The PRINCE2 7th edition delivery model definition
The organizational and commercial arrangements to be deployed to meet the project objectives given the project constraints and capabilities of the user, business, and supplier organizations. It is described in the commercial management approach and reflected in the project management team structure.
The PRINCE2 project delivery model
Delivery models can range from thin client models, where most of the project work is undertaken by suppliers, to thick client models, where the business undertakes most of the work. In thin client models, not only is the work to develop the project products fulfilled by external suppliers, but also much of the work to manage the project is fulfilled by external suppliers.
The delivery model will define which aspects of project management will be in-house or external. It will also include whether the work fulfilled by external suppliers will be contracted on a product or labour basis. The distinction is that contracting on a labour basis means the client generally remains responsible for their work performance, whereas, on a product basis, the supplier remains responsible for their performance.
In consultation with the project manager, the project board determines the right balance between in-house and external suppliers and the required commercial arrangements. This is captured in the commercial management approach.
The choice of delivery model can also be impacted by how unique the project is to the business. For highly unique projects or where the project could become political, the project board may choose a model with a high level of organizational input to ensure the work.
Whereas, for more standardized work or where the project board (as the governing body) does not have the technical capability or understanding to make informed decisions or appropriately challenge the project teams, a model utilizing the expertise of external suppliers to assure the work and support decision making may be chosen.
The delivery model should support risk allocated to the part of the organizational ecosystem most capable of managing the risk.