Routines for Success. Organising for innovation and collaboration

Safely Together Bank Station Capacity Upgrade

ITERSeptember 2015

Routines for success: organising for innovation and collaboration

Bank Station Capacity Upgrade Project Innovative Contractor Engagement

Simon Addyman Programme Manager


What do I think about when I think about projects?

As new temporary organisations, how do projects become capable organisations?

How and why are organisational routines (re)created in temporary inter-organisational structures?


1.17 billion passengers a year

London Underground Limited

A rising proportion, currently 53% of journey time, is spent in stations rather than on trains


Existing Bank Monument Complex Layout

6 lines interchanging


PRIMARY REQUIREMENTS• Increased capacity, reduce Journey times• Step-free Access• Compliant fire and evacuation

PRIMARY BENEFITS • Journey time benefits of £774m• Capacity of Fruin level C• Benefit:Cost Ratio is 2.4:1

ConstrainedWork Site

Complex Construction

Sub-optimalOver timeOver budget

Project Baseline Solution


Innovative Contractor Engagement (ICE)Key Principles

• A structured and protected dialogue phase.• LU disclose ALL project information and

acknowledge the cost of dialogue.

• LU share value of innovative ideas from unsuccessful bidders

• Requirements statement and bid evaluated against business output.

• Orthodox ITT/ Target cost Contract.


ICE in Practice


Project Solution - Stakeholders

• 67 buildings in the zone of influence

• 38 buildings with Heritage interest

• 6 buildings Grade 1 Listed – notably St Mary

Abchurch (Wren) and Mansion House

• 14 Buildings are Grade II/II*

• 80% buildings are in a conservation area


Innovation in Project Management:A New ‘Front End’ Triangle


Effectiveness ‘ v ’ Efficiency

EFFECTIVE PRODUCT

EFFICIENT METHOD


Tender Evaluation On ValueBASE 1 2 3 4

Product 625,000£ 625,000£ 625,000£ 625,000£ 625,000£ CR1: Capacity Enhancement 17.0% 8.50 10.00 8.50 12.00 10.00 CR2: Reduction of Journey Times 17.0% 8.50 8.50 8.50 12.00 8.50 RO3: Design & Construction 15.0% 7.50 8.50 7.50 7.50 7.50 CR4: Step Free Access 10.0% 5.00 5.00 10.00 5.00 7.00 CR5: Fire and Evacuation Plan 10.0% 5.00 5.00 5.00 5.00 5.00

Subtotal Product 69.0% 34.50 37.00 39.50 41.50 38.00 Method RO1: LUL Project Business Case 2.5% 1.25 1.25 1.25 1.25 1.25 RO2: Transport and Works Act Order 5.0% 2.50 2.50 2.50 2.50 2.50 CR 3 Disruption during construction 12.5% 6.25 6.25 6.25 8.00 6.25 CR 6 Time 2.5% 1.25 1.25 1.25 1.25 1.25 CR 7 Design to Cost 2.5% 1.25 1.25 1.25 1.25 1.25 RO4: Opportunities 6.0% 3.00 3.00 3.00 3.00 3.00

Subtotal Method 31.0% 15.50 15.50 15.50 17.25 15.50 Total 100% 50.00 52.50 55.00 58.75 53.50 Total Rank 5 4 2 1 3

Value Rating - £100m = 8.00 Quality pts if P = £625m) 8.00 8.40 8.80 9.40 8.56VR rank 5 4 2 1 3VFM 85.11% 89.36% 93.62% 100.00% 91.06%

P equiv 531,915£ 558,511£ 585,106£ 625,000£ 569,149£ Lost Value 93,085£ 66,489£ 39,894£ -£ 55,851£

Value of a Quality point (rank 1 .v. rank 4) £k £10,638


Successful result!

• B:CR increase by 1.1 to 3.5:1 (45.1%)

• Journey time benefits increased by £148m to £923m

(19.2%)

• EFC reduced by £61m to £563m (9.8%)

• Induced Revenue increased by £31m to £229m

(15.6%)


Base Scheme: Central Line Link


Dragados Scheme: Central Line Link


One Project Organisation


• Alliance Management Structure• Governance Board• Co-location• Supply Chain Incentivisation• Shared Vision & Objectives• Focus on Safety & Buildability

Ongoing collaboration & innovation


Q - Do you want to know your risks/opps in advance of contract

award?

A - Yes - then provide confidentiality to supply chain IP;

Q - If providing confidentiality then why not share information

between the parties?

A - Yes - share information to mitigate information asymmetry;

Q - If sharing information, then why not enter into dialogue to allow

‘time’ to (re)create ‘routines’ to ‘transition’ into delivery?

A - …find out next year…?!

So why wouldn’t you...?


A Few Little Extras


All tasks 8 days longPB 10 days longFB 4 days long

Use an Aggregated Tolerance to the Task Flow called a ‘Buffer’


Take Advantage of Early CompletionMitigate Potential Delays


Transport for LondonDragadosURSDr Sauer & PartnersWilkinson EyreT ClarkeAlan Auld Eng. Ltd.Robert Bird Group

Scott ListerHyder ConsultingMunellys

Vision SurveyGeocisaOthers

Organisational Network Analysis:Self Organising Communities of Practice

LessInfluence

More Influence

Project Management Functions

Mechanical and Electrical

Architecture

Tunnelling

Civil Engineering and Construction

Engineering and Design Management, Client, Sponsor

and Operations

There are 6 closely knit multi-disciplinary and multi organisational

communities present in the information exchange network with specific themes across organisations

and functional disciplines

Fourway Communication


Thank [email protected]

[email protected]

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Routines for Success. Organising for innovation and collaboration

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