Modernize project controls to ensure project success aecom
NZ1-13059476-Collaboration in a High Performance Culture1
1. Collaboration in a High
Performance Environment
The Future of Major Airports?
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The next 25 minutes
What you’ll hear about today:
─ High Performing teams deliver better outcomes
─ Collaboration is a key element of high performance
─ Contract Forms that promote collaboration
─ Other ways to achieve collaboration in a traditional framework
─ Challenges for the Client and the Suppliers
─ Is this a potential new way?
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Research for this topic
Alliance Project Delivery Traditional Project Delivery
Six current or previous alliance projects in New Zealand
Grafton Gully (2004)
Manukau Harbour Crossing (2010)
Kirkbride Interchange (Current)
Hamilton Section of Waikato Expressway (Current)
East West Link (Current)
Safe Roads Alliance (Current)
Melbourne Airport airside improvements incl PUGS
Auckland Airport
Queenstown Airport
Upper Harbour to Greville
Early Contractor Involvement Project Delivery
Ngauranga to Aotea Quay
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When do you Require High Performance
High risk levels
Inputs still incomplete e.g. property purchase
Stakeholders
Critical deadlines
Lack of resources- especially time.
Other important, non-cost areas require it.
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High Performing teams deliver better outcomes
Deliver non-cost outcomes as
well
─ Health and Safety
─ Airside operation continuity
─ Quality
─ Programme
─ Stakeholder satisfaction
─ Environmental improvements
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Collaboration is a key to High Performance
Alignment of project goals and expectations for all
Better risk management
Encouraging innovation (not just risk free novelty)
Re-allocating time previously spent establishing and maintaining positions (up to
20% of management time)
Quicker resolution with more senior inputs
Targeted relationship building and maintenance
How will you know when you have collaboration?
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Contract Forms that Promote Collaboration- ECI
Early Contractor Involvement
Contractor engaged by client at project development stage
Provides innovation, design challenge, constructability and risk
management
Client retains cost risk during development, converts to D&C in delivery
Commonly used when there are issues of
Need for faster delivery Constructability Programme complexity
Multiple stakeholders Potential for innovation
Collaboration during project shaping and planning stages leading to better D&C outcomes later
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Observations
Good inputs from the constructability teams
Clever timing of contractor inputs is essential- “not too early, not too late”
Commercial model difficult for contractor in early stages
Contractual arrangements with designer need thought
Prelim Design
Time plus pain/gain
Detailed Design
Time plus pain/gain
Delivery
Negotiated GMC or
similar
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Contract Forms that promote collaboration- Alliance
Alliance
Based on key principles established in written agreement
Collective responsibility for risk and reward on equitable, open-book basis
Strong focus on non-cost performance
Requires diverse skill set and significant senior input from Client and suppliers
at several levels
Commonly used when there are issues of
Critical risks Key inputs still required Complex programme
Consents or land still to
be delivered
Critical elements may
change
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Learnings from Alliance projects
High performance culture is only achieved through hard work- adversity helps
You must select really good people and the Client must be seriously involved
Incentivising non-cost performance leads to better outcomes but must be done
simply
Make sure you understand what is “business as usual” performance
Sharing all risks promotes better aligned thinking
By falling back to the alliance principles, decisions are easier to make
Off-boarding can be a problem
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Can Traditional models be collaborative?
Incentivised traditional contract- used in
Melbourne PUGS (Papa Uniform Gulf Taxilane Slab
Replacement)
• Fully developed design tendered
• Constructors shortlisted on ability to perform in a
collaborative environment
• Tender price includes an at-risk amount
nominated by tenderer for performance
• Team charter, team building day
• Active senior leadership team
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What was achieved on PUGS?
Key Outcome How Achieved
Aligned Objectives Embedded in selection criteria and procurement planned
around these
Good people Propensity to collaborate and record of doing so, planned
succession
Relationship management RMT team with senior reps from all
Performance incentive Separate payment based on tendered amount- client
assessed
Risk Management Through site team based on the above principles and rules
Collaboration and High Performance Largely by the above
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Challenges for Clients and Suppliers
Finding and retaining the right people for the job including senior leadership time
Financial model of alliance delivery- establishing business as usual costs
Really living the collaborative model- coaching helps but people succeed
Sticking with the rules when things go wrong
Cost of procurement
External criticism- soft money contracting, liability sharing not transfer- is this really
value for money?
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Opportunities for CHP contracts on airports
Time critical activities and/or those with greater interface challenges
─ Airside landside interface
─ Rapid upgrade of critical terminal elements
What else?
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Some Closing Remarks
So far, collaboration is leading to higher performance and thus better outcomes for
Owners with appropriate project opportunities
Traditional models will deliver good results with focussed collaboration
Alliances or ECI are options for future, bigger projects
A Challenge:
Do we want to have our cake and eat it too?
