5/27/2018 HKIE Partnering

1/39

Partnering on MTR Corporation Ltds

Tseung Kwan O Extension

Roger Bayliss

Project Manager

8th February 2001

5/27/2018 HKIE Partnering

2/39

Tseung Kwan O Extension

5/27/2018 HKIE Partnering

3/39

Tseung Kwan O Extension

13 civil contracts

4 building services contracts

17 systemwide E&M contracts

HK$21Bn Project

5/27/2018 HKIE Partnering

4/39

MTRCs Project Division

In-house PM capability

Our aim is good project management

Objectives

Reduce costs

Shorten implementation programme

Improve project management capability

Better co-ordination between project elementsMore alignment with consultants and contractors

5/27/2018 HKIE Partnering

5/39

Working Group Conclusions

Partnering improves

Project management practice

Cost effectiveness

Programme certainty

Communication

Responsiveness to problems

Less disputes

Makes work more enjoyable

5/27/2018 HKIE Partnering

6/39

Partnering - What is it?

Many definitions

No single panacea

Mutually advantageous working relationship

Improved behaviour

5/27/2018 HKIE Partnering

7/39

Partnering - A Practical Definition

Partnering moves from

Client versus Contractor

to

Client, Designer &

Contractor versus the Job

5/27/2018 HKIE Partnering

8/39

What Partnering Is

Partnering is about

A modern strategic business relationship

Best use of resources

Improved productivity

Driving out waste

Competitiveness, quality and timely delivery

A win-win environment

An acceptable return

5/27/2018 HKIE Partnering

9/39

What Partnering Is Not

Partnering Is Not About

A form of contract

An easy way to make money

Soft options

Deceit

A cosy relationship

A guarantee of no problems

An excuse for compromise

5/27/2018 HKIE Partnering

10/39

What Does Partnering Need?

Internal partnering culture

Clear understanding of the strategic objectives

Common desire to partner

Trust

Desire to reduce paperwork & improve communication

Commitment

We should be doing it anyway!

5/27/2018 HKIE Partnering

11/39

An Evolutionary Approach

Was MTRC/Hong Kong ready?

Soft issues first - relationships

Commercial considerations later

Non-contractual partnering campaign

Civil first

5/27/2018 HKIE Partnering

12/39

Getting Started

MTRC Executive Workshop

TKE Vision

Middle Management

Workshops

5/27/2018 HKIE Partnering

13/39

Getting Started (cont) Contract Specific Workshops

Review Workshops

5/27/2018 HKIE Partnering

14/39

Perceptions

What do you see?

5/27/2018 HKIE Partnering

15/39

Managing Partnering

MTRC

Steering group

Partnering management group

MTRC & Contractors

Monthly partnering meetings

Performance monitoring system

Specific intervention

Combined workshops

5/27/2018 HKIE Partnering

16/39

Partnering - Not All WorkSocial events

5/27/2018 HKIE Partnering

17/39

Experience So Far

A voyage of discovery

Variable success

So far so good

5/27/2018 HKIE Partnering

18/39

The Business Case

Potential savings of 2-10 %

Potential costs of 0.1-1%

5/27/2018 HKIE Partnering

19/39

Challenges on TKE - 1 Introduction Post Contract Award

Low Tender Prices

The Supply Chain

subcontractors

suppliers

joint ventures

5/27/2018 HKIE Partnering

20/39

Challenges on TKE - 2Buy - in and commitment

internally

externally

Champions

Equal Effort?

5/27/2018 HKIE Partnering

21/39

Challenges on TKE - 3Middle Management

Front Line Staff

Skills and Attitudes

communication

relationships

meetings

negotiation

5/27/2018 HKIE Partnering

22/39

The Success

More discussion - less paper

Reduced approval time for submissions

Shared offices

5/27/2018 HKIE Partnering

23/39

The Success (cont)Less interface problems

5/27/2018 HKIE Partnering

24/39

Contractor/MTRC Forums

Station Construction Forum

Tunneling Forum

Safety Liaison Group

Waste Reduction Forum

5/27/2018 HKIE Partnering

25/39

Depot Piling

Early handover

Speedy claims resolution

Early final account Below tender sum

Win-Win

5/27/2018 HKIE Partnering

26/39

Claims Improvements

5/27/2018 HKIE Partnering

27/39

Claims Improvements

85%14%

TKELAR

Claims resolved on 30 of 34 Contracts

Resolution of notified Claims

5/27/2018 HKIE Partnering

28/39

Programme ConfidenceCivil and E&M Works 60% complete

Track Access up to 10 weeks early

BS access up to 8 weeks early

5/27/2018 HKIE Partnering

29/39

New Ways of Working

Incentivisation

5 civil contracts

2 E&M contracts

Target final account

Gain/pain share

Early access

5/27/2018 HKIE Partnering

30/39

Conclusions

We (the industry) need to improve

Partnering can improve the process

Results on TKE are positive

The start of the journey

Encouraging support

Partnering is here to stay

Construction Industry Review Committee

5/27/2018 HKIE Partnering

31/39

Partnering - Is It So New?

USA Army Corps of Engineers

North Sea Oilfields

5/27/2018 HKIE Partnering

32/39

Partnering - Is It So New?

Partnering 2600 years ago

- after Aesop

5/27/2018 HKIE Partnering

33/39

Partnering on TKE

Thank you

5/27/2018 HKIE Partnering

34/39

Confined Space Training in Japan

Platform Screen Doors

Extensive Confined Spaces

MTRC Trainers to Japan MTRC Costs Covered

Contractor Costs Saved

5/27/2018 HKIE Partnering

35/39

Contract 601 Alternative MTRC Design OK

Discussion Cost Savings

Programme Savings

5/27/2018 HKIE Partnering

36/39

Early Access To Shopping Malls Po Lam Station

Access Obligation Temporary Footbridge?

Contractor Saved Cost

5/27/2018 HKIE Partnering

37/39

Soft Ground Tunneling Method Contract 611

Joint discussion

Method Statement

Agreed Before Submission

5/27/2018 HKIE Partnering

38/39

Other Success Stories Material Databank

Trial Panel Sizes

Local Access Arrangements

Shared Factory Inspections

Reduced Services Drawings

5/27/2018 HKIE Partnering

39/39

Partnering on TKE

Thats It