to identify low-hanging fruit and longer-term improvement areas;

• As Lumus, we provide a coordination and implementation support service, which includes monitoring development and growth across all participating organisations;

• Based on the competitiveness improvement of the local business sector, there is an increasing amount of work that is absorbed by the local sector, which includes local projects as well as projects in other regions.

 

Key Deliverables

• A quick and significant improvement in delivery risk based on visibility across the value chain and a network of resources to improve performance across all participants;

• A substantial cost improvement, which affects the profitability of the contractors as well as the total cost to the infrastructure owner organisation;

• A sustainable mechanism to accelerate local economic development on a collaborative basis across the local supply chain;

• An improvement in the percentage spend and the creation of new jobs within the local business community;

• An improvement in the profitability of the local business community and number of new jobs means additional tax revenue, to repay the infrastructure loans, and

• All of the above helps the infrastructure owner to attract more infrastructure investment, which further accelerates local economic development.

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