A1 Darrington to Dishforth DBFO Project


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  • The Darrington to Dishforth Project includes for: The Operation and maintenance of virtually all of the A1 and A1(M) in that section – approx 53km (33miles) The construction of two national road programme, now known as Targeted Programme of Improvement, schemes, namely: A1(M) Ferrybridge to Hook Moor, and A1(M) Wetherby to Walshford In addition, it includes for safety improvements to upgrade the communications system on the trunk road sections, including the emergency phones, to motorway standard.
  • A1 Darrington to Dishforth DBFO Project

    1. 1. <ul><li>REGIONAL WORKSHOP ON PPP IN TRANSPORT </li></ul><ul><li>RIGA, LATVIA – 6 to 8 MARCH 2007 </li></ul><ul><li>MEASUREMENT OF PERFORMANCE IN CONSTRUCTION CONTRACTS </li></ul><ul><li>THE UK EXPERIENCE </li></ul><ul><li>by </li></ul><ul><li>ALEC BRIGGS, SENIOR PROJECT LEADER, </li></ul><ul><li>HIGHWAYS AGENCY </li></ul><ul><li>and </li></ul><ul><li>BARRY DREWETT, TECHNICAL DIRECTOR, </li></ul><ul><li>PELL FRISCHMANN CONSULTANTS LIMITED </li></ul>
    2. 2. <ul><li>OUTLINE OF PRESENTATION </li></ul><ul><li>Part 1 - Alec Briggs </li></ul><ul><li>Performance Measurement Generally </li></ul><ul><li>A Toolkit for Performance Management </li></ul><ul><li>Performance Indicators for the preparation and delivery of Major Projects </li></ul><ul><li>The Scoring of Performance </li></ul><ul><li>Part 2 - Barry Drewett </li></ul><ul><li>Performance Measurement – PPP/DBFO Contracts </li></ul><ul><li>DBFO Co’s 5-Year Management Plan / Performance Indicators </li></ul><ul><li>Core Service Delivery Requirements </li></ul><ul><li>Quality Management </li></ul><ul><li>Monitoring and Auditing (including Remedy) </li></ul>Product Service Right First Time Cost Time Safety Product Service Safety Right First Time Safety Right First Time Time Cost
    3. 3. The Highways Agency has recently developed a new Performance Measurement Toolkit for Major Schemes The Toolkit will be used for all new major schemes. Integrated Project Team members will need to be familiar with its application A TOOLKIT FOR PERFORMANCE MANAGEMENT Motivating Success A Toolkit for Performance Measurement -Major Projects- Issued 2006 Version 1.02 PMP
    4. 4. It is believed that the Toolkit will help the Agency realise its business objectives <ul><li>Continued performance improvement </li></ul><ul><li>Long-term relationship with Suppliers </li></ul><ul><li>Benchmarking Performance </li></ul><ul><li>Identification of Best Practice </li></ul><ul><li>Learning Lessons </li></ul>Scheme Objectives Customer Service Best Value
    5. 5. Areas of Measure The Areas of Measure are closely aligned with the Highways Agency’s business objectives and provide a scorecard of Integrated Project Team performance Product Service Right First Time Cost Time Safety Team Culture Client Per-formance
    6. 6. Performance evidence is used to reduce the subjectivity in Performance Indicator scoring, and the likelihood of scoring disagreements between Supplier and Client Performance of the Integrated Project Team <ul><li>“ Hard” Quantitative Measures, e.g. </li></ul><ul><li>Change in Scheme Cost </li></ul><ul><li>Predictability of Cost </li></ul><ul><li>Predictability of Time </li></ul><ul><li>Accident Frequency Rate </li></ul><ul><li>“ Soft” Qualitative Measures, e.g. </li></ul><ul><li>Delivery to Project Brief </li></ul><ul><li>Organization & Management </li></ul><ul><li>Management & Improvement of (Client, Customer, Third Party Relations) </li></ul>Evidence Supporting Performance
    7. 7. Most Highways Agency Major Schemes consist of three separate phases: Phase 1A, Phase 1B and Phase 2 The Toolkit accommodates the changing nature of a major scheme from start to finish. In special circumstances given Performance Indicators can be partially or totally excluded from the measurement process Major Scheme Lifecycle Phase 1A (Orders Prep) Phase 1B (Statutory Processes) Phase 2 (Design & Construction)
    8. 8. TYPICAL PERFORMANCE INDICATORS Each “Area of Measure” consists of a number of Performance Indicators The Performance Indicators have been selected to reflect the Highways Agency’s performance expectations of its Suppliers Product Delivery to Project Brief Highway Design Structures Environmental Assessment Traffic & Economic Assessment Draft Orders & Statutory Processes Risk Register and Opportunities Plan Service Organisation & Management Procurement of Specialists & Suppliers Supply Chain Management & Improvement of Client Relations Management & Improvement of Customer & 3 rd Party Relations Innovation & Value for Money Management of Change Right First Time Right First Time Quality Management System Cost Reliability of Estimating & Forecasting Change in Scheme Cost Predictability of Cost Time Change from Accepted Programme Reliability of Programming Predictability of Time Safety Health, Welfare & Workforce Development Compliance with CDM Regulations Safety of the Public Accident Frequency Rate
    9. 9. SCORING OF PERFORMANCE (based on Client Satisfaction Levels) Scoring Performance Indicators requires the Integrated Project Team to have aligned understanding of what the Client expects Interpretation & Notes >5 Client satisfied <5 Client dissatisfied =5 “neutral performance”, i.e. the Client is neither satisfied nor dissatisfied =10 indicates total client satisfaction = 0 indicates total client dissatisfaction A score of 6 is regarded as indicating “good overall performance” No intermediate scoring is permissible (scores of 1, 3, 7 and 9 cannot be awarded) Satisfaction level Dissatisfaction level 0 10 2 4 5 6 8 Score Level of client satisfaction Totally dissatisfied Very dissatisfied Slightly dissatisfied Neither satisfied nor dissatisfied Just Satisfied Highly satisfied Totally satisfied
    10. 10. Measuring performance provides the information required to drive continuous improvement of the Supplier and the Highways Agency Performance management is the responsibility of the Project Leader. It is expected that the Integrated Project Team will fully support Performance Management interventions in order to realise benefits. Radar diagrams can be used to present all Areas of Measure scores for a given measurement period. Areas of poor and excellent service can readily be identified. Line graphs or histograms can be used to identify trends in performance for Area of Measure or Performance Indicator level. Product Service Right First Time Cost Time Safety Product Service Safety Right First Time Safety Right First Time Time Cost
    11. 11. In Summary: By making performance measurement an integral part of a major scheme, the required outcomes will be realised to the mutual benefit of both Supplier and Client
    12. 12. <ul><li>Part 2 - Barry Drewett </li></ul><ul><li>Performance Measurement – PPP/DBFO Contracts </li></ul><ul><li>DBFO Co’s 5-Year Management Plan / Performance Indicators </li></ul><ul><li>Core Service Delivery Requirements </li></ul><ul><li>Quality Management </li></ul><ul><li>Monitoring and Auditing (including Remedy) </li></ul>
    13. 13. DBFO Co’s 5-YEAR MANAGEMENT PLAN <ul><li>Operates over whole Contract Period (normally 30 years) </li></ul><ul><li>Initial DBFO Co’s 5-Year Management Plan – in DBFO Contract </li></ul><ul><li>Thereafter, amended Plan submitted each Contract Year on rolling basis </li></ul><ul><li>Each plan to be agreed with Department’s [Agency’s] Representative </li></ul>Each Plan includes: <ul><li>Performance Indicators and Targets for meeting Agency’s overall aims and objectives </li></ul><ul><li>A Resourced Implementation Plan for meeting such Targets </li></ul><ul><li>Methodology for measuring and monitoring performance </li></ul>
    14. 14. Typical Performance Indicators <ul><li>Road safety (accidents) </li></ul><ul><li>Journey time reliability </li></ul><ul><li>Keeping road users informed </li></ul><ul><li>Congestion management </li></ul><ul><li>Accident / Incident response times </li></ul><ul><li>Complaints and claims </li></ul><ul><li>Condition / availability of facilities </li></ul><ul><li>Environmental management </li></ul><ul><li>Sustainability management </li></ul>
    15. 15. <ul><li>CORE SERVICE DELIVERY REQUIREMENTS </li></ul>DBFO contracts include Core Requirements , which DBFO companies must comply with, reflecting Highways Agency’s primary ‘customer care’ aims, including requirements to: <ul><li>Provide a safe highway </li></ul><ul><li>Minimise disruption to road users (and other affected parties) </li></ul><ul><li>Keep travellers informed </li></ul>and also to: <ul><li>Promptly answer all queries from the public </li></ul><ul><li>Meet objectives of Environmental Statement </li></ul><ul><li>Achieve high standard in aesthetic appearance of Project </li></ul>
    16. 16. <ul><li>Contract operates on basis of SELF-CERTIFICATION </li></ul><ul><li>DBFO Co, Contractor, Designer, Maintenance Contractor, etc required to work under self-regulating QUALITY MANAGEMENT SYSTEMS </li></ul><ul><li>DBFO Co required to employ a QUALITY DIRECTOR to oversee the operation of all Quality Management Systems </li></ul><ul><li>Contract includes a DESIGN AND CERTIFICATION PROCESS for confirming that the Works and maintenance operations are carried out in accordance with the Contract </li></ul><ul><li>Department’s Nominee REVIEWS DBFO Co’s proposals, and MONITORS and AUDITS the operations </li></ul><ul><li>Department’s Nominee RECEIVES and RESPONDS to all certificates </li></ul>QUALITY MANANAGEMENT
    17. 17. Typical DBFO Contract Organogram Secretary of State Highways Agency Department's Agent (Design & Construction) Department's Representative (O&M) DBFO Company Contractor Designer Design sub-consultants Operation and Maintenance Funders (Shareholders) (Bond Finance) (Bank Loans) DBFO Agreement (inc. Direct Agreement) Finance Company Construction Contract O & M Contract Design Contract MONITORING AND AUDITING – Role of Agency’s Representatives
    18. 18. <ul><li>Main Activities of Agency’s Representatives: </li></ul><ul><ul><li>REVIEWING and AGREEING DBFO Co’s 5-Year Management Plan </li></ul></ul><ul><ul><li>REVIEWING and AUDITING DBFO Co’s quality procedures </li></ul></ul><ul><ul><li>REVIEWING DBFO Co’s design and construction, and operation and maintenance proposals </li></ul></ul><ul><ul><li>MONITORING on site construction, and operation and maintenance activities </li></ul></ul><ul><ul><li>APPLYING REMEDY (where appropriate) </li></ul></ul>
    19. 19. <ul><ul><ul><ul><ul><li>Non-Conformance Reports </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Letters </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Remedial Notices </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Penalty Points (generally up to 5 per breach) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Warning Notices (material breach or 100+ penalty points in 3 years) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Increased monitoring at DBFO Co’s cost (50+ penalty points in one year or one Warning Notice) </li></ul></ul></ul></ul></ul>Contractual Remedies:
    20. 20. <ul><li>Informal Partnering </li></ul>Health & Safety Design Review Structures Construction Motorway Communications Environmental Management Quality Management Non-Conformities, Certification & Records Traffic Management Operations & Maintenance Public Relations & Communications Land & Third Parties Project Forum Senior Managers HA DA/DR DBFO Co Contractor Designer
    21. 21. Thank You! Safe roads, Reliable journeys, Informed travellers alec.briggs@highways.gsi.gov.uk +44(0)113 283 6303 bdrewett@pellfrischmann.com +44(0)1924 368 145