biggestproblemsandchallengesduringexecution of...
TRANSCRIPT
Biggest problems and challenges during executionofProjects inTheNetherlands
Simon Kolkman MSc
Outline
1. Introductionq Dutchbuildingprojects and legal
frameworks2. Biggest problems by buildingphase
q ProcurementandContractingq Designandworkplanningq Executionanddelivery
3. Conclusions and Questionq Atthe end..
SIDiR2017Disclaimer- Pointofview- notintendedasalegalandcompleteacademicevaluation
Leadsgrowth to moreproblems inbuildingprojects?
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Utility building(%CAGR) Housing (%CAGR) Infrastructure (%CAGR)
Compoundannualgrowthrate(CAGR)isthe mean growthrate inperiod
• Morebuildingprojects inmajorurban
surroundings
• Increasing technical and legal complexity
(environmentalcodes)
• Grow ofPublic-Private-Cooperation
• Increasing transfersof(financial)risks to
contractors
• Moreintegrated contracts (D&C/DB(F)M)
Morecomplexity and integrated contractmodels
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30%
12% 44%
14%
Dutchcontractmodels- comparisonFIDIC
D&C- Silverbook DB(FM)- Yellow/silverbook
RAW- Redbook Other- different
ChangeinManagementand Contractmodels
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- Earlierandintegralcooperationclientandcontractor- Resultandperformancebasedmanagement- Highermanagementstandards(faster,better,cheaper,
morecontrolled)
- Morerisksandresponsibilitytowardcontractor- Moreextensiveandmutilatedcontracts- Tension between Dutchlaw principles and contracts
(disproportionate vs clear responsibilities)
1. ProcurementandContracting– Contracting - models and content– Procurement - effective– MEATand Risks – bestbidding
2. Designandworkplan(ning)– Requirements– partobligation– Projectmanagement– (un/over)controlled– VerificationandValidation– (ap)prove
3. Executionanddelivery– Executingplan– (uncontrolled)deviations– VerificationandValidation– (ap)prove– Delivery– fitfor purpose
Biggest problems/challenges by buildingphase:
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Biggest problems and challenges:• Contracting – models and content
– Deviatefromthestandard,unbalancedriskallocationorinsufficient quality contract.
• Procurement – choice procedure– UnsuitableProcurementprocedure,misfit
informationandcommunicationneeds– TimetoTendertoshort
• MEATand Risks – bestbid(ding)?!– Overestimation ofbidding by client ornot
wellmotivated awarddecision– Unclear orunrealistic riskdistribution
1.ProcurementandContracting
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Bestbidding also realistic?
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Biggest problems and challenges:• Requirements– partobligation
– Obvious,unclearorconflictingrequirements/information
• Projectmanagement– (un/over)controlled– Misfitprescribedmanagement
specificationandprojectneeds,badlyexecutedorlackofcooperation
• VerificationandValidation– (ap)prove– Lackoffproveofperformance,disputeof
misunderstandingaboutdeliveredquality(contractvsclient)
2.Designandworkplan(ning)
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• Testsituation - Deltares independentinstituteforappliedresearchinthefieldofwaterandsubsurface
• ProjectWapenveld-Veessen• High-waterprogramm- morespace for
rivers – prefend flooding
Howto Verify - 1:100year operarational enfunctional?
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Biggest problems and challenges:• Executingplan– (uncontrolled)deviations
– Obviousunreliable information,unexpectedsoil conditions oropportunisticplannedandbadlyexecutedwork
• VerificationandValidation– (Ap)prove– Failing to achieve required (MEAT)results or
dispute about evidence ofresults (validationofthe verification)
• Delivery– Fitfor purpose– Buildingitwellbutnottherightproduct,
disputeaboutdeliveredresults(productorprocess)
3.Executionanddelivery
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Good ornot good enough?
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• Thecooperationdirectlycomesunderpressureandthejointinterestwillvanishwithalltheescalationconsequences:– Legally– Cooperation
• Itisthenthechallengetoquicklyfinishsuchproblems(orplacethemoutsidetheproject)toreturntoagoodcollaborationtocompletetheprojectwell:– Mutualunderstandingcontract– predictable
escalation(followtheprocedures)– GoodProjectmanagementandSystemsEngineering– Investmentinde-escalationandjointtrust
And what’s the challenge when things gowrong?
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Conclusions enrecommendations
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• Morecomplexbuildingprojectsneedsnewcontractmodels
• Butcontractmodelsdonotchangethewayprojectsareexecutedà peopledo.
• Preventinglegalissuesinprojectispossiblethrough:– mutualunderstandingofthecontract– earlyde-escalationandgoodProjectmanagement
practiceandmethodslikeSystemsEngineering.
• Andspecialattentionshouldalsobegiventobehaviourandcooperationduringtheproject.
