Alliance Contracting Magazine - June 2010 Edition

Published and edited by: Supported by:

INSIDE: SHOW GUIDE AND EVENT PROGRAMME

GLOSSARY OF ALLIANCE CONTRACTING TERMS

UTILISING PROJECT ALIANCES EFFECTIVELY AT QUEENSLAND MOTORWAYS

WAYNE PEARCE COMMENTS ON THE IMPACT OF HIGH PERFORMING TEAMS

52 THINGS TO PUT IN A VFM REPORT

ALLIANCE PROJECTS UNDER THE MICROSCOPE

HOW TRACKSTAR HAVE CHALKED UP SUCCESS OVER THE LONG TERM

MEASURING WHAT MATTERS: ALLIANCE RELATIONSHIPS AND PERFORMANCE

Official Magazine of the Alliance Contracting Excellence Summit

Alliance ContractingJune 2010 / 2nd Edition

Alliance & Collaborative Contracting Excellence Summit

Improving cost and non-cost outcomes and adding value to the planning, delivery and maintenance of relationship-based projects

IQPC PRESENTS our Bi-Annual…

This Summit will examine best practice in existing projects as well as looking forwards to assess the future of collaborative, alliance and hybrid relationship based contracting. Where else but at this event will you meet 200+ likeminded peers facing the same challenges as you in this field?

PlEASE vISIt ›› www.alliancecontractingsummit.com for more information or call 02 9229 1000 to enquire.

This unique event will draw debate and experience to the following subjects:

Will

sell o

ut!

Adding value to your training needs….

“Extremely valuable. It was refreshing to hear how others are dealing with the same challenges. A number of points have been crystallized and the team are energised to take the next steps.”

Rachel Anderson, ASPECt3

“Great networking – and the case studies were interesting and varied.”

Andy England, JohN hollAND

“A great introduction and background into alliancing and alliancing principles.”

Emma McDonald, FlEtChEr CoNStruCtIoN

FACT

FACT

FACT

The landscape for collaborative procurement has shifted significantly in the wake of the GFC and the recently released Department of Treasury and Finance report focused on ‘Additional Value’

An explosion of collaborative contracts are being procured and you need to move fast if you are to remain up-to-date with these changes

Cost certainty, dual TOCs and competitive pricing are currently at the heart of many collaborative procurement negotiations and selection processes and you need to understand how best to manage planning and delivery for this rising trend

Taking the emotion out of VFM

Scrutinising the reasons for selecting the alliance model

Adding value to project delivery and maintenance

Changes in the selection process

A Focus on competitive TOC and pricing

Rationalising & consolidating alliances

Trends in collaborative procurement in the public sector

To alliance or not to alliance? And what viable alternatives are there if you want relational principles in your delivery?

Should VFM be a KRA?

The next wave of investment in assets / capital delivery

VFM reporting and measurement

Whole of lifecycle costing

Cost certainty in procurement for asset delivery

Keeping your team focused despite project changes

The Selection process for alliance style contracts

ECIs and the next wave of hybrids

Can traditional / harder dollar contracting really ever achieve collaborative outcomes?

“Enjoyed the event. Refreshing to see how alliancing is working in Australia. We all go through the same issues and complications and great to see how alliances can work when they are done correctly.”

Phillip Ulloa, rAIlCorP

“Excellent and valuable networking opportunity. I also enjoyed the fantastic spread of topics and themes.”

Jim Coutts, SyDNEy WAtEr

Conference: 30th November - 1st December 2010 Workshops: 2nd December 2010

Collaborative Procurement Focus Day: 29th November 2010 MelbourneDates for your diary:

CONTENTS

Speaker Biographies 2-5

Value for Money: “Us” versus “Them” Revisited? JMW Consultants Asia Pacific 6-7

Full Event Program 8-9

Utilising Alliances Effectively at Queensland Motorways 10-11

ALLIANCE CONTRACTING IQ INDUSTRY SPOTLIGHT: Andrew Stevenson, Baulderstone Pty Ltd 12

From Project Managers to Alliance Managers - Advanced People Systems 13

Measuring what Matters: Alliance Relationships and Performance – Alliance Benchmarking Institute 14-15

ALLIANCE CONTRACTING IQ INDUSTRY SPOTLIGHT: Stephen Bradford, Port of Melbourne Corporation 16

Profiling Coffey 17

AAA and IQPC Industry Partnership Update 18-19

The Troubled Rise of Volition - Alliance Dynamics, Alliance Leadership and the Alliance Advisory Field in Perspective - PCI Alliance Services 20-21

ACE Awards 2010 Update and Finalist Profiles 22-27

Delivering Outstanding Outcomes in a Tight Project Timeframe - VicRoads 28-29

Dear Reader,

IQPC’s Alliance Contracting Excellence Summit series has grown since its creation in 2000 to become the one of the leading industry events in Australia. The success of this event series has left its legacy in the profession. This year’s annual show is to be no different and through a line-up of industry and non-industry speakers we hope to add value to your current collaborative contracting experiences.

We are constantly conducting research within this unique industry and are motivated to design events that reflect the skills gaps and training needs shared by the industry with us.

We also strive to be innovative and dynamic in what we present and give back to industry through our training. In 2010 we have already launched our celebratory event, VFM in Collaborative Contracting, to celebrate ten years delivering innovative events to the construction industry. Further supporting industry innovation we of course have the Alliance Contracting Excellence Awards (ACE Awards) due to be announced. The 2010 winners will have some celebrating to do and I am sure there will be a glass of wine (or two) flowing on Wednesday night!

I am delighted to launch our 2nd event magazine and I believe that it will provide you with some instructive, philosophical and inspirational content that compliments the conference, ACE Awards and the Alliance Contracting IQ website.

No one could argue that we are in the midst of a changing landscape.

There is no doubt that the industry has shifted in the last 6 months post the global financial crisis and the release of the Department of Treasury and Finance’s report on the pursuit of additional value. In addition, there are some interesting emergent trends in the marketplace. In the last 6-8 months there have arisen a plethora of hybrid alliances that have moved away from pure and more traditional alliance processes, and there has also been a sharp increase in the focus on competitive pricing (and a correlating rise in the number of competitive TOCs emerging).

I am sure these significant trends will be the basis for much discussion over the course of the next few days. Alliance contracting is a project delivery method that lends itself to passion and creativity due to the nature of the team relationships that form the core of a project’s success. We hope that the passion we have for this subject and the creativity we have injected into the program will enable you to engage in thought provoking conversations and networking with your peers as well as learning and improvement in the areas you are currently driven to address.

IQPC and Alliance Contracting IQ will continue to lead from the front in terms of innovation and performance and we look forward to continuing to develop thought-provoking, valuable and practical conferences for this industry.

Jacqueline Bran Editor & Director – Alliance Contracting, Alliance Contracting IQ - A division of IQPC www.alliancecontracingiq.com

Editor’s Message

TrackStar – A Program Alliance Chalking up Success over the Long Term 30-31

ALLIANCE CONTRACTING IQ INDUSTRY SPOTLIGHT: An Interview with Martin Wood, SAFElink Alliance 32

Profiling the SAFElink Alliance 33

52 Things to Put in a VFM Report 34

Profiling Novo Rail 35

Alliance contracting in Focus: Profiling Wayne Pearce 36

Profiling Seymour Whyte 37

Focusing on Alliances: The Auditor General Experience 38

Profiling CGI Consulting 39

Alliance Contracting IQ in Focus 40-41

ALLIANCE CONTRACTING IQ INDUSTRY SPOTLIGHT: Greg Winchester, Bovis Lend Lease 42

Profiling the Toowoomba Pipeline Alliance 43

Alliance Glossary of Terms & Perforated Document: Alliance Summit Feedback Form 44

Alliance Contracting Industry Advisory Board and Recommended Reading 45

Editorial team and contact details:

Jacqueline Bran, Editor and Director Alliance Contracting IQ

(02) 9229 [email protected]

Ross Jenkinson, Marketing Director


Georgia Foster, Business Development


Danielle Zaarour, Operations and Logistics Director

(02) 9229 1071

[email protected]

Published and edited by:

Damien Afxentis, Alliance Project Manager, WEST GATE FREEWAY ALLIANCEDamien has 14+ years experience in delivering and implementing road infrastructure projects for Government, from minor improvement projects to large infrastructure projects such as the Craigieburn Bypass and the West Gate Freeway Upgrade. He also has experience in road asset management, having been responsible for maintaining half of Melbourne’s road and electrical asset network. He has an interest in pursuing innovative solutions to transport challenges and ensuring effective asset integration to the asset owner during and after infrastructure construction. Finally, he has played a major role in the West Gate Freeway Upgrade as the former Business and Sustainability Manager and now recently the Alliance Project Manager to ensure effective delivery of a complex and high profile project for the State of Victoria.

Jane Bateson, Knowledge and Performance, Capital Delivery, MELBOURNE WATERAs Team Leader, Knowledge and Performance – Capital Governance, Jane is responsible for ensuring the transfer of knowledge and managing a process of continual improvement and performance measurement across Melbourne Water’s capital program. Jane originally trained as a teacher, has a Masters of Environmental Science and a Masters of Applied Science. Jane has 14 years of experience in the water industry having worked in catchment and reservoir management, river heath planning and capital delivery. Prior to moving to the Capital Governance team, Jane was involved in assisting the transition of Melbourne Water’s capital program to a new program structure and process under a collaborative delivery model.

Colin Beames, Director, ALLIANCE BENCHMARKING INSTITUTE (ABI)Colin Beames is an engineer and corporate psychologist, with an extensive background in the resources sector. He is a thought leader in human capital, careers, workplace trends and psychological contracts. In his first career life, Colin worked as an engineer in senior management and consulting roles. Then in the early 90’s, he made a mid-life career change to organisational psychology. Colin’s organisational consultancy experience includes assignments in Australia and overseas. He has a particular interest in the “3 Ms” relating to people management - Mindsets, Models and Measurement, and their link to performance. Colin has extensive experience in the design and commercialisation of survey instruments, based on a model of the psychological contract. His clients have included “blue chips” through to SMEs, in the private and public sectors. Colin has recently written and published a book titled: Transforming Organisational Human Capital: How to emerge stronger from the GFC.

Daniel Bennett, Principal, Discipline Leader, Landscape Architecture, HASSELLDaniel leads the Landscape Architecture discipline in Adelaide and has extensive experience in urban design and landscape architecture. He has worked on a wide range of complex public domain projects throughout Australia, China and the United Kingdom aligning the urban design process with the often complex and conflicting engineering processes. He also has extensive experience in alliance contracts in South Australia and is a passionate advocate of urban design and infrastructure. Daniel came to Adelaide in 2004 and has led award winning projects including the Gallipoli Underpass, City of Salisbury Landscape Plan, Port Adelaide Centre Master Plan, and the James Place Upgrade. He has recently led the urban design of the Coast to Coast Light Rail extension to the Entertainment Centre as well as the Northern Connector Planning Study and EIS for Landscape and Urban Design. Daniel is a passionate advocate of integrating our cities and infrastructure more sustainably, with a greater focus on creating spaces for people as well as enjoying the journey.

Stephen Bradford, CEO, PORT OF MELBOURNE CORPORATIONStephen Bradford was appointed Chief Executive Officer of the Port of Melbourne Corporation in January 2004, providing leadership for the strategic management of Australia’s largest container and general cargo port. With an extensive background in the wider logistics industry, Stephen previously served as Managing Director Transport of Serco Australia Pty Limited (subsidiary of the UK-based Serco Group plc) from February 2001. Stephen was also the Chief Executive Officer of Great Southern Railway, operator of iconic passenger rail services including The Ghan, Indian Pacific and The Overland, from November 1998 and continued this role in his capacity as Managing Director Transport of Serco. Prior to that appointment, Stephen was General Manager of the Health and Utilities business for Serco Group Pty Limited and General Manager of MSS Security for Mayne Nickless and later, Chubb. Stephen holds a Bachelor of Commerce degree from the University of New South Wales and is a Fellow Certified Practicing Accountant (FCPA).

Stephen Callaghan, Chartered Quantity Surveyor and Director, UNIDELStephen has worked on major construction contracts in Australia, Southern Africa, South East Asia, and the United Kingdom. He has extensive experience in the gas and energy industries providing project delivery advice, contract procurement documentation, quantity surveying and cost engineering, claims preparation, dispute resolution, litigation and arbitration services.

Mark Clark, Alliance Manager, VIRGIN BLUE & JOHN HOLLAND AVIATION SERVICES ALLIANCEMark has been working in the aviation industry for more than 20 years covering hands on engineering work on aircraft, design and implementation of systems of maintenance, maintenance co-ordination, contract negotiation, aircraft acceptance and general management. He joined the JHAS/VB Alliance in August 2008 as the Alliance Manager. Prior to this Mark was employed by Virgin Blue for more than 8 years doing a wide and varied array of tasks involving the aircraft maintenance management, aircraft contracts, Aircraft acceptance from Boeing (in USA) and Embraer (in Brazil) and the management of Maintenance Repair Organizations. Marks current role as Alliance Manager for JHAS/VB is new to the aviation industry. This maintenance Alliance is unique as the parties are not co-located, JHAS is in Melbourne and VB is in Brisbane. Marks biggest challenges are ensuring effective communication between the Alliance partners.

Rod Clifford, Project Director, SUGARLOAF PIPELINE ALLIANCERod Clifford is a civil engineer and manager who has worked in the water industry for 20 years, mainly with Melbourne Water but he also spent a few years in the private sector early in his career. He spent several of his early years in construction and was involved with various pipeline and treatment plant projects before moving into a range of asset management roles with Melbourne Water with management responsibility for a broad portfolio of assets including its dams, catchments and pipelines.In 2006, he returned to construction in a strategic Project Director role for Melbourne Water. He subsequently led the establishment of two large civil infrastructure projects, each exceeding $600M and then retained high level oversight during their delivery. These included the Sugarloaf Pipeline Project (also referred to as the north –south pipeline).

Reg Conroy, Manager (Program Delivery) Major Projects, Northern Region - Townsville Office, DEPARTMENT OF TRANSPORT AND MAIN ROADS QLDReg Conroy has over 35 years experience with the Department of Transport and Main Roads in corridor planning, delivery, contract and asset management, in a number of regions. Reg is currently the Program Manager for delivery of major projects in the Townsville region. Reg moved into the major projects area eight years ago undertaking planning for the Gatton Bypass and Toowoomba Bypass projects before moving to Townsville to oversee the delivery of major projects there. While in this position Reg has been responsible for $550m worth of major projects. Reg has seen through the successful delivery of a number of projects including the Townsville Ring Road project, the Woodlands to Veales Road project and the Corduroy Creek to Tully High School flood improvement project. Reg is currently overseeing the delivery of the Townsville Port Access Road project. Reg is a keen advocate for relational style contracts, such as the Early Contractor Involvement (ECI) and Alliance styles.

Nige Cottingham, Stakeholder & Communications Manager, NOVO RAIL A qualified journalist with over 20 years experience in Marketing, PR and Communications, Nige Cottingham recently took on the strategic stakeholder engagement and communications function at Novo Rail, one of Australia’s largest and most complex program alliances. During his career, Nige has worked in the UK, US and Hong Kong across a range of different industries, including print, travel and more recently, infrastructure. As Marketing & Communications Manager for O’Donnell Griffin, Nige established a sound working knowledge of Australia’s burgeoning resources and rail sectors and in his new position with Novo Rail feels a strong sense of duty in ensuring that the alliance lives up to its vision of energising and enhancing Australia’s rail industry.

About our Speakers

2

Alliance Contracting Excellence Summit

Steve Davidson, Alliance Manager, COAL STREAM ALLIANCESteve has spent the last 20 years predominantly working on large infrastructure projects. Steve commenced as a hands-on labourer, and after working his way through the ranks of front line management, gained an engineering degree as a mature age student. Since then he has held senior management roles on a number of large infrastructure projects such as the Alice Springs to Darwin Railway, the Millstream Link Alliance and most recently the Coal Stream Alliance Manager. Having spent the last 10 years in joint ventures and alliances he has a wealth of personal experience in setting up finite-life, stand-alone organisations.

Richard Edwards, Manager Contracting Services, DEPARTMENT FOR TRANSPORT, ENERGY AND INFRASTRUCTURE, SARichard currently has the position of Manager Contract Services in the Department for Transport, Energy and Infrastructure (DTEI). In this role he is responsible for the management of tendering and contracting processes and the development of new contracting strategies for DTEI. He was also a Project Manager and Contract Manager for a number of road works and bridgeworks projects prior to 2001. He has over 30 years total experience, mainly associated with transport infrastructure and construction. Qualifications include: Bachelor of Engineering Adelaide University 1980, Master of business Administration, Deakin University 1996, Advanced Professional Certificate in Arbitration, Adelaide University 2008 and Chartered Professional Engineer.

Mauro Farinola, Senior Commercial Manager – Adelaide Desalination Project, SA WATERMauro Farinola joined SA Water in March 2008. He is a Registered Project Manager and prior to joining SA Water had successfully delivered engineering services on projects with a total construction value of up to $400M. His senior involvement in the design and delivery of engineering services include recent projects such as the Austin Repatriation Hospital in Melbourne, County Court of Victoria, New RACV Club Development and ‘The Age’ at Tullamarine. Interstate and overseas projects include the Armadale Health Campus in WA, Australian Defence Force Academy in ACT, St Andrews Square Development in NSW and Industrial Process developments in New Zealand and South East Asia. Mauro is Deputy Project Director for the Adelaide Desalination Project and leads the Commercial and Finance Teams with support from internal and external advisers on financial and contract management, procurement management, tender documentation, governance, regulatory and tax matters.

Greg Fox, Contracts Manager, Asset Solutions, SYDNEY WATERGreg’s current role is Contracts Manager in the Asset Solutions Division of Sydney Water. He is responsible for contracting policy, standards, procedures and governance across the organisation. He fills the role of corporate Superintendent or Principal’s Senior Executive on all Sydney Water contracts. Greg’s background is in engineering construction, project management and the water industry. He has an honours degree in Civil Engineering, an MBA and an Advanced Diploma in Project Management. He has experience in a variety of types of contracts including construction, goods, services, IT and leasing. He is a member of several NSW Government committees developing best practice procurement guidelines and standard-form contracts, including GC-21.

Barry Harrison, (Previously) Culture and Project Development Manager, THIESSWith a varied background in a number of industries, Barry has developed a diverse range of skills, with particular expertise in the development of teams. Barry’s demonstrated strong leadership skills and experience, coupled with his ability to work with a range of people, has enabled him to fully understand how to develop a culture of excellence and improvement in organisations, groups and teams. Barry’s current role sees him working with and in project teams, to enable them to perform at higher levels.

Phil Hattersley, Program Manager, PRIORITY SEWERAGE PROGRAMPhil has more than 37 years of experience as a Civil Engineer, with experience in both design and construction and contract administration. Phil is employed as a Program Manager with MWH, a global engineering and environmental consultancy firm. He returned to Australia in late 2005 to take up a position as Program Manager for an innovative alliance titled the Pimpama Coomera Waterfuture Master Plan Implementation Alliance (PCWF) providing management services to Gold Coast Water for the implementation of a world recognised Master Plan for the development of a new growth area. In 2008, Phil was appointed as the Program Manager for the Priority Sewerage Program alliance with Sydney Water.

Paul Hoffmann, Group GM Network Capital Program, QR NETWORKPaul Hoffmann is the General Manager for the QR Network Infrastructure Program. The Infrastructure Program delivers infrastructure projects required for the rail network in Queensland. The present value of the Program is $4.6 billion (combined estimated costs and approved costs) and growing as new projects are scoped to meet the high demand for Queensland coal, freight and passengers. Paul is a Civil Engineer and experienced Manager with a broad experience in all aspects of a railway. During a 23 year career he has undertaken various roles within QR, primarily related to the construction of railways both within Australia and overseas.

Tanya Johnstone, Strategy & Development Manager, NOVO RAILTanya Johnstone has 17 years experience as a procurement practitioner, holding senior positions in a multinational building and construction company, the NSW State Government and in her own practice, where she negotiated and managed multi-million dollar contracts, built procurement teams and established a consulting practice. Tanya has undertaken extensive reviews of the procurement operations in complex Australian businesses that led to reduced costs, innovation and improved strategic operations. She first started consulting to RailCorp on a large scale Procurement Transformation Program covering people, technology, processes and an accelerated benefits realisation program, as well as representing Procurement in the establishment of the first Program Alliance for RailCorp.

Geoff Jubb, IT Project Manager, AECOMGeoff joined AECOM Australia Pty Ltd in March 2004 as IT Systems Manager and now works in project delivery improvement. Prior to this role Geoff spent multiple years in IT via education and consulting at companies such as Deloitte Consulting, Flight West Airlines and Mincom. Geoff provided support services, advice and guidance. He worked in areas of strategy, disaster recovery, customer service and service management. Geoff’s current responsibilities are varied in project delivery involving project management, coordination of support and solutions development for projects of all sizes. Some of the highlights of working at AECOM have been managing the technology requirements for an office move of almost 1000 people, initiating collaborative initiatives with major project partners, key roles in the technology setup and delivery of major projects including Inner Northern Busway, Eastern Busway, Clem 7 tunnel and Gateway Bridge Duplication.

Deborah Kiers, Managing Director, JMW CONSULTANTS - ASIA PACIFICDeborah Kiers has over 20 years experience supporting organisations in Australia, the US and Canada to dramatically elevate their performance through leadership development, executive coaching, organisational transformation and building high performance teams. She has been at the forefront of breakthroughs in organisational performance and alliance contracting across a wide range of industries. Deborah designs and leads JMW’s executive development programs, including the highly acclaimed Leader of the Future™ program.

Milind Kumar, Project Director, SA WATER Milind Kumar joined the South Australian Water Corporation (SA Water) in April 2002, as General Manager, responsible for the delivery of SA Water’s Major Works Capital Delivery Program. Milind has undertaken the role of Project Director for a number of significant projects. Milind is currently the Project Director for the Adelaide Desalination Project. Prior to him joining SA Water, Milind was employed as Projects Manager for AMEC Engineering, Adelaide, with responsibility for the Mechanical and Electrical works for a $350 million South Australian Power Station Project. Milind has also had significant international experience in the United Kingdom, Dubai and India, for large size projects, in the refining, energy, water and infrastructure projects in including Lead Project Engineer, Project Team Leader, Project Manager and Executive.

3

About our SpeakersKen Lowe, Managing Director, PCI ALLIANCE SERVICESFollowing his early career in civil engineering in the UK and Strategy Consulting internationally, Ken’s focus in recent years has been in the area of human development – working with people, teams and organisations to help them be the best they can be. His main focus is on assisting people and teams to excel by finding, aligning and leveraging meaning and purpose in work and life. Complementing PCI’s broader capability in structural, legal and commercial advisory services, his team brings a wide range of human development insights, tools and techniques to suit specific client contexts.

Peter Melbourne, Alliance Deputy General Manager, NOVO RAILHaving worked for RailCorp over a period of 30 years, Peter Melbourne brings a wealth of first-hand experience of Novo Rail’s client to the alliance. During his career he has held a variety of key positions within RailCorp, in capital delivery and asset maintenance and operations roles. These included positions as Regional Manager, Metro West and as Project Manager for the final delivery of the Rail Infrastructure Alliance scope on the Richmond Line. Peter was also directly involved in RailCorp’s initial evaluation of the Rail Program Alliance proposals submitted for what is now known as the Novo Rail alliance and has himself been a member of the Novo Rail alliance management team since its commencement in December 2008.

Alain Mignot, Co-Founder and Director, ALLIANCING ASSOCIATION OF AUSTRALASIA (AAA)Alain Mignot is the co-Founder and the Director managing the Association of Australasia Limited (AAA), an independent cross-industry forum whose mission is to promote excellence in Alliancing through the adoption of best practices. Prior to this initiative, Alain Mignot held a number of leadership roles as part of the Strategic Alliances group of Cisco Systems Inc. in Europe and North America, including Director of Alliances Operations responsible for defining and implementing the services, expertise and programs to support Cisco’s Alliance managers’ alliance activities and solutions, Director for Consulting & Systems Integrators Alliances, and as Alliance Manager initiating and developing global Alliances at Cisco since 1992 both in Europe and North America.

Jim Millar, Regional Commercial Manager, ABIGROUP CONTRACTORSWith almost 40 years experience in the building and engineering construction industry, Jim has developed a solid reputation for his detailed knowledge of all aspects of project and program delivery. His career has extended across many overseas projects in addition to many parts of Australia. Jim has specialised in the commercial management fields of the industry and, in recent years, has focussed on the various models of relationship contracting including alliances, ECI and hard dollar hybrids.

Cameron Mills, Senior Project Engineer, WEST GATE FREEWAY ALLIANCECameron has over 14 years in the construction industry including the last 6 years in Alliances in Australia and the United Kingdom, He has worked on a number of large scale projects such as the London Underground (Metronet Alliance) – Project Manager, Woolwich Arsenal Docklands Light Rail Extension – Delivery Manager and the Westgate Freeway Alliance as Services and Utilities Manager. He has a masters degree in Project Management and is focussed on the relationship between engineering and project management.

David Morse, General Manager Capital Delivery, MELBOURNE WATERDavid is a Chartered Civil Engineer with extensive experience gained over the last 36 years in Water Utilities around the world. This ranges from project management and implementation of major programs of work, operational expertise to strategic planning and asset management. David’s immediate challenge is to ensure that Melbourne Water delivers a $3.5Bn Works Program over the next five years. Current role is General Manager Capital Delivery Melbourne Water

Steve Morton, Senior Consultant, JMW CONSULTANTS – ASIA PACIFICSteve has an eviable track record spanning twenty five years in developing and coaching individuals and organisations to achieve high performance results. He has played a key role in the successful delivery of over thirty large-scale alliances and major projects across many industries. Steve supports all phases of alliance delivery from partner selection and supporting bidding consortia, through establishment to developing high performance teams and the delivery of exceptional results.

Richard Morwood, Director Development and Alliancing, AECOMRichard is the Director Development and Alliancing for the planning, advisory and engineering consultancy, AECOM (Australia – New Zealand region). AECOM is a global design and engineering consultancy with more than 44,000 employees serving clients in more than 100 countries around the world. Richard has 33 years experience working on infrastructure projects involving engineering studies, design, procurement and project delivery with particular expertise in transport, mining and environmental projects. As Director Development and Alliancing, Richard is responsible for the delivery of AECOM’s alliancing business across Australia and New Zealand. Richard is currently an Alliance Board member for Eastern Busway Alliance.

Glenn O’Grady, Manager – Special Projects, COFFS HARBOUR CITY COUNCILGlenn has worked in Local Government and private Consultancy for over 20 years, the last 14 delivering mainly Water Supply and Sewerage projects for the Coffs Harbour City Council. Glenn and managed projects that have supplied water and sewerage services to villages in the Coffs Harbour area, trunk system upgrades, reservoir construction, Treatment Plant upgrades and major Reclaimed Water projects. As part of the Coffs Infrastructure Alliance, Glenn is Council’s Project Manager, and representative on the Alliance Project Management Team (AMPT). The Alliance recently delivered approximately $155m worth of infrastructure to the City.

Sukumar Pathmanandavel, Coffey Geotechnics Global Leader, COFFEYCoffey’s Global Leader for Geotechnics, Sukumar Pathmanandavel has over 25 years experience as a geotechnical engineer and senior manager. In his current role, Sukumar is responsible for the growth performance and technical excellence of a specialist geotechnical consultancy business within Coffey with over 600 staff that operates from Australia, NZ, Canada, and the UK. Sukumar has been a driver of major projects culture in Coffey Geotechnics. Sukumar is currently Coffey’s SERG (senior executive review group) member for the Ballina Bypass Alliance. He is a key figure in the transformation of Coffey through the recently released 3 year strategic plan, driving growth and change through strategic management.

Wayne Pearce, Former Captain and Coach, NSW BLUESIn addition to being a professional Rugby League captain and coach at the highest level for over 20 years, Wayne Pearce also studied psychology at university and worked as a high school teacher before moving to the corporate world. It was during his 6 years as a sales executive that he observed a general lack of high quality teamwork in the corporate workplace. He identified a definite need for corporate team development programs that addressed the core issues causing poor teamwork as opposed to the commonplace “team-building activities” that provided a band-aid approach to the problem. After seven years as a professional Rugby League coach, Wayne returned to the corporate world intent on helping business teams maximize their potential.

Laurent Peguret, Managing Director, BOUYGUES TRAVAUX PUBLICS AUSTRALIA and ALT MEMBER, HALE STREET LINK ALLIANCELaurent Peguret is the Managing Director of Bouygues Travaux Publics Australian Branch. Prior to his arrival in Australia, Laurent held the position of Regional Managing Director with VSL Asia Pacific, another subsidiary of Bouygues’ specialized civil works division. In Australia, Laurent’s main responsibility is not only to present Bouygues’ expertise and technical know-how in the civil works field but to share its vision of carrying out added-value sustainable infrastructure projects. He is a member of the Alliance Leadership Team for both the Hale Street Link Alliance in Brisbane as well as the Glenfield Junction Alliance in Sydney.

Sebastian Salicru, Director, ALLIANCE BENCHMARKING INSTITUTE (ABI)Sebastian is a performance psychologist, and accomplished facilitator, with more than 15 years experience in the areas of leadership development, organisational transformation and building high performance teams. He is currently working with one of the top AFL clubs, consulting to alliances across Australia, and completing a Doctorate that investigates the link between alliance relationships and performance outcomes.4

Alliance Contracting Excellence Summit

Wayne Seaward, Senior Organisational Development Consultant, ADVANCED PEOPLE SYSTEMSWayne has over 20 year’s experience assisting organisations and individuals to achieve their full potential. Prior to focusing on Alliance and Joint Venture, Executive Coaching in early 2006, Wayne held senior positions within corporate consulting organisations as well as senior internal consulting and senior general management roles within national organisations. Wayne has a proven track record in coaching executives to surpass their personal and business goals. His career has consistently been marked by his passion for outstanding leadership. He has led the introduction of major initiatives across organisational and alliance leadership teams.

Louise Silburn, Senior Consultant, PCI ALLIANCE SERVICESLouise is an experienced facilitator and executive coach with a passion for helping teams and individuals to be the best they can be. She currently works with a number of construction alliances in Sydney and sees her role as being to challenge and support them to face the tough issues and manage them with energy and truthfulness.

Derek Skinner, General Manager (Major Infrastructure Projects), DEPARTMENT OF TRANSPORT AND MAIN ROADS, QLDDerek is a long serving member of Main Roads. After graduating as a civil engineer in 1969, Derek joined Main Roads in Roma. From there he acquired district experience in Toowoomba, Brisbane, Barcaldine and Bundaberg, before moving to Brisbane where he has had a number of senior management roles in the construction, project delivery and project management disciplines. Prior to his current role, Derek was the General Manager (Major Projects), where he was committed to ensuring Main Roads had the capability to lead and manage delivery of major road and transport infrastructure. He has had considerable experience in the development, procurement and delivery of a number of challenging projects such as the Port of Brisbane Motorway Stage 1, Boggo Road and RBWH Busways, Tugun Bypass and the current Ipswich Motorway upgrade. He is recognised nationally as a leader in the development and appropriate use of relationship bound contracts such as ECI and alliancing.

Dale Smith, Northern Track and Civil Alliance Coordination Manager, ARTCDale has been working in the Rail industry for the past 5 years in roles covering various areas from Asset Management and Project & Construction Management. He joined ARTC in January 2005 from roles in Local Government. Since 2007, Dale has been involved with the North Coast Improvement Alliance as both an AMT member and also in the role of Alliance Co-ordination Manager. Dale’s primary role in the Alliance framework has been to represent and incorporate client objectives into the Alliance to ensure delivery of desired project outcomes.

Warwick Tidswell, Alliance Program Manager, CASPA ALLIANCEWarwick has more than 25 years of engineering experience in industrial, building and large scale multi-disciplinary water and wastewater infrastructure projects. Warwick is currently the Alliance Program Manager for the Coombabah and Stapylton Program Alliance and Coffs Infrastructure Alliance. Warwick’s industry-wide reputation for delivering high quality, projects on time and on budget has been gained through a number of water and wastewater alliances and projects including the Coffs Infrastructure Alliance (CIA), Merrimac Alliance, Illawarra Waste Water Strategy and the Kurri Kurri Wastewater Treatment Works.Warwick has spent most of his career working on large infrastructure projects. As well as the water and wastewater projects mentioned, he has worked on the Channel Tunnel (England)(£140M), Port Kembla Copper Smelter (NSW)($120M), and Saxonvale Coal Washery (NSW)($40M).

Bob Vickers, National Alliancing Manager, ABIGROUP CONTRACTORSBob is a civil engineer with over 35 years’ experience in major civil infrastructure project delivery. He first worked in an alliance more than 10 years ago and has been a passionate advocate for alliancing ever since. Bob Vickers holds the position of National Alliance Manager within the Abigroup and has been a leader in bringing alliancing to the forefront of Abigroup’s business. He has a thorough understanding of all aspects of alliancing including the selection process, value for money and development of cultures that produce smart ideas and innovation. He is also well versed in the commercial and legal frameworks that underpin successful alliances.

Malcolm Washbourne, Principal Consultant, SRD CONSULTINGMalcolm Washbourne is the Principal Consultant and Managing Director of SRD. With Ann Spencer he co-founded SRD Consulting in 1986 to provide services in organisational development and change, professional development and training, and research services to private sector and government organisations. Over the past 18 years Malcolm has moved the organisation to become the consulting company of choice in its chosen markets. Malcolm’s goals for the next period involve consolidating SRD’s position as the pre-eminent supplier of services to Improve Capital Projects Results both in Australia and overseas ensuring the development and delivery of leading edge products to Improve Organisational Performance and establishing a sustainable business which focuses on Improving the Performance of People.

Peter Winder, Alliance Manager, NOVO RAIL ALLIANCEPeter Winder boasts over 25 years of rail experience across a diverse range of projects, focusing on projects which have contributed to growing rail industry capacity and further expanding the rail network. He has worked for State Rail, FreightCorp and Pacific National and was approached in late 2008 to lead the Novo Rail alliance bid team. As a General Manager experienced in managing complex rail businesses, Peter has the knowledge and skills necessary to provide Novo Rail’s client and equal alliance partner, RailCorp, and other alliance partner stakeholders, the assurance of delivering value for money business outcomes. Whilst his skills in running multi-disciplinary groups focused on joint outcomes are particularly pertinent to his role as head of the Novo Rail alliance, Peter also has extensive General Management experience in both public and private sector environments and a strong track record in delivering results.

Greg Winchester, GM Infrastructure, BOVIS LEND LEASEGreg is the General Manager for Bovis Lend Lease’s national Infrastructure business unit. In addition to this, he is on the Alliance Leadership Team for the following alliance projects:• Sydney Water – NetWorks Alliance (Watermains Program Alliance)• Sydney Water – Water Delivery Alliance (Desalination Pipeline)• Gold Coast Water – Streamline Alliance (Merrimac West Wastewater Upgrade)

Peter Wilkinson, Alliance General Manager, SPRINGVALE ROAD RAIL ALLIANCEPeter Wilkinson has over 20 years of engineering experience across a wide variety of construction projects. In that time he has obtained significant Alliance experience working on the Southern Improvement Alliance for ARTC as well as the Middleborough Road/Rail Alliance and the Springvale Road Rail Alliance, both for VicRoads. The Middleborough Road Rail Alliance won a significant number of industry awards including the 2007 ACE Alliance Contracting Excellence Award. Peter is currently the Alliance General Manager on the newly formed South Morang Rail Extension Alliance.

Martin Wood, Project Manager, SAFELINK ALLIANCEMartin Wood has over 20 years experience in constructing major infrastructure across Australia and the United Kingdom. His experience spans across a wide range of construction projects including Terminal 5 in Heathrow Airport, the Eastern Distributor in Sydney, the Inner City Bypass in Brisbane and numerous other civil and infrastructure projects. As the Alliance Manager at SAFElink Alliance, Martin has led a unified team that is set to deliver the Ipswich Motorway Upgrade from Wacol to Darra over six months ahead of schedule. As a leader, Martin has become known for his passion in driving an industry-leading approach to behavioural safety practices, developing young leaders, providing real value to the local community and taking a proactive approach to exceeding environmental requirements.

5

6

In the world of alliances, the now-familiar debate about Value for Money (VFM) continues to gather steam and, in some cases, rages on.

Value for Money: “Us” versus “Them” Revisited?

Not only is this topic the focus of sometimes intense disagreement, it has also become the focus of much study. We have seen comparative studies of various procurement models, for example, and there is marked lack of consensus about methodologies used as well as the different conclusions drawn. Even though it has been found that most alliances are delivered at a cost below their Target Outturn Cost (TOC) and above the minimum conditions of satisfaction for the non cost key result areas, whether this represents value is still very much in question.

If we are true to the principles of alliancing, this is a debate which demands mindfulness and constructive conversation. Those of us involved with alliances work in a context where we have historically broken down barriers, challenged each others’ thinking, yet ultimately gained each others’ trust and made great gains because of it.

Over the past nearly 20 years, my colleagues and I have seen alliances transform the adversarial “us” and “them” paradigm. Alliance collaboration amongst competitors, vendors and clients has resulted in radical shifts that created new thinking, ways of operating and behaviours. Historical and conventional views have been confronted honestly, allowing parties to genuinely listen to each other and thus create something new.

It is interesting, and perhaps somewhat unfortunate, that as the VFM debate continues to twist and turn, we are seeing a similar “us” and “them” emerge in some approaches to the conversation. The new “us” seems to be those who are persuaded that collaboration almost always leads to unquestionable benefits for all participants and creates significant value for the owner and other key stakeholders. The “them” are those who take a different view of how VFM—particularly when spending taxpayers’ dollars—should be considered and assessed.

Granted, the demarcation between ‘us’ and ‘them’ is not as simple as it was back when alliancing was something new. There are now many diverse players who view value and what

is wanted and needed on any project, particularly a public endeavour, from very different vantage points. For the purposes of this discussion, by “us” I will refer to commercial partners and representatives of the asset owner within the alliance, with “them” being the central government agencies—often Treasury, and in some cases, policymakers.

The VFM dialogue between these stakeholders has many of the hallmarks of conversations I witnessed for many years (and still do in some cases) between owners and contractors/ consultants in adversarial contracting arrangements. Both then and now, the fixed points of views, conclusions and assessments of all parties have operated as a filter to the point where both “sides” can barely hear each other – and certainly cannot listen to each other in a way that would allow for resolution of the issues at hand.

It is now a platitude to say that people have different perspectives. Yet while self-evident in theory, it is all too often not reflected in behaviour. In the case of assessing the VFM of alliances, I suggest it would be useful to briefly examine just one aspect of the two primary perspectives in the debate.

From one perspective, value is viewed almost exclusively at the project level. The concerns and interests of stakeholders are considered as they pertain to the project level, with value defined by the cost and non-cost Key Result Areas in the Project Alliance Agreement. So raising the level of, for example, community or environmental outcomes for the same money represents value, from this perspective. Similarly, adding additional functionality or a new innovative approach for the same money represents value from this perspective. In some cases we hear owners and non-owner alliance participants argue that an alliance delivered extraordinary VFM, even though the funds spent were at—or even above—the Target Outturn Cost. They will point to innovation and additional functionality, quality, environment, traffic, and/or community benefits etc. to demonstrate the additional value gained.

So are they wrong? Not when you look at it from the perspective of the project. Through the lens of what is of primary importance to the parties at this level, the value is unquestionable.

But what happens when we look at it from a Treasury or Whole of Government perspective? What do they see? They see functionality, environmental and community standards beyond what they consider necessary or at least beyond what was

Alliance Contracting In Focus

If we are true to the principles of alliancing, this is a debate which demands mindfulness and constructive conversation.

7

About the authorDeborah Kiers, Managing Director, JMW CONSULTANTS - ASIA PACIFIC

Deborah Kiers has over 20 years experience supporting organisations in Australia, the US and Canada to dramatically elevate their performance through leadership development, executive coaching, organisational transformation and building high performance teams. She has been at the forefront of breakthroughs in organisational performance and alliance contracting across a wide range of industries. Deborah designs and leads JMW’s executive development programs, including the highly acclaimed Leader of the Future™ program.

specified in the original business case. They see an additional level of expended funds that could have been spent on other infrastructure and public services. They see TOCs sometimes well above budget numbers and significant gain shares being paid out to contractors and consultants. While 50 percent of these gains are also returned to the owner, this again in their view is all money that could have been spent on other infrastructure and other social services. They therefore see elected officials’ decision-making about where public money should be spent potentially undermined by these approaches.

So are they wrong? Not when you look at it from a whole of government perspective, through the lens of what is of primary importance to the decision-making bodies at this level of government. Elected officials are the ones ultimately charged with the difficult determinations about whether roads, water treatment plants, schools or hospitals should take priority and be built or upgraded. So through this lens, the added value from alliances, particularly those that exceed their TOC or expend monies to deliver beyond the business case is questionable.

Let’s see how this played out on a recent project. The project ended over the TOC but was deemed a success by many on other measures. The alliance believed that they had delivered excellent VFM; the owner was delighted as they had a working asset and had delivered it with few community disruptions and no service disruptions during construction, and safety was excellent. In addition, the owner had gained considerable skills and knowledge transfer (a big secondary benefit), and all the local politicians were happy.

But what Treasury saw was a significant overspend, with many of the secondary benefits (happy local politicians, knowledge transfer, etc.) neither in their original business case nor representing outcomes that they would necessarily have believed that they should pay significant extra dollars to get. Thus Treasury question the VFM, while locals say ‘Good VFM’, and the owner says ‘Excellent VFM’!”

This example reflects one aspect of the situation and illustrates why peoples’ perspectives can and do diverge. By definition, the alliance delivery model is best utilised on projects with a very high degree of complexity and “unknowns.” So the original business case often includes less specificity and clarity about exactly what is needed, and rarely is a revised business case presented once more detail and definitions of value have been determined at the project level. The situation is a bit like having made a business case for a delivery van and getting a Volvo station wagon. There may be little debate that the Volvo is better quality, safer, more environmentally friendly and a better ride. It’s just that was not what was originally requested.

So it is worth asking whether there can ever be a right or wrong answer to the question about whether alliances deliver VFM. Will the debate as it is currently framed ever be resolved? I would venture to say no.

There clearly needs to be much more rigorous dialogue to align the needs and interests of all players at various points during the procurement process. But I believe that there is also more at play. The situation is strikingly similar to the debates in the early days of alliances—between owner and non-owner participants - about whether contractors could ever make decisions based on social values and priorities, or whether public servants could ever see the drive to make profit as legitimate. These impasses were transformed by all parties’ willingness to truly listen and understand each others’ perspectives, to put past based conclusions and views aside – and through a shared commitment to the belief that the results of the alliance could and would, without question, satisfy what is of primary importance to all parties.

The same spirit and intention is sorely needed in the current debate and will require buy-in from all parties if we are to see the benefits of collaborative contracting reach a new level of performance. It will take the same commitment to ensure that all concerns are fully listened to, considered and addressed. It will take openness beyond the righteousness that has sometimes been evident in the current debate. And given where things now stand, it will take a willingness of all parties to take responsibility for their own contribution to the polarisation of the debate.

As we all know, in all endeavours once we move forward beyond ”Us” versus “Them,” we truly move forward.

These seeming impasses were transformed by all parties’ willingness to truly listen and understand each others’ perspectives, to put past based conclusions and views aside.

About JMWFor over 25 years, JMW has supported organisations and project teams to significantly elevate their performance, build leadership capabilities and deliver extraordinary results. JMW articles to note include Alliance Competence: Key Capabilities for Success and High Performance Alliances: A Catalyst for Transforming Organisations? JMW can be reached on (03) 9258 1400 or www.jmw.com

8

DAY ONE AGENDA • 1 JUNE 2010

8.30 REGISTRATION AND REFRESHMENTS9.00 Welcoming Remarks from IQPC and Opening Address from

the Chairperson Jane Bateson, Knowledge and Performance, Capital Delivery,

MElBOuRNE WATER

9.15 The State of the Nation: An Industry Update Alain Mignot, Co-Founder and Director,

AllIANcING ASSOcIATION OF AuSTRAlASIA and Jacqueline Bran, Director Alliance Contracting, IQPc

9.45 KEYNOTE: Alliance Big Bang or End of the Road: Current Trends and Emergent Practices

Bob Vickers, National Alliancing Manager, ABIGROuP cONTRAcTORS

10.25 KEYNOTE: One Size Does Not Fit All: Establishing the Best Fit for your Project to Enable Successful Outcomes

Martin Wood, Project Manager, SAFELink AllIANcE

11.05 cOFFEE AND NETWORKING OPPORTuNITY

STREAM AALLIANCE FUNDAMENTALS: PLANNING AND

PARTICIPATING IN OUTSTANDING ALLIANCES

Chair: Jane Bateson, Knowledge and Performance, Capital Delivery MElBOuRNE WATER

11.30 KEYNOTE: Scaling up to Alliance Contracting: Organisational Readiness and Internal Capability

Stephen Bradford, CEO, PORT OF MElBOuRNE cORPORATION

12.15 Getting Ahead of the Game: Strategic Planning for Owners Cameron Mills, Senior Project Engineer,

WEST GATE FREEWAY AllIANcE Damien Afxentis, Alliance Project Manager,

WEST GATE FREEWAY AllIANcE

1.00 NETWORKING luNcH BREAK

1.50 Comprehensive Alliance Partner Selection Greg Fox, Contracts Manager, Asset Solutions,

SYDNEY WATER

2.30 Our First Alliance: The Road Travelled and Benchmarks along the Way

Peter Winder, Alliance Manager, NOvO RAIl AllIANcE

Peter Melbourne, Alliance Deputy General Manager,NOvO RAIl AllIANcE

Tanya Johnstone, Strategy and Development Manager,NOvO RAIl AllIANcE

Nige Cottingham, Stakeholder and Communications Manager,NOvO RAIl

3.10 Assessing the Impact of the AMT/ ALT: Enabling an Environment where Alliance Objectives are exceeded

Peter Wilkinson, Alliance General Manager, SPRINGvAlE ROAD RAIl AllIANcE


4.15 The Human Dynamic: Leadership, Coaching and Culture Barry Harrison, Formerly Culture and Project Development Manager,

THIESS

4.55 Our First Australasian Alliance Experience: Lessons learned Laurent Peguret, Managing Director,

BOuYGuES TRAvAux PuBlIcS AuSTRAlIA and AlT MEMBER, HAlE STREET lINK AllIANcE

5.30 Chairperson’s Closing Comments and End of Day One

5.45 EvENING NETWORKING DRINKS

MORNING PLENARY FOLLOWED BY STREAMED SESSIONS

AFTERNOON PLENARY

Alliance Contracting Excellence Summit & ACE Awards 20101 – 3 June 2010 • Luna Park, Sydney

STREAM B EXPLORING ALTERNATIVE COLLABORATIVE

PROCUREMENT: ENSURING THE BEST FIT FOR PROJECT

Chair: Sukumar Pathmanandavel, Coffey Geotechnics Global Leader cOFFEY

11.30 From Collaborative D&C to an ECI Framework: Drivers and the Road Travelled

Milind Kumar, Project Director & Mauro Farinola, Senior Commercial Manager – Adelaide Desalination Project, SA WATER

12.15 The Relationship Contracting Journey Pre and Post GFC Derek Skinner, General Manager (Major Infrastructure Projects),

DEPARTMENT OF TRANSPORT AND MAIN ROADS, QlD


1.50 Applying Relationship Based Principals into Hybrid Contract environments: A Toolkit for Success

Jim Millar, Regional Commercial Manager, ABIGROuP cONTRAcTORS

2.30 Price Competitive Alliance Selection: Are two TOCs better than one?

Larry Mudge, Manager Program Delivery,DEPARTMENT OF TRANSPORT AND MAIN ROADS, QlD

3.10 ECI Project Delivery: Objectives and Actual Performance - Case Study The Ring Road

Reg Conroy, Manager (Program Delivery) Major Projects, Northern Region - Townsville Office, DEPARTMENT OF TRANSPORT AND MAIN ROADS, QlD


4.15 Enhancing Collaboration in D&C Contracts: The D&C Performance Revolution

Richard Edwards, Manager Contracting Services, DEPARTMENT FOR TRANSPORT, ENERGY AND INFRASTRucTuRE, SA

9

W O R K I N G T O G E T H E RA C H I E V I N G E X C E L L E N C E

A W A R D S

DAY TWO AGENDA • 2 JUNE 2010

DAY THREE AGENDA • 3 JUNE 2010

8.30 REGISTRATION AND REFRESHMENTS

9.00 Welcoming Remarks from IQPC and Opening Address from the Chairperson Jane Bateson, Knowledge and Performance, Capital Delivery, MElBOuRNE WATER

DELIVERING EXCEPTIONAL VALUE: COMMERCIAL AND PERFORMANCE INITIATIVES

“Not everything that can be counted, counts. And not everything that counts can be counted.” Albert Einstein.

9.10 ALLIANCE ADVISORY BOARD QUESTION TIME: Procuring Alliance Projects post the GFC

Advisory Board Panelists: Paul Hoffmann, GM Network Capital Programme,

QR NETWORK Bob Vickers, National Alliancing Manager

ABIGROuP cONTRAcTORS Richard Morwood, Alliances and Sustainable Infrastructure Director

AEcOM

10.00 SPONSOR SPOTLIGHT: Breakthrough or Business as Usual: How should we view current alliance performance?

Deborah Kiers, Managing Director, JMW cONSulTANTS - ASIA PAcIFIc

10.45 MORNING TEA AND NETWORKING OPPORTuNITY

11.15 Building the Business Case: Transparency and Clarity around what Constitutes Value

Dale Smith, Northern Track and Civil Alliance Coordination Manager, ARTc

12.00 Alliancing Fundamentals: Lessons Learned and Why they Matter Richard Morwood, Director, Development and Alliancing

AEcOM


1.45 KEYNOTE: The Impossible we do Immediately, Miracles take a Little Longer

David Morse, General Manager Capital Delivery, MElBOuRNE WATER

2.40 Ensuring KRAs are Aligned with Strategic Expectations and Intentions for Excellent Project Outcomes

Phil Hattersley, Program Manager, PRIORITY SEWERAGE PROGRAM

3.20 What makes a Great Alliance? A Constructor’s Honest Point of View Greg Winchester, GM Infrastructure, BOvIS lEND lEASE

4.00 AFTERNOON TEA AND NETWORKING OPPORTuNITY

4.30 Managing and Prioritising Design in an Alliance Project Daniel Bennett, Principal, HASSEll

5.15 INTERACTIVE AUDIENCE DISCUSSION SESSION: The Legacy of Alliance Projects: Assessing the ‘Value’ Delivered to Industry through this Delivery Model

5.45 Chairperson’s Closing Comments and End of Day Two

6.00 cOcKTAIl PARTY AND NETWORKING DRINKS

7.00 Gala Dinner and ACE Awards Function: Join your peers at the industry event of the year!

8.45 REGISTRATION AND REFRESHMENTS

9.15 Opening Address & ACE Award Winner Question Time Chaired by Alain Mignot, Co-Founder and Director,

AllIANcING ASSOcIATION OF AuSTRAlASIA (AAA)

INSPIRING GAME-BREAKING PERFORMANCE OUTCOMES HIGH PERFORMANCE PEOPLE AND TEAMS

9.45 KEYNOTE: Demystifying High Performance Team Work Wayne Pearce, Former Captain and Coach,

NSW BluES

10.45 SPONSOR SPOTLIGHT: Breakthroughs in Measuring Alliance Relationships and Predicting Superior Performance

Sebastian Salicru, Director, AllIANcE BENcHMARKING INSTITuTE (ABI)

Colin Beames, Director,AllIANcE BENcHMARKING INSTITuTE (ABI)

11.30 MORNING TEA AND NETWORKING OPPORTuNITY

12.00 SPONSOR SPOTLIGHT: When Things Go Wrong: Strategies to Turn Around Problem Alliances

Ken Lowe, Managing Director, PcI AllIANcE SERvIcES

12.45 Achieving Game Breaking Outcomes in the Face of Adversity Rod Clifford, Project Director, SuGARlOAF PIPElINE AllIANcE


2.20 Feeding the Beast: Effective Management in an Alliance Contract Steve Davidson, Alliance Manager,

cOAl STREAM AllIANcE

3.00 Successful Project Development through Operator Involvement Glenn O’Grady, Manager – Special Projects, cOFFS HARBOuR cITY cOuNcIl Warwick Tidswell, Alliance Program Manager, cASPA AllIANcE

3.45 AFTERNOON TEA AND NETWORKING OPPORTuNITY

HIGH PERFORMANCE PROCESSES AND TOOLS

4.00 Resolving IT Systems Challenges within Alliances Geoff Jubb, IT Project Manager,

AEcOM

4.40 Instilling Transparent High Performance in a Services Alliance Agreement: An Aviation Services Perspective

Mark Clark, Alliance Manager, vIRGIN BluE & JOHN HOllAND AvIATION SERvIcES AllIANcE

5.15 Round up and close of conference

10

As a leader in the delivery of road and bridge infrastructure and transport technology solutions, Queensland Motorways has successfully utilised project alliances to ensure its projects are delivered on time and on budget. Currently, work is progressing on its $2.12 billion Gateway Upgrade Project, which is the largest bridge and road project in Queensland’s history. The project is due to be delivered by 2011 and includes the duplication of the Gateway Bridge, the upgrade of 16 kilometres of motorway and seven kilometres of new motorway north of the Gateway Bridges, including a second access to the Brisbane Airport.

Utilising Project Alliances Effectively

To further improve traffic conditions on the Queensland Motorways road network, it was decided that Queensland Motorways would transition from a hybrid cash and constrained lane electronic tolling operation to a full open-road electronic tolling system, known as free-flow tolling. This was to occur prior to the opening of the second Gateway Bridge in 2011. Free-flow tolling was in fact delivered two years earlier than originally planned, providing the benefits to customers sooner.

During the free-flow tolling concept study, it became apparent that interchange upgrades in the vicinity of the existing toll plazas would be necessary to allow motorists to safely enter and exit the motorway at the planned higher speed. Queensland Motorways chose to form a project alliance to deliver the design and construction of the civil works necessary to transition to free-flow tolling. Through a competitive selection process, BMD Constructions (BMD) was chosen as the preferred construction partner and Kellogg Brown & Root Pty Ltd (KBR) was contracted as the design partner, the partnership became known as the Logan Alliance.

Overall, the Logan Alliance delivered value for money from both a cost and a non-cost perspective by adopting and maintaining a project specific value for money framework and focusing on achieving outstanding performance within the nominated KRAs. The most significant demonstration of value for money was in the achievement of the principle project objective – the completion of the works prior to the nominated deadlines. The necessary works to commission free-flow tolling were completed within a period of less than 15 months and prior to the publicly announced completion date. This was approximately three months sooner than the earliest achievable date for ‘go-live’ under a traditional contract (as per preliminary program for a traditional contract produced during early stages of the Free-Flow Tolling Project).

Queensland Motorways CEO Phil Mumford said when forming alliances Queensland Motorways looked for whole-of-life outcomes on its projects and encouraged tenderers to look for innovation.

“The key to achieving value for money is to set realistic budgets and timeframes at the beginning,” Mr Mumford believes.

“Strong risk management is also essential – good systems, good people, and adequate resourcing. If all of these elements are established well, it places the project in good stead for delivery in terms of time and budget,” he said.

“Queensland Motorways evaluates tenders based on their potential to deliver value for money with both quantitative and qualitative issues assessed, not just the tender price. We look at some non-price features that we believe are extremely important and then bring it all back to an adjusted comparative price, giving us a very high degree of confidence on the value for money tender that we ultimately select.”

Key objectives within the Queensland Motorways Free-Flow Tolling alliance framework includes achieving value for money through:

• contributing to achievement of company objectives

• non-cost factors such as fitness for purpose, risk exposure, quality, service and support

• cost-related factors including whole-of-life costs and expenses associated with acquisition, use, maintenance and disposal.

• meeting Queensland Motorways’ specific objectives, policies and codes of practice with respect to environmental sustainability, compliance and workplace health and safety (goal of Zero Harm)

• ensuring probity and accountability for outcomes

“On the and the Free-Flow Tolling Project Queensland Motorways determined that the best way of achieving value for money was to form project alliances rather than traditional forms of contracting (i.e. hard dollar contracting),” Mr Mumford commented.

In Phil Mumford’s view the benefits from a value for money perspective of delivering the works via a project alliance are significant.


11

Keeping up-to-date couldn’t be easierConstructionIndustryNews.net delivers the latest construction equipment, product and technology news and information direct to your desktop, three times a week.

CONTRACTOR is a monthly magazine presenting news, in-depth product reviews and research on the civil construction industry.

For a FREE TRIAL or to subscribe, visit www.industry-news.net

&

About the authorPhil Mumford, Chief Executive Officer, QUEENSLAND MOTORWAYS

“Non-owner participants utilise their capacity and aspiration to deliver the project within tight timeframes to meet the completion date. A traditional form of contracting would require the entire design to be completed upfront. This would potentially reduce the time available for construction by up to 50 per cent and make it highly improbable to achieve practical completion by the announced deadline,” Mr Mumford shared.

Also, “a project alliance allows for an undefined scope to be developed and alternative design solutions investigated with contractor input. This approach is not suited to a traditional delivery model, which lacks the benefit of having contractor input during design development and potentially leading to significant cost and delay to completion”.

Mr Mumford added that transparency and openness was applied on all Queensland Motorways projects in relation to budget, risk and expenditure over which Queensland Motorways has influence and control.

He added, “a structured relational approach by all parties enables various groups, cascading down through the organisations, to share information and minimise knowledge loss”.

Mr Mumford said achieving the principle objective – the completion of works on time and budget was a direct result of good planning, strong documentation under which we entered an agreement, good people, advice and adequate resources.

“It is important not to lose alliance contracting benefits by focusing on price alone. However, it is also just as important to keep everything in balance and ensure that the focus on effectiveness and efficiency in alliance partnerships is not lost along the way,” he concluded.

Phil joined Queensland Motorways as Chief Executive Officer in July 2004. He plays a pivotal role in providing strategic direction on Queensland Motorways’ landmark projects, including the $2.12 billion Gateway Upgrade Project and the introduction of free-flow tolling. Phil leads the Company’s commitment to delivering the highest level of customer service to the users of Queensland Motorways’ road network and drives high level stakeholder relations and management initiatives. Phil has a strong financial background, extensive experience in consolidating organisations and has held a number of senior positions in the private and public sectors.

Alliance Industry Spotlight

Five minutes with Andrew Stevenson, Alliance Construction Manager for BAULDERSTONE PTY LTD

12

Alliance Contracting IQ interviews Andrew Stevenson, Alliance Construction Manager for Baulderstone Pty Ltd. Andrew has a wealth of technical expertise, as well as a proven track record in alliancing and a fundamental understanding of community issues. With over five years in a design role, Andrew understands the challenges and opportunities faced by both designers and constructors in an alliance.

Andrew has over 20 years experience in design and construction of major civil infrastructure projects including Brownfield urban infrastructure projects, both locally and internationally.

In a nutshell, what’s your role and what responsibilities are involved?I am the Alliance Construction Manager for Baulderstone in Victoria. My role is to work with Victorian alliances to help them successfully reach their goals. I am involved in leadership, challenge and catalyst teams to support that goal. I also work with alliance teams to look for solutions and problems and also provide technical expertise where needed across the teams.

How long have you been engaged in alliance contracting? I’ve been working in alliance contracting for ten years! My first alliance was the Northside Storage Tunnel in Sydney which was completed just before the Sydney Olympics. I joined Baulderstone Pty Ltd 6 years ago and I have been involved in a number of project and program alliances within the road and water sectors.

If you could use three words to describe what alliance contracting means to you – what three words would you use? Opportunities, relationships and collaboration.

What were your drivers to engaging in this specific project delivery methodology?It is about the efficient delivery of infrastructure projects within complex urban environments. The alliance contract delivery method is ideal where there is a large number of unknown risks, as it enables all parties to be involved in creating the right solution.

What are your key lessons learned and what pitfalls would you recommend avoiding?A key lesson is to ensure a clear definition of individuals responsibilities and accountabilities early in the formation of an alliance contract. Many alliances teams struggle to set up an effective decision making framework in the early stages of the alliance. This causes confusion and frustration amongst team members. Early clarity of individuals roles avoids this confusion and streamlines the decision making process to assist in meeting the objectives of the alliance.

How has alliance contracting changed the way that you do business?Alliance contracting has emphasised the importance of people to the successful delivery of projects. It has increased awareness of the value that everyone can bring to the table. In traditional contracting parties can misunderstand each other and grow frustrated with each other as their sphere of influence is constrained. However, alliancing gives everyone an equal voice.

Value for money is always a critical factor in alliance projects – what is your best practice tip to ensure the anticipated return or ‘value’ in a project? All parties need to understand what value means on each particular project and this definition needs to be shared with the team at the start of that project. Everyone needs to have a shared goal and to understand what is important for the alliance.

What innovation are you most proud of in relation to your alliance project portfolio? It is specific to an innovation delivered on the Tullamarine-Calder Interchange. There was a noise wall proposed to be built adjacent to the freeway as a way of managing noise levels for the local community. However, after consultation with the community a change was made to attenuate that noise offsite and instead to improve the noise attenuation characteristics of individual properties. The community saw this as a significantly better option and it was also a far safer option for the constructors. It was a great win for all involved and demonstrated that listening to a community can make a difference.

Lessons Learned and The Future of Relationship Contracting...

If you could go back and do anything differently – what would you change? I would plan succession of individuals to assist with growing the resource pool for future alliances. I would consider the options for key roles in an alliance and move people across roles, where appropriate. This enables individual grow and also better supports industry skill sets.

What’s the future for alliance contracting in your opinion? I think the future for alliance contracting is strong – for the right project. A project needs to have a set of parameters that lend itself to an alliance such as; unknown risks, multiple stakeholders, complex environmental approvals, urban environments and construction in an operating environment.

Alliance contracting IQ thanks Andrew for his time!

From Project Managers to Alliance Managers

As the benchmark for alliance leadership capability is lifted by successive successful alliances, the role and possibly the title for the Alliance Project Manager will start to change and stretch the existing class of candidates for these important Project Manager roles.

This will be further tested, in 2010, as the number of alliance projects increase, stretching the existing pool of project managers with both large project and leadership experience even further.

As these demands broaden the role of Project Manager so the ideal characteristics grow and evolve. We all need to remain vigilant and ready for personal growth and the changes needed to keep step with the demands of our clients and the complex project now in the marketplace. Alliance Leadership Team Members will also be stretched as the capabilities of the project managers extend the boundaries of their role.

The industry business-as-usual brief for a project manager needs to be redefined to set a stretch set of characteristic for an Alliance Manager. These characteristics should also focus on the leadership and people side of the role in greater detail than is constantly used by industry today.

We still need to keep in mind the technical and project management capabilities needed to fulfil this important role of Alliance Manager. Both the people / leadership and project management capabilities need to be identified within the Alliance Managers of future or is the future already here?

The culture of an alliance that has a self aware and competent Alliance Manager is characterised by a focus on integrity, trust, creativity, intuition, innovation, freedom, flexibility and generosity.

This culture is one which searches to create conditions for cohesion, community spirit, and mutual accountability and that recognises the importance of strategic alliances with suppliers and stakeholders.

Their leadership causes a shift from control and fear to one of trust, privilege to equality, and fragmentation to unity. The conscious (self aware) Alliance Manager knows what culture they want, “and establishes the processes to ensure that the culture is implemented across the project”. This is a rarely seen process and a challenge for most Project Managers.

The Alliance Manager needs to create an environment that fosters a balanced integration of the alliances vision, strategic goals and operational realities by encouraging and nurturing higher levels of innovation and a collegiate behaviour and a highly productive attitude among the management team and the wider project team.

The culture within the alliance is routinely created by the verbal and nonverbal messages expressed by the Alliance Manager and the leadership team about what people have to do to fit in and be rewarded.

Most alliance cultures are formed unconsciously by the Alliance Manager and leadership team and habitually sustained by the wider project team and stakeholders.

With this in mind it is important for the Alliance Manager to understand the culture and climate he or she wished to develop and the strategies needed to deploy and drive the culture and climate they are looking for. This is a never ending challenge and focus for the Alliance Manager and their management team, not a onestep activity.

Key to the success of an alliance is the leadership developed and delivered by an Alliance Manager that understands the role they play in forming, developing and leading the right culture and climate, that in turn, underpins the success of the management team, the wider project team and the success of the overall project.

“A word of warning for Alliance Leadership Teams: if you have a capable, competent and self aware Alliance Manager but poorly structured management systems or client protocols the poor management systems / protocols will win out every time.”

The role of the Alliance Project Manager has further developed and changed over the past twelve months as the demands within the alliance environment and the expectations of our clients has grown exponentially.


About the author

Wayne Seaward, ADVANCED PEOPLE SYSTEMS

14

Measuring What Matters: Alliance Relationships and Performance

Project alliancing involves both “hard” (technical, financial, etc.) and “soft” (human) challenges. While business is well-used to measuring the former, there has been a lack of suitable tools to measure, diagnose and improve the “softer” issues of relationship building and maintenance at all levels of an alliance.

Psychologists are essential to repairing this shortcoming. Alliances require “the right psychological foundation” and a different “psychological bargain” compared to more traditional forms of contracting. Furthermore, psychologists are trained in measurement of human attributes.

On this basis, a new model for measurement of “soft” metrics, the Alliance Psychological Contract (APC), was initially developed to a rudimentary stage by Beames (2007) , and subsequently refined through empirical research involving Australia-wide interviews with 24 alliance experts, who have 600 years of combined experience.

The development and application of the APC model, which is part of a PhD investigating alliance relationships and performance outcomes, can help build more committed and innovative teams, and create faster, smoother and extraordinary outcomes that transcend business as usual.

Making More of MethodologyAustralia has been credited with leading the world in the use of alliances yet Australian alliance-related research has been largely descriptive, focusing on definitions, or anecdotal, using case-based interviews. It has been inconsistent and lacking in rigour.

The above-mentioned PhD aims to address that deficiency by combining advances in the measurement of intangible assets and human capital metrics. It provides a clear definition and the means of measuring the psychological bargains made by alliance members.

In addition to conducting interviews, the methodology includes a quantitative component. An APC survey (based on the APC model) has been developed, and was used to sample 16 project and program alliances across various industries in Australia and New Zealand.

The Alliance Psychological Contract (APC)The APC is based on the concept of the Psychological Contract (PC), which describes the unwritten bargains which exist in working relationships, and is one of the emergent topics in organisational research.

The APC takes the concept further. It extends to relationships between alliance members and addresses the fact that members expect peers and managers to behave in accordance with alliance principles.

The APC represents the mutual beliefs, perceptions and informal or unwritten promises and/or obligations between alliance members, which are the basis for the dynamics of their relationships. The model assumes that the health of the APC has a direct impact on members’ behaviour.

The APC diagnostic model comprises two drivers and seven measures which account for the key elements that can mean the difference between business as usual and the achievement of extraordinary outcomes, as depicted in the figure over the page.

The Alliance Psychological Contract (APC) ModelThe two drivers are alliance principles and leadership. These are the contract “makers and shapers” of the APC which strongly influence alliance behaviours.


The exponential growth of alliances over the past decade has led to an increase in historical, sociological and psychological research into collaborative modes of work. The key to success with alliance projects is effective collaboration between the owner organisations, designers and builders of infrastructure projects. It’s a situation that has led to greater interest in how individuals behave and in ways to transform groups into high performance teams.

15

About the author

Sebastian Salicru, Director, ALLIANCE BENCHMARKING INSTITUTE (ABI)

Sebastian is a performance psychologist, and accomplished facilitator, with more than 15 years experience in the areas of leadership development, organisational transformation and building high performance teams. He is currently working with one of the top AFL clubs, consulting to alliances across Australia, and completing a Doctorate that investigates the link between alliance relationships and performance outcomes.

For more information you can reach Sebastian Salicru at: [email protected]

The first three relationship measures reflect the health of the APC: fulfilment of expectations, trust and fairness.

These in turn lead to two initial outcome measures – commitment and satisfaction – which impact on the final two measures, discretionary effort (going that extra mile) and innovation.

The APC survey mentioned earlier constituted the second quantitative phase of the research.

There are three versions of the APc survey, each aimed at a different group within an alliance:

• Alliance Leadership Team (ALT);

• Alliance Management Team (AMT); and

• Wider Project Team (WPT).

Subtle differences between the versions reflect the structural differences within an alliance.

The application of the APC model has validly and reliably measured and diagnosed the health of alliance relationships. It enables comparisons within and between alliances using established benchmarks. The APC survey findings highlight the

areas requiring attention and provide the insights necessary for timely, targeted interventions to address any problems.

The Alliance Psychological contract (APc) Model

“The development and application of the APC model, which is part of a PhD investigating alliance relationships and performance outcomes, can help build more committed and innovative teams”

Alliance Principles

--------------------------------------------------------------------------------

AllianceLeadership

(ALT & AMT)

(Leading by example)

Discretionary Effort

Innovation

Two Key Drivers: The Contract Makers

Health of the APC

Three Independent variables

Consequences of the APC

PROJECT PERFORMANCE

(extraordinary outcomes or breakthrough results)

Fulfilment of Expectations

Trust

Fairness

Commitment

Satisfaction

Mediator variables

Final Outcome variables

Four Dependent variables

Seven key measures of alliance relationships

© Alliance Benchmarking Institute


Five minutes with Stephen Bradford, CEO PORT OF MELBOURNE CORPORATION

16

Stephen was appointed Chief Executive Officer of the Port of Melbourne Corporation in January 2004, providing leadership for the strategic management of Australia’s largest container and general cargo port.

Stephen is a keynote at the 10th Annual Alliance Contracting Excellence Summit in 2010 and here, shares his insights into the project and the complexities of managing a project on this scale.

First of all, how important is the Port of Melbourne to the Victorian economy?Australia is an island nation that relies on ports to bring goods in and out of its major centres on a daily basis. Handling around 36% of the nation’s container trade with more than 3,400 commercial ship calls each year, the Port of Melbourne is Australia’s premier trading gateway and one of the world’s top 50 container ports. Indeed, the Port of Melbourne handles more containers than the ports of Brisbane, Adelaide and Fremantle combined. Generating employment for tens of thousands of people directly and indirectly, this port contributes more than $5 billion each year to the Victorian economy and ensures efficient export of such leading goods and commodities as dairy products, cereal grains, fruit and vegetables, cars, meat, and wine. In all, approximately $75 billion worth of trade passes through the port each year.

Why did the Port undertake the Channel Deepening Project?This major project opens up Melbourne’s sea highway to the world and provides greater efficiency by accommodating larger vessels with a deeper draught.

Prior to deepening, the Port of Melbourne was constrained to an all-tides draught of 11.6 metres. Twelve months ago figures for the March quarter 2009 underpinned the urgency of the need to deepen with 60% of container vessels potentially draught affected.

This constraint was remedied when a new draught depth of 14 metres at all tides was declared in November 2009. Since then, at least one vessel is making use of the deeper draught every second day which will grow over the 30-year project life.

Why was an Alliance Contracting arrangement used for this project?The Port’s involvement with alliance contracting extends to our alliance arrangement with the dredging operator for the CDP – Royal Boskalis

Westminster of The Netherlands. This arrangement began in 2004 and effectively ended when the CDP was completed successfully in November 2009.

There were several key drivers as a result of the challenging requirements of the Channel Deepening Project. This project required a great deal of pre-planning and scheduling, not only because of the area’s rich array of flora and fauna, but because of its proximity to hundreds of thousands of bayside residents, recreational boats and fishermen and the need to conduct the project while causing minimal disruption to daily commercial and recreational users of the area.

With that as background, it became apparent that such a large and complex project in a dynamic environment required a partner with world-class expertise.

At the same time, there was no local dredge company that was available or capable of undertaking this assignment. Further, as a result of the focus on stringent environmental controls, the project required a company that not only had a great deal of experience in carrying out jobs of similar or larger scope, but were able to develop innovative technologies to complete several challenging aspects of the CDP.

Would you use alliance contracting again?While alliance contracting proved extremely efficient in the carrying out of the CDP, it probably would not be as effective for use in many other Port projects. Before turning to this approach over a more conventional project delivery model, several issues should be carefully considered, including: How complex is the project? Can project risks be equitably assigned to contractors? Are there complex community and stakeholder issues to be considered? Are there major scheduling constraints? Is the project subject to stringent environmental risks? Do we have the right people and time required in-house to properly manage the resources required to carry out the project?

Should any project arise where we believe Alliance Contracting may prove useful, a key learning from the CDP was to spend more time and expertise in the early stage of the arrangement to explore the alliance’s key objectives and principles.

Alliance contracting IQ thanks Stephen for his time.

construction IQ is the essential information exchange for regional construction specialists. In a market that places increasing demands on you and your team, time is as valuable a commodity as any other.

ANNOUNCING CONSTRUCTION IQ...

For more information: www.construction-iq.com or call 02 9229 1000

Dredging Australia July 26 - 28, 2010 *Mercure Brisbane, North Quay, Brisbane, QLD

Urban Geotechnical Practices July 26 - 29, 2010 *Doltone House, Darling Island Wharf, Sydney, NSW

Bulky Goods Centre: Design & Construction 2010 August 04 - 05, 2010 *Quay Grand, Sydney, NSW

Wind Farm Development, Design & Construction August 04 - 05, 2010 *Melbourne, VIC

Water Infrastructure Project Delivery 2010 August 17 - 18, 2010 *Sydney, NSW

Primary Healthcare Design and Construction August 16 - 19, 2010 *Holiday Inn Brisbane, Brisbane, QLD

Managing Safety in Construction 2010 August 24 - 25, 2010 *Sydney, NSW

*Venues to be confirmed.

IQPC Worldwide – through its dedicated construction division, Construction IQ – understands that your time is precious. We focus on the key metrics you do:

QUALITY: each and every element of your conference experience, from the identity of the headline sponsors to the bullet points in the brochure abstracts is hand-picked and reviewed by a dedicated team of construction specialists.

TIME: your time is your most valuable commodity, so we bring you only the most essential conferences, only the most value-adding speakers and only the most business-critical issues for discussion.

COST: Construction IQ conferences deliver value by ensuring that the action-points you walk away with can be directly applied to your work and are always linked to the bottom line, ensuring you can increase the value of your projects immediately.

17

Coffey is a leader in the alliance delivery method, delivering complex infrastructure projects that sees clients, contractors and major consultants work together as a team.

We are a key alliance partner in more than eleven major Australian projects, including:

• Inner Northern Busway Alliance

• Hume Highway Northern Alliance

• Ballina Bypass Alliance

• Lawrence Hargrave Drive Upgrade

• Millstream Link Alliance

• Future Port Expansion Seawall

• Port of Brisbane Alliance

• North West Connect Alliance

• Wivenhoe Alliance

• Tarcutta Bypass Alliance

• Kempsey Bypass Alliance

Coffey International Limited (ASX:COF)

has been operating for 50 years, and is

part of the S&P/ASX 300.

We have a range of specialist

businesses working in the social and

physical infrastructure markets, and

collectively, we aim to achieve our

vision: to be global specialists solving

emerging challenges to improve the

lives of communities.

Around the world, we are providing

services at every stage of the

infrastructure lifecycle – starting with

planning and fi nancing the project,

through development and resolving

the technical challenges to the

management of resources, timelines

and budgets.

The cycle continues as we use our

specialist knowledge to ensure

objectives continue to be met in

the long term and infrastructure is

appropriately maintained.

Our work involves a wide range of built assets – like roads, buildings, gas pipelines, mines, and sporting facilities – just about everything that is required to meet the demands of a growing world population, rapid urbanisation and heightened environmental sustainability awareness.

Through our expertise, we are also enabling government and aid agencies to strengthen local communities, increasing quality of life and living standards.

We develop mechanisms and manage projects across a range of social infrastructure, including economic development, education and training and health.

We have over 4,000 people working on projects in more than 80 countries and permanent offi ces throughout the Americas, Africa, Asia Pacifi c, Europe and the Middle East.

Visit coffey.com for more information.

DELIVERING INFRASTRUCTURE THROUGH PARTNERSHIPS AND ALLIANCES

18

The Alliancing Association of Australasia and IQPC formed a partnership in 2009 to catalyse awareness and adoption of collaborative approaches in infrastructure development.

Since 1998, a number of state and federal government infrastructure utilities have adopted alliances for the delivery and maintenance of large and complex road, rail, water and ports projects. Alliances have delivered benefits to our communities which may not have been achieved through any other contracting method.

However, Alliances are complex arrangements which need to be properly understood, applied and managed to deliver the outstanding results expected from them.

The AAA/IQPc partnership aims at creating synergies between the two organisations’ programs to accelerate the business community’s understanding on the use and practices of alliances, especially in infrastructure development.

Alain Mignot, Executive Director of the association said with a growing number of public and private sectors organisations interested in using or participating in alliances, the association needs to leverage the effectiveness of IQPC conferences to scale its messages to a wider business community.

“IQPC conferences showcase the application of alliancing in key infrastructure projects and it’s a good way for newcomers to get up to speed with alliance contracting” he said.

He also added, “their events are a good complement to our convention and quarterly forums which focus on creating deeper conversations around the challenges of alliancing and the evolution of practices.”

Jacquie Bran, IQPc’s Global Director for Alliance contracting, comments that IQPC has been running Alliance Contracting conferences since 2000 and that she personally has been involved in this industry since 2005.

She is also a member of the AAA and believes that membership and partnership with AAA, as the peak industry association for alliancing is “a natural extension of our engagement and commitment to deliver relevant and dynamic events to our audiences.”

Jacquie also commented that, “our events are recognised as excellent training for managers who want to keep current with the trends in the delivery of alliance contracts.”

AAA is the recognised not-for-profit, independent cross-industry body that serves organisations involved in project, service and strategic alliancing in Australia and New Zealand (ANZ). AAA events create an industry-wide dialog between practitioners around the challenges, practices and evolution of collaborative models, leveraging a pool of knowledge to improve their outcomes and strengthen their position as alliance ”partner of choice”. The AAA conducts an annual convention, quarterly forums in capital cities, seminars and an annual Alliance Team of Excellence awards program. www.alliancingassociation.org

IQPC is the leading conference organiser for the alliance contracting industry. IQPC has been running conferences for alliance contracting professionals since 2000 and deliver two conferences annually and host a master class series each year as well. IQPC also host and deliver our respected annual ACE Award series to recognise excellence in project delivery across the region. www.alliancecontractingsummit.com

Alliance Contracting IQ is an established networking community for over 450 Alliance industry professionals. It is the entry point for those who want to learn from our historical wealth and breadth of IQPC’s event expertise and to leverage the knowledge we have gained from organizing research led training for this industry for over seven years. We provide the roof under which key industry experts and organisations involved in our events nationally share their experience, knowledge and tools. www.alliancecontractingiq.com

Alliancing Association of Australasia and IQPC form Industry Partnership

19

• • • •

20

The Troubled Rise of Volition - Alliance Dynamics, Alliance Leadership, and the Alliance Advisory Field in Perspective

Recognising the document has attracted extensive and diverse commentary, whatever view one might have of the 2009 DTF-sponsored Alliance Benchmarking Study (2), it is hard to disagree with the following assertions made therein:

“Alliancing is a very sophisticated development in delivering major infrastructure…and to extract the optimum Value for Money (VFM) from alliancing, changes must be made at both the alliance and whole of government levels.”

Alliancing can be viewed as a sophisticated development because, by definition, alliancing is used to tackle the most complex projects and programs in agency portfolios. They are highly “emergent” in nature (ie dynamically forming, firming and morphing continually over time to accommodate external events, owner changes, innovations and ongoing value optimisation activities). Alliances address a wide range of dynamic interdependent challenges and team members are expected to operate at the edge of,personal capabilities. Additionally, participating organisations are required to individually and collectively support alliance objectives whilst satisfying their own corporate governance requirements. The level of sophistication required to excel in these conditions is not always evident and this paper addresses one aspect of what must change to extract optimum Value for Money from alliancing.

Five key dimensions of alliance performance – adapting existing industry skills and building new areas of capabilityWhilst the majority of alliances perform well (3), most commentators agree there remains significant scope for improvement. Alliance outcomes depend on excellence across several distinct and interlinked dimensions of performance:

1. The commercial dimension –managing alliance activities efficiently and ensuring costs are incurred wisely, fulfilling the requirements of the Alliance Agreement and the compensation and performance frameworks

2. The strategic dimension – establishing and implementing the full suite of strategic, leadership, governance and project management disciplines to underpin confidence in delivery

3. The technical dimension – developing and implementing compelling solutions in an efficient manner

4. The human dimension – developing and exploiting high quality relationships, building trust, passion, creativity and capabilities for having critical conversations in pursuit of performance and value

5. The organisational dimension – organisational alignment and support of alliance objectives

Whilst some of these dimensions feature heavily in traditional forms of delivery, others do not, resulting in an imbalanced set of capabilities (and preferences) being applied to give effect to the alliance model. Strong commercial and technical capabilities have been core industry capabilities for decades and can be readily refined and refocused to suit the alliance shell. In the other dimensions, however, industry and agencies often lack the knowledge and experience to be effective. This is skill gap is most evident in the areas of strategic foresight, governance and genuine people leadership.

Alliancing has rapidly exposed large numbers of professionals (from the junior ranks to senior executives) to new challenges requiring not only significant shifts in perspective but also an attendant repertoire of skills . Not least of these skills is the capacity for creative leadership (4).

As volition supplants obligation so creative leadership supplants contract administrationA key differentiating feature of the alliancing model, is volition supplants obligation. Traditional contracts are based on prescribed enforcement – X must do this and Y must do that – whereas collaborative contracts are based on cooperation and choice – we will do this together and we will not sue each other. This sets the stage for a set of relationships within the team and between the parties which is based on volition rather than obligation, and the best alliances demonstrate this very effectively and are able to fully exploit the potential of the alliancing model.

Volition, or will, is the cognitive process by which an individual decides on, and commits to, a particular course of action. It is defined as purposive striving, and is one of the primary human psychological functions, the others being affection (affect or feeling), motivation (goals and expectations) and cognition (thinking).

Under traditional forms of contract (and under PPP arrangements) a significant proportion of individual and corporate considerations are prescribed in the contract which simply needs to be administered according to a known set of rules. In its worst form it can become a dehumanised form of relationship with limited opportunities for genuine, creative, human participation. Contract administration obviates, for the most part, the need for personal engagement and creative leadership.

Contrast this to an environment where no such contract exists to neatly define respective rights and obligations. The absence of black and white contract print requires participants to become psychologically and emotionally involved with the project’s risks and opportunities and critical project relationships. If collective intelligence is to be fully harnessed in pursuit of value, we need to humanise the project conversation. We can no longer simply refer to the contract, we are required to refer within.

Self referencing, creative leadership – the overlooked crux of the VfM debateThis act of self referencing or creative leadership is the truly sophisticated aspect of alliancing, however, it is one which remains largely misunderstood, and often under-valued in favour of more tangible and familiar facets of the project environment (e.g. dollars, designs, plans, concrete and steel etc.). To the extent this occurs, alliancing is systematically selling itself short compared to its potential. Moreover, an ironic self-fulfilling prophecy looms menacingly: Alliancing is in clear and present danger as a viable delivery model unless VfM becomes more tangible. Further, the art and disciplines of creative leadership risk being administered into mediocrity by the very mechanisms ultimately seeking to exploit their potential.

Symptoms of this are very common, particularly where senior personnel in alliances, or their parent entities are cynical of the human dimension and / or strong adherents of traditional models of leadership and organisational culture. In such environments, it is common to see alliances with high potential degenerate into ineffective “sham” alliances, purporting to be true alliances yet displaying underlying symptoms like rigid or overbearing command and control structures, absence of accountability, operational or lame ALTs, strong distorted bias to the commercial and technical dimensions and “sick”, fear-based cultures. It is inevitable that such alliances produce sub-optimal or mediocre results and non-sustainable outcomes. It is not uncommon for long running alliances that exhibit this pattern, to be terminated and converted into other forms of delivery more suited to the participants in play.


Sophisticated ambitions require sophisticated capabilities

harnessing collective intelligence

21

Quite apart from any concern about the vivid human toll of “sick” cultures, the main concern with “sham” alliances or underperforming elements within good alliances, is the leakage of value, relative to potential and in service of the business case. Risks known to a few are left to incubate and opportunities pass by because team members either feel it is unsafe or not worth the effort to do anything about them.

Moving forward – challenging and addressing the notion of alliance maturitySometimes alliances seem to be like symphony orchestras performing in pristine concert venues which are staffed by pub bands who know their instruments but are unfamiliar with all the expectations of the big stage and who are out of tune with the occasion. They will either create a cacophony or just possibly step up, tune in, and delight their audience. Whilst capability and maturity levels may have evolved significantly in the more mechanical dimensions of alliances, the human dimension remains relatively undeveloped. Often, end outcomes are in the balance and the quality of alliance leadership can tip them either way.

A frequent strategy in this case is to engage a so called alliance coach to run some “team-building” workshops to “create” a high performance team. As an isolated strategy this is somewhere between naïve, trite and cynical and is a likely cause of the DTF Benchmark Report finding in Discussion Point #16:

“While teamwork is recognised as important to successful project delivery, this raises doubts about the VfM from investing in ‘high performance teams”.

Based on contact with over 70 alliances, PCI observations are that such ad-hoc interventions are futile and that one area above all others correlates with alliance performance, namely the quality of the ALT and AMT people and their relationships. This nurtures and optimises the critical alliance skills of strategy, governance, leadership and management.

It is remarkable how frequently these roles are occupied by people whose style, experience and skills simply don’t make the grade. Three outcomes are typically possible given this scenario:

1. Alliance stagnation and underperformance (at least in part) i.e. barely meeting MCOS let alone getting close to outstanding

2. Switch out ALT and AMT members until the mix is right (meanwhile #1 persists)

3. Engage and develop the ALT and AMT to develop competent alliance leaders and leadership and governance protocols

Option 1 is unacceptable, and option 2 is often impractical – It is rare for a “sick” leadership culture to have the wisdom to heal itself. This leaves option 3, where an external adviser can play an important role.

The role of the alliance adviser and pitfalls to avoid when engaging themIf option 3 is to be successful, the alliance leadership has to have the motivation to acknowledge the problem, and engage with competent advisers, mentors and facilitators (who might be seasoned professionals from the participating organisations or who are engaged externally from specialist advisory firms such as PCI). The role of such advisers is to:

1. Ensure ALT and AMT understand what is required of them.

2. Challenge (and if necessary call to account) the ALT and AMT. This requires skill and trust.

3. Offer appropriate combinations of experienced-based insights, coaching and training to raise the skills and awareness of the ALT and AMT in critical dimensions. Of particular focus is the governance realm and trust-building process within the ALT, and between ALT and AMT Without such trust, the alliance will almost certainly degenerate into mediocre at best.

4. Facilitate critical conversations during the early stages of the alliance especially during the development phase, when tensions are high, relationships are fragile, and success is tentative.

5. Support the AMT in extending these attributes into the alliance e.g. holding critical conversations with the Independent Estimator, clarifying accountabilities and permissions, developing positive culture through alliance launch events, addressing TOC development tensions etc.

6. Over time, ensure the ALT and AMT become self reliant in the challenges of creative leadership, and help them to role model and reinforce these skills within the alliance team.

cITATIONS IN ARTIclE: (1) Declaration of interest: PCI Alliance Services offers premium commercial and performance advisory services to owners, proponents and alliances as well as leadership and organisational development consulting to industry in general. (2) In Pursuit of Additional Value – a benchmarking study into alliancing in the Australian Public Sector (Department of Treasury and Finance Victoria, October 2009) (3) Report on Project alliancing activities in Australasia (Alliancing Association of Australia / RMIT, 2008) (4) From Accidental Superhero to Creative Leader (Ken Lowe, PCI, May 2009) Far from continuing to rely on “accidental superheroes”, the success of Alliances and Alliancing requires a new brand of talent – it requires the passion, skill and discipline of Creative Leaders - leaders drawing on bold, insightful perspectives and deploying well targeted combinations of hard and soft skills to reliably deliver outcomes acknowledged by all as a genuine, sustainable industry breakthrough. Importantly, Creative Leaders embrace and expand on (rather than replace) the existing traditional project management capabilities which have brought us so far. Creative Leaders are: • Choreographers of group energy • Emotionally literate and purpose-rich • Multi-faceted, intuitive and highly adaptive

About the author

Ken Lowe Managing Director, PCI ALLIANCE SERVICES

We support clients around Australia and internationally and our head office is in Melbourne. Visit us at www.pci-aus.com or at 1300 551 835.

There are many barriers to Option 3 succeeding many of which are symptomatic of the struggle with embracing volition. These include:1. The ALT and / or AMT not realising they will benefit from help in this area so

going it alone – we’re doing OK and will be fine, what problem?

2. Simple aversion to external support or consultants generally – we don’t want to display our dirty washing in public, and don’t need expensive outsiders to help

3. Investment consideration (although the DTF Benchmarking report: refers to “0.25%-1% of TOC for consultants and associated facilities”). In PCI experience, the investment is at or below the lower end of this range and most clients agree the investment creates outstanding value for money

4. Questionable commitment of the ALT and AMT to the development process. No matter how effective the consultant might be, they will not succeed in making a difference if ALT and AMT members commit insufficient time or focus to meaningfully engage in the process. This is one area where competent alliance advisers will call their client to account rather than simply redirecting their efforts to more easily accessible middle echelons of the alliance (abeit recognising the merits of “coal face engagement”)

5. Lack of budget for these costs, or questions of whether the owner should share the cost based on who ultimate benefits from such development and to what extent it contributes to accessing gainshare (owner paying twice?)

6. Inadequate experience and calibre of the advisors. The value of services in this area varies significantly. Prospective clients are advised to verify the credentials of their advisers and ensure they don’t simply engage people they “like” most or have “always” used before. A very familiar adviser is unlikely to be effective at vigorously challenging their clients

7. Ineffective process of engaging and managing the adviser. Some alliances almost seem to abdicate defining the scope of the coaching role to the coach with obvious risks of non VFM consequences. In PCI experience, the process works best when someone in the AMT has absolute accountability for defining the scope of the consultant’s work and manages them accordingly, albeit recognising such consulting can be an emergent process and scope will evolve over time

In summary – volition is the new frontier, there is a level playing field and the future is in our hands Huge slabs of value continue to be destroyed in plain daylight as many of those in organisational and alliance leadership positions fail, or are slow to adopt approaches which will deliver optimum value. Instead of energising their alliance systems by role-modeling and enshrining the qualities of creative leadership, they unwittingly introduce blockages and constraints to their alliances’ potential, and divert precious alliance energy from genuine value-creating activity.

Worse still, many remain oblivious to the issue, or choose to ignore it because they are unable or unwilling to process the consequence of personal and organisational change. Given any meaningful survival of alliancing hinges on the outcome of a narrow and distorted VfM debate, this plays into the hands of those championing more transactional approaches. Disappointingly, this unintended collusion spells a real risk not merely for alliancing, but to the continued transformation of the infrastructure industry as a whole, at the very time it needs to step up to meet an ever more demanding array of challenges. The only way to break the cycle is for more leaders in positions of influence to be true to their sense of higher purpose, skill up, speak up, have their say and be genuinely open to others who do the same in the spirit of forging sustainable win-win futures together.

The good news is that this is one area where the so called “asymmetry of capability” between industry and agencies is much less prominent than in the commercial and technical dimensions, so it’s really a question of how leaders will make use of this level and exciting playing field.

22

Participants include: John Holland, Melbourne Water, GHD, and Sinclair Knight Merz

Participants include: Translink, Abigroup, SMEC and the Queensland Government Department of Transport and Main Roads

Participants include: VicRoads, SKM and Abigroup

Participants include: QR, Macmahon Contractors, MVM Rail, Aurecon and Parsons Brinkerhoff

Participants include: RTA, Baulderstone Pty Ltd, Freyssinet and Aurecon

Participants include: RTA, SKM and Abigroup


A W A R D S

Alliance Contracting Excellence (ACE) Awards: 2010 Showcase

The Alliance Contracting Excellence (ACE) Awards, hosted by IQPC, are designed to recognise outstanding achievement in the field of Alliance Contracting across Australia and New Zealand.

The goal of these awards is to support the progression of the Alliance Contracting industry and to provide a forum for better service delivery, continual communication and advancement in this unique sector.

We are pioneering the progression of alliance contracting and establishing a global reputation for best practice. These awards recognise excellence, best practice and outstanding performance in the realm of alliancing and applaud the achievements of a small group of projects demonstrating game breaking outcomes.

The winners of the 2010 annual Alliance Contracting Excellence (ACE) Awards will be revealed at the awards night and gala dinner on the evening of the 2nd June. We anticipate over 150 attendees will spend the evening enjoying entertainment, networking, some fantastic food and of course, the awards ceremony itself.

A room filled with professionals and peers will be present at our awards ceremony to share in the excitement and accolades of the finalists and of course to toast their outstanding achievements.

Participants include: Baulderstone Pty Ltd, Hyder Consulting, Parsons Brinkerhoff, Thiess Pty Ltd and VicRoads

FINALISTS FOR 2010 Taking their place at the helm for 2010, we are delighted to announce this year’s finalists. In no particular order, we would like to congratulate them for making the final seven:

(further information regarding finalists is included on pages 24 - 27)

23

HEAD JUDGE:

Sean Sweeney, executive director - Major Projects, MAJOR PROJECTS VICTORIA

JUDGING PANEL:

Iain Ward, alliance Manager, INB HUB ALLIANCE

david Morse, General Manager Capital delivery, MELBOURNE WATER

anin nama, General Manager, asset Management and Investments, METRO WATER NZ

Bruce Gidley, executive director – Major Projects, VIC ROADS

dear Finalists and readers,

It was an absolute pleasure to be involved in the aCe awards for

2010. I thoroughly enjoyed the opportunity to read the submissions,

and to work closely with IQPC and the Judging panel.

The strength and quality of submissions for 2010 was impressive

and, as a panel, we were delighted to see so many examples of

outstanding project work nationally and across numerous industries.

These examples extended well beyond the short list of finalists.

I look forward to the awards ceremony and would like to take this

opportunity to thank all submission teams for their hard work and

effort in producing some fantastic work.

2009 AWARD WINNER INB HUB AllianceAlliance Members: Leighton Contractors, Queensland Transport, Maunsell AECOM, Coffey Geotechnics, Bligh Voller Nield, and EDAW AECOM.

Judging Panel for the 2010 ACE Awards: Of course none of this would be possible without the time and commitment

of our panel of cross-industry experts who have fastidiously and enthusiastically

dedicated resource to selecting the group of finalists.

IQPC and alliance Contracting IQ would like to take this opportunity to

thank them personally and to applaud their work.

Pictured: Greg Folkes, Alliance Manager, Leighton Contractors & Julia Miles, Community Relations and Stakeholder Manager, INB HUB ALLIANCE

A PERSONAL MESSAGE FROM

THE HEAD JUDGE:

Phil Chipman, COO,

QUEENSLAND WATER

INFRASTRUCTURE

“The INB Hub team was delighted with our success in the Major Capital Alliance Category at the ACE Awards 2009.

It’s always an honour to be recognised by our peers.”

Darren Weir, General Manager, LEIGHTON CONTRACTORS NORTHERN REGION.

Phil Chipman, COO, QUEENSLAND WATER INfRASTRUCTURE (QWI)

The Bridgeworks Alliance (BWA) comprises of NSW Roads and Traffic Authority, Baulderstone, Freyssinet Australia and Aurecon. It was formed to deliver $85m of strengthening and upgrade works on the Sydney Harbour Bridge to significantly extend its lifespan.

As a critical artery in the Sydney transport network with intensive stakeholder interest, the project risks were both extensive and diverse.

The required upgrade works were unique, technically demanding requiring exacting tolerances, and on a scale never previously undertaken in Australia.

Detailed planning and development of the Target Outturn Cost (TOC) commenced in 2007 and after a period of intensive design development, trials, and rigorous personnel training, BWA commenced construction in early 2008. The project will be completed in 2010 having delivered a final scope that includes:

• Temporary arch access systems to facilitate strengthening• New main span under deck access gantries • Upgrading access gantry support rails• Strengthening the arch structure• New deck drainage systems and expansion joints• Refurbishing existing access gantries• Erection of a 1.4km fence extension separating the road and rail corridors

In response to significant and complex project challenges, the Alliance focused on developing people to stimulate innovation and deliver outstanding performance.

The Jilalan Rail Yard Upgrade project was developed as part of QR Network’s COALRail Infrastructure Program. The Jilalan Rail Yard, located 3km south of Sarina, is an important link in the Goonyella coal supply chain that moves coal from Central Queensland mines to the ports of Hay Point and Dalrymple Bay. The rail yard is used by QR to maintain and service these coal transport trains.

Coal Stream Alliance (CSA) was established in 2007 to undertake the project’s design, civil engineering and infrastructure works. At the time construction commenced in 2008, the $500 million project was one of the largest in Queensland, and CSA successfully delivered it on time and on budget. The project’s aim is reflected in CSA’s vision ‘To increase rail capacity to deliver more coal to the ports in a way that will provide a benefit to all stakeholders’.

BridgeWorks Alliance

Coal Stream Alliance (CSA)

Alliance Contracting Finalists 2010

24

At the time construction commenced in 2008, The $500 million project was one of the largest in Queensland

The Hume Highway Southern Alliance - comprising the Roads and Traffic Authority, Abigroup and Sinclair Knight Merz - was formed to plan, design and construct 32 kilometres of freeway standard duplication north of Albury. This included duplication next to the existing highway and a “greenfields” section on a new alignment, while minimising impacts on traffic, the community and environment.

This involved significant earthworks, drainage, concrete paving, bridges, service roads and landscaping in a predominantly rural area that also included areas of significant remnant vegetation, fauna habitats, plus important Aboriginal and non-Aboriginal heritage.

As one of Australia’s busiest freight routes the Hume Highway carries up to 8700 vehicles every 24 hours, many of the vehicles being heavy B-double trucks, with most movements at night. The large scope of simultaneous construction along the route was supported by effective, well-coordinated and implemented traffic management procedures. Efficient traffic flow was maintained by effective staging to reduce traffic switches and ensure a high level of safety and reliability for road users.

The project was opened to traffic almost four months ahead of schedule, completed under budget and achieved an average score of approximately 75% across the quality and traffic Key Result Areas.

VicRoads appointed the Monash Alliance, a partnership of Abigroup, SKM and VicRoads, to upgrade the section of Monash Freeway (M1) between CityLink and Warrigal Road, Chadstone.

The works as part of the $1.39 billion M1 Upgrade project created an additional traffic lane on the outside of each carriageway, as well as a contiguous collector distributor lane on each side of the freeway between Toorak Road and High Street. Also included in the scope was the widening of Great Valley Road, reconstruction of High Street ramps, and installation of a freeway management system to improve traffic flow and travel time reliability during peak times.

Provision of additional traffic lanes in each direction has improved the efficiency of the existing freeway infrastructure, increasing throughput and reducing travel times, and separation of merging and weaving of through-traffic has produce better safety outcomes.

The Alliance was a winner of a VicRoads Safety Excellence Award.

The Hume Highway Southern Alliance

M1 Upgrade Monash Alliance Section

25


A W A R D S

26

Comprising John Holland, Melbourne Water, Sinclair Knight Merz and GHD, the Sugarloaf Pipeline Alliance constructed a 70km long pipeline, linking the Goulburn River near Yea to the Sugarloaf Reservoir in Melbourne’s north-east.

The Pipeline will transfer up to 75 billion litres of water per year from the Goulburn River to Melbourne’s water distribution network. The project also included design and construction of an 826 metre tunnel; two pump stations, a balancing storage tank; a control storage tank; a power sub–station; and an inlet chute at Sugarloaf Reservoir.

Travelling through 85 private properties, crossing significant waterways, impacting threatened and rare flora and fauna species, and impacting traffic flow on the busy Melba Highway, the project was incredibly challenging.

Due to its highly-focused team culture, the Alliance completed the project five months ahead of schedule, and largely won over the local community with sensitive and well-implemented design, construction, environmental and stakeholder relations.

The Alliance achieved gamebreaking results across all of its Key Result Areas.

The $198 million first stage of the Northern Busway, Royal Children’s Hospital (RCH) to Windsor, is an integral part of the Queensland Government’s long-term plan to meet the transport needs of

Brisbane’s growing north side communities and reduce reliance on unsustainable levels of private vehicle transport. An alliance involving the Queensland Government – Department of Transport and Main Roads (TMR), Abigroup Contractors and Snowy Mountain Engineering Company (SMEC) was formed in April 2007 to design and deliver this major project. The 300-plus construction team delivered this highly complex 1.2km elevated busway within budget and with the required functionality. The busway opened in July 2009, two months early.

Sugarloaf Pipeline Alliance

Northern Busway Alliance

Up to 75 billion litres of water per year from the Goulburn River to Melbourne’s water distribution network.

The 300-plus construction team delivered this highly complex 1.2 km elevated busway within budget

Alliance Contracting Finalists 2010

27

Training Seminar: Early Contractor Involvement (ECI)

Establishing Best Practice in Planning, Process, Partner Selection and Delivery

September 2010Sydney Brisbane Adelaide Melbourne Perth

For more information please call 02 9229 1000

With a group of peers you will explore:

Focusing on value-for-money,

Where traditional methods fail and where EcI is applicable

Why and how EcIs work

Project quality, efficiency and productivity

Success management of relationships in this collaborative environment

Identification of key problems and suggested solutions

Risk profiling and risk aversion in EcIs

Who should take on the risk?

The current economic and infrastructure climate

The cost of contracting collaboratively: cost reimbursement, price certainty etc

Governance and leadership in a collaborative environment

The adoption of Early contractor Involvement (EcI) has recently increased significantly as a method of project planning. The growing volumes of projects selecting this as their preferred procurement model recognise the power of collaborative styles of contracting to achieve outstanding project results.

This two day hands-on training session will focus on the core elements of applying this approach successfully.

The West Gate Freeway Upgrade is a $600million project to upgrade 5.6km of freeway between the West Gate Bridge and the CityLink Tunnels in Melbourne. The project is the most complex component of the $1.4billion M1 Upgrade, the largest State-funded road project in Victorian history. Key project aims were to improve safety, traffic flow and travel time reliability along the freeway which, carrying over 160,000 vehicles every day, is Victoria’s busiest road corridor. The West Gate Freeway Alliance team comprised Baulderstone, Thiess, Parsons Brinckerhoff, Hyder Consulting and VicRoads.

Significant challenges were encountered in the design, planning and delivery of the project. These included the requirement to ensure all freeway lanes remained open during peak travel times, and a major interface with the adjacent Melbourne Convention Centre Development, which was being constructed at the same time as the West Gate Freeway Upgrade. Working safely and efficiently in the highly-developed and densely-populated precincts of South Melbourne and Port Melbourne also presented notable challenges.

Through a dedicated alliance team approach and an ongoing commitment to innovation, the project successfully achieved Practical Completion on 17 March 2010.

West Gate Freeway Alliance W O R K I N G T O G E T H E R

A C H I E V I N G E X C E L L E N C E

A W A R D S

28

Delivering Outstanding Outcomes in a Tight Project Timeframe

DROPPING Melbourne’s busiest rail and road intersection underground was a pivotal project of the Victorian Transport Plan. The daily passing of 50, 000 cars down Springvale Road used to be punctuated by 218 drops of the boom gates as trains rolled into the old Nunawading Station. The intersection, at Springvale and Whitehorse roads in Melbourne’s east, consistently ranked first in the RACV’s red spot survey of the worst sections of road to travel in Melbourne. There had been about 50 crashes at the site in the five years prior to the upgrade, pushing the rail crossing to the top of the Victorian Transport Plan priority list.

The Springvale Road Rail Alliance was tasked with building a new station and tunnelling the railway lines under the road.

Amazingly, the project was delivered in about six months and under budget. VicRoads Chief Operating Officer, Bruce Gidley, credits the alliance model for the success of the Springvale Road project. Mr Gidley said the attitude among alliance staff fuelled enthusiasm and mutual support for the project. “The staff were right there at the coal face, rather than different organisations all working remotely,” he said. “When you have everyone all together, communication is automatically improved and there is a better understanding of processes and what needs to be done to complete tasks.”

If one person worked 24 hours a day on the Springvale Road project, it would have taken them 41 years to finish. The alliance team put 350,000 hours into this project - without a single hour lost to incident or injury.

“Working in an alliance is like starting a new job- it has all the attributes of a new job and that really gives a lot of energy to a project,” Mr Gidley said.

In April 2009, an $140 million investment in the project was jointly announced by the Victorian and Federal Governments. By June, key staff members from VicRoads, John Holland, ARUP, KBR and Melbourne’s then rail provider, Connex, were brought together. Major construction began in late July 2009.

Mr Gidley said the alliance grabbed hold of an opportunity to explore new materials, designs and practices to conceptualise and construct the new station. Natural light was encouraged as

much as possible through a bubble canopy and glass throughout the station. Bluestone pavers were used throughout, with graffiti-proof finishes and stainless steel maintaining a modern feel.

“The alliance was presented with a task and it was up to them to come up with the design proposal- what they came up with was so different to anything we had seen before, and was also a lot more cost-effective than if we hadn’t employed an alliance,’’ he said.

New ideas thrashed out across an alliance table and the meeting of ideas from different organisations resulted in ideas extending beyond tendered contracts.

“At times when you work in a more traditional setting, there can be a sense of people working to protect their intellectual property and to really hold on to ownership of parts of the project,’’ Mr Gidley said. “That is avoided entirely with an alliance- a problem needing to be solved makes everyone talk to each other and ask how it can be fixed. The aim is to meet expectations, with an emphasis is on project delivery, not bureaucracy.”

The level of community involvement was another element of the project’s resounding success. With short-term road closures, parking restrictions and round the clock works, the Springvale Road project had all the rocket fuel for a litany of public issues. With the alliance office only a few hundred metres from the site, members of the public were encouraged to walk in and speak one-on-one with staff. “The communication had to be constant with everyone in this area- it was such a large site, a lot of people were affected,” Mr Gidley said. “We provided hotel accommodation nearby for residents while night works were underway, and spent a lot of time talking to residents and business owners about their needs throughout the works.”


VicRoads Chief Operating Officer Bruce Gidley explains how an alliance model brought a $140 million road and rail project to light in record time and under budget.

The alliance team put 350,000 hours into this project - without a single hour lost to incident or injury.

29

About the author

Bruce Gidley, Chief Operating Officer, VICROADS

Bruce Gidley worked as VicRoads executive director for major projects until March this year, when he was promoted to Chief Operating Officer. He first began working for VicRoads in 1973 as a cadet engineer.

While the local and wider economy will benefit long-term from the infrastructure improvements, the short-term gains for local businesses were considerable.

“More than 100 direct jobs were created by this project,” Mr Gidley said.

“We also had hundreds of contractors on site every day - the cafes around the place did a roaring trade. A few entrepreneurs took advantage of the nights we worked around the clock, with takeaways staying open to feed hungry workers.”

The road was closed for ten days in January this year, and buses replaced trains as the rail lines were lowered. “Because we had the train operators working as part of our alliance team, the rail and road closures were tightly timed and were only closed for a few days. Traffic management and daily rail and road operations were easier with everyone involved working side by side.”

Premier John Brumby strode the new platforms on January 11, after the first trains began servicing the new station in the early hours of the morning.

It had taken only six months for the rail lines to be tunnelled underground and the new station to be constructed. In that time, enough dirt to fill 33 Olympic swimming pools had been moved.

Capping off the project was a charity photo auction, with striking photos of construction sold in benefit of the Reach Out for Kids foundation. A hand-drawn picture from Reach Out for Kids now hangs in the VicRoads foyer, as a thank you for the $20,000 that was raised from the auction.

Since trains began running through the new station in January, a new car park and locked bike cages have also opened. The cars travelling Springvale Road, trains pulling into Nunawading Station and pedestrians crossing one of Melbourne’s busiest intersections now do so safely. The benchmark has now been raised for the delivery of future Victorian road and rail projects.

“What else can I say about this project- things wouldn’t have run as smoothly without an alliance,’’ Mr Gidley said.

It had taken only six months for the rail lines to be tunnelled underground and the new station to be constructed. In that time, enough dirt to fill 33 Olympic swimming pools had been moved.

30

BRISBANE

ROCKHAMPTON

MACKAY

TOWNSVILLE

CAIRNS

112

3 4

567

89 10

11

1. Bolingbroke Feeder Station

2. Dalrymple Bay Coal Terminal Feeder Station

3. Blackwater Power Systems Upgrade

4. Raglan Feeder Station

5. Beerburrum to Landsborough Track Duplication

6. Beerwah Rail Crossing (Grade Separation)

7. Caboolture to Beerburrum Track Duplication

8. Kappera to Ferny Grove Track Duplication

9. Corrinda to Darrah Rail Upgrade

10. Roma St Feeder Station

11. Robina to Varsity Lakes Rail Extention

TrackStar – A Program Alliance Chalking up Success over the Long Term

TrackStar was created by QR to achieve a strong partnership with private enterprise to address the daunting challenge of delivering the biggest rail capital program in 100 years at a time when the rail industry would be competing with high profile mega-projects like North-South Bypass tunnel, Gateway Upgrade and Airport Link for resources. QR did this by thinking differently and establishing its first program alliance. It harnessed the experience and skills of Thiess, United Group Infrastructure, AECOM and Aurecon to partner with QR and collaboratively deliver projects from the concept through detailed design, to commissioning and handover.

When QR began its journey with TrackStar, it nominated a number of key deliverables. Apart from delivering multiple complex projects, TrackStar was to build rail industry capability, deliver real ‘value for money’ solutions, and undertake all of its work safely.

The alliance program expanded progressively from the original four projects concentrated in South East Queensland and worth $660m in 2006 to the current total of nine rail, road and power strengthening projects worth $1,100m and extending into the Central Queensland coal rail network.

The additional projects include:

• $70m Beerwah Road over Rail Crossing

• $30m Bolingbroke Power Feeder Station in the Goonyella Coal System

• $30m Roma St Power Feeder Station and Taringa Track Section Cabin in Brisbane metropolitan area

• $30m Dalrymple Bay Coal Terminal Power Feeder Station in the Goonyella Coal System

• $54.7m Raglan Power Feeder Station in the Blackwater Coal System

• $142m Blackwater Power Systems Upgrade

• Keperra to Ferny Grove Track Duplication (Planning study)

• Varsity Lakes to Tugun Extension (Planning Study)

• Kuraby to Kingston Duplication (Planning Study)

Full scope delivery approach

TrackStar Alliance full scope of delivery includes civil/structural, stations, signalling, power, overheads, and track and telecommunications disciplines. In 2007 when TrackStar was awarded a new portfolio of QR power strengthening projects outside of its original program of work, it “ramped up” quickly building a strong team to meet this emerging need.

The varied and unique challenges presented a range of different settings including city, regional and remote, as well as Greenfield and complex Brownfield environments, all managed as a single program of work.

Best Value

TrackStar’s benchmarking and scope refinement process has evolved over the life of the alliance allowing lessons learnt to be passed between the projects reaping benefits in safety, time and client integration. This approach has helped drive costs down, with innovations on one project becoming learnings for future projects. Key inputs from operators, maintainers, designers, constructors and other stakeholders have all been consolidated up front to identify best value solutions and major savings.

The savings realised during the TCE phase on the Caboolture to Beerburrum project is a great example of how challenging the original scope and alignment, together with a ‘holistic mindset’ and innovations reduced the overall project delivery costs and duration.


In 2006, the Queensland Government released its South East Queensland Infrastructure Plan. This was a 20 year blueprint comprising an ambitious suite of infrastructure projects required to support Queensland’s growing population needs.

As the TrackStar team nears its fourth year milestone, there is ample evidence of TrackStar’s full service delivery capability.

The initial program of projects included:

• $298m Caboolture to Beerburrum Track Duplication

• Beerburrum to Landsborough Track Duplication (Design only)

• $324m Robina to Varsity Lakes Rail Extension

• $268m Corinda to Darra Rail Upgrade

TrackStar project locations

31

TrackStar’s KRAs were reset twice to reflect the stages of the program and the client’s needs.

Establishment Mobilisation Delivery

2006-2007 2007-2008 2009-2010

Best Value Best Value Create Client Value

Stakeholder Happiness Stakeholder Happiness Health, Safety & Environmental Leadership

Integration Integration Provide Stakeholder Satisfaction

Building Industry Capability Building Industry Capability Building QR Capability

Sustainability

Alliance Health

TrackStar KRA Results

About the author

Mike Zambelli Alliance Manager, TRACKSTAR ALLIANCE

Milestone achievements recognised

In 2008, TrackStar hit it’s ‘delivery straps’ chalking up impressive progress and providing real value on each of its project delivery fronts. This progress was recognised by industry peers with multiple award wins throughout the year. They included an Honourable Mention in the Alliance contracting Excellence Awards (IQPC), the Team of Excellence Award from the Alliance Association of Australasia (AAA) and the prestigious Queensland Safety Excellence Award for the Caboolture to Beerburrum and Beerwah Level Crossing Projects from the Queensland Major Contractors Association (QMCA).

A year of successful commissioning

In 2009 TrackStar successfully commissioned two of the major projects. The Caboolture to Beerburrum Track Duplication and Bolingbroke Power System’s project were commissioned in the first half of 2009 with the Beerwah Level Crossing and Robina to Varsity Lakes projects being commissioned in late 2009. The complex Corinda to Darra Rail Upgrade Project in Brisbane’s busy western corridor is due for completion later this year.

Making live rail a safe working environment

A values based approach to positive safety behaviour is at the heart of TrackStar Alliance’s obsessive health and safety philosophy, building a “zero harm mindset” across the team that is based on the belief that all incidents are preventable.

This philosophy is shaped by the Program Alliance’s five values of care, clarity, courage, creativity and connection – particularly care, which aims to have every member of the team “work and live in ways that do no harm”.

TrackStar’s ‘mindset’ approach to safety is applied through visible leadership, promoting a positive reporting culture, building a positive legacy and including subcontractors as part of the TrackStar safety focused ‘family’.

Finally, TrackStar’s safety performance is evidenced by more than three million hours worked LTI free across five project fronts in TrackStar’s first three years of operation.

Creation of a productive and cohesive alliance culture

TrackStar took the alliance model to new heights with a significant investment in the establishment phase through a strong organisational identity and a culture supporting peak individual and team performance. TrackStar’s Peak Performance Plan provides the right framework to attract the best industry resources, and sustain performance through the build, grow, sustain and transform phases of the alliance lifecycle. Rolling out a Performance and Career Development Agreement (PACDA) was at the heart of TrackStar’s performance management approach, providing a base line for progression and professional development and outlining clear objectives to keep team members stimulated and focused.

TrackStar’s team grew to more than 400 staff and 1000 personnel across the whole program within the first 20 months of establishment. Three significant TCEs were delivered in parallel with the works over the first 12 months. Up to 75 % of the team were new to the rail industry.

Excellence in KRA Performance

QR expects TrackStar to safely, innovatively and cost-effectively deliver its program of complex projects without disrupting rail customers. TrackStar’s program goals aligned with these drivers from the outset through six KRAs which changed twice through the cycle to suit the different stages of the program and focus on the Client’s real needs.

TrackStar’s KRAs were reset in January 2007 after the initial establishment phase and project KRAs kicked off when the first project team mobilised to site. The original six KRAs became four to shift emphasis from an alliance focus to a client focus. A further change occurred in January 2008 to reflect new client outcomes.

The TrackStar team can look back on the past four years with considerable pride having quickly established a reputation for peak performance and innovation that translated into Best Value outcomes for its projects while making a solid contribution to QR’s infrastructure delivery performance across its rail network.

TrackStar is due the deliver the final SEQIPRAIL project, the Corinda to Darra Rail upgrade project, by the end of 2010 with power systems projects to continue until 2012.

The newly commissioned Varsity Lakes Station on Queensland’s Gold Coast, a key component of the Robina to Varsity Lakes Rail Duplication Project

TrackStar’s Caboolture to Beerburrum Project was a proud winner of the Queensland Major Contractors Association’s 2008 Project Safety Excellence Award

Mike has spent 22 years in the infrastructure construction industry and has held Project and Alliance Manager roles for the last 17 years with Thiess.

Mike’s project experience extends along the Queensland coastline from the border to Torres Strait and across the Tasman to New Zealand. Projects include:

• International Airport upgrade • Port in-loading/out-loading facility • Gas pipeline and dehydration facility • Water treatment and desalination plants • Water storages • Coal mine infrastructure • Major motorway • Road and bridgeworks • Rail freight terminal.

Mike has been involved in 4 alliances and has built on this experience taking TrackStar to a new level of performance with its program approach to delivering rail projects.


Five minutes with Martin Wood, Alliance Manager SAFELINK ALLIANCE

32

Martin Wood, Alliance Manager for the SAFElink Alliance, has over 20 years experience in constructing major infrastructure across Australia and the United Kingdom. As the Alliance Manager at SAFElink Alliance, Martin has led a unified team that is set to deliver the Ipswich Motorway Upgrade from Wacol to Darra over eight months ahead of schedule. As a leader, Martin has become known for his passion in driving an industry-leading approach to behavioural safety practices, developing young leaders, providing real value to the local community and taking a proactive approach to exceeding environmental requirements.

In this interview he shares his perspective on how to determine the best procurement fit for the delivery of a major project / maintenance of a major asset. In addition - he will comment on his experience of relationship contracting within the scope of the SAFElink Alliance.

Can you talk to us a little about your experience in alliancing? Well, first of all I think you can put this alliance under the first ‘true’ or ‘pure’ alliance banner I have been involved in. Alliancing involves a change in mindset but also a change in maturity. I think the industry now is changing and becoming far more mature in the way that it delivers projects. And not just for the needs of our customers but also actually in terms of the broader term ‘customer’; the people and the communities that we work in. I think the days of ‘confrontation’ and ‘how we used to be’ that I was exposed to when I first came into the industry in the early nineties have gone and the whole industry has changed greatly and answered the call for all levels of customer; project and wider community.

What is the most important factor or collection of factors when determining the best ‘fit for project’ whether that is for the construction or maintenance of that project?I think personally it comes down to when there is the inception of the possibility of a project. When the customer has a need and a desire to deliver a project but there is no clear pathway or map yet as to how that will be accomplished. If you take Terminal 5 which is a 4.2billion pound project – the ability to sit down and really map what process will deliver such a monstrous project is when you start looking at the delivery models available. The conversation comes into play at this point about what model can deliver this project effectively (cost and time).

I also think this is where the alliance model starts to come into favour because its principally about risk. When you have a project where you can’t package risk up into a value or a cost then you are really in a situation where the customer and the deliverer of the contract need to work very closely together to manage and mitigate that risk.

The risk associated with delivering something as monstrous as Terminal 5 and packaging that risk up – is probably beyond most people’s comprehension. There is risk associated with scope definition; and you start to get into a situation where the client can’t define the scope then you are in this zone whereby all other delivery models are pretty much precluded. In this instance you need to take away all the financial antagonistic approaches of traditional contracts. SAFElink chose this delivery model as the best model to achieve the outcomes required. You need to be able to sit down and talk about what really is best for the project without those other drivers involved, and that’s what the model really provided for us at SAFElink.

Would the outcomes you have delivered so far have been possible using any other delivery model?I think we would have got to the same outcome. Would we still have good relationships on the project...I doubt it very much. We started construction on this project in April 2008 and the final scope wasn’t finalised until July 2009. If you consider the traditional contract model; you wouldn’t be able to change scope for 18 months or the best part of 18 months without ending up in a litigious situation. It just wouldn’t happen. But the model here really enabled us to do that, to put financials aside and to really do what was best for the customer.

Do you believe it’s valuable to inject relational principles into more traditional contracting environments?Most definitely and at all levels. One of the things we have used to great effect on this project are sub-alliances. We have moved away substantially from the way that sub-alliances are traditionally procured and managed to avoid the adversarial hard dollar approach being applied at this level of the alliance. We have engaged the sub-alliance contractors into agreements that are back to back with the alliance agreement that’s in place; including everything from limb 1 and limb 2 concept but also through the painshare / gainshare regimes where they are intrinsically linked into non-cost KRA and scheduled KRA gain shares. What we have tried to do with our main suppliers is drive the alliance concept right through the supply chain. We want everyone to be empowered and heading in the same direction for what we want to achieve. Overwhelmingly relationship principles are becoming more and more necessary if you want to move forward in this industry.

What lessons have you learned as you have gone through your project?There were an enormous amount of lessons on this particular journey. We spent a lot of time focused on the relationships for the key alliance partners that sit within the framework model of the PAA but the actual partner that we really needed to engage was far broader and far more holistic that we envisaged at the beginning of the project.

Don’t get caught up in thinking that you only need to empower and align those purely working on the delivery of the alliance as there is actually a far boarder network that needs to be engaged and brought on the journey with you. If I had my time again, a lot of the workshops that we did at the outset would have been far more encompassing in terms of this network than they actually were.

A final lesson – it’s never too late to go back to day one and go through those relationship building workshops again and make sure you form those relationships as well as they should have been. We did that and we worked really hard to understand our customer and our key relationships and it was a good lesson to learn.

Alliance contracting IQ thanks Martin for his time and his commentary!For the full audio interview please visit the media / podcast library at: www.alliancecontractingiq.com

33

Project profile

The $824 million Ipswich Motorway Upgrade: Wacol to Darra project is an upgrade of the five kilometre stretch of the Ipswich Motorway between Wacol and Darra and two and a half kilometres of Centenary Highway, including the transformation of the Centenary Highway Interchange into a free-flowing system interchange.

As part of the Australian Government’s Nation Building Program, the upgrade is an essential link in the State Government’s Western Corridor, a primary zone for future industrial, commercial and residential development which extends from Rocklea through Ipswich to Amberley.

The key benefits of the Ipswich Motorway Upgrade between Wacol and Darra include:

- improved safety for motorists, pedestrians and cyclists

- increased reliability and better travel times

- improved and more consistent traffic flow

- improved connectivity between the Ipswich Motorway and Centenary Highway

- new pedestrian and cyclist paths

- provision for a future upgrade from six to eight lanes.

The upgrade included:

- widening the Ipswich Motorway from the Logan Motorway at Gailes to Jervis Street at Darra (five kilometres) from four to six lanes, with provision for eight lanes in the future

- the transformation of the Centenary Highway Interchange

- an upgrade of the Centenary Highway between Sumners Road and Boundary Road (2.5 Kilometres)

- new bridges over Bullockhead and Sandy Creeks

- new bridges over the Ipswich rail line

- new pedestrian and cycle paths

- new service roads connecting Wacol, Darra and Richlands

- earthworks and bridgeworks for a new rail line from Darra to Springfield passing through the Centenary Highway Interchange.

The project was completed in just two years and delivered while keeping over 140,000 vehicles moving safely and efficiently through the area each day.

The Department of Transport and Main Roads established the SAFElink Alliance in November 2006 to harness the specialised skills of five business partners: the Department of Transport and Main Roads, Leighton Contractors, BMD Constructions, AECOM and Arup. With a workforce of over 5000, the SAFElink Alliance delivered the upgrade eight months ahead of schedule and under budget, all while focused on their vision – empowering our people, transforming the Western Corridor, saving time, saving lives.

34

52 Things to put in a VFM Report: Best Practice Tips

The results listed below contain the suggestions from the participants and speakers at the event and together form a comprehensive outline of best practice and value add content for a VFM report.

If you have best practice examples of content to add to this report please email [email protected]

*NB There may be some overlap in the points gathered.

Suggested And Necessary VFM Report Content:

1. Metrics on KRAS

2. Metrics on TOC and against TOC

3. Metrics on game-breaking performance

4. Overall performance score on KRAS / performance against project KRAS

5. Forecast of where project heading

6. Costs / cost forecasts compared to business case and TOC

7. Subjective narrative of intangible benefits

8. Reconciliation of TOC to work budget, via successive iterations

9. Innovations introduced that add value, with associated costs

10. Cost reductions achieved

11. Earned value versus planned earned value

12. Community acceptance versus target

13. Safety performance versus target

14. Tracking against financial KPIS

15. Tracking against non-financial KPIS

16. Additional value add elements that have been achieved to date

17. Comparison with client’s budget $ IE review

18. Clarification of scope and client approval

19. Progress on KPIS

20. Adjustment of KRA if required

21. Narrative on non-tangibles

22. Lessons learned summary of project

23. Stakeholder survey results

24. KRA / KPIS: outcomes and targets and explanation of variances

25. Project Milestones (achieved and expected)

26. Cost against budget

27. Agreed project definition of VFM

28. Criteria based on research e.g. state procurement policy

29. Business case overview

30. Goals of both OP and NOP

31. Systems shared and improved

32. Joint IP developed

33. Any other collaborative arrangements that NOP and OP have outside the alliance

34. Trend analysis for KPI measurement

35. Individual measurement for every KPI

36. Agreed definitions of KRAS

37. Agreed definitions of KPIS including intended drivers

38. Evaluation / assessment of what scores mean to the alliance

39. Good news stories even if you can’t put a dollar value on them

40. Additional benefits above functional requirements

41. AOC vs TOC

42. Costs of business as usual

43. Additional benefits achieved against BAU

44. Substantiation that the TOC represents VFM

45. MCOS – failing or succeeding?

46. VFM score

47. Proposals for addressing / improving on any of the indicators / scores

48. Report must be based on / tailored for target audiences requirements

49. Progress against scheduled timetables

50. Safety / LTIs near misses/ incidents

51. Single page dashboard summary of performance against KRAS

52. Recovery plan for actions to be taken to close gaps between expectation and performance


At IQPC’s recent Value for Money Summit in February 2010 we surveyed the audience for tips and suggestions on how to create best practice content for a VFM report. VFM Reporting was cited as an area, within an alliance contract or other relationship based contract, that many practitioners find challenging.

35GROWING PEOPLE GROWING INFRASTRUCTURE

THE NEW BLACK

A career in rail construction is becoming increasingly fashionable, offering a broad scope for challenging and diverse job opportunities.

Nowhere is this scope of challenging roles more evident than at Novo Rail, an exciting new rail construction delivery alliance bringing the best of RailCorp and relevant private sector experience together.

Through our alliance partners, Novo Rail is actively seeking qualified rail personnel and graduates for a wide variety of Rail Design, Engineering and Support roles in Sydney.

The Novo Rail vision is to be recognised for energising the rail industry, always focusing on safety,

delivering value and surpassing expectations. Peter Winder, Alliance General Manager, Novo Rail

CAREER IN RAIL

If you are interested in helping shape the future of Australia’s Rail industry, e-mail your resume today to our Recruitment Manager at [email protected] (please put inNOVO in the subject box when sending your e-mail).

Please note that Novo Rail is an alliance and not the employing entity. If successful in your application, you may be employed by one of the alliance partner companies: Aurecon, Laing O’Rourke, O’Donnell Griffin or RailCorp. The appointment of the employing entity will be made in accordance with alliance procedures.


Five minutes with Wayne Pearce, Former Captain & Coach, NSW BLUES

36

Could you put into perspective your experience with high performance team cultures?I’d be happy to. As a former professional league player I have played in a number of outstanding teams and also some pretty ordinary teams too. As a result I was able to identify some behaviours that were contrasting between them. I also coached after I finished playing; at both national and representative levels and I took a lot of lessons from that time in my life.

After I finished coaching ten years ago, I wanted to branch out into the corporate world as I believed there were a number of improvements that the corporate world could make with regards to team work and productivity. I’ve worked with a whole range of businesses over the last ten years and I’ve seen – as with league teams – some pretty good and some pretty ordinary cultures and to this day I still work with businesses to try and activate the discretionary effort of their people. I have realised that a significant part of that discretionary effort is dependent on getting a team motivated but more specifically it is about actually getting them to work together as a team.

What’s the gap between an outstanding versus an ordinary team culture? The really good cultures I have worked with have a number of defining features; clear expectations and individuals have a desire to do their best at their job instead of simply doing an ok job that meets basic requirements. In high performing cultures the team members are motivated to want to give their best everyday and that becomes infectious and becomes an attitude that permeates the whole environment. That particular culture construct is aspirational for a lot of businesses; they never quite get there. However, there are a lot of cultures who are also realising that dream. Achieving this results in significant and ongoing productivity returns to the business. These returns are not just in terms of the usual financial productivity gains but also in spirit, morale, less turnover of staff, less sick days etc.

Why is the psychology of high performance team work something that you are so passionate about?It really goes back to my rugby league career. I wasn’t necessarily the most gifted player on the pitch but what I did try to do was to extract as much out of my ability as I could; which meant I went on to represent my country and captain Australia. It was about getting the most out of my physical body but also about focusing my mind as well.I studied psychology at university and that gave me a real insight into human needs. I believe that business leaders need to understand more about these human needs which in turn will enable them to be more proactive rather than reactive in the workplace. A productive leader doesn’t have to deal with bushfires; rather they have a high performing business that is going forward. Teamwork is the cornerstone of any high performance culture and for me I believe that the fundamental cornerstone of teamwork is trust.

When you talk about trust you mention the need to ‘take off your mask’, can you share further detail about what that entails?I think the best way to demonstrate that is probably by example. Consider a representative sporting team, such as the State of Origin, when players are picked from a whole number of clubs to play together for a specified period or number of matches. Mid season you are asking players to park their allegiances to their own side and come together to play for NSW or

QLD. Their competitors are now their teammates. That’s an enormous task for any coach and the first 48 hours of establishing this new team is critical. Players go into a camp for 7-8 days and the first two days of that camp is based around the players and the coach creating an environment where the players can get to trust each other. To get back to your questions, a large part of that process is providing a safe environment for players to ‘take of their mask’. This ‘mask’ is the facade by which they want to appear to everyone else. In order to remove the mask you need to put your cards on the table and be honest about a number of things; what makes you tick, what drives you, what motivates you and so on. When people can better understand those things about others they immediately tend to experience increased understanding of each other and this naturally leads to greater opportunities to develop high levels of trust.

What do you do if your team isn’t taking off their mask and aren’t aligned?It’s a situation a lot of businesses find themselves in. It’s about creating an environment in the first place. Often you have to take it out of the actual workplace to establish this as it’s difficult to create onsite. Often people do not feel comfortable in the workplace to remove this mask and a social environment can facilitate this. First of all give them an insight as to what the benefits of high trust levels are. One of the biggest sticking points I’ve observed in businesses is the lack of free flowing conversation, a lack of feedback and a lack of holding each other accountable, and this all related to poor trust levels. If you can overcome this problem you will see the difference in terms of energy, spirit, morale and tangible changes that people can feel and that people will buy into. Once you have established the benefits you can get people talking in 1-1 situations or in small groups about what is important to them. Most people are willing to share if they are in a ‘safe’ environment. The desire to understand each other is compelling as it enables people to feel as if they have some insight or control over a situation. If I know someone a bit better I feel as if I can be a little more proactive with that person and trust that person more.

What constitutes a safe environment and how important is it?The importance of the environment is huge. If you can’t create a safe environment then people aren’t going to disclose. The important thing is that people are empowered to disclose what they feel comfortable disclosing. Firstly there is a no-go zone for everyone. There are certain things that people simply do not want to talk about. For some people this zone is broader than for others. Most people are happy to disclose more in the workplace than they currently do but they simply don’t have the opportunity. They are too busy and their discussions are usually about work or surface level personal information that doesn’t actually give any insight into what makes that person tick. To create a safe environment means you have to be quite clear about the fact that no-one is expected to talk about their no-go zone; simply communicate around the stuff you are more comfortable with. It comes back to how much trust you have previously facilitated with your team as a boss. If you haven’t established reasonable trust levels with team members then they aren’t going to trust your intention of holding such a session.

Alliance contracting IQ thanks Wayne for his time and his commentary!For the full audio interview please visit the media / podcast library at: www.alliancecontractingiq.com

Alliance Contracting IQ recently interviewed Wayne Pearce in relation to his upcoming presentation at IQPC’s 10th Annual Alliance Contracting Excellence Summit. Specifically, Alliance Contracting IQ and Wayne discussed his experience with leadership and teamwork upon which he will form the basis of his presentation.

37

Through the successful delivery of approximately $1 billion (capital value) of complex projects, Seymour Whyte has developed a reputation for excellence through which the company:

Attracts high quality staff

Secures repeat business of an expanding project size

Delivers a stable and growing track record of financial success for the company, its customers and its partners

Areas in which Seymour Whyte considers itself to be a market leader include:

Construction of major roadworks

Bridgework construction and associated concrete structures

with expertise in “difficult” projects where a high degree of construction engineering skill is required

Major traffic management schemes, complex intersection expansions and reconfigurations involving a critical level of interface with live flows and uninterruptible services

Heavy industrial concrete works including foundations, heavy vehicle pavements, water retaining structures

Municipal sporting and aquatic facilities

Founded in 1987 by directors John Seymour and Garry Whyte, Seymour Whyte is a dynamic infrastructure company which provides expertise in the transport, water, mining and energy, urban development and community infrastructure sectors.

The company enjoys a 23 year history of providing construction solutions across Queensland and NSW.

Seymour Whyte has achieved substantial growth consistently over its years of operations and, as a result, has developed a reputation for reliable and consistent project delivery. Seymour Whyte is trusted by government authorities and major joint venture partners to deliver major infrastructure projects, with a specialised focus on road and bridge projects.

More recently Seymour Whyte has developed a number of key alliances and joint venture relationships with major corporations, public organisations, and other industry participants which provide Seymour Whyte with a solid platform for future growth as the Company continues to deliver excellence in infrastructure throughout its established markets in Eastern Australia.

Experience with traditional and relational contracts:Seymour Whyte works hard to deliver all of its projects in close collaboration with its customers and partners and adopts a preferred mix of 50% traditional and 50% relational contracts. Over the past four years Seymour Whyte has secured and delivered (or is in the process of delivering) 16 relational contracts ranging from ‘pure-alliances’ to the more recent Early Contractor Involvement (ECI) and competitive ECI/ETI contracts. By applying alliancing principals to each of these projects, including committing stable, ‘A grade’ teams and ‘best for project’ thinking Seymour Whyte (and its partners) invariably deliver excellent outcomes in both cost and non-cost key result areas.

www.seymourwhyte.com.au

38


Focusing on Alliances: The Auditor General Experience

Alliances attempt to incorporate robust governance structures with emphasis on open book financial reporting and the mandatory use of probity auditors and independent auditors. Despite these efforts, there are several failings in both the performance and compliance aspects of public and private sector governance. Most alliances fail to demonstrate value for money for the public sector and fail to comply with other public sector governance objectives accounting, integrity and transparency.

Since 2005, Auditor Generals have focused specific reports on alliances, particularly in Queensland and Victoria. These reports have shown that Auditor Generals are dissatisfied with the level of documentation maintained by both the public and private sectors in critical areas of procurement, risk management and reporting and communication. In the Auditor General of Queensland Report No 5 for 2007, the South East Queensland (Gold Coast) Desalination Plant Project had significant improvement opportunities to implement best practice with most of these opportunities surrounding the documentation of critical decision and the demonstration of value-for-money. This audit report criticised the alliance for poor request for tender documentation, for adopting a less than ideal governance structure, inappropriate documentation of decision making process to support appointment of contractors and in appropriate reporting.

Although, current alliances fail to comply with many of the government objectives, many of these failures are also found in conventional fixed price contracts. In the Auditor General of Queensland Report No 4 for 2008, he was critical about other projects that are delivered by conventional fixed prices methods. Nevertheless, fixed prices contracts better demonstrate value for money and arm-length commercial relationships due to their documentation.

Academics and those in the industry may argue that alliances do demonstrate value for money as they enable projects to be completed quickly and efficiently and obtain a collaborative and competitive price. However, without appropriate documentation it is difficult for an alliance to demonstrate this factor. Benefits realisation both in quantities and qualitative factors need to be presented to assist with the value for money proposition. In the Auditor-General Report No 4 for 2009, he was critical about the documentation of benefits and the actual realisation of benefits in infrastructure projects. Alliance given their collaborative approach seems to not document these benefits in an effective manner.

Government recognise that contracting with a clearly define set of performance requirements is a way of increasing accountability. In a traditional contract, government develop and approve specification for the project that it wants to be delivered included measurable performance criteria. Alliances on the other hand have very broad statements of the project objective rather than specific as these are left up to the Alliance participates to define. In most cases, these are documented in a minimalist way. This may raise the question whether governments are actually accountable for project documentation in an alliance. However, as Alliances are governed by ALT or ALG with representatives from both NOP and OP it is really all parties’ responsibility for the documentation of key decisions.

The Queensland Government has recently released guidance that states, “Alliances should not be used as a means to cater for shortfalls in projects documentation/specification documentation competencies…Procurement agencies should not adopt Alliancing simply because they do not have the resources to develop appropriate project documentation. Alliances should not be used to mitigate schedule pressures resulting from poor planning…Alliancing should never be considered a project management tool for dealing with self-imposed schedule constraints.”

Alliances may be an appropriate delivery outcome in the public sector in some circumstances, particularly when project risk are unknown, extreme and competition is limited. Nevertheless, there is substantial scope for improving the documentation of alliances both within the public and private sector to demonstrate value-for-money and the meeting of government objectives.

Alliances are novel procurement options providing governments with the opportunity to engage in relationship arrangements with the private sector, share risks, and stimulate innovation and at the same time minimise disputes. This arrangement offers substantial benefits for the procurement of high-risk projects, but there are substantial disadvantages.

About the author

Craig Limkin, QAO

39

Floor 1, 32 Little Edward St, Spring Hill, Qld 4000PO Box 683, Spring Hill, Qld 4004

(07) 3832 9990 or email [email protected]

www.cgiconsulting.com.au

CGI can assist you in an advisory capacity or as an integral member of your team. Delivering diverse industry expertise and acumen, CGI enhances all facets of project delivery, from pre-feasibility through to construction, implementation and project handover.

Our approach and understanding of both the contractor and owners requirements enables clear and decisive inputs. Our value adding services include:

Commercial and Risk Advisory Services• Procurement Advice• Cost Estimation• Risk Analysis and Management• Constructability Analysis• Value Engineering• Project Management• Design Management•

While it is never possible to provide complete certainty on capital costs for new projects, it is possible to identify and quantify the exposure to them. CGI commercial advisory services can assist in the identification of the most appropriate procurement and contracting strategies.

Recent commercial advisory experience on relationship contract projects totalling $2B:

Port of Brisbane Motorway (Traditional Alliance)• Pacific Motorway Upgrade, Springwood (dECI)• Tugun Bypass, Tugun (dTOC)• Douglas Arterial Duplication, North Queensland • (mETI)Cardwell Range Alliance, North Queensland • (dTOC)Glenfield Rail Junction, Sydney (Traditional • Alliance)Jilalan Rail Yard Upgrade, Sarina (Traditional • Alliance)Bundamba Advanced Water Treatment, Ipswich • (Traditional Alliance)

CGI is at the forefront of aligning commercial frameworks with traditional relationship contract procurement processes.

For your complimentary presentation on the latest procurement and contracting strategies, call our head office in Brisbane today.

40

Alliance Contracting IQ Supports Networking

Alliance Contracting IQ is an established community for 400+ relationship contracting professionals.

It provides access to best practice training content sourced from IQPC’s leading industry event series as well as to a fantastic repository of knowledge from industry experts.

It is a great entry point for those who want to make the most of this knowledge base and to learn from our wealth and breadth of event expertise. It is a resource designed for your needs and to enable you to leverage the experience of our industry speakers, supporters and experts.

It is also the connecting point for you to establish, create and sustain networks with your peers and to share best practice with them.

How? It’s easy.

From Defence to local government, from road to rail, from water to mining – all industries are represented with the portal. The honest discussions that unite them around VFM, cultural alignment, innovation and high performance are critical regardless of industry.

This following statistics provide a quick snapshot about our membership:

Would you like to join the IQ or contribute content to this dynamic site?

What’s the benefit of being a contributor? Well, you can contribute articles, interviews, white papers, podcasts and more - profiling your experience, your project successes and outcomes, or even just topics for general discussion. Plus your writing will be published in the editorial section of Alliance Contracting IQ, reaching a national audience and gaining recognition for your work.

To join simply visit: www.alliancecontractingiq.com or to contribute, simply email [email protected] to find out how.

Alliance Contracting Best Practice & Networking

Highest Rated content

Podcast

Article

Whitepaper

Video

Interview

Industry Breakdown for Alliance IQ

Construction & Contracting

Owner

Consulting

Alliance Team

Real Estate

Legal Services

Coaches / Facilitators

Insurance/Risk

Other

41Join Today at www.alliancecontractingiq.com

What’s in it for you? All of our content is current and new content is added to the site regularly. Content varies from articles to interviews, from podcasts to videos and from presentations to white papers. It’s all online and ready for you to use.

Our contributors are engaged in various types of relationship contracts and have a variety of different experiences that will be useful for you.

A snap shot of the library of content is listed below:

five reasons why you should join Alliance Contracting IQ?

1 Content is sourced from and provided by your peers and is based on personal experience in alliancing

2 You can interact with other members through groups and interactive Q&A

3 Content is tagged and easy to search for…so you can tailor the results to your specific challenges

4 It’s the ideal way to enhance your personal development and up-skill yourself

5 I t’s free to join…and there’s no catch!

PODCASTSHow can alliances deliver superior cost outcomes to traditional contracts?

How to train project leaders for future alliances

Exploring the common fracture points within a team environment

How to select the right procurement model for optimum performance

Understanding how the psychological contract impacts performance

Achieving high performance despite a lack of co-location

Do you have the leadership skills required to be a high performing manager?

How to ensure VFM upfront once the alliance model has been selected

Examining the impact of external communication and stakeholder management

Making the shift to being a great alliance

A contractor’s honest perspective on alliance contracting

VIDEOSAlliance contracting summit show reel 2009

Interview with Horizon Alliance

Does alliance contracting deliver VFM – industry voxpops

Driving High Performance in Teamwork – interview with Thiess

Interview with INB Hub Alliance

Interview with Air Warfare Destroyer Alliance

Interview with Nick Tamburro and the Department of Treasury and Finance, Vic

ARTICLES, PRESS RELEASES AND INTERVIEWSSetting Benchmarks for Project Delivery

Interview with Baulderstone

Interview with Bovis Lend Lease

Interview with Port of Melbourne Corporation

The Sewerfix Wet Weather Alliance story

The TMR Alliancing Journey

The Alliance Manager Stripped Bare

Procuring Relationship Based Projects post the GFC

WHITE PAPERS AND PRESENTATIONSAchieving VFM through upfront planning and forecasting

Queensland Department of Transport and Main Roads Contract Selection Process

ECI Contracts in the South Australian Transport Infrastructure Construction Industry

A focus on Alliance Governance

Measuring VFM in an alliance Contract

Understanding the Impact of an Alliance Manager on Team Culture and Project Outcomes


Five minutes with Greg Winchester, GM Infrastructure, BOVIS LEND LEASE

42

In this interview Greg shares his insights into what alliancing means to him, his thoughts on this unique procurement methodology and some thoughts on the future.

In a nutshell, what’s your role and what responsibilities are involved? I look after Bovis Lend Lease’s Water & Infrastructure Business – working with a great group of people who do all the hard work.

How long have you been engaged in alliance contracting?Continuously since 2001.

If you could use three words to describe what alliance contracting means to you – what three words would you use?I would say; symbiotic, unfettered, responsibility & accountability.

What were your drivers to engaging in this specific project delivery methodology?Clients lean to them for unusual, difficult projects – as a company we support our clients - people like them as they get to work in a positive project outcome focussed manner.

What are your key lessons learned and what pitfalls would you recommend avoiding?Key lesson….alliances require commitment – time & energy - from the senior management of all partners….but the outcomes are worth it.

Pitfall...clients outsourcing procurement & negotiation…it kills the relationship.

How has alliance contracting changed the way that you do business?BLL has always prided itself on being a collaborative delivery company so in many ways delivery is unchanged – what has changed is the ability to contract within the team the client’s key operators & maintainers – and not have to keep them at arms length - which is what a traditional contract would.

Want to Get Up to Speed on Competitive Pricing?

Contracting IQ Presents A Free Webinar To Complement Your Learning Experience

What are the new and emerging circumstances dictating procurement and how has the landscape evolved?

This complimentary webinar represents perspectives on procuring collaborative / relationship based infrastructure projects. There is no doubt that the GFC has altered the procurement landscape for infrastructure projects. There is now a greater focus on competitive pricing, price tension, hybrid collaborative project delivery models and value for money.

Discussion and content touches upon:

• Assessing the current procurement drivers from both perspectives (owner and non-owner)

• The trend towards more price tension / competition in project procurement

• How to incorporate relationship based principles into procurement hybrids and more traditional hard dollar contracts

• Building on the benefits of the past whilst recognising that client’s have experienced a shift in focus post GFC

• Increased price tension: How can you retain relationship based behavioursin this environment?

• Are changes purely financial or is there a strategic impetus?PRESENTERS:

Derek SkinnerGeneral Manager- Major Infrastructure ProjectsTRANSPORT & MAIN ROADS QUEENSLAND

Richard MorwoodDirector, Development and Alliancing AECOM

Value for money is always a critical factor in alliance projects – what is your best practice tip to ensure the anticipated return or ‘value’ in a project?If I knew that - then I’d be rich!

What innovation are you most proud of in relation to your alliance project portfolio?The NetWorks Alliance – the team found systematic unsafe practices were being used to connect replacement potable water services to houses.

In the face of criticism, and whilst seriously delaying the project, the team challenged the previous unsafe custom and practice of replacing potable water mains so as to protect workers and the wider community from the potential of serious electrocution.

Working with Sydney Water, Energy Australia and Integral Energy the team developed a safe method that included testing by the electricity distributor for potential electrocution before replacing the house service.

If you could go back and do anything differently – what would you change?What and miss out on making all those mistakes – I have forgotten more lessons learnt then I can remember!

What’s the future for alliance contracting in your opinion?In Australia it is clear we will continue to face a shortage of skills – what is not clearly understood is that Australia is facing a huge shortage of good quality, capably skilled leaders to manage the significant capital spend required.

Governments, Government Departments and their Government owned organisations will need to outsource more and more of the management and delivery of its capital spend.

The good people, the people you need to deliver this spend, they want to work in collaborative arrangements – they will continue to work in alliances over other more traditional methods.

Currently Treasury & Finance departments are forcing a value = cheapest $$ alliance approach. This may be viable in certain provinces in the short term, but as Australia’s economy returns in the next two years the good people will determine what projects and under what contractual styles they work.

Alliance contracting IQ thanks Greg for his time!

To access the webinar please visit: www.alliancecontractingiq.com/webinarindex.cfm

43

• Lost time injury frequency rate of 1.63 (as of February 2010) for more than 620,000 hours worked – significantly better than the industry average of 4.0.

• Met the stretch target ‘early water’ date of 18 December 2009 and delivered the project under budget.

• The pipeline includes two pumps (one pump station) at Wivenhoe Dam.

• The pump is relatively small for its power – it can push water through the pipeline at 491 litres per second, filling an average swimming pool in 90 seconds.

• Provided a local economic boost for the region of more than $11.5 million with the purchase of goods and services.

• Sourced close to 30 per cent of its workforce and staff locally.

• A number of positive legacies have been left behind for those most impacted by construction – the people of Esk. Most significantly, the alliance has designed and constructed a new public space for Esk residents.

Toowoomba Pipeline AllianceIn 2006, the residents of drought-stricken Toowoomba (population 125,000 with satellite towns, 120 kilometres west of Brisbane) rejected a scheme to introduce purified recycled water into its potable water supply. This prompted the Queensland Government to commission its specialist water infrastructure provider, LinkWater Projects, to form the Toowoomba Pipeline Alliance in July 2008 to construct a pumped water pipeline between Wivenhoe Dam and Toowoomba’s Cressbrook Dam by January 2010. The 39 megalitres per day capacity pipeline transfers water through a 38 kilometre-long pipeline to Cressbrook Dam, which is 250 metres higher than Wivenhoe Dam.

LinkWater Projects chose partners for its construction alliance that could deliver the pipeline

under time pressure across challenging terrain, as Toowoomba’s dams fell to record low levels of less than 10 per cent. Modelling showed that without the pipeline the region was likely to run out of water by June 2010.

The project owner, the Department of Infrastructure and Planning, required the $187 million pipeline and pump station to be delivered as a “signature project” to meet or exceed economic, social and environmental benchmarks. The alliance contract partners – Clough Projects, WDS and AECOM – saw the benchmarks as an opportunity to perform beyond LinkWater Projects’ Minimum Conditions of Satisfaction. Directly employing 298 people at its peak, the alliance delivered the pipeline ahead of time and under budget, excelling in all Key Result Areas, and with an industry-leading safety record.

AAA Alliancing Association of Australasia - industry association

ACA Australian Constructors Association

AFA Alliance Financial Auditor

AGM Alliance General Manager

ALG Alliance Leadership Group

ALT Alliance Leadership Team

AM Alliance Manager

AMP Alliance Management Plan

AMT Alliance Management Team

AOC Actual Outturn Cost

APC Actual Project Cost

APM Alliance Project Manager

APMT Alliance Project Management Team

BAU Business as Usual

CAP Contract Adjusted Price

DCP Defects Correction Period

DPC Direct Project Cost

EAR Engineering Analysis Report

ECI Early Contractor Involvement

EOI Expression of Interest

EPC Estimated Project Costs

EPCM Engineer, procure, construct, manage

FF Fixed Fee

FTOC Final Target Outturn Cost

G/PA Gain-Share / Pain-Share Adjustment

GRP Gateway Review Process

IAA Interim Alliance Agreement

IE Independent Estimator

IFA Independent Financial Auditor

IP Intellectual Property

IQPC International Quality and Productivity Centre - provider of training

IPAA Interim Project Alliance Agreement

JV Joint Venture

JVA Joint Venture Agreement

KPI Key Performance Indicator

KRA Key Result Area

MCOS Minimum Condition of Satisfaction

NEC3 New Engineering Contract - edition 3

NOP Non-owner Participant

OAM Other Alliance Members

OAP Other Alliance Participant

Owner Client, Principal etc

OP Owner Participant

OPS Overall Performance Score

PAA Project or Program Alliance Agreement

PAB Project Alliance Board

PC Project Costs

PDP Project Development Phase

PI Professional Indemnity

PLG Project Leadership Group

PM Project Manager

PSO Program Support Office

RAP Risk Adjusted Price

R&O Risk and Opportunity

RFP Requests for Proposals

SAA Sub Alliance Agreement

SLT Sub Alliance Leadership Team

SMT Senior Management Team

TC Target Cost

TCE Target Cost Estimate

TOC Target Outturn Cost

VFM Value for Money

WPT Wider Project Team

Alliance Under the Microscope

Glossary of Alliance Related Terms

44

The Alliance Contracting IQ advisory board consists of key thinkers and thought leaders in the Alliancing and Relationship Based Contracting space. These seasoned industry experts guide the topics on the Alliance Contracting IQ site as well as IQPC’s Bi-Annual Alliance Contracting Excellence event series. The advisory board meets quarterly to discuss trends and shifts in the marketplace and to reflect upon industry dynamics. These industry leaders were selected due to the calibre of their work within their respective areas of expertise. IQPC would like to thank them for their participation, time, contribution and insight.

Derek Skinner, General Manager (Major Infrastructure Projects)Department of transport anD main roaDs QLD

Andrew Stevenson, Alliance Construction Manager BauLDerstone

Brian Riggall, CEO seymour Whyte ConstruCtions

Deborah Kiers, Managing Director JmW ConsuLtants – asia paCifiC

Bob Vickers, National Alliancing Manager aBigroup ContraCtors

Paul Hoffman, GM Network Capital Program QueensLanD raiL

Ken Lowe, Director of Coaching pCi aLLianCe serviCes

Richard Morwood, Director - Development and Collaborative Contracting, aeCom

Wayne Sharpe, Senior Consultant, aLChimie

Alliance Contracting Recommended Reading

Alliance Contracting Advisory Board

Alliance Contracting Specific:In Pursuit of Additional Value: A benchmarking study into alliancing in the Australian Public Sector

- Department of Treasury and Finance, Victoria- Evans & Peck- University of Melbournewww.dtf.vic.gov.au/project-alliancing

Project Alliancing Practitioner’s Guide- Department of Treasury and Finance, Victoria, 2006

www.dtf.vic.gov.au/projectalliancing

Alliancing – a participant’s guide. Real life experiences for constructors, designers, facilitators and clients

- AECOM – Richard Morwood, Deborah Scott & Ian [email protected]

Alliance Contracting in Australia – A Brief Introduction- Jim Ross, PCI Alliance Services

http://www.pci-aus.com/files/resources/2009_09_07_Alliancing-Ross_intro_B.pdf

Partnering and Alliancing in Construction Projects - Roe, S., and Jenkins, J. (2003), Sweet & Maxwell Ltd.

http://www.sweetandmaxwell.co.uk/Catalogue/ProductDetails.aspx?recordid=1233&productid=19935

Target Outturn Cost: Demonstrating and Ensuring Value for Money - Alchimie Pty Ltd, June 2004

http://www.alchimie.com.au/downloads/Ensuring%20Value%20for%20Money%20through%20TOC%20Process.pdf

Alliance Contracting – Is It Bankable?- Allens Arthur Robinson (2006), Project Finance International,

December 2006, 4 pages.http://www.aar.com.au/pubs/baf/fopfdec06.htm

Alliance Competence: Key Capabilities for SuccessDeborah Kiers, Managing Director, JMW Consultants Asia Pacific

http://www.jmw.com/library_article_alliance.asp

Other useful:Realising Benefits from Government ICT Investment - a fools errand?- Stephen Jennerwww.academic-publishing.org

Transforming Government and Public Services – Realising Benefits through Project Portfolio Management- Stephen Jennerhttp://www.gowerpublishing.com/default.aspx?page=641&calcTitle=1&isbn=9781409401636&lang=cy-GB

The Tao of Coaching: Inspiring and Developing those around you- Max Landsberghttp://www.profilebooks.co.uk/

The Tao of Leadership- John Heiderhttp://isbndb.com/d/book/the_tao_of_leadership_a01.html

Join today to Access a Wealth of Experience & Knowledge on

Alliance Contracting

Podcasts • videos • Interviews • Webinars • Alliance tips • reports • Q&A

Join today for free at www.alliancecontractingiq.com

Date post:	10-Apr-2015
Category:	Documents
Upload:	iqpcaustralia
View:	243 times
Download:	2 times

Alliance Contracting Magazine - June 2010 Edition

Documents