Project Inception Stage

The inception stage of a project is a preliminary phase that precedes any formal or contractual engagement with the public sector stakeholder. It is characterized by activities that lay the groundwork for successful project development.

Scope of the Inception Stage

The inception stage encompasses the initial interactions and activities that include, but are not limited to:

  • Requests for Information (RFI)

  • Requests for Proposals (RFP)

  • Early Development Discussions

During this stage, the goal is to gauge interest, gather information, and position the project for a successful bid or proposal. This phase involves minimal investment, typically representing only 0.01% of the total project size.

Budget Considerations

Given the preliminary nature of the inception stage, budget allocation is conservative. For a project estimated at \$100 million, the budget for the inception stage would range between \$5,000 and \$10,000. This budget is utilized for:

  • Conducting initial feasibility studies

  • Preparing responses to RFIs and RFPs

  • Engaging in preliminary discussions and negotiations

  • Securing necessary resources and expertise to support bid development

Project Phases within the Inception Stage

The inception stage is divided into two distinct phases, each with specific objectives and activities:

  • Origination Phase: This phase involves deal qualification, pre-scoring, and the recording of meetings to assess the likelihood of advancing to the pursuit stage.

  • Pursuit Phase: In this phase, focus is on drilling down on cost models, responding to RFPs, creating preliminary cost assumptions, and selecting initial partners for the bid.

Gating Condition: Contractual Engagement

The progression from the inception stage to the analysis stage is marked by a pivotal gating condition: the attainment of a contractual engagement. This can take the form of:

  • Exclusive Negotiation Agreement (ENA) under a Public-Private Partnership (P3) structure

  • Memorandum of Understanding (MoU)

  • Letter of Intent (LoI)

  • Any other form of commitment that signifies a mutual interest in advancing the project

The successful transition to the analysis stage signals a heightened level of commitment from both parties and typically involves a more substantial allocation of resources towards detailed project analysis and planning.

Conclusion

The inception stage is a low-risk, low-investment phase designed to establish a preliminary understanding of the project’s viability and potential. By securing a contractual engagement, the project moves into a more rigorous and detailed analysis stage, where the foundation laid during inception is built upon to develop a comprehensive plan for execution.