Delivering the London 2012 Venues &
Infrastructure
Gerry Murphy
Chief Operating Officer
Olympic Delivery Authority
Winning the Bid: July 2005
Setting the scene: ODA and LOCOG
Games
Legacy
LOCOG
BOA
GLA
GOVT
Olympic
Board
LOCOG
Staging the Games
Olympic Delivery Au...
Setting the scene: the London 2012 landscape
Setting the scene: the Olympic Park challenge
Transform
• 200 hectares of brownfield land
across four London boroughs
• wa...
6
Setting the scene : Olympic Park, April 2006
Delivery strategy : the challenges
An immoveable deadline
27 July 2012
Scale and complexity
Fit for purpose for
Games and ...
The delivery strategy : critical success factors
Commercial
Strategy
Delivery Partner
Governance
Scope definition , change...
Get in front, stay in front
Ten milestones were set out for the first year, and achieved :
 Building the management team
...
Strategic Framework
Sustainable
Development
Strategy
Accessible
Transport
Strategy
Programme
Baseline Report
Lifetime
Corp...
Strategic Framework : Health & Safety Priority Theme
Preventing accidents, raising the bar
 Safe working - ODAs number on...
0
500
1000
1500
2000
2500
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Feb-06
Apr-06
Jun-06
Aug-06
Oct-06
Dec-06
Feb-07
Apr-07
Jun-07
A...
Delivery Partner
• Rapid mobilisation of delivery capability–
given the time constraints, the ODA would
not be able to bui...
DP : critical factors
• ODA intelligent client
• Clarity of roles and responsibilities
 client and DP
 DP and contractor...
Executive
Management Board
ODA Programme Governance
Change Board
Implementation
Review (DP led)
ODA Board
Commercial
Board...
Transparency
Transparency: Community engagement
Significant engagement with the local community that live around the
Olympic Park, righ...
Scope definition, change control and programme controls
Establishing the programme baseline scope,
cost, schedule and risk...
The baseline : the Yellow Book
• Budget for entire programme secured in
March 2007
• Programme Baseline Report published
(...
Managing the baseline
Monthly Programme Change Board.
Clear delegations of authorisation for
changes
Trends process to show potential
changes lo...
Change Control : Olympic Projects Review Group (OPRG)
Treasury (HMT)
Government
Olympic
Executive
(GOE)
Culture, Media
& S...
Programme Management, Monitoring and Control
• Clearly defined governance, roles and responsibilities
• c70 individual pro...
Assurance : three lines of defence
1. Identification – development of risk register
2. Assessment – determination of the
likelihood and impact of risks
3. Co...
Commercial and Procurement Strategy
• Procurement strategy
• Commercial management and oversight
• Using the right contrac...
Procurement Strategy
• Procurement Strategy developed July 2006, published
March 2007
• Integrated procurement team : CLM ...
Commercial : Strategic Approach
• Oversight and strategic direction
 Commercial Compliance and Assurance Working Group
 ...
Commercial : Strategic Approach
• CLM commercial team manage main Tier 1 contracts
• ODA commercial team provide assurance...
Commercial : Dispute management
• Integrated approach between ODA/DP
commercial teams
• Independent Dispute Avoidance Pane...
Commercial : Commercial Close Out
• Management policy
and procedure
• Established while
contracts still live
• Facilitated...
Summary
• People, process and planning
• Collaboration and alignment
• Monitoring and assurance
• Decision making and
empo...
Questions?
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Delivering the London 2012 venues & infrastructure

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Delivering the London 2012 venues & infrastructure

  1. 1. Delivering the London 2012 Venues & Infrastructure Gerry Murphy Chief Operating Officer Olympic Delivery Authority
  2. 2. Winning the Bid: July 2005
  3. 3. Setting the scene: ODA and LOCOG Games Legacy LOCOG BOA GLA GOVT Olympic Board LOCOG Staging the Games Olympic Delivery Authority Building Venues and Infrastructure London Legacy Development Corporation Delivering the Legacy
  4. 4. Setting the scene: the London 2012 landscape
  5. 5. Setting the scene: the Olympic Park challenge Transform • 200 hectares of brownfield land across four London boroughs • waterways and rail lines • 200 buildings; 52 electricity pylons in situ for Games to • 80 hectares of new parklands • 5 permanent and 2 temporary sporting venues and a media centre • the Olympic Village • 12km new roads, 13km tunnels, 26 bridges, an energy centre and new utilities infrastructure and then to • a vibrant new quarter of London with 2,818 new homes, excellent transport links, parklands and top class sporting facilities for local communities as well as elite athletes Newham Waltham Forest Hackney Tower Hamlets
  6. 6. 6 Setting the scene : Olympic Park, April 2006
  7. 7. Delivery strategy : the challenges An immoveable deadline 27 July 2012 Scale and complexity Fit for purpose for Games and legacy High public profile and global reputational impact for UK Plc Multiple stakeholders Scrutiny as befits a large publicly funded programme
  8. 8. The delivery strategy : critical success factors Commercial Strategy Delivery Partner Governance Scope definition , change control and programme controls Assurance, risk management Strategic Framework Transparency
  9. 9. Get in front, stay in front Ten milestones were set out for the first year, and achieved :  Building the management team  Appointing the Delivery Partner  Agreeing the Masterplan and programme timetable  Starting venue design  Engaging the local community  Acquiring the land  Cleaning, clearing and creating the platform  Developing the Park  Publishing the Transport Plan  Publishing the Procurement Policy
  10. 10. Strategic Framework Sustainable Development Strategy Accessible Transport Strategy Programme Baseline Report Lifetime Corporate Plan Other Projects Village Vertical Build Venues Time, Cost and Fit for purpose Site Platform Objectives Priority themes Overarching themes Mission To deliver venues, facilities, infrastructure and transport on time for the London 2012 Olympic and Paralympic Games that are fit-for-purpose and in a way that maximises the delivery of a sustainable legacy within the available budget. Transport Operations Stratford Projects EqualityandInclusion Health,Safety&Security Legacy EmploymentandSkills DesignandAccessibility Sustainability
  11. 11. Strategic Framework : Health & Safety Priority Theme Preventing accidents, raising the bar  Safe working - ODAs number one priority  Set a standard  Leadership - SHELT  Briefings, black hat conventions, stand downs, recognition for good practise and promoting health  Park Health – occupational health and treatment services, such as health checks for every worker by nurses and other trained staff through an on-site medical facility  Monitoring dust and noise levels to prevent any negative health impacts on workforce and local residents  Education programme across the boroughs to teach local children how to stay safe near construction sites
  12. 12. 0 500 1000 1500 2000 2500 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Total Hours Worked Rolling Monthly Reportable AFR Strategic Framework : Health & Safety Outcomes AFR lower than all-UK employment and ⅓ of general UK construction
  13. 13. Delivery Partner • Rapid mobilisation of delivery capability– given the time constraints, the ODA would not be able to build the requisite organisation internally, or have the required flexibility to match the programme needs with the required skills. • In August 2006, following a competitive dialogue process, the ODA appointed CML – a consortium formed from CH2MHill, Laing O‟Rourke and Mace as delivery partner. •Programme and project management of scope on the Olympic Park, including integrated commercial management of ODA supply chain with programme and project controls .
  14. 14. DP : critical factors • ODA intelligent client • Clarity of roles and responsibilities  client and DP  DP and contractors • Building the partnership  empowerment and delegation  integrated working • Governance and organisation structure clear and appropriate to programme requirements, flexed as required • ODA and DP alignment - shared delivery and commercial goals
  15. 15. Executive Management Board ODA Programme Governance Change Board Implementation Review (DP led) ODA Board Commercial Board Procurement Board Strategy and policy approvals Issues resolution • Programme level Boards monitor performance across the whole ODA Programme Project Boards Priority Theme Boards
  16. 16. Transparency
  17. 17. Transparency: Community engagement Significant engagement with the local community that live around the Olympic Park, right from the off. Community meetings and open days, drop-ins, business events. Park visits programme – 200,000+ people on tours, Open House. Regular leaflets and publications to explain progress. 24 hour construction hotline for local community and business Priority themes E&Skills: 25% local workforce (vs 15% target) Construction Crew meet the Queen
  18. 18. Scope definition, change control and programme controls Establishing the programme baseline scope, cost, schedule and risk. Change control. Rigorous programme management, monitoring and controls. Image
  19. 19. The baseline : the Yellow Book • Budget for entire programme secured in March 2007 • Programme Baseline Report published (November 2007) - cost, programme, risk and scope aligned • Key stakeholder document • Included an estimate of contingency required based on assessment of risks - held in 3 „buckets‟ – Project, Programme and Funders, access tightly controlled • This programme baseline was the basis for performance measurement during execution Base Project Contingency Programme Contingency (P80) Funders Contingency (P95) Total Big Build Completion OBB £5.15bn £0.98bn £0.97bn £1.0bn £8.1bn 27 Jul 11
  20. 20. Managing the baseline
  21. 21. Monthly Programme Change Board. Clear delegations of authorisation for changes Trends process to show potential changes looming, which gave sufficient time to mitigate Change control Three contingency pots  Project – held within project budgets available with Change Board approval  Programme held by the ODA accessible with approval from Funders  Funders – Held by the Funding bodies only available by application to Funders
  22. 22. Change Control : Olympic Projects Review Group (OPRG) Treasury (HMT) Government Olympic Executive (GOE) Culture, Media & Sport (DCMS) Communities & Local Government (DCLG) Transport (DfT) Office of Government Commerce (OGC) Greater London Authority (GLA) Olympic Lottery Distributer (OLD)
  23. 23. Programme Management, Monitoring and Control • Clearly defined governance, roles and responsibilities • c70 individual projects – planned, approved and run independently BUT common programme management disciplines, process and tools applied, mandated in contracts, disciplined application by DP – allowed roll up of date across the programme – reliable and consistent • Comprehensive progress review and reporting processes aided the extensive integration task • Robust change control and clear delegation of authority but DP empowerment through delegation – fleet of foot in decision making • ODA “3 lines of Defence” and external assurance • Comprehensive risk management process
  24. 24. Assurance : three lines of defence
  25. 25. 1. Identification – development of risk register 2. Assessment – determination of the likelihood and impact of risks 3. Control – Formulation of mitigation plans and actions Risk management • Key programme management and controls process • Managed at project level but with programme oversight – DP and ODA PAO • Early warning of risk and mitigation • Key element of the change control , contingency management and cost forecast processes • ODA Audit & Risk Committee • Funders Risk Working Group
  26. 26. Commercial and Procurement Strategy • Procurement strategy • Commercial management and oversight • Using the right contract, risk sits appropriately • Dispute management • Commercial Close Out Procurement Control & Governance – ‘Planning & Delivery Phase’ Contract Management Commercial Close Out
  27. 27. Procurement Strategy • Procurement Strategy developed July 2006, published March 2007 • Integrated procurement team : CLM lead, ODA assure and approve • Management tools and policies  Procurement Policy  Procurement Code (and pocket guide)  eTendering and eEvaluation  Competefor – portal for use by ODA and all contractors • „Balanced Scorecard‟ approach - inclusion of priority themes
  28. 28. Commercial : Strategic Approach • Oversight and strategic direction  Commercial Compliance and Assurance Working Group  Commercial Board  ODA commercial team • Dispute Management  Integrated approach between ODA / CLM commercial teams  Independent Dispute Avoidance Panel (IDAP) • Commercial Close Out  Management policy and procedure
  29. 29. Commercial : Strategic Approach • CLM commercial team manage main Tier 1 contracts • ODA commercial team provide assurance and governance  Commercial Compliance and Assurance Working Group  Commercial Board  ODA Commercial team • Risk owned and managed by most appropriate party • Choice of contract  NEC 3 for construction and key professional services • Minimal use of retention and LADs • Training  NEC form of contract  Change management
  30. 30. Commercial : Dispute management • Integrated approach between ODA/DP commercial teams • Independent Dispute Avoidance Panel (IDAP)  Established by the ODA  Representative panel of industry experts  Quarterly meetings to maintain connection with the project  Included within each construction contract as part of dispute resolution but NOT mandatory  Consideration of disputes and issues at any level of the supply chain
  31. 31. Commercial : Commercial Close Out • Management policy and procedure • Established while contracts still live • Facilitated by NEC3 • Results speak for themselves
  32. 32. Summary • People, process and planning • Collaboration and alignment • Monitoring and assurance • Decision making and empowerment • Transparency and reporting • Leadership
  33. 33. Questions?

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