Approvals

Project approvals and governance

The approvals required for business-as-usual projects (BAU) will likely be minimal and typically involve confirming compliance with pre-agreed processes, scope and funding envelopes. Please refer to the suggested BAU project governance structure and roles and responsibilities to further understand the roles of each approving body mentioned below.

Project definition, funding and approvals phase

In BAU projects, funding is internal and works are assumed to be pre-approved. During the project definition, funding and approvals phase you should still confirm that the project is consistent with any pre-approved program parameters. This may be confirmed by the TAFE's executive management (often represented by the Chief Operating Officer [COO]) or relevant board sub-committee.

Procurement phase

During procurement, it is anticipated that the TAFE's executive management (often represented by the COO) or director of assets and facilities (or equivalent) may provide approval of the following:

• go-to-market strategy
• release of tender documentation to market
• selecting the preferred tenderer, and
• contract award and execution.

Delivery phase

During delivery, the TAFE's executive management (often represented by the COO) or the director of assets and facilities (or equivalent) may provide the following:

• starting works on the construction site approval
• approval of changes to scope, budget and program
• approval of compliance issues and non-conformance issues
• final commissioning and handover of the asset, and
• approval to release part of security at the commencement of defects liability period (if applicable).

It should be noted that best practice approvals processes will reconcile variations from previously agreed budget and scope allocations, with any key changes requiring approval at each key decision point of the project (in particular during the procurement phase up until project scope and budget is set at contract execution). These variations may be approved by the TAFE's executive management (often represented by the COO) or the director of assets and facilities. However, if this results in a significant impact on the agreed parameters of the program of works, you should consider referral to the TAFE board for consideration.

Depending on the TAFE’s governance structure, you may also have reporting requirements to the TAFE board on an aggregate (monthly, quarterly) or an expectations basis (compliance and non-conformance issues).

In addition to the typical internal approvals outlined above, the project may also require statutory approvals from relevant external parties (utility providers, councils, etc.).

Project approvals and governance

The level of approvals required for low complexity projects will likely be moderate and may require final approvals from the TAFE’s board. Please refer to the suggested low complexity project governance structure and roles and responsibilities to further understand the roles of each approving body mentioned below.

It should be noted that an individual low complexity project may form part of a program of works funded by government. As a result, the TAFE may be required to sign a funding agreement with the OTCD for a program of works consisting of a range of low complexity projects. There may be OTCD reporting requirements for this program of works, which will determine the progress reporting requirements of the individual low complexity project.

During the project definition, funding and approvals phase, a project control group (PCG) will likely be established. The PCG may provide endorsement and guidance to resolve key project issues throughout the project’s lifecycle in accordance with key agreed parameters directed from the TAFE's executive management and/or board.

Project definition, funding and approvals phase

It is recommended that you first seek formal endorsement (from the COO, executive management or TAFE board) to investigate or progress analysis of the project to confirm whether the project is a key organisational priority.

Once the project has been confirmed as a priority, you should develop an initial case for investment to seek internal funding and approvals to undertake the project. This is expected to be approved by the TAFE board.

Should the project require approval for any land acquisition or divestment, it will typically require approval from the TAFE board, the Minister for Skills, and TAFE, the Minister for Planning and DTF, depending on the anticipated land value.

Procurement phase

During procurement, the TAFE's executive management (potentially represented by the COO) or project director (potentially the director of assets and facilities (or equivalent)) may provide approval of the following:

• go-to-market strategy
• release of tender documentation to market
• selection of preferred tenderer, and
• contract award and execution.

The PCG may be involved in the procurement phase approvals process without necessarily providing final approvals. The role of the PCG in providing approvals should coincide with the project's governance structure.

Delivery phase

During procurement of the works, the TAFE's executive management (potentially represented by the COO) or project director (potentially the director of assets and facilities (or equivalent)) may provide the following:

• starting works on the construction site approval
• approval of changes to scope, budget and program
  • changes to scope, budget and program outside of agreed parameters may need to be approved by the TAFE board
• approval of compliance issues and non-conformance issues
  • compliance issues and non-conformance issues may need to be reported to the TAFE board
• final commissioning and handover of the asset, and
• approval to release part of security at the commencement of defects liability period.

The PCG may be involved in the delivery phase approvals process without necessarily providing final approvals. The role of the PCG in providing approvals should coincide with the project's governance structure.

It should be noted that best practice approvals processes will reconcile previously agreed budget and scope allocations with any key changes requiring approval at each key decision point of the project (in particular during the procurement phase up until project scope and budget is set at contract execution). This may be approved by the TAFE's executive management (often represented by the COO) or the project director (potentially the director of assets and facilities (or equivalent)). However, if this results in a significant impact on the agreed parameters of the program of works, you should consider referral to the TAFE board for consideration.

Depending on the TAFE’s governance structure, you may also have reporting requirements to the TAFE board on an aggregate (monthly, quarterly) or an exceptions basis (compliance and non-conformance issues).

In addition to the typical internal approvals mentioned above, the project may also have statutory approvals that will require approvals from the relevant external parties (utility providers, councils, etc.).

Project approvals and governance

The approvals process for medium complexity projects will depend on whether the source of project funding is internal or external. Please refer to the suggested medium complexity project governance structure and roles and responsibilities to further understand the roles of each approving body mentioned below.

In addition to the internal approvals process, where external funding is sought, separate approvals will be required from within government, which may include the OTCD, the Minister for Skills and TAFE, DTF and cabinet committees. Your nominated OTCD representative will provide you with guidance specific to the project. It is recommended that all matters requiring external consideration and approvals first receive TAFE board endorsement/approval.

During the project definition, funding and approvals phase, a project control group (PCG) will likely be established. The PCG may provide endorsement and guidance to resolve key project issues throughout the project’s lifecycle in accordance with key agreed parameters directed from the TAFE's executive management or board. In addition to the PCG, for complex projects where input and approvals from external stakeholders is required, you may also have a project steering committee (PSC) that sits above the PCG as an additional point of approval and endorsement throughout the project’s lifecycle.

Project definition, funding and approvals phase

It is recommended that you seek formal endorsement (the COO, TAFE board, or relevant board sub-committee) to investigate or progress analysis of the project to confirm that it is a key organisational priority. If the project involves commercial activity, you are also required to confirm that the commercial activity is consistent with the TAFE’s strategic plan, or its objectives or functions as outlined in the Commercial Guidelines for TAFE Institutes.

Once the project has been confirmed as a priority, you should develop an initial case for investment to seek internal approval to invest in the resources required for the development of a business case.

For internally funded projects, this involves preparing a preliminary business case to gain internal funding and approval to commence the project. A preliminary business case will be required when seeking OTCD initial consideration for government funding. However, depending on the proposed project’s size or complexity, a DTF templated short form business case or full business case will be required to gain OTCD and DTF approval and to enable a recommendation for funding through the state budget cycle.

Should the project require approval for any land acquisition or divestment, it will typically require approval from the TAFE board, the Minister for Skills and TAFE, the Minister for Planning and DTF, depending on the anticipated land value.

Procurement phase

During procurement of the works, the TAFE's executive management (potentially represented by the COO) or TAFE board may provide approval of the following:

• go-to-market strategy
• release of tender documentation to market
• selection of preferred tenderer
  • for externally funded projects, this must also be approved by the OTCD and the PCG (as per the capital works funding agreement), and
• contract award and execution.

The PCG or PSC may be involved in the procurement phase approvals process without necessarily providing final approvals. The role of the PCG and PSC in providing approvals should coincide with the project's governance structure and internal processes.

Delivery phase

During delivery, you may require the following:

• starting works on the construction site approval
  • may be approved by the TAFE's executive management and will likely be approved by the PCG (if externally funded as per the capital works funding agreement)
• approval of changes to scope, budget and program through a change management process
  • may be approved by the TAFE board and the OTCD for externally funded projects
• final commissioning and handover of the asset
  • may be approved by the TAFE board or executive management, and
• approval to release part of security at the commencement of defects liability period
  • may be approved by the TAFE board or executive management.

The PCG or PSC may be involved in the delivery phase approvals process without necessarily providing final approvals. The role of the PCG and PSC in providing approvals should coincide with the project's governance structure and internal processes.

It should be noted that best practice approvals processes will reconcile previously agreed budget and scope allocations with any key changes requiring approval at each key decision point of the project (in particular during the procurement phase up until project scope and budget is set at contract execution). For internally funded projects, this may be approved by TAFE's executive management (often represented by the COO) or board. However, if you have sought external funding, at a minimum will likely require OTCD approval (exact approvals to be advised by your OTCD representative on the project).

Depending on the TAFE’s governance structure, you may also have reporting requirements to the TAFE board on an aggregate (monthly, quarterly) or an exceptions basis (compliance and non-conformance issues).

In addition to the internal approvals mentioned above, the project may also have statutory approvals that will require approvals from the relevant external parties (utility providers, councils, etc.).

Project approvals and governance

The approvals process for HVHR projects will involve compulsory and frequent oversight from DTF for both externally and internally funded projects, as well as specific approvals from the Treasurer. Please refer to the suggested HVHR project governance structure and roles and responsibilities to further understand the roles of each approving body mentioned below.

During the project definition, funding and approvals phase, a project control group (PCG) will likely be established. The PCG may provide endorsement and guidance to resolve key project issues throughout the project’s lifecycle in accordance with key agreed parameters directed from the TAFE's executive management or board. In addition to the PCG, where input and approvals from external stakeholders is required, you may also have a project steering committee (PSC) that sits above the PCG in terms of governance hierarchy and serves as an additional point of approval and endorsement throughout the project’s lifecycle.

Project definition, funding and approvals phase

It is recommended that you seek formal endorsement to investigate or progress analysis of the project to confirm it is a key organisational priority. If the project involves commercial activity, you are also required to confirm that it is consistent with the TAFE's strategic plan, or its objectives or functions as outlined in the Commercial Guidelines  – TAFE Institutes.

Once the project has been confirmed as a priority, you should develop an initial case for investment to seek internal approval to commence the business case process.

For internally funded HVHR projects, this involves completing DTF’s project profile model to determine if the project is HVHR, before preparing a preliminary business case to gain internal funding and approval (if not already approved). HVHR projects which are not seeking external funding may not be required to go through DTF’s typical HVHR process. However, you may wish to seek the support of DTF for its general infrastructure expertise for HVHR projects and for best practice, even if the project is internally funded. This can be facilitated by your OTCD representative.

For externally funded HVHR projects, this involves completing the project profile model to determine if the project is HVHR, preparing a preliminary business case and then preparing a full business case to gain external funding and approval from the OTCD, DTF and the Treasurer to undertake the project.

Should the project require approval for any land acquisition or divestiture, it will typically require approval from the TAFE board, the Minister for Skills and TAFE, the Minister for Planning and DTF.

Procurement phase

During procurement of works, you may require approval on the following:

• go-to-market strategy
  • may be approved by the TAFE board
• release of tender documentation
  • this must be approved by the Treasurer as the project is HVHR, and the OTCD and cabinet committee if externally funded
• selecting the preferred tenderer
  • this must be approved by the TAFE board and the Treasurer as the project is HVHR and approved by the OTCD and cabinet committee. It may also be approved by the PCG (if required by the capital works funding agreement) if externally funded, and
• contract award and execution
  • this must be approved by the TAFE board and the Treasurer as the project is HVHR and approved by the OTCD and cabinet committee. It may also be approved by the PCG (if required by the capital works funding agreement) if externally funded.

Delivery phase

During delivery you may require approval on the following:

• starting works on the construction site approval
  • may be approved by the TAFE's executive management and may be approved by the PCG (if externally funded as per the capital works funding agreement)
• approval of changes to scope, budget and program through a change management process (may require Treasurer approval)
  • may be approved by the TAFE board and may (depending on the size and complexity of the change) be approved by DTF and the OTCD
  • major contract variations will require Treasurer approval
• approval of compliance issues and non-conformance issues
  • may be reported to and approved by the TAFE board and must be reported to and approved by DTF and the OTCD
• final commissioning and handover of the asset
  • may be approved by the TAFE board and must be approved by DTF and the OTCD, and
• approval to release part of security at the commencement of defects liability period
  • may be approved by the TAFE board and must be approved by DTF and the OTCD.

It should be noted that best practice approvals processes will reconcile previously agreed budget and scope allocations with any key changes requiring approval at each key decision point of the project (in particular during the procurement phase up until project scope and budget is set at contract execution). For internally funded projects, this should be considered by the TAFE board. However, if you have sought external funding, Treasurer endorsement/approval will likely be required for the proposed change.

Depending on the TAFE’s governance structure, you may also have reporting requirements to the TAFE board on an aggregate (monthly, quarterly) or an exceptions basis (compliance and non-conformance issues).

HVHR projects require specific approvals from DTF throughout the project lifecycle. DTF will often be represented on steering committees with a range of specific Treasurer approval points.

In addition to the typical internal approvals mentioned above, the project may also have statutory approvals that will require approvals from the relevant external parties (utility providers, councils, etc.).