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A465 Heads of the Valleys
Section 2 Procurement of Major Projects
Dean Protheroe – Costain Ltd
Bill Hughes – EC Harris
• Major Projects
• A465 Heads of Valley
• Performance Management
• Questions and Answers
Procurement of Major Projects
Procurement of Major Projects
Historically projects were delivered
• Late
• Over budget
• Poor Quality
Procurement of Major Projects
A465 Heads of the Valleys
Section 2
Scheme Information
• 8km Dual carriageway widening through the Brecon
Beacons and the Clydach Gorge.
• Major Civil Engineering project involving alpine engineering
and 60,000m2 of retaining measures.
• 13 Major Structures and 7 Culverts.
• Environmental Challenges include European sites of
special conservation. Protected Woodland and Bat sites.
A465 – Scheme Details
• Pre Qualification
• Tender
• Assessment 70% quality, 30% Price
• Quality includes submission and interview
A465 - Tender
Quality assessment
• The Team
• Methodology
• Risks
• Added Value
A465 - Tender
• Integrated Team and Collaborative working
• High level of Trust, open book. No surprises
• Contractor, Designer and supply chain
• Right solution for the clients objectives
• Significant reduction in out-turn costs
Early Contractor Involvement
• Client – Welsh Government
• Funding – Welsh Government
• Client Project Manager – EC Harris
• Contractor – Costain
• Contractor’s designer – Atkins, Halcrow and RPS
A465 – Contract Details
• Key Stage 3 – Preferred route to Publication of draft
orders, (Line order, side roads order and Compulsory
purchase order)
• Key Stage 4 – Public Inquiry and Ministers decision to
proceed with the Scheme.
• Key Stage 6 – Design and Construction
A465 – Key Stages
• KS3 and KS4 – NEC3 Professional services Option C and
E - 2011 – 2014
• KS6 – Construction Phase - April 2014 – 2017
• NEC Option C – Design and build and Contractor retains
risk of Ground Conditions and Stats performance
• Target Price for KS3 and KS6 at time of tender
• Evaluation events used to change KS6 Target Price during
KS3.
A465 – Contract Details
A465 – Added Value
Value Wales Community Benefits guide
(Delivering Maximum Value for The Welsh Pound)
Community Benefits
• Employment - 75 new entrants
(long term unemployed, economically inactive) recruited
• Education & Training - 5000 students engaged in the project
• Integrated Team members raised £100,000 for charity
• 90% of sub-contracts to local suppliers in South Wales
• SME Development – 2 new businesses
• £46.6m Added Value to the local economy
Community Benefits
Case Study – Church Village
Community Benefits – Case Study
• Learn from Experience at Porth and Church Village
and improve for HOV2
• Provide 170 new jobs for the long term unemployed
and economically inactive
• 51 Apprenticeships and 119 new
entrant trainees
• Provide training to enable NVQ
Level 2
Community Benefits
Commitment
Performance Management
• BS EN 1S0 9001
Continuous
improvement of the
Quality Management
System
Plan
Do
Check
Act
Performance Management
Cost and Time
• Used Earned Value Analysis
• Links the Price to the Programme
• Measures Performance of Cost and Time
• Provides an Early Warning to the Project
Key Performance Indicators
• Target Cost /Estimate - Baseline
• Work Performed - Earned Value
• Actual Cost of work Performed - Costs to Date
• CPI - Cost Performance Index • Earned value / actual costs
• 0.8 = 20% over budget
• SPI - Schedule Performance Index • Actual earned value / planned earned value
• 1.1 = 10% more work completed the programmed
Key Performance Indicators
Actual Cost
Profile
EV
Early Dates
Target Profile
Time
Cost Cost
Variance
Time
Variance
Using Earned Value Analysis
• Safety
• Client
• Quality
• Programme
• Environment
• Sustainability
• Fair payment
• Design
• People
• Employment
KPI’s
SHE Monthly Scored Inspections
0
200000
400000
600000
800000
1000000
1200000
1400000
0
0.5
1
1.5
2
2.5
Cu
mm
ula
tive
Pro
jec
t H
ou
rs W
ork
ed
AF
R &
Min
or
AF
R V
alu
e
AFR & Minor AFR Trend
AFR Minor AFR
Cummulative RIDDOR Incidents Cumulative 3 day accidents
Cummulative Hours Worked
KPI’s
7.7
7.8
7.9
8
8.1
8.2
8.3
8.4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2007 2008 2009
Sc
ore
Date
Client Satisfaction Score
Series1
Client Satisfaction Score KPI’s
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Nov-0
8
Jan-0
9
Mar-
09
May-0
9
Jul-09
Se
p-0
9
Nov-0
9
Jan-1
0
Mar-
10
May-1
0
Jul-10
Date
IQVT Audit Score
IQVT Audits KPI’s
0
2
4
6
8
10
12 Number of Complaints
Number of Complaints responded to in 24 hours
Complaints/Enquiries KPI’s
0
10
20
30
40
50
60
70
80
90
100
Cumulative Occupational /D & A Testing Cummulative Occupational Health Tests
Cummulative Drugs Tests
Cummulative Alcohol Tests
Cummulative Drugs Test Failures
Cummulative Alcohol Test Failures
Cumulative Occupational KPI’s
Any Questions ?