routines for success. organising for innovation and collaboration
TRANSCRIPT
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Safely Together Bank Station Capacity Upgrade
ITERSeptember 2015
Routines for success: organising for innovation and collaboration
Bank Station Capacity Upgrade Project Innovative Contractor Engagement
Simon Addyman Programme Manager
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Safely Together Bank Station Capacity Upgrade
What do I think about when I think about projects?
As new temporary organisations, how do projects become capable organisations?
How and why are organisational routines (re)created in temporary inter-organisational structures?
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Safely Together Bank Station Capacity Upgrade
1.17 billion passengers a year
London Underground Limited
A rising proportion, currently 53% of journey time, is spent in stations rather than on trains
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Safely Together Bank Station Capacity Upgrade
Existing Bank Monument Complex Layout
6 lines interchanging
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Safely Together Bank Station Capacity Upgrade
PRIMARY REQUIREMENTS• Increased capacity, reduce Journey times• Step-free Access• Compliant fire and evacuation
PRIMARY BENEFITS • Journey time benefits of £774m• Capacity of Fruin level C• Benefit:Cost Ratio is 2.4:1
ConstrainedWork Site
Complex Construction
Sub-optimalOver timeOver budget
Project Baseline Solution
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Safely Together Bank Station Capacity Upgrade
Innovative Contractor Engagement (ICE)Key Principles
• A structured and protected dialogue phase.• LU disclose ALL project information and
acknowledge the cost of dialogue.
• LU share value of innovative ideas from unsuccessful bidders
• Requirements statement and bid evaluated against business output.
• Orthodox ITT/ Target cost Contract.
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Safely Together Bank Station Capacity Upgrade
ICE in Practice
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Safely Together Bank Station Capacity Upgrade
Project Solution - Stakeholders
• 67 buildings in the zone of influence
• 38 buildings with Heritage interest
• 6 buildings Grade 1 Listed – notably St Mary
Abchurch (Wren) and Mansion House
• 14 Buildings are Grade II/II*
• 80% buildings are in a conservation area
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Safely Together Bank Station Capacity Upgrade
Innovation in Project Management:A New ‘Front End’ Triangle
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Safely Together Bank Station Capacity Upgrade
Effectiveness ‘ v ’ Efficiency
EFFECTIVE PRODUCT
EFFICIENT METHOD
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Safely Together Bank Station Capacity Upgrade
Tender Evaluation On ValueBASE 1 2 3 4
Product 625,000£ 625,000£ 625,000£ 625,000£ 625,000£ CR1: Capacity Enhancement 17.0% 8.50 10.00 8.50 12.00 10.00 CR2: Reduction of Journey Times 17.0% 8.50 8.50 8.50 12.00 8.50 RO3: Design & Construction 15.0% 7.50 8.50 7.50 7.50 7.50 CR4: Step Free Access 10.0% 5.00 5.00 10.00 5.00 7.00 CR5: Fire and Evacuation Plan 10.0% 5.00 5.00 5.00 5.00 5.00
Subtotal Product 69.0% 34.50 37.00 39.50 41.50 38.00 Method RO1: LUL Project Business Case 2.5% 1.25 1.25 1.25 1.25 1.25 RO2: Transport and Works Act Order 5.0% 2.50 2.50 2.50 2.50 2.50 CR 3 Disruption during construction 12.5% 6.25 6.25 6.25 8.00 6.25 CR 6 Time 2.5% 1.25 1.25 1.25 1.25 1.25 CR 7 Design to Cost 2.5% 1.25 1.25 1.25 1.25 1.25 RO4: Opportunities 6.0% 3.00 3.00 3.00 3.00 3.00
Subtotal Method 31.0% 15.50 15.50 15.50 17.25 15.50 Total 100% 50.00 52.50 55.00 58.75 53.50 Total Rank 5 4 2 1 3
Value Rating - £100m = 8.00 Quality pts if P = £625m) 8.00 8.40 8.80 9.40 8.56VR rank 5 4 2 1 3VFM 85.11% 89.36% 93.62% 100.00% 91.06%
P equiv 531,915£ 558,511£ 585,106£ 625,000£ 569,149£ Lost Value 93,085£ 66,489£ 39,894£ -£ 55,851£
Value of a Quality point (rank 1 .v. rank 4) £k £10,638
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Safely Together Bank Station Capacity Upgrade
Successful result!
• B:CR increase by 1.1 to 3.5:1 (45.1%)
• Journey time benefits increased by £148m to £923m
(19.2%)
• EFC reduced by £61m to £563m (9.8%)
• Induced Revenue increased by £31m to £229m
(15.6%)
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Safely Together Bank Station Capacity Upgrade
Base Scheme: Central Line Link
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Safely Together Bank Station Capacity Upgrade
Dragados Scheme: Central Line Link
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Safely Together Bank Station Capacity Upgrade
One Project Organisation
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Safely Together Bank Station Capacity Upgrade
• Alliance Management Structure• Governance Board• Co-location• Supply Chain Incentivisation• Shared Vision & Objectives• Focus on Safety & Buildability
Ongoing collaboration & innovation
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Safely Together Bank Station Capacity Upgrade
Q - Do you want to know your risks/opps in advance of contract
award?
A - Yes - then provide confidentiality to supply chain IP;
Q - If providing confidentiality then why not share information
between the parties?
A - Yes - share information to mitigate information asymmetry;
Q - If sharing information, then why not enter into dialogue to allow
‘time’ to (re)create ‘routines’ to ‘transition’ into delivery?
A - …find out next year…?!
So why wouldn’t you...?
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Safely Together Bank Station Capacity Upgrade
A Few Little Extras
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Safely Together Bank Station Capacity Upgrade
All tasks 8 days longPB 10 days longFB 4 days long
Use an Aggregated Tolerance to the Task Flow called a ‘Buffer’
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Safely Together Bank Station Capacity Upgrade
Take Advantage of Early CompletionMitigate Potential Delays
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Safely Together Bank Station Capacity Upgrade
Transport for LondonDragadosURSDr Sauer & PartnersWilkinson EyreT ClarkeAlan Auld Eng. Ltd.Robert Bird Group
Scott ListerHyder ConsultingMunellys
Vision SurveyGeocisaOthers
Organisational Network Analysis:Self Organising Communities of Practice
LessInfluence
More Influence
Project Management Functions
Mechanical and Electrical
Architecture
Tunnelling
Civil Engineering and Construction
Engineering and Design Management, Client, Sponsor
and Operations
There are 6 closely knit multi-disciplinary and multi organisational
communities present in the information exchange network with specific themes across organisations
and functional disciplines
Fourway Communication