Case Study Feedback 1© Graham M Winch

The Channel Fixed Link :le Projet du Siècle

Case Study Feedback

Case Study Feedback 2© Graham M Winch

Major Projects Benchmarks

Performance

Criterion

Megaprojects1

Average

Channel Fixed Link

Budget increase 88% 69%

Programme

Overrun

17% 14.2%

Conformance

Quality

53% not up to expectations

Performed as expected

Operational

Profitability

72% not profitable

Operationally profitable

1) source : Merrow (1988)

Case Study Feedback 3© Graham M Winch

The Channel Fixed Link 1the external environment

• Political uncertainty– The 1987 UK election

• Suspicions of the banking community– The initial contract– Morton’s role

• Booming EU economies– Cost inflation, especially trains– Rising revenue forecasts

Case Study Feedback 4© Graham M Winch

The Channel Fixed Link 2governance

• Rolling stock – percentage fee– Largest budget overrun; failed to motivate TML

• Terminals and services – fixed price– Smallest budget overrun but largest source of

contention – effectively became inoperable

• Tunnels – incentive contract– Medium budget overrun, but on programme– Motivated both sides to solve problems

Case Study Feedback 5© Graham M Winch

The Channel Fixed Link 3stakeholder analysis

Internal• Eurotunnel ++• TML ++• Workers +• Contractors and

suppliers +• Shareholders +/-

External• Travelling public +++• British and French

states +• Local communities +/-• Banks - -• Future generations ++

Case Study Feedback 6© Graham M Winch

The Channel Fixed Link 4organisation design

• Phase 1 – separated construction; co-located design– Limited coordination required for construction as

two sites separate

• Phase 2 – integrated organisation– Breakthrough joined sites– M&E a common project

• Phase 3 – flattened organisation– Key tasks, commissioning and claims

Case Study Feedback 7© Graham M Winch

The Channel Fixed Link 5lessons

• Clear allocation of roles and responsibilities– Integrate or separate client and contractor

• Package project– Let packages as separate projects

• Strong clients mean successful projects• Motivate resource bases through incentive

contracts• Defined the project mission fully

Case Study Feedback 8© Graham M Winch

The Channel Fixed Link 6/7success and failure

• Whose success?• Whose failure?• Your opinion