Partnering on MTR Corporation Ltds Tseung Kwan O Extension

Roger Bayliss Project Manager 8th February 2001

Tseung Kwan O Extension

Tseung Kwan O Extension

13 4

civil contracts

building services contracts systemwide E&M contracts Project

17

HK$21Bn

MTRCs Project Division

In-house PM capability Our aim is good project management Objectives Reduce costs Shorten implementation programme Improve project management capability Better co-ordination between project elements More alignment with consultants and contractors

Working Group Conclusions

Partnering
Project

improves

management practice Cost effectiveness Programme certainty Communication Responsiveness to problems

Less

disputes Makes work more enjoyable

Partnering - What is it?

Many

definitions No single panacea Mutually advantageous working relationship Improved behaviour

Partnering - A Practical Definition

Partnering moves from Client versus Contractor

to Client, Designer & Contractor versus the Job

What Partnering Is
Partnering
A

is about

modern strategic business relationship Best use of resources Improved productivity Driving out waste Competitiveness, quality and timely delivery A win-win environment An acceptable return

What Partnering Is Not

Partnering
A

Is Not About

form of contract An easy way to make money Soft options Deceit A cosy relationship A guarantee of no problems An excuse for compromise

What Does Partnering Need?

Internal

partnering culture Clear understanding of the strategic objectives Common desire to partner Trust Desire to reduce paperwork & improve communication Commitment

We should be doing it anyway!

An Evolutionary Approach

Was MTRC/Hong Kong ready? Soft issues first - relationships Commercial considerations later Non-contractual partnering campaign Civil first

Getting Started

MTRC Executive Workshop

TKE

Vision

Middle

Management Workshops

Getting Started (cont)

Contract Specific Workshops

Review Workshops

Perceptions

What do you see?

Managing Partnering
MTRC
Steering

group Partnering management group

MTRC

& Contractors

Monthly

partnering meetings Performance monitoring system Specific intervention Combined workshops

Partnering - Not All Work

Social

events

Experience So Far
A

voyage of discovery
success

Variable So

far so good

The Business Case

Potential

savings of 2-10 %

Potential

costs of 0.1-1%

Challenges on TKE - 1
Introduction Low The

Post Contract Award

Tender Prices

Supply Chain

subcontractors suppliers

joint

ventures

Challenges on TKE - 2
Buy

- in and commitment

internally externally

Champions
Equal

Effort?

Challenges on TKE - 3
Middle Front Skills

Management

Line Staff

and Attitudes

communication relationships

meetings
negotiation

The Success
More

discussion - less paper

approval time for submissions

Reduced Shared

offices

The Success (cont)

Less

interface problems

Contractor/MTRC Forums
Station

Construction Forum
Forum

Tunneling Safety Waste

Liaison Group Reduction Forum

Depot Piling
Early handover Speedy claims resolution Early final account Below tender sum

Win-Win

Claims Improvements

Claims Improvements

Resolution of notified Claims

LAR 14% TKE 85%

Claims resolved on 30 of 34 Contracts

Programme Confidence
Civil

and E&M Works 60% complete

Access up to 10 weeks early

Track BS

access up to 8 weeks early

New Ways of Working

Incentivisation 5

civil contracts 2 E&M contracts Target final account Gain/pain share Early access

Conclusions
We

(the industry) need to improve Partnering can improve the process Results on TKE are positive The start of the journey Encouraging support Partnering is here to stay Construction Industry Review Committee

Partnering - Is It So New?
USA

Army Corps of Engineers

Sea Oilfields

North

Partnering - Is It So New?
Partnering 2600 years ago

- after Aesop

Partnering on TKE

Thank you

Confined Space Training in Japan

Platform

Screen Doors Extensive Confined Spaces MTRC Trainers to Japan MTRC Costs Covered Contractor Costs Saved

Contract 601 Alternative

MTRC

Design OK Discussion Cost Savings Programme Savings

Early Access To Shopping Malls

Po

Lam Station Access Obligation Temporary Footbridge? Contractor Saved Cost

Soft Ground Tunneling Method

Contract

611 Joint discussion Method Statement Agreed Before Submission

Other Success Stories

Material

Databank Trial Panel Sizes Local Access Arrangements Shared Factory Inspections Reduced Services Drawings

Partnering on TKE

Thats It