Multiple Partnering ConsortiumMultiple Partnering Consortium

A Case Study

Greg Holthouse, Fru-Con

Dwayne Wilson, Fluor

A Case Study

Greg Holthouse, Fru-Con

Dwayne Wilson, Fluor

CPI Conference 2001CPI Conference 2001

Multiple Partnering Consortium

Greg Holthouse

Fru-Con

Greg Holthouse

Fru-Con

CPI Conference 2001CPI Conference 2001

Multiple Partnering Consortium

Dwayne Wilson

Fluor

Dwayne Wilson

Fluor

CPI Conference 2001CPI Conference 2001

Introduction

Project- Tissue & Towel Plant

- Cape Girardeau

- Jan. ’98 – March 2000

Client- Procter & Gamble

Contract Value- $350+ million

Project- Tissue & Towel Plant

- Cape Girardeau

- Jan. ’98 – March 2000

Client- Procter & Gamble

Contract Value- $350+ million

Presentation Outline

•Introduction and video

•Use of CII Best Practices

- Partnering

- Team Building

- Constructability

- Zero Accident Techniques

•Conclusion

•Introduction and video

•Use of CII Best Practices

- Partnering

- Team Building

- Constructability

- Zero Accident Techniques

•Conclusion

Project Organization Chart

Fru-Con/Fluor DanielJoint Venture

Fru-Con/Fluor DanielJoint Venture

ValmetValmet

New Site ConsortiumNew Site Consortium

Procter & GambleProcter & Gamble

CII Best Practices

7.2 Partnering

7.1 Team Building

2.1 Constructability

11.1 Zero Accident Techniques

7.2 Partnering

7.1 Team Building

2.1 Constructability

11.1 Zero Accident Techniques

CII Best PracticePartnering

Objective

Partners invest unique strengths to contribute to project success.

Objective

Partners invest unique strengths to contribute to project success.

Actions and Results

• Value engineering, collaborative measures

- Avoided more than $50 million in capital costs.

• Integrated start-up plan

- Gained an additional $20 million in revenues.

- Set new benchmark for start-up.

Actions and Results

• Value engineering, collaborative measures

- Avoided more than $50 million in capital costs.

• Integrated start-up plan

- Gained an additional $20 million in revenues.

- Set new benchmark for start-up.

CII Best PracticePartnering

Objectives

Achieve continuous feedback in all directions and focus on continuous quality improvement.

Objectives

Achieve continuous feedback in all directions and focus on continuous quality improvement.

CII Best PracticePartnering

Actions and Results

• Feedback incentive program:

- Improved cost, safety, quality, and schedules.

- “5G” — owner’s most productive paper machine.

• Blended, spelled out work processes from JV.

- Fewer contractual, procedural disputes.

Actions and Results

• Feedback incentive program:

- Improved cost, safety, quality, and schedules.

- “5G” — owner’s most productive paper machine.

• Blended, spelled out work processes from JV.

- Fewer contractual, procedural disputes.

CII Best PracticePartnering

ObjectiveFocus, align, and motivate

team.

ObjectiveFocus, align, and motivate

team.

CII Best PracticeTeam Building

Actions and Results

• Consultant-led alignment meetings

- Ensured working toward common goals.

• Five milestone celebrations

- Motivated team to accomplish all goals.

• 50/50 joint venture by two contractors

- Ensured common financial objectives.

Actions and Results

• Consultant-led alignment meetings

- Ensured working toward common goals.

• Five milestone celebrations

- Motivated team to accomplish all goals.

• 50/50 joint venture by two contractors

- Ensured common financial objectives.

CII Best PracticeTeam Building

ObjectiveRemove roadblocks to project success.

ObjectiveRemove roadblocks to project success.

CII Best PracticeTeam Building

Actions• Regular meetings at job site and with joint

venture, consortium, and client.

• Internal and joint alignment sessions held at critical times.

Results• Dispute resolution process streamlined.

• Challenges proactively resolved; team remained aligned.

Actions• Regular meetings at job site and with joint

venture, consortium, and client.

• Internal and joint alignment sessions held at critical times.

Results• Dispute resolution process streamlined.

• Challenges proactively resolved; team remained aligned.

CII Best PracticeTeam Building

ObjectiveIntegrate construction input into planning, design, and field operations.

ObjectiveIntegrate construction input into planning, design, and field operations.

CII Best PracticeConstructability

Actions and Results

• Start-up driven, resource-loaded schedule

- Project milestones reached before contract dates.

• Changes in scope and change orders limited

- Project delivered under owner-establishedcost goal.

Actions and Results

• Start-up driven, resource-loaded schedule

- Project milestones reached before contract dates.

• Changes in scope and change orders limited

- Project delivered under owner-establishedcost goal.

CII Best PracticeConstructability

ObjectiveImprove

productivity.

ObjectiveImprove

productivity.

CII Best PracticeConstructability

Actions and Results

• Schedule flexibility

- Enabled early training for plant personnel.

- Some operations started prior to finish.

• Early release from owner for site work

- Enabled completion of project ahead of schedule.

• Utilized lessons learned from similar project

Actions and Results

• Schedule flexibility

- Enabled early training for plant personnel.

- Some operations started prior to finish.

• Early release from owner for site work

- Enabled completion of project ahead of schedule.

• Utilized lessons learned from similar project

CII Best PracticeConstructability

ObjectiveProvide safe environment for all

workers.

ObjectiveProvide safe environment for all

workers.

CII Best PracticeZero Accident Techniques

Actions and Results

• Pre-employment and random substance abuse testing

- Ninety-four percent passed.

• Behaviors observed

- Practically 100 percent commended for safe behavior.

Actions and Results

• Pre-employment and random substance abuse testing

- Ninety-four percent passed.

• Behaviors observed

- Practically 100 percent commended for safe behavior.

CII Best PracticeZero Accident Techniques

ObjectiveInstill zero-accident mentality.

ObjectiveInstill zero-accident mentality.

CII Best PracticeZero Accident Techniques

Actions

• Pre-job training, on-site orientation for 7,200

• Over 2,700 weekly safety meetings

• Trained 455 supervisors

Results

• Zero lost-time accidents

• Over four million safe hours worked

• OSHA recordable rate of 0.42

Actions

• Pre-job training, on-site orientation for 7,200

• Over 2,700 weekly safety meetings

• Trained 455 supervisors

Results

• Zero lost-time accidents

• Over four million safe hours worked

• OSHA recordable rate of 0.42

CII Best PracticeZero Accident Techniques

Conclusion

A commitment to utilizing the CIIBest Practices will aid in establishing a win/win result for owner and contractor.

Partnering

Team Building

Constructability

Zero Accident Techniques

A commitment to utilizing the CIIBest Practices will aid in establishing a win/win result for owner and contractor.

Partnering

Team Building

Constructability

Zero Accident Techniques

Implementation Session Panelists

John Moseley Procter & Gamble

Dwayne Wilson Fluor

Pat Sanders Fluor

Greg Holthouse Fru-Con Construction

Bill Gregerson Fru-Con Construction

John Moseley Procter & Gamble

Dwayne Wilson Fluor

Pat Sanders Fluor

Greg Holthouse Fru-Con Construction

Bill Gregerson Fru-Con Construction