A465 Heads of the Valleys

Section 2 Procurement of Major Projects

Dean Protheroe – Costain Ltd

Bill Hughes – EC Harris

• Major Projects

• A465 Heads of Valley

• Performance Management

• Questions and Answers

Procurement of Major Projects

Procurement of Major Projects

Historically projects were delivered

• Late

• Over budget

• Poor Quality

Procurement of Major Projects

A465 Heads of the Valleys

Section 2

Scheme Information

• 8km Dual carriageway widening through the Brecon

Beacons and the Clydach Gorge.

• Major Civil Engineering project involving alpine engineering

and 60,000m2 of retaining measures.

• 13 Major Structures and 7 Culverts.

• Environmental Challenges include European sites of

special conservation. Protected Woodland and Bat sites.

A465 – Scheme Details

• Pre Qualification

• Tender

• Assessment 70% quality, 30% Price

• Quality includes submission and interview

A465 - Tender

Quality assessment

• The Team

• Methodology

• Risks

• Added Value

A465 - Tender

• Integrated Team and Collaborative working

• High level of Trust, open book. No surprises

• Contractor, Designer and supply chain

• Right solution for the clients objectives

• Significant reduction in out-turn costs

Early Contractor Involvement

• Client – Welsh Government

• Funding – Welsh Government

• Client Project Manager – EC Harris

• Contractor – Costain

• Contractor’s designer – Atkins, Halcrow and RPS

A465 – Contract Details

• Key Stage 3 – Preferred route to Publication of draft

orders, (Line order, side roads order and Compulsory

purchase order)

• Key Stage 4 – Public Inquiry and Ministers decision to

proceed with the Scheme.

• Key Stage 6 – Design and Construction

A465 – Key Stages

• KS3 and KS4 – NEC3 Professional services Option C and

E - 2011 – 2014

• KS6 – Construction Phase - April 2014 – 2017

• NEC Option C – Design and build and Contractor retains

risk of Ground Conditions and Stats performance

• Target Price for KS3 and KS6 at time of tender

• Evaluation events used to change KS6 Target Price during

KS3.

A465 – Contract Details

A465 – Added Value

Value Wales Community Benefits guide

(Delivering Maximum Value for The Welsh Pound)

Community Benefits

• Employment - 75 new entrants

(long term unemployed, economically inactive) recruited

• Education & Training - 5000 students engaged in the project

• Integrated Team members raised £100,000 for charity

• 90% of sub-contracts to local suppliers in South Wales

• SME Development – 2 new businesses

• £46.6m Added Value to the local economy

Community Benefits

Case Study – Church Village

Community Benefits – Case Study

• Learn from Experience at Porth and Church Village

and improve for HOV2

• Provide 170 new jobs for the long term unemployed

and economically inactive

• 51 Apprenticeships and 119 new

entrant trainees

• Provide training to enable NVQ

Level 2

Community Benefits

Commitment

Performance Management

• BS EN 1S0 9001

Continuous

improvement of the

Quality Management

System

Plan

Do

Check

Act

Performance Management

Cost and Time

• Used Earned Value Analysis

• Links the Price to the Programme

• Measures Performance of Cost and Time

• Provides an Early Warning to the Project

Key Performance Indicators

• Target Cost /Estimate - Baseline

• Work Performed - Earned Value

• Actual Cost of work Performed - Costs to Date

• CPI - Cost Performance Index • Earned value / actual costs

• 0.8 = 20% over budget

• SPI - Schedule Performance Index • Actual earned value / planned earned value

• 1.1 = 10% more work completed the programmed

Key Performance Indicators

Actual Cost

Profile

EV

Early Dates

Target Profile

Time

Cost Cost

Variance

Time

Variance

Using Earned Value Analysis

• Safety

• Client

• Quality

• Programme

• Environment

• Sustainability

• Fair payment

• Design

• People

• Employment

KPI’s

SHE Monthly Scored Inspections

0

200000

400000

600000

800000

1000000

1200000

1400000

0

0.5

1

1.5

2

2.5

Cu

mm

ula

tive

Pro

jec

t H

ou

rs W

ork

ed

AF

R &

Min

or

AF

R V

alu

e

AFR & Minor AFR Trend

AFR Minor AFR

Cummulative RIDDOR Incidents Cumulative 3 day accidents

Cummulative Hours Worked

KPI’s

7.7

7.8

7.9

8

8.1

8.2

8.3

8.4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2007 2008 2009

Sc

ore

Date

Client Satisfaction Score

Series1

Client Satisfaction Score KPI’s

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Nov-0

8

Jan-0

9

Mar-

09

May-0

9

Jul-09

Se

p-0

9

Nov-0

9

Jan-1

0

Mar-

10

May-1

0

Jul-10

Date

IQVT Audit Score

IQVT Audits KPI’s

0

2

4

6

8

10

12 Number of Complaints

Number of Complaints responded to in 24 hours

Complaints/Enquiries KPI’s

0

10

20

30

40

50

60

70

80

90

100

Cumulative Occupational /D & A Testing Cummulative Occupational Health Tests

Cummulative Drugs Tests

Cummulative Alcohol Tests

Cummulative Drugs Test Failures

Cummulative Alcohol Test Failures

Cumulative Occupational KPI’s

Any Questions ?