The Heathrow Terminal 5 project was one of Europe's largest and most complex infrastructure projects, with a peak monthly spend of $80 million and up to 8,000 workers on site. The construction of T5 consisted of 18 main projects divided into 140 subprojects across a 260 hectare site. It was completed in two phases from 2002-2008, allowing Heathrow to increase its passenger capacity by 30 million per year. Risk management was a major focus, with BAA adopting an integrated team approach and insuring key project risks. Advanced technology like a single 3D project model helped reduce costs by 10%. Lessons learned included the importance of leadership, planning, logistics management, and community engagement.

1. HEATHROW TERMINAL

2. Highlights
 THE BAA(BRITISH AUTHORITY AIRWAYS) HEATHROW TERMINAL IS ONE
OF THE EUROPE’S LARGEST AND MOST COMPLEX PROJECTS.
 IT IS THE MULTIDISCIPLINARY PROJECT EMBRACING CIVIL, MECHANICAL,
ELECTRICAL SYSTEMS, COMMUNICATION AND TECHNOLOGY
CONTRACTORS WITH A PEAK MONTHLY SPEND OF $80 MILLION
EMPLOYING UPTO 8000 WORKERS ON SITE.
 THE CONSTRUCTION OF T5( TERMINAL 5) CONSISTS OF 18 MAIN
PROJECTS DIVIDED INTO 140 SUBPROJECTS AND 1500 WORK PACKAGES
ON A 260 HECTARE SITE.
 THE CONSTRUCTION COMPLETED IN 2 PHASES.
 PHASE 1 CONSISTS OF THE FOLLOWING:
• SITE PREPARATION AND ENABLING WORKS
• GROUNDWORKS
• MAJOR STRUCTURES
• FIT OUT
• IMPLEMENTATION OF OPERATIONAL READINESS

3. TO BE CONTINUED
• PHASE 2:
• IT INCLUDES A SECOND SATELLITE AND ADDITIONAL STANDS
,WILL START AFTER 2006 WHEN THE RESIDUAL SLUDGE
TREATMENT WILL BE VACATED. THIS 2 PHASES WILL ENABLE
HEATHROW TO HANDLE AN ADDITIONAL 30 MILLION PER
PASSENGERS PER YEAR.
BAA’S APPROACH TO RISK MANAGEMENT
 T5 TERMINAL IS BEING CONSTRUCTED UNDER T5 AGREEMENT
WHICH MEANS BAA ACTS A PRIME CLIENT AND ACCEPTS MOST OF
THE RISK.
 IT FOCUSES ON PROACTIVELY MANAGING RISK RATHER THAN
DEVOTE ENERGY TO AVOIDING LITIGATION.
 WORKS ON TRULY INTEGRATED TEAMS IN A SUCESSFUL , IF
UNCERTAIN ENVIRONMENT.

4. AGREEMENT :T5
• IT IS UNIQUE LEGAL CONTRACT IN THE
CONSTRUCTION INDUSTRY.
• BAA USES COST INFORMATION FROM OTHER
PROJECTS , VALIDATED INDEPENDENTLY.
• LEGAL CONTRACT BETWEEN HEATHROW
AIRPORT AND ITS SUPPLIERS.
• IT FOCUS ON NON-ADVERSARIAL STYLE ON THE
CAUSES OF RISK MANAGEMENT THROUGH
INTEGRATED TEAM APPROACHES.
• THE T5 AGREEMENT CREATES A CONSIDERABLE
INCENTIVE FOR PERFORMANCE.

5. KEY FEATURES OF T5:
 VALUES –TEAMWORK,COMMITMENT AND TRUST ARE KEY.
 KEY PROJECT RISKS HAVE BEEN INSURED- LOSS OR
DAMAGE TO PROPERTY, INJURY OR DEATH OF PEOPLE, AND
INNOVATIVELY , PROFESSIONAL INDEMINITY AS A WHOLE.
 RISK PAYMENTS WHICH WOULD NORMALLY BE COSTED
INTO A SUPPLIERS QUOTE HAVE INSTEAD GONE INTO AN
INCENTIVE FUND.
 LEGAL BINDING CONTRACT BETWEEN HEATHROW AIRPORT
AND ITS KEY SUPPLIERS.

6. APPROVAL PROCESS:
STRATEGIC
BUSINESS
MANAGEMENT
BUSINESS
IDENTIFICATION
PROCUREM
ENT
STRATEGY
INVESTMEN
T DECISION
READINESS
FOR SERVICE
BENEFITS
EVALUATION

7. TO BE CONTINUED:
• THESE ARE 5 GATEWAYS OF APPROVAL PROCESS.
CONTROLLING TIME ,COST AND QUALITY
 ARTEMIS PROJECT MANAGEMENT SYSTEM IS ONE OF THE
MAJOR USERS TO CONTROL THE PROJECTS.
 THIS SYSTEM IS ROBUST AND IT SHOWS HOW EACH AREA
OF THE PROJECT IS PERFORMING RELATIVE TO TARGET
BOTH ON SCHEDULE AND COST.
 IT CAN GIVE INFORMATION ABOUT PROJECT LEVEL OR
SUBPROJECT LEVEL OF ALL ACTIVITIES.
 IT ENABLES AND HELPS THE PROJECT TO KEEP ON TRACK.
 OVER ALL QUALITY GOVERNANCE AND MONTHLY REVIEW
MEETINGS ARE HELD.

8. TO BE CONTINUED:
• THROUGH THIS “ COST PERFORMANCE DATA” CAN BE
ANALYSED IN VARIOUS WAYS INCLUDING “SCHEDULE
PERFORMANCE INDEX AND COST PERFORMANCE INDEX
• BAA ORGANISES”QUALITY WEEKS” AND “QUALITY
BENCHMARKS” AND INTERFACE CENTRES SMALL ON SITE
SHOWROOMS IN WHICH SUPERVISORS CAN SHOW THE
WORKERS WHAT STANDARDS CAN BE CALLED BEFORE
WORK STARTS.

9. LOGISTICS
 DELIVERIES ARE MADE TO THE SITE ONLY BETWEEN 9 AM
AND 5PM THROUGH ONE ENTRANCE AND EXIT ONLY,
TAKING 170 DELIVERIES PER HOUR.
 FOR THE FIRST TIME IN CONSTRUCTION PROJECT “JUST IN
TIME OR PULL“ STRATEGY ARE USED.
 IT IS SUPPORTED BY EXTENSIVE USE OF PRE-ASSEMBLED
COMPONENTS AND PRE-FABRICATION COMPONENTS.
 THE LEAN THINKING STRATEGY HAS GENERATED CERTAIN
BENEFITS.
 ELIMINATED THE NEED FOR LAY DOWN SPACE FOR
MATERIALS.
 INCREASED RELIABILITY AND EFFICIENCY IN THE USE OF
MATERIALS.

10. 3D PROJECT MODEL

11. TO BE CONTINUED:
• 3D PROJECT MODEL WAS USED TO REDUCE THE
COST BY 10%.
• THIS SOFTWARE MODEL WAS USED TO REDUCE
THE COMPLEXITY IN DESIGNS.
• BAA USED NAVISWORKS SOFTWARE TO REVIEW
3D DESIGN DATA PARTICULARLY.
• THE IDEA BEHIND THE SINGLE PROJECT MODEL IS
TO DERIVE AN UNAMBIGOUS SET OF DATA
THROUGH SHARING OF DATA.
• THE MASSIVE ROOF NODES CONNECTING THE
ROOF STRUCTURE ARE A GOOD EXAMPLE OF THE
HOW THE SINGLE ENVIRONMENT WORKED IN
PRACTICE.

12. NAVISWORK DESIGNS

13. COST ENGINEERING
• THE COST CONSULTANTS PLAYED A PIVOTAL ROLE IN
REVIEWING THE COSTS INCURRED IN THE TOTAL PROJECT.
• COLLABORATIVE JOINT VENTURE OF TURNER & TOWNSEND
AND EC HARRIS.
• BOTH OF THE COMPANIES SEND THEIR 50% STAFF TO THE
SITE.
• DESIGNING THE INCENTIVIZED PROCUREMENT STRATEGY,
BUSINESS CASE AND MASTERPLAN.
• IDENTIFICATION OF PERFORMANCE STANDARDS WITH A
VALUE MANAGEMENT SETTING.
• DEVELOPMENT OF BUSINESS CASE FRAMEWORK AND
INSTIGATING STAKEHOLDER TRADING PROCESS.
• SENSITIVITY ANALYSIS TO TASTE EACH OPTIONS RETURNS
OF INVESTMENT.

14. TO BE CONTINUED
• ONGOING COST AND COMMERCIAL MANAGEMENT BASED
ON A TARGET COST PHILOSOPHY WITHIN A COST
REIMBURSABLE INCENTIVIZED FRAMEWORK.
• DEVELOPMENT OF INDICATORS( OPERATIONAL AND
CONSTRUCTION MEASURES) TO ASSIST WITH TARGET.
• DEVELOPMENT OF COST MODELS ALLOWING OPTION
APPRAISALS WITHIN THE MASTER PLANNING PHASE AND
INTERNATIONAL BENCHMARKING OF AIRPORT USING
FUNCTIONALLY BASED COST PLANNING.

16. LESSONS LEARNED
 THE CLIENT ALWAYS CARRIES THE RISK.
 PROJECT MANAGEMENT IS A TOOL FOR RISK AND
OPPORTUNITY MANAGEMENT NOT THE OTHER WAY ROUND.
 LEADERSHIP AND SPONSORSHIP AT BOARD LEVEL IS VITAL.
 USING TECHNOLOGY TO CUT 10 % OFF THE OVERALL COST
THROUGH THE USE OF SINGLE 3D PROJECT MODEL.
 AIM TO STANDARDISE AND SIMPLIFY
 COMMUNITY LIAISON-AIM TO BE A GOOD NEIGHBOUR WITH
PUBLIC EXHIBITIONS, REGULAR CONTACT WITH LOCAL
VILLAGES AND SUPPORT FOR LOCAL FACILITIES.
 HEALTH AWARENESS AND PROMOTION CAMPAIGNS
INCLUDING FREE MEDICALS.

17. TO BE CONTINUED
• TIME AND MONEY SPENT ON PLANNING IS WELL
SPENT.
• CONSTRUCTION TRAINING CENTRE PRODUCING
80 NEW MODERN APPRENTICES PER YEAR.
• DEVELOPMENT OF A PRECISE LOGISTICAL
STRATEGY- THAT WAS A MAJOR CHALLENGE.
• SPECIAL ENVIRONMENTAL TO MONITOR AND
CONTROL POTENTIAL ENVIRONMANTAL IMPACTS.
• THE PROJECT IS COVERING 10 KNOWLEDGE
AREAS OF PROJECT MANAGEMENT.

20. THANK YOU