breakthrough from breakdown_construction projects_shaneen meyers
TRANSCRIPT
‘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?