team 200 team 200 alliance - t2a roll out meeting 25th march 2002 main hall university of east...

TEAM 200TEAM 200

TEAM 200 ALLIANCE - T2AROLL OUT MEETING

25th MARCH 2002

Main Hall

University of East London

TEAM 200

TEAM 200 ALLIANCE - T2A

• Agenda for the Afternoon• Why do we need to change Garry

Field

• What are our future objectives Terry McDonald

• What are we changing in the Contract Terry McDonald

• How will working practices change Bob Ibell

• What challenges do we face Ieuan Morgan

• Where are we now re Schedule & Budget Ieuan Morgan

• Questions All

TEAM 200

TEAM 200


• ‘Informal’ Area 200 Alliance operating since Contract Award

• Shared Office Complex at Channelsea House

• Shared Precast Factory for C220 and C240

• Single order SGI Segments across all tunneling contracts

• Single Security System for Stratford Based Contracts

• Single spoil treatment facility for Stratford Based Contracts

• So why do we need to change?

TEAM 200

TEAM 200


• Since Contract Award we have encountered a number of problems

• Late release of design has seriously delayed Stratford Box

• This has seriously delayed the launch dates for C220 & C240

• Signalling problems have seriously delayed West Rail Bridge

• Railtrack / CRG issues delayed commencement of Graham Rd

• The informal Alliance is not able to manage these issues

TEAM 200

TEAM 200


• We identified the need for RLE and all Contractors to

• work collaboratively as a single team

• work flexibly across Contract boundaries

• develop solutions that are best for the project not the contract

• set aside ‘Contract’ issues and focus on the work

• develop an incentive scheme that would promote the above

TEAM 200

TEAM 200

OBJECTIVESOriginally

• Each Contractor: BUILD MY BOX AND PROTECT MYSELF

• Why: The Contract, Pain / Gain

What should it be:

• Series 200 - Build our part of the Railway in TIME, in B UDGET, to the RIGHT quality


TEAM 200

THE PROBLEMS

Intense narrow focus on pain avoidance

– Individual Targets– Pain / Gain Share– Compensation Events


TEAM 200

IMPACT:• Exploit problems / Changes• Excuses for non performance• Cause of friction• No incentive to co-operate with others

• Budgets are blown - BUT NOBODY WINS• Programmes no longer useful tools• Project is late


TEAM 200

SOLUTION:• Remove Pain share from contract• No Compensation Events!

RESULT:• Allows focus on delivering project


TEAM 200

HOW WILL THIS WORK?• THERE IS ONLY ONE BUDGET

– Contractors Tender Prices– Client Contingency for:

• Design Development• Settlement Issues• Undefined Scope

– RLE Field Engineering


TEAM 200

HOW WILL THIS WORK?• Therefore the Budgets have been COMBINED (THE

“POT”) Total budget 220, 230, 240, 250, Field Engineering

• IT CANNOT BE INCREASED (there is no other money!)

• Any surplus is shared between the 5 of us

• If the POT is exceeded, then as now for individual targets, no FEE and ALL CONTRACTS SUFFER EQUALLY


TEAM 200

HOW WILL THIS WORK?RESULT

WE ALL HAVE TO CARE ABOUT AND MANAGE:

– The Interfaces– The Budget– The Problems

BUDGET


TEAM 200

HOW DOES THIS DELIVER THE PROJECT?

PROGRAMME

• Any surplus from the POT is only paid if Team 200 MILESTONE DATES are delivered

• 8 MILESTONE defined to remove Project Risk and, importantly, provide access for SYSTEMWIDE

• A REAL INTEGRATED PROGRAMME

PROGRAMME


TEAM 200

SYSTEM WIDE• The reason we are building the BIG BOX• Systemwide Scope Transfer to Civils where possible

– Increase the POT– Remove TAIL END PROGRAMME RISK from the

Project

RESULT:

• PROJECT BUDGET • PROJECT PROGRAMME


TEAM 200

OBJECTIVES

BEFORE:

BUILD MY BOX & PROJECT MYSELF

NOW:

BUILD OUR PART OF THE RAILWAY

NO EXCUSES……..


TEAM 200

HOW IS THIS DEALT WITH?• SUPPLEMENTAL AGREEMENT

– Addendum to Main Contract

+ Disapplies Compensation Events (incl. Retrospectively)

+ Defines the POT & has mechanisms for measuring any surplus

+ Defines MILESTONES & how payment of any surplus relates to achievement of milestones.


TEAM 200

T2A has:

• One budget• One programme• One team


TEAM 200

One Budget.

• Manage Costs• Reduce Waste• Improve Efficiency


TEAM 200

Manage Costs

Manage Costs not

Margin

Control Expenditure


TEAM 200

Improve Efficiency

Communications

Decision Making

Resist Changes


TEAM 200

We have to Perform

(nowhere to hide)


TEAM 200

Responsible for delivery of:–Health & Safety–Quality–Environment Management


TEAM 200

Organisational

Changes


TEAM 200 Alliance Management Board

• G. Field• K. McManus• J. Horner• I. Morgan• T. McDonald• D. Court• R. Ibell

TEAM 200

TEAM 200 ALLIANCE - T2AOrganisational Concept

T2A

Design

Dept

Property

Owners

Utilities

Railtrack (CRG)

LUL

TEAM 200

I Galloway

ALLIANCE STEERING GROUP

ALLIANCE MANAGEMENT BOARD

G. Field T. McDonald

URNRLE

Interfaces

CostMonitoring

ProgrammeMonitoring

BudgetMonitoring

EnvironmentalManagement

ProjectControl

Interface

FieldEngineering

D. Court R. Ibell I. Morgan J. Horner K. McManus

TEAM 200

Utilities / RTI / Settlement Manager

T. McDonaldC220

Production Management

Contract Administrator

C250 / Structures Earthworks Manager

ALLIANCE BOARD

J Horner

D. CourtC250

R. IbellC240

Production ManagementProject

Control


G. Field

K McManus

Health&

Safety

Quality

Environment

LUL / Tunnels / Shafts

Manager

Production Teams

I. MorganC230


Production Teams



Production Teams

Production Teams


T2A Functions Management

TEAM 200


• Ieuan Morgan

• Current Contract in Terms of TIME and COST

• The supplemental agreement with regard to COST

• The supplemental agreement with regard to TIME

TEAM 200

The Previous Situation

• Contractors performance measured against Target Sum

• Target Sum is adjusted by Compensation Events

• Each Contract has Sectional Completion Dates

• These dates are adjusted by Compensation Events


TEAM 200

Drawbacks of the Previous Arrangement

• Concentration on Compensation Events

• Each Contractor focused on the particular contract dates

• No incentive to ‘Co-operate’


TEAM 200

AREA 200 ALLIANCE

CURRENT SITUATION

Target Price Trends Forecast PriceC220 144 15.16 159.16C230 107 22.74 129.74C240 115 7.82 122.82C250 115 5.75 120.75RLE Supervision 11 11RLE Allowances 60 8.53

552 552

TEAM 200

Contract AwardValue

ForecastOut-turn

Cost

FinalTarget

ActualOut-turn

Cost

ContractPayment

IncentiveBonus

Cost toEmployer

C220 144 147 150 148 148.00 3.20 151.20C230 107 132 130 130 130.00 3.20 133.20C240 115 121 121 119 119.00 3.20 122.20C250 115 124 126 125 125.00 3.20 128.20RLE Supervision 11 10 10 11 11.00 11.00RLE Allowances 60 18 3 3 3.20 3.00

551.20 552.00 537.00 536.00 536.00 16.00 537.80

AREA 200 ALLIANCE

TEAM 200

Possible Future Savings

Contract 220 utilising Contract 240 Shove Frame

Contract 250 and Contract 240 utilising an auxiliary shaft atBarrington Road to facilitate removal of TBMs

Contract 230 dealing with both 220 and 240 excavated materialin the fill area

Phased access by Contract 220 and 240 to their respectiveconstruction area


TEAM 200

Description of the Phase WorksRelevantContract

ApplicableMilestone

Phase 1 Complete all necessary works to allow construction to commence on first crosspassage onContract 250

Contract250

06 January2003

Phase 2 Complete all necessary works to allow construction to commence on first crosspassage onContract 220.

Contract220

Contract230

03 February2003

Phase 3 Complete all necessary works to allow access to any systemwide M&E contractors in relation tothe Woodgrange Road Headhouse, Mezzanine Floor Area.

Contract230

Contract240

19 January2004

Phase 4 Complete all necessary works such that all TBM utilised under Contract 240 and Contract 250are within 1 metre of the headwalls at Barrington Road Shafts

Contract230

Contract240

Contract250

29 February2004

Phase 5 Complete all necessary works to allow access to any systemwide M&E contractors in relationto Corsica Street and Graham Road Ventilation Shafts and Headhouses.

Contract220

Contract230

24 April2004

Phase 6 Complete all necessary works to allow hand over of upline Stage 1 Trackbed from Ripple Laneto Stratford to any systemwide contractors to enable those contractors to commence tracklaying.

Contract230

Contract240

Contract250

17 July2004

Phase 7 Complete all necessary works to allow hand over of upline Stage 1 Trackbed to any systemwidecontractors from Stratford to London West Portal to enable those contractors to commence tracklaying.

Contract220

Contract230

16 January2005

AREA 200 ALLIANCE - Team T2A

team 200 team 200 alliance - t2a roll out meeting 25th march 2002 main hall university of east...

Documents

informal alliance

contract issues

contract boundaries

gifford streetteam

alliance t2a informal

alliance t2a agenda

single team

issues team