breakthrough from breakdown_construction projects_shaneen meyers

‘Breakthrough from

Breakdown’

Shaneen Meyers

February 2013

Definitions

Case Study

Steps to Breakthrough

Our actions did not produce

the intended or expected

result

More Delays

Cost Blow Outs

Slippage

Appreciate the present state of breakdown

Courage to declare early that there is a problem

Commit a ‘complete breakdown’ to a NO GO ZONE

Explore alternative options other than ‘complete

breakdown’

Our actions did not produce

the intended or expected

result

“An act of breaking through against resistance" of a barrier or due to ignorance

Acceptance and declaration that a breakdown

exists before it gets completely broken

Willingness to explore alternative options

Our actions did not produce

the intended or expected

result

“An act of breaking through against resistance" of a barrier or due to ignorance

Opportunity to discover what we 'didn't know to do' that resulted in us not getting our intended or expected result

“

Purchasing

Air Rights of

adjoining

properties

Vigorous

construction

activity in

Stockholm

city

“An act of breaking through against resistance" of a barrier or due to ignorance

Our actions did not produce the intended or expected result

Opportunity to discover what we 'didn't know to do' that resulted in us not getting our intended or expected result

The Players

Transport Infrastructure

Development Corporation

(TIDC)

John Holland

(JH)

United Group Infrastructure

(UG)

RailCorp

Original Contract

September 2006

TIDC entered into a traditional

lump sum contract with JH

JH engaged UG under

subcontract

Transport

Infrastructure

Development

Corporation

(TIDC)

John Holland (JH)

Contract for works

RailCorp

Project Site Owner

United Group (UG)

Infrastructure

Rail Clearways Program

Other major

railway

systems and

transport

projects

Cronulla line

upgrading and

duplication

project

Declared

Breakdown

Sept

2006

Mid

2007 2008 2009 2010

Structure 1 Process

2 People 3

It is:

Creating an functional organisation

to get what you want

via:

A well crafted and thought out contract

A simple yet effective Governance Model

Transport

Infrastructure

Development

Corporation

(TIDC)

John Holland (JH)

Contract for works

RailCorp

Project Site Owner

United Group (UG)

Infrastructure

Rail Clearways Program

Other major

railway

systems and

transport

projects

Cronulla line

upgrading and

duplication

project

1. Structure

2. Process

DISCRETIONARY AREA

Rules, regulations, procedures, policy prescribed decision limits

Rules, regulations, procedures, policy prescribed decision limits

Our Proven

Processes

we follow

Judgement

Beliefs

3. People

Transactional

Construct Only

Lump Sum????

Industry Expert/

Urban Designer/

Programmer

Incentivised Performance

Contract/ Partnering Contract/

Preferred Supplier

Relationship

Contract/

Alliance

Knowledge Based

Relationship Based

Trust Based Relationship

Examples:

Depth of Relations and Relationship Required

CREDIBILITY + RELIABILITY + INTIMACY

SELF ORIENTATION

Repeated

Follow

Through

TIDC, JH and UG agreed to explore the possibility

of:

Terminating the contract between TIDC and JH

Terminating the contract between JH and UG

Forming a 3-way alliance of TIDC, JH and UG

TIDC JH

UG

CRONULLA RAIL ALLIANCE

CP-08 Alliance

• Contract Value

= ~$145M

+ Variations

+ Claims

• Contract Value

= $175M

+ Share of Pain and Gain

• Adversarial Relationship • Collaborative Relationship

• Significant Effort

- Valuing Variations

- Justifying Variation

- Defending Contractual Positions

• Significant Efforts

- Delivering the Project

- Finding Solutions

• Potential outcomes

- No chance of delivery in 2008

• Potential Outcomes

- Challenging delivery in 2008

• Relationship between Parties

- Strained / Unworkable

• Relationship between Parties

- Enhanced Relationships

• TIDC Only making representation to

RailCorp

• TIDC/JH/UG Jointly making

representation to RailCorp

CRONULLA RAIL ALLIANCE

“We will deliver this project this year safely

and professionally through the capability

of our team”

We Value: Collective effort

Support for a work life balance

Respect and Trust

Health and Safety

Ethics

Passion and enjoyment

Legacy

Declared

Breakdown

Controlled

Transition

Effort

Sept

2006

Mid

2007 2008 2009 2010

CRONULLA RAIL ALLIANCE

Contract Style

appropriate for the

challenges

Close out of Work

Contract ◦ JH claims closed out

◦ Settlement of

subcontractors

agreement

◦ Fresh start

CRONULLA RAIL ALLIANCE

Integrated team

included TIDC

Direct interface with

RailCorp and other

stakeholders

meetings

Team approach for

quick resolution

Community Liaison

within the Alliance

Better scope

definition

Self performance

CRONULLA RAIL ALLIANCE

PAA Agreed

New staff -

Enthusiasm

New ideas /

Relationships

January to June 2008 July to December 2008 January to June 2009 July 2009 to April 2010

Scale of Feeling

CRONULLA RAIL ALLIANCE

RailCorp not engaged

Significant Scope changes

TOC 1 agreed - Decisions made - ditched

Safety culture not good

Low acceptance of Rail Environment

Internal tensions remain

Scope unclear - No goals - No Planning - Team

unsettled

CRONULLA RAIL ALLIANCE

Turning point from December 2008 into 2009

Change of alliance manager in 2009

Team growth

RailCorp getting involved

Possessions planning

CRONULLA RAIL ALLIANCE

Declared

Breakdown

Controlled

Transition

Effort

Sept

2006

Mid

2007 2008 2009

Full

Recovery?

2010

Three Breakdown Points ◦ Structure

◦ Process

◦ People

Steps to Breakthrough 1. Identify your breakdown and declare it

2. Explore the possibility

3. Agree together the course of action

4. Move to action

Don’t wait for a complete Breakdown

‘Breakthrough from

Breakdown’

Questions?