!!

"
#

$%&''(

Gate Model for Real Estate Projects

Overview of the gates
The ABB Gate Model defines eight gates. At each gate one review if the project
is ready for the next gate and evaluates the project from a business perspective.
What is a Gate?
A gate is a decision point in a project where the achieved results are evaluated
from a business and strategic point of view and the business case is reassessed
to determine whether to continue the project or not. A decision to continue may of
course include alterations to the project such as changed scope or plan. Each
gate consists of two parts, a gate assessment and a gate meeting.

To run efficient gate meetings, assessments are made to prepare the gate
decision material. The input to an assessment is documents prepared by the
project and applicable checklists. The output from an assessment is an
assessment report. The report addresses the check items for each gate and
facilitates the Go / No-go decision. The passing of a gate is decided at a gate
meeting. Good preparation of all participants will ensure short, efficient and
focused meetings. The result of a gate meeting is a Go / No-go decision.

!!

) $

!! "
#

$%&''(

It is expected that good project practices are used throughout the execution of
project, however the gate model does not describe how to execute the project,
and it describes what the project must do to enable business risk and investment
decisions to be made.
ABB GATE MODEL Real Estate Projects
Stages

Goal

G0

Agreement to Start Project

Start of Gate 1

Scope and Feasibility Study

G1
Start of Gate 2
G2

Agreement on Scope, Feasibility

Objectives

Key Results

Project Intent

Go/No Go to G1

Feasibility Approval

Go/No Go to G2

Design Brief Sign-off

Go/No Go to G3

Detailing Requirement
Agreement on Requirement

Form Project Team - Project Manager, Construction Engineer, Purchaser & Buyer
Start of Gate 3

Conclude Plans, Specifications, Drawings and Stat Approvals

Implementation Schedule

G3

Start of Gate 4
G4

Project Signoff in totality

Procurement
Implementation/Construction phase

G5

Completion of Construction Phase

G6

Start of Gate 7
G7

Go/No Go to G4

Project Team, Drawings, Plans, tendering, Negotiations and selection

Start of Gate 5

Start of Gate 6

Final Management Approval

Award of contract

Go/No Go to G5

GAP Analysis

Go/No Go to G6

Satisfaction from the user

perspective

Go/No Go to G7

Punch list
User Acceptance

Consolidation and certification of Running bills; FINAL and Project Documentation

Project Reconciliation and Closure

Completion of all terms and

obligations

The ownership for the Gate decisions lies usually with STECO post CIMT
approval. To bring in more clarity on the subject, a checklist for Gate G0 to G7 is
attached.

!!

) &

!! "
#

$%&''(

Approach
GF-RE has adopted a 4D-concept for executing projects, which is further
mapped to ABBs Gate Model. It is basically to ensure that all the stake holders
of the project are well briefed and acquainted in building the high quality facilities
for the Group. Bottom line is ensuring that our real estate investments are
meaningful, justified in line with our Groups Business objectives.

G0

Define
The originator of the requirement is Business Managers in tandem with Global
BU/Division and Country Management. During this phase it is more of technical
in nature and it should emphasize on the process, flow and capacity
enhancements. At this stage, a document need to be put in place covering all the
aspects of business needs which includes financial implications as well as
indicative cost estimate of the project. Further, the requirement along with the
comprehensive and exhaustive document needs to run through the Operational
Excellence Team in respect of its feasibility prior presenting to Group approving
authorities.
Design
Post in principle project definition sign-off, the requirements will be split into

!!

) +

!! "
#

$%&''(

Generic Infrastructure, which should facilitate for the business operations,

which includes everything except the Machinery & Equipments.
Definition of Generic infrastructure:
Land Acquisition
Statutory fees, Deposits
Professional fees
Free issue items

Compound Wall
Civil
Electrical
HVAC

Fire Protection
External Development
Office interior Fit out
Building Automation

Infrastructure related to Process.

Under this phase, both the BUs Operation Excellence Team and CREM team
will work closely in TRANSFORMING the requirement into engineering format
and arrive at the tentative building co-ordinates prior meeting /Appointing Project
Management Company (PMC)/Architects. The requirements should be listed and
aligned to project definitions in all respect. Post arrival of requirement list, the
PMC/Architect will be put on board and they are expected to present Design Brief
which should cover the requirements, local parameters like type of Soil, type of
structures, etc along with Schedule of finishes, time frame and cost estimate.
Develop
Post design sign-off; the pre-defined design will be developed for the execution in
respect of Architectural, Structural and Services (Utilities, Power, HVAC, BMS,
Fire Detection & Protection, etc). At this stage the whole of project will be
categorized into Direct and Indirect Service packages to obtain the competitive
pricing from the trade contractors.
Prior tendering process, the entire design concept will be shared with STECO for
reconfirmation of requirements and to ensure that there are no surprises at the
end of project. The CREM Team will be accountable for transforming the
Business Requirements.
Deployment
The STECO is solely responsible for the execution of the project and
accountable for Time, Quality and cost. Under this phase, the respective
Stakeholders of the Projects are expected to brief the STECO about the project
status against the pre-defined milestones.

!!

) *