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HIGHLIGHTS

Jan/Feb 2015

THE PROJECT MANAGERNewsletter of the Society of Project Managers, Singapore www.sprojm.org.sg MCI (P) 153/08/2014

The Society of Project Managers conferred the Honorary Fellowship to Professor Cheong Hee Kiat at its annual dinner on 26th September 2014.

Professor Cheong Hee Kiat is the current and founding President of SIM University (UniSIM). He was Deputy President and Dean of the School of Civil and Environmental Engineering in NTU before joining UniSIM in 2003. In academia since 1986, his experience covers teaching, research, international relations, leadership roles in undergraduate and graduate studies, continuing education, campus development and online learning.

Not only was he involved in the NTU campus development, he is also instrumental in the development of the UniSIM campus. All these have been recognized by the Building & Construction Authority (BCA). He was a board member of BCA from 2003 to 2009. Since 2007, he has chaired the Academic Advisory Panel of the BCA Academy.

Professor Cheong has served and is serving on the boards of numerous institutions of higher learning and statutory bodies and various university accreditation and

Professor Cheong Hee Kiat conferred SPM Honorary Fellowship

13th China International Construction Project Management Summit MeetingMore than 500 project management professionals from all over China, gathered in the City of Hangzhou to attend the 13th China International Construction Project Management Summit Meeting from 11 to 13 October 2014. The Summit was organized by the

China Construction Industry Association (CCIA), with the theme “Construction of Main System for Project Management Responsibility and Promotion on Construction of Industrial Modernization”. Many of the participants were winners of this year’s International / National Outstanding Project Manager Award.

SPM’s delegation was led by our past Vice-President Er. Tan Joo Chuah. The other members were our past President Er. Chang Meng Teng, Mr. Jonathan Shek and Er. Tan Chiat Phang.

>> ... continue on page 04

SPM Annual Dinner 2014

The New National Heart Centre

Singapore

Opening session of the 13th CICPM Summit

Dealing with Disputes

04

06

08

SPM Honorary Fellowship to Prof Cheong Hee Kiat

academic audit panels, both local and international. He serves in MOE’s Steering Committee on the Applied Study in Polytechnic and ITE Review (ASPIRE) and in the Executive Committee at the Singapore University of Technology and Design. He currently chairs the Polytechnic Quality Assurance Framework External Review Panel and is a member of the IES Engineering Accreditation Board. He was on the Committee on University Education Pathways Beyond 2015 set up by the Ministry of Education (MOE) and in the Washington Accord Monitoriing Team for review of Ireland Engineering Accreditation, in 2010.

Professor Cheong has been a member of SPM since 1998. In deciding the award, the Council Members of the Society of Project Managers had unanimously recognized his stellar and significant contributions and achievements in the past three decades as an inspiration to all of us in the Build Environment industry.

Written by:Jason Lee

01THE PROJECTMANAGER

SPM President’s Message

S/N NAME MEMBERSHIP PLACE OF PRACTICE

1 Ng Hong Soon Associate Davis Langdon KPK

2 Han Kun Ordinary Tong Shing Contractors Cresent

3 Tan Chee Keong, Willie Ordinary National University of Singapore

Welcome! New SPM MembersWe extend a warm welcome to the following new members into SPM:

2014 had been a good year for SPM.We launch two distinguished books in 2014: “The Singapore Developers’ Design and Build Contract” by our founding President Mr Chow Kok Fong and “Construction Procurement, Contract Administration and Law” by Mr Eugene Seah.

Continuing on the training and education front, we held three lunch time talks

covering topics such as “The Green Journey Ahead” by Mr Ng Eng Kiong, President of SGBC, “Three Key Challenges in Construction Adjudication” by Mr Chow Kok Fong and “Challenges and Lesson Learnt from Managing An Award Winning Project” by Mr Phil Duvollet who is a certified Project Director accredited by the Australian Institute of Project Management. In July, the BCA-SPM joint seminar on “Productivity in Project Delivery – The Project Manager’s Role,” together with a site visit to the Singapore Sports Hub, was very well attended with many having to miss out on the site visit due to capacity constraints. We conducted the 9th run of the SPM-BCAA course on project management for professionals in the building and construction industry from July to September 2014.

Our annual dinner on 26 September was memorable with many already looking forward to the dinner this year on 25 September 2015! We continued our support to the Singapore Children’s Society. We started with just being a donor, progressed to corporate organization and finally now we have committed ourselves to being a supporting organization as there was such strong support from members.

On the international front, we participated in all three GAPPS working sessions, WS30 in Dubai, WS31 in Tokyo and WS32

in Johannesburg. 1VP Mr Yip Kim Seng was reelected to the GAPPS board. We were at the apfpm meetings in Hong Kong in April and Beijing in November. Together with the meeting in Beijing, we also attended the inaugural APFPM Asia Pacific conference in Beijing and the IPMA research conference in Tianjin.

We continued our active participation at the CPMC, At the 13th China International Construction Project Management Summit in Hangzhou in October, SPM contributed a paper.

Locally, we continued to be involved in the Construction Industry Joint Committee (CIJC) and participated in BCA’s initiatives. In October, SPM showcased our members’ project management contributions at the BuildTech Asia 2014 exhibition.

We amended our constitution to allow part-time university students to be student members. This is part of our plan to promote better understanding of project management issues among those new to the profession. Hot on engaging with students and PM practitioners, we are starting the new year with the SPM-UniSIM Professional Talk Series on 22 January 2015. The theme for this is “Embracing New Changes of the Construction Industry.”

The SPM council had a planning retreat on 10 January 2015 to plan for the New Year. We will be running the outstanding project manager award this year as well as launching the accreditation scheme for project managers. If you have any suggestions, please feel free to write to us. We value your comments and participation.

As I look forward with great expectations to this New Year, I wish all a wonderful year ahead and of course a prosperous Lunar New Year.

Dr Ting Seng KiongPresident (10th Council) Society of Project Managers

SPM booth @ BuildTech Asia 2014

02 THE PROJECTMANAGER

"Project Management – a vital element to successful project delivery"

This is the message that SPM made at the BuildTech Asia 2014. Held at the Singapore Expo from 14 to 16 October 2014 as part of the Singapore Construction Productivity Week, and jointly organised by Building Construction Authority (BCA) and Sphere Exhibition, BTA 2014 brought together companies from the region to showcase and promote leading-edge technologies and innovations that are game changers and will potentially reshape the built environment. It was officially launched by Ms Grace Fu, Minister in the Prime Minister’s Office, Second Minister for the Environment and Water Resources and Second Minister for Foreign Affairs.

BuildTech Asia 2014

Tertiary students currently pursuing recognised under-graduate or

post-graduate degree in Project Management or construction

related fields, full time or part time, are welcome to join the Society of Project Managers as Student Members. Application form is

available on our SPM website: http://www.sprojm.org.sg/member-info

SPM Welcomes Student Members

The third GAPPS working session of the year moved to the town of Johannesburg in South Africa. It was organised by the Project Management of South Africa (PMSA) and hosted by Sasol (see box). Besides the 8 regular international participants, the working session was attended by 13 local industry practitioners from Project Management South Africa (PMSA), Sasol, Petro SA, Solal, Grey Beards and Worley Parsons. At the beginning of the session, we were given a presentation by Services SETA’s CEO on their services and activities in South Africa.

In this GAPPS session, there were many practitioners from Sasol who are in project controls function. From their practice experience, their contributions were valuable to the development of the Project Controls Standard. I participated in the development of the Project Controls Standard during the plenary sessions and continued in the Project Sponsor Standard work stream. The Project Sponsor Standard development is in its final stage. The exposure draft is expected for release by the next Working Session which will be held in Sydney in February 2015.

The Project Sponsor Standard is likely to be the first in the world. I reckon that it will be a useful reference and guide for many project management personnel in government procurement entities (GPEs) that undertake development projects as well as in private developer organisations.

There was rich sharing of experience during the discussions. Participants were not inhibited in sharing their views and opinions, in good professional and friendly dispositions. There was diversity of views and practices due to different experiences and cultures. As the leader, Prof. Lynn Crawford said, “In GAPPS (standard development), we fight for meaning”. Besides the cross learning of each person’s experience and practice, I also benefited from the new friendships made.

On the side, the GAPPS Annual General Meeting was held on 20 September. I was re-elected to the GAPPS Board, under the “professional associations” category. A board meeting was also held on 21 September.

While in Johannesburg, I took the opportunity to meet with the South African Council for the Project and Construction Management Professionals (SACPCMP). From the discussion with the CEO, Ms Nomvulam and her administrator, Mr Nicholas Malebane, I had a good understanding of the SA system of licencing the practice of Project Managers and Construction Managers. This would help in our work to develop the PM accreditation framework and system.

Written by:Yip Kim Seng1st Vice-President, SPM

Project Sponsor Standard work group in discussion.

GAPPS in plenary session

GAPPS Working Session 32 Johannesburg, South Africa 19 to 21 September 2014

Participants of the GAPPS Working Session 32

in Johannesburgof the GAPPS WS31.

Sasol is an international integrated energy and chemical company that leverages the talent and expertise of more than 34,000 employees in 38 countries. They develop and

commercialise technologies and build world-scale facilities to produce a

range of product streams, including liquid fuels, chemicals and electricity.

http://www.sasol.com/

GAPPS participants having a skype conference with a research student from University of Sydney.


At BTA Booth A03, SPM showcased its contributions to the Singapore Build Environment Industry (BEI). Completed projects, managed by our members, of various scale and complexity were displayed. We took the opportunity to showcase and explain SPM’s involvements in BEI, including training, research and development, knowledge sharing in Project Management, and SPM’s linkages and collaborations both locally and internationally with allied professional associations and project management associations.

The organising committee comprised Yip Kim Seng, Tan Kok Siong, Ms Audrey Tee, Ms Akashah Yaccob and Michael Mariadass. On behalf of the Council, the committee like to thank members who have contributed their projects as great examples of Project Management contributions.

Reported by:Yip Kim Seng

13th China International Construction Project Management Summit MeetingRepresenting SPM, Jonathan Shek presented a paper

“Development of Kyauk Phyu Special Economic Zone – Project Management in Calling International Tenders for Master Developers”. [see Page 12] The presentation was well received.

As part of the program, the Summit participants visited the Hangzhou International Exhibition Centre (850,444m2), which was still under construction. They were also treated to a high standard cultural performance at the end of the 3-day Summit.

S P M 1 9 th A n n u a l D i n n e r

Secretary General of CCIA and SPM Hon Fellow Mr. Wu Tao (extreme right), Er. Chang Meng Teng (2nd from left), Er. Tan Joo Chuah (3rd from left), 原建设部副部长毛如柏 (3rd from right)

<< ...from page 01

SPM 10th Council & some past presidents

Secretary General of CCIA Mr. Wu Tao (right), Er. Chang Meng Teng (left), and Er. Tan Joo Chuah (middle)

The Society of Project Manager celebrated its 19th anniversary on 26 September 2014 at the Island Ballroom in the Shangri-La Hotel.

Dr Ting Seng Kiong, President of the SPM, welcomed all to the evening’s celebrations. The guest of honour was Prof Cheong Hee Kiat, President of SIM University, or UniSIM.

The highlight of the evening was the conferment of Honorary Fellowship to Prof Cheong. Addressing the 640 guests and members in his acceptance speech, Prof Cheong listed three key points of Project Management. First, the role of the Project Manager is critical to the successful execution of projects. Secondly, professional accreditation of project managers can bring about a lifting of quality, and raise the stature of the PM, and thirdly, project managers should promote a greater awareness of project management and its application in other aspects of life and work. He also applauded SPM for its relentless efforts to lift the standards and professionalism of PMs.

The evening also saw SPM hand out 2 awards to Master of Science students, Ms Christine Wong for Best Student from NUS for MSc Project Management Programme and Mr Fun Wui Siung for Best Student from NTU for MSc International Construction Management. The Society would certainly be looking forward to

their contribution in the field of project management in the future.

As part of the SPM’s corporate social

responsibility, a charity auction was held to raise fund for the Singapore Children’s Society (SCS). In addition to the donation of S19,000 from SPM, the event raised a total of another $6,900 for the SCS.

Amidst the celebratory mood of the evening, the sumptuous 10 course dinner and the music provided by the live band, it was an opportune time to catch up with fellow professionals in the industry. Old friendships were rekindled and new contacts were made as member and guests mingled among each other. All too soon, the evening came to an end. As the good byes, were said, it was time to look forward to the next SPM dinner in 2015, when SPM will be celebrating its 20th anniversary!

Reported by: Jason Lee

Proud buyers-donors of the SCS Painting Auction

Guests playing a game with the emcee

Student Book Prize Winners

Presenting SPM's Donation to Singapore Children's Society


S P M 1 9 th A n n u a l D i n n e r

Address by Prof Cheong Hee Kiat - Guest-of-Honour and acceptance of Honorary Fellowship speech

Prof Ting Seng Kiong, President SPM and SPM Council members, ladies and gentlemen, good evening.

I am privileged and honoured by this conferment of an Honorary Fellowship by the Society of Project Managers (or SPM) Singapore.

I have been a member of SPM since 1998 when I was in the School of Civil & Environmental Engineering (CEE) in NTU. I reflected on why I joined and, with the benefit of hindsight, I can name 3 reasons:

(1) As an engineer and a faculty in CEE, it was natural for me to be part of this PM fraternity. The relevance was clear.

(2) The SPM was a great platform for networking and discussing common professional issues.

(3) It was good to support one of our local professional bodies.

I am happy to join you tonight for the same three reasons, except, of course, I am not in CEE any longer. Still, when we consider what project management is in the broadest sense of the phrase, then all of us, now or at some time in the past, and future, are project managers (not just at work, but also in the home, at the personal level – when I got my children, I considered each a project, a long project!). For what is a project, but a complex activity with various input, constraints, timelines, budget and so on, that needs to be completed to deliver a product, service or infrastructure. And project management is simply to bring a project from initiation to conclusion with the intended outcomes.

I’d like to briefly make three points about project management. As many among you are PMs in the construction industry, while others are owners, developers, building professionals, government representatives, I will speak with reference to the

construction industry, but you can draw parallels in other areas.

First, the role of the Project Manager is critical to the successful execution of projects. With the increasing complexity of projects, regulations and user demands, this role is even more crucial. Green, productivity, labour crunch, quality, health & safety – they are really not the PM’s direct responsibilities, but they affect how he/she will succeed in delivering to the client. The PM’s perspective is a multi-dimensional, multi-disciplinary one; he is a juggler, a communicator, often one with a thick skin. Some say he’s the ‘king of all consultants’! Effective project management cannot be done by just anyone knowledgeable in the industry. My impression is it is a skill learnt through years of managing one project after another, making one mistake after another but learning all the time, and learning to break silos, manage people, and their expectations, more than schedules, costs and constraints.

So, education and training must be our focus to ensure a continued supply of proficient project managers in the future. This can be done through formal programmes at our education institutions and continuing professional education during work. In line with the ASPIRE recommendations, the training should be more applied – in project management education, we may want to ask: how can we train a knowledgeable PM without throwing him into a real PM environment? In SIM University (or UniSIM), we offer an undergraduate programme in Building & Project Management. We collaborate with the BCA Academy and Singapore Polytechnic, and we can work more closely with SPM to enhance our programme. Our advantage at UniSIM is that we are educating working adults – professionals who may already be in the building industry or wish to practise as a building PM, or have an experience of managing other projects. They come with passion and a thirst to do well in their chosen profession.

Secondly, professional accreditation of project managers can bring about a lifting of quality, and raise the stature of the PM. The regulation and registration of professions in Singapore is getting greater attention – we see this from real estate agents to allied health providers and to business consultants. It is a good thing provided it doesn’t increase costs significantly and there are enough practitioners who can qualify. Quality will be better assured and the industry can benefit from the continuing professional development that should be required of registered practitioners. I understand the

SPM is pursuing this accreditation track and has been active as a founding member of the Global Alliance for Project Performance Standards (GAPPS). I wish you every success in this endeavour.

Thirdly, we should promote a greater awareness of project management and its application in other aspects of life and work. Within the building industry, undoubtedly, if all the players in a building project - the owners, developers, the government policy-maker and administrator, the engineer, the architect and so on – if all of these can have a good understanding of project management and acceptance of the PM’s critical role in delivering a project successfully, they can work with the PM in a more coordinated and effective way. But now, way beyond the building industry, if every tertiary student, say, gets taught about project management, gets some ‘PM’ thinking, it will enable a better understanding of how projects can be successfully done, and make for better work coordination and outcome. The cause of the project manager can then be better served. At UniSIM, we are thinking of how we can give every undergraduate student, starting with our Science & Technology students, a short course on the essentials of project management. One more thought – I think we should imbue a sense of social consciousness in PMs, and indeed, all our graduates. The PM should be thinking each time he makes a decision in the project – what good or bad effects does this decision have on society in the short or long term?

Since its establishment in 1995, SPM has been a dynamic driving force actively promoting and advancing the development of the project management profession in Singapore and abroad, and elevating the profile of Project Managers. As our economy strives towards achieving higher productivity growth, PMs will play a key and strategic role in steering the construction value chain towards greater productivity and the realisation of our 2020 vision for the built environment sector. More PMs from contractors and developer firms should join and strengthen the SPM.

I applaud the SPM’s relentless efforts to lift the standards and professionalism of PMs. I encourage all Project Managers to continue to work together with SPM to bring the standards of the project management profession and the built environment sector to new heights.

My heartiest congratulations to the Society on its 19th Anniversary and for your admirable achievements over the years. I wish you continued success in enhancing the professionalism of project management in the years to come.

Guests playing a game with the emcee


The New National Heart Centre Singapore

The new $266 million National Heart Centre Singapore was successfully completed in October 2013. Situated within the Singapore General Hospital (SGH) Outram Campus on a 8 hectare site along Hospital Drive, the NHCS prides itself as a national and regional referral centre for cardiovascular disease. It delivers one-stop comprehensive cardiac care with a full range of preventive, diagnostic, therapeutic and rehabilitative services. With a key focus on seamless care delivery, the new building, with a total gross floor area of 50,000 sq m, also features self-registration kiosks and a one-stop payment system to cut down waiting time for patients.

The client, National Heart Centre Singapore, appointed PM Link as the Project Manager at the commencement of the project. The other consultancy services were procured through a quality-fee method with design competition in 2008, managed by the PM. The successful team of multi-disciplinary consultants provided the most ideal architectural design which embodies the vision and mission of NHCS, while keeping in mind the client’s requirements and the needs of the end-users, i.e. the patients and staff. The project also involved the conduct of a Value Management workshop to assist the client and their various stakeholders to review and align their vision and project brief requirements.

Main Challenges

The design and construction of the 3 level basement of the new building posed a great challenge to the consultants and main contractor as the necessary deep excavation, road diversion and tunnelling works would affect pedestrian and vehicular flow in the already congested SGH campus.

The main challenges in the development of the new NHCS stemmed not so much from the design of the medical centre facilities, but rather from the interfacing and inter-connection with the surrounding existing facilities. The key challenges are:

a) The new NHCS is located within the SGH Campus that has been developed over the last three decades. There are numerous underground services that have been laid by the relevant services providers over time. Many of these underground services could only be traced based on available services plans, which proved to be quite difficult due to the SGH Campus’ long history. The existence of some decommissioned facilities added to the complication. Hence, even with available services plans, it was important for the contractors to conduct their own services detection and trial holes to avoid cutting into any live cables or services that would adversely disrupt operations at SGH.

b) The SGH Campus has very high vehicular traffic intensity both at-grade by normal vehicles and also underground through the tunnels for transportation of hospital-

related items. For the development of the NHCS’ new outpatient building, it required a new underground tunnel to link to the existing one. In addition, a pedestrian underpass was developed to ease crossing at-grade. The construction of both the underground tunnel and underpass involved road diversion over several stages to minimise worsening the traffic congestion in the vicinity.

c) Although the new NHCS is a medical centre, this project caters for 3 major operating theatres (OTs) and capacity for 6 cardiac catheterisation labs (cath labs) with 24-bed short stay unit (SSU) which entailed close co-ordination amongst the various users and warranted detailed planning and interfacing amongst the various sub-contractors. The construction of the OTs and cath labs not only involved careful management for very close design integration but also construction management, especially amongst the various trades as many of the medical equipment were expensive and also sensitive to levelling, dust, etc. To add to the complexity, such equipment required close coordination in the early stages of construction for testing and commissioning. Hence, a well-controlled working environment was critical.

NHCS Building (Institution front)


NHCS Building (Garden front)

Success Factors

Several success factors contributed to the completion of this project. They are:

a) Value Management workshops at the beginning and at relevant stages of the project were instrumental in enabling key stakeholders’ expectations to be aligned with the provision of the various facilities, the most critical of which was the addition of three shell floors during the construction stage to cater for future expansion.

b) Close working relationships amongst the various project team members from the client to the consultants, the main contractor and their various sub-contractors cannot be over-emphasised. Communications were carefully managed. Regular meetings were conducted at various levels at specific intervals involving different levels of personnel. Involvement of top senior management from the main contractor, consultants and client was also key to ensuring that all parties were properly apprised of the situation and progress.

c) Apart from vigilant observance of security and safety, controls of construction noise, dust, light and vibration were crucial elements through close coordination of interfacing works to minimise inconvenience to patients, care-givers and hospital staff.

Project Achievement

NHCS was awarded the Building and Construction Authority Green Mark Platinum Award 2012 for integrating various energy efficient and eco-friendly features in its new building. The new building will

enjoy a hefty 30 per cent reduction in energy consumption due to the absence of direct west-facing facades, extensive natural ventilation in the concourse area, installation of an efficient air-conditioning plant and the use of regenerative lifts.

Patients will be able to convalesce in a therapeutic environment with the introduction of lush greenery spanning some 2,200 square metres in area. Those who are environmentally-conscious will also be pleased to know that the NHCS new building has incorporated charging stations and priority lots for electric vehicles, as well as bicycle parking facilities and other sustainable features.

NHCS Operating Theatre

NHCS Catheterization Laboratory

ChallengesAmong the challenges faced by PM Link and the consultants was one that involved the need to fine-tune policies and regulations of the KP SEZ administration along the way. This was triggered during the review of some of the RFP proposals; and it was necessary to satisfy all of Myanmar’s national interests, bidder’s requests, and consultants’ recommendations for best practice. Questions and issues ranging from price of land compensation to total amount of available water, to extensions of submission deadlines were addressed.

Other challenges included the task to maintain transparency in official communication was made even more challenging by the need to keep all close-bid competition’s parties anonymous. Logistical challenges involved getting the five consultant companies of our panel to meet in Yangon and Naypidaw on very short notice twice a month, with various ministries and personnel.

PM Link and its consultants maintained warm and proactive relationship with the government of Myanmar. The challenges of resolving conflicting SEZ policies on a 16-week timeframe ahead of an election year demanded nimble, swift decision making from all parties.

The KP SEZ PPP is expected to be signed in late January 2015 between the winning consortium of private bidders and the Myanmese government.

Contributed by:Jonathan Shek MD, PM Link Pte Ltd

Jonathan Shek made a presentation on this mega project at the 13th China International Construction Project Management Summit, in Hangzhou, China in October 2014.

<< ...from page 12

Mr Tan Kok Siong, former MD of PM Link Pte Ltd, was the Project Director of NHCS; he shares how his team managed the various aspects and challenges of the project.


Sir John Patrick Herbert, 1890-1971, English author and law reform activist, once said, "Law suits consume time, money, rest and friends". While this statement may still hold true today, the field of dispute resolution has unquestioningly progressed to a point where alternative avenues such as Fast-Track Arbitration and Alternative Dispute Resolution processes are now commonly used to resolve disputes in less time, with less costs and also probably less detriment to rest and friendships than previously observed.

Given the vast amounts of money committed by governments around the world to infrastructure development, the need for efficient project delivery, and as a necessary adjunct to that, effective dispute resolution has taken greater significance. This is of particular relevance in Asia where the emphasis on infrastructure development is especially pronounced, due in large part to the fact that the basic infrastructure needs of many Asian countries are only now being met.

This article looks at the dispute-end of the spectrum and focuses on how parties who are involved in undertaking a construction project should deal with disputes. It is presented in two parts. This first part touches on key aspects of the following:

• Whatistherightstrategyfordealingwithclaimsanddisputes; and

• Whatcanpartiesdotoincreasethechancesofsecuringanearly resolution and satisfactory outcome from the claims process.

The second part, to be published at a later date, will consider:

• Whatcanpartiesdotoincreasethechancesofsecuringanearly and satisfactory commercial settlement;

• Whatcanpartiesdotoincreasethechancesofsecuringan early resolution and satisfactory outcome from the arbitration process; and

• Whatcanpartiesdotomanagecostsinanygivendisputescenario.

What is the right strategy for dealing with claims and disputes

One of the key ingredients to securing a successful outcome will be having an effective strategy from the outset. Closely allied to this will be the ability to employ suitable tactics to deal with the situation as it develops. It has thus been observed that "Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise

before defeat" (Sun Tzu).

The question of what is the right strategy to adopt in relation to claims and disputes will clearly depend on numerous factors, including what type of project is involved, who are the parties involved, what are their key commercial objectives, where is the project being carried out, what are the local regulatory regimes and industry practices, and what is known about the other party's approach to contract administration, claims and dispute resolution.

These industry trends such as strict procedural requirements for time-bars in a contract for the notification of claims also need to be taken into account in deciding what strategy should be adopted.

At the broadest level, an effective strategy would probably be one that is aimed at securing early commercial resolution between the parties, before claims crystallise into formal disputes and parties' positions become entrenched. In our experience, such a strategy would be built around the following elements: (i) ensuring that the contract is properly drafted; (ii) getting a good team and system in place in advance to deal with issues and claims proactively and in a timely manner when they do arise; (iii) ensuring that claims are properly prepared and submitted and that they are substantiated by relevant factual, legal and technical data; and (iv) wherever possible, seeking early commercial settlement at appropriate junctures through direct negotiations and/or mediation.

Clearly, the actual strategy and tactics to be adopted will have to be constantly reviewed and modified to suit the developing situation and any changes in the procedural context. Thus for example, at the claims stage, the focus will be on ensuring that the claim is notified in accordance with the procedural requirements and that sufficient and accurate supporting information is provided to enable the architect or engineer to carry out a proper assessment of the entitlements under the claim. At this early stage, it is not necessary or desirable from a cost viewpoint to prove each and every entitlement on a strict factual and legal basis. In contrast, at the mediation stage, the focus is on ensuring that the mediator has a good understanding of the parties' respective interests and positions on the various issues so that he can take appropriate steps to facilitate a settlement. Again, at this stage, the strict legal position does not feature prominently. Finally, at the arbitration stage, the parties will be required to prove their claims to the tribunal by reference to relevant factual and expert evidence and the legal merits. The merits will be all important at this stage.

As the situation will be constantly changing, it is important that parties should try to anticipate what may lie ahead, so that an appropriate strategy can be formulated and adopted.

What can parties do to increase the chances of securing an early resolution and satisfactory outcome from the claims process

From time to time, contractors can be reluctant to put forward claims, even if this is expressly provided for under the contract (as is usually the case). This is generally due to a fear of upsetting the employer and the belief (whether justified or not) that the architect or engineer responsible for assessing the claim may be biased and favour the employer in the claim assessment.

In my experience, the claims process is generally a good avenue for parties to engage in meaningful and detailed exchange on any issues which have arisen on site in a relatively low-key setting. In this sense, the claim process does provide a useful platform for parties to explore settlement before things escalate further. It should be utilised and not be dismissed out of hand.

Furthermore, many contracts now contain strict procedural requirements relating to claims notification, if a contractor is entitled to bring a claim but chooses not to do so, it may stand to lose any rights and entitlements which it may otherwise have under the contract (such as for additional time and/or money). This will clearly jeopardize not just the legal but the overall commercial position of the contractor. By bypassing the claims process and raising the issue or dispute only at a late stage, the opportunity for early resolution may be markedly reduced and the chances of parties having to go into arbitration probably increased.

Dealing with DisputesPaul Teo, who co-leads Hogan Lovells' international arbitration practice in Singapore and South East Asia, presented a paper on construction project disputes at the BCA-SPM Joint Seminar in July 2014. Paul specialises in international arbitration and dispute resolution. He has more than 17 years of experience acting for corporates, governments, owners, contractors and consultants on disputes arising out of infrastructure, construction, energy, telecommunications and other major projects

across Asia. Paul has substantial experience acting on a broad range of commercial disputes and has experience of investment treaty claims. He is familiar with the major arbitral rules and has served as arbitrator in numerous institutional and ad hoc arbitrations.

“An effective strategy would probably be one that is aimed at securing early

commercial resolution between the parties,

before claims crystallise into formal disputes

and parties' positions become entrenched.”


Dealing with Disputes

Managing a Train Support Facility Project - Challenges and Lessons

In other words, parties can increase their chances of securing an early and hopefully satisfactory outcome by taking the claims process more seriously and viewing it as an opportunity to use that as a platform to explore early resolution. Another interesting observation is that, in my experience, if one party were to demonstrate a professional approach and thorough preparation during

the claims process, the other party would be less inclined to ride roughshod over the claim and the chances are it may be more open to considering a settlement in order to avoid having to fight that particular claim or issue in arbitration.

In terms of the preparation and submission of the claims, this will clearly have to involve some early investment on the part of the contractor to get the claims properly prepared, substantiated and submitted. Nevertheless, such an investment would be worthwhile, considering that there is always the chance that the architect or engineer may make a satisfactory determination on the basis of the information provided under the claim, or failing that, the contractor will have a strong platform for negotiation if no satisfactory determination if made.

Some of the early investment would likely be in the following areas: contract training, preparation of contract manuals for the use of the project and site teams, preparation of claim templates or letters of responses for major and/or likely claims, establishing a team and a system for record keeping, establishing a team and system to identify, submit, monitor and follow-up on claims, and last but not least, ensuring access to and input from legal and technical advisers where required.

“Know your stakeholders and manage them well. Understand and specify users’ requirements clearly.” These are some key lessons learned that were shared by Mr. Phil Duvollet of Pacific National in Australia. Phil Duvollet was the Project Director of the Greta Train Support Facility project in the Hunter Valley region of New South Wales, Australia. This project received the Project Management Achievement Award from the Australian Institute of Project Management (AIPM) in 2013.

About 30 SPM members and guests learnt from Phil Duvollet the many challenges involved in delivering the project. He had candidly shared some of the shortcomings in the project management and how lessons were reaped. He covered best practices in engineering and design to provide innovative solutions and systems to improve safety and operational efficiencies and how these are successfully managed with the various stakeholders and users. The project site was within an indigenous aboriginal heritage area. The project also impacted the ecology and the community in the area. Through close engagement with the various stakeholders, issues like noise, vibrations, safety and heritage were addressed and mitigated.

Phil Duvollet also stressed the need to challenge the status quo, be innovative in project management and leverage on lessons learned from past projects. Another key learning point was the need to plan the work before diving into executing the work.

Reported by:Tan Kok Siong

“The claims process is generally a good avenue for parties to engage in meaningful and detailed exchange on any issues

which have arisen on site in a relatively low-

key setting.”

In terms of the timeframe for resolution, a definite (and reasonable) timeframe specified should be given in the contract for the architect or engineer to make his determination on the claim. It is also helpful if the contract provided that parties may commence arbitration proceedings at any time whether before or after project completion as this allows early resolution by arbitration if necessary. This has to be specifically provided for under the contract because many contract forms actually provide that arbitration can only be commenced upon or after completion of the project.

As discussed further in the second part to this paper, parties who properly prepare during the contractual claims stage are well positioned to enter into early commercial settlement discussions and will also be well prepared for any arbitration proceedings, giving them the best opportunity of achieving a commercially acceptable outcome to their dispute whilst also controlling costs incurred on the dispute.

Contributed by:Paul Teo PartnerHead of Projects, Engineering & Construction, SingaporeInternational Arbitration PracticeHogan Lovells Lee & [email protected]

“Parties can increase their chances of securing

an early and hopefully satisfactory outcome by

taking the claims process more seriously and viewing

it as an opportunity to use that as a platform to

explore early resolution.”

Greta Train Support Facility Project in NSW, Australia


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could be shared with and learnt by the

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Calling for feature Articles and Sponsorship!

Looking Forward...

from the Editorial Team...The Editorial Team

Tan Kok Siong, ChairmanYip Kim Seng, AdvisorManish Banga

Jason Lee

Shaun Yeo

Justin Boon

Calendar of 2015 Events

You can look forward to the following in the coming issues:

1. Building Information Modeling – The PM's Role

2. Academia at Singapore General Hospital

3. Dealing with Disputes (Part 2)

4. Greta Train Support Facility Project - Phil Duvollet

Note: No part of this newsletter shall be reproduced without the written permission of the Publisher, Society of Project Managers. The views of the writers expressed in the newsletter may not necessarily represent the corporate views of the Society and no liability is accepted in relation thereof.

This edition of The

Project Manager is

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Dear Readers,Wishing you and your family…. A Happy New Year!


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Managing PPP Procurement for a SEZ Development in MyanmarAs Myanmar opens up to the world, she is seeing booming economic activities and growth. The current special economic zones (SEZs) - Thilawa and Dawei - are nearing saturation, and the Myanmese government has identified Kyauk Phyu as the next area to be developed into SEZ. A new hub would take up overflow of goods and extend manufacturing and logistics in and out of Mandalay and the Northern hinterlands.

Kyauk Phyu – The New SEZ

An area about 1,900 hectares of flatland away from existing villages on Yangbye Island is marked for the development. It has the only naturally occurring deep shore capable of berthing large vessels. KP SEZ will serve as a direct connecting point from the Arabian region and India to ASEAN and China. The KP SEZ intends to alleviate future shipping demand as the port of Yangon is projected to reach its capacity for non-containerized goods by 2016 and containerized goods by 2020. Containerization nationwide remains at 27% and the new KP SEZ port will increase its use to enable Myanmar’s industries to evolve into just-in-time and lean manufacturing.

The choice for Kyauk Phyu is strategic. It can draw from multiple resources: access

to a large local workforce, plentiful raw materials from the region, and consistent supply of oil and natural gas. The nearby Shwe A-1 fields of natural gas and oil are already operational and there is a direct pipeline from Kyauk Phyu to Kunming. The KP SEZ is not just a spot to move materials, in the future it is has the ability to transform materials into finished goods and move them internationally.

Development of KP SEZ

The Myanmese government has adopted the Public Private Partnership (PPP) model to develop KP SEZ. PPP is suitable procurement model for megaproject developments because governments like the Republic of the Union of Myanmar can gain access to private sector funds and expertise and avoid shouldering the massive financial resources needed to drive such enormous infrastructural projects. In the Special Purpose Vehicle (SPV) of KP SEZ, some of the director positions are held by Mynanmese ministers with government interests in controlling policy.

With a team of experienced consultants – CPG Consultants, Ernst and Young, GMAPS, the

Kelvin Chia Partnership and DTZ – PM Link Pte Ltd was appointed by Myanmar’s Ministry of Planning to spearhead the management of the PPP procurement. Given its experience and history with the Singapore Public Works Department (PWD) in having managed a varied portfolio of public infrastructure projects, PM Link is a natural and an excellent choice for this mega project.

Procurement Exercise

PM Link conducted a six-month competitive procurement exercise, beginning with pre-planning the entire protocol process. Planning covered campaigns for promotion, Expression of Interests (EOI)s, drafting and releasing the Request for Proposals (RFPs), and tender reviews. Unlike typical construction project management, managing a closed-bid competition has the wild card of not knowing what the bidders would submit.

Bids were unique to each bidding team, and financial proposals were kept tightly secure by PM Link. PM Link managed the submission and analysis of bids.

A 12-week EOI exercise (June to Sept 2014) was launched on a new KP SEZ website and with an invitation for interested firms to submit credentials for shortlisting. Apart from announcements made in international press and media, including the New Light of Myanmar, the Straits Times, Channel News Asia, 988 Live, Today Online, and the Business Times, and two interviews on Myanmar national television, to drum up international interest and domestic support, PM Link also conducted three publicity road shows - at Suntec City, Singapore, the International Convention Center of Myanmar, and the Gangnam Novotel, Seoul, South Korea. Several hundreds of responses were received from various channels - mail blast to corporations and companies, government-issued invites, and publicity roadshows. From these, more than sixty EOIs were received by early September over the world. Twelve ultimately were shortlisted for the RFP stage.

The KP SEZ RFP consisted of three separate submissions: the port, an industrial park, and an integrated residential area. Bidders were allowed to propose any combination of the three. The Kyauk Phyu masterplan and the SEZ law were guiding documents to set out municipal policy and official rules of the competition. One example: To protect the lush forest and pristine coastline, the RFP placed a premium on bids with corporate social responsibility (CRS) proposals.

Over a grueling 16-week period, from the issue of RFP competition rules in September to the evaluation of bids in late December, PM Link managed constant communication with the final 12 selected bidders. Site tours of Kyauk Phyu were organised by PMLink for the bidding teams. They were introduced to each other and to the government officials and consultants. After multiple rounds of RFP question and answer clarification sessions, bids were submitted to the Myanmese government in Naypidaw on 24th November.

>> ... continue on page 07

His Excellency Minister Dr Kan Zaw addressing at the publicity road show on KP SEZ in Suntec City Convention Hall


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