Capital Projects and Project Delivery … · Major Projects Other Capital 2010-2014 2015-2019...
Transcript of Capital Projects and Project Delivery … · Major Projects Other Capital 2010-2014 2015-2019...
Capital Projects and Project Delivery
Jerry Dobrovolny, P.Eng, MBACOMMISSIONER / CHIEF ADMINISTRATIVE OFFICER
Cheryl Nelms, P.Eng., Ph.D.
GM, PROJECT DELIVERY
Finance and Intergovernment Committee: April 15, 202038143365
5.1
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Staff were directed to:• conduct an independent review of the processes and
decision-making related to major infrastructure projects; and,
• bring forward for Board consideration recommendations arising from the review.
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Board Request
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• Challenges1. Scale 2. Complexity3. Market Influences
• Best Practices Response1. Re-organization2. Independent high level review by
KPMG of major projects3. Response to KPMG’s strategic
recommendations 3
Outline
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Challenge 1: Scale
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Challenge 1: ScaleMajor Capital Projects as Percentage of Plans
60%67%
46%40%
40%33%
54%60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% o
f tot
al c
apita
l bud
get
Capital Plans
Major ProjectsOther Capital
2010-2014 2015-2019 2020-2024 2025-2029 5
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Challenge 2: Complexity
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Challenge 2: Complexity
• Contract structures• Environmental requirements• Stakeholder involvement• Funding approaches• Regulatory requirements• Community benefits• Indigenous partnerships
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Challenge 3: Market Influences
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Challenge 3: Market Influences
Metro Vancouver Region Projects:• Broadway Extension • Roberts Bank Terminal 2 • Vancouver International
Airport Upgrades• Surrey Langley SkyTrain• Pattullo Bridge Replacement • North Shore Wastewater
Treatment Plant• Annacis Island Wastewater
Treatment Plant Expansion• George Massey Tunnel
Replacement ProjectSource: Top100Projects.ca/2019
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Best Practices Response
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Best Practices Response 1: Re-organizationPre-2012 Organizational Structure
Policy and Planning
Engineering and Construction
Operations and Maintenance
Solid Waste Water Liquid Waste
Solid Waste Water
Water
Liquid Waste
Liquid Waste
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Best Practices Response 1: Re-organization2012-2019 Organizational Structure
Policy and Planning
Operations and Maintenance
Solid Waste Water Liquid Waste
Policy and Planning
Engineering and Construction
Operations and Maintenance
Policy and Planning
Engineering and Construction
Operations and Maintenance
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Engineering and Construction
Annacis
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Best Practices Response 1: Re-organization2012-2019 Organizational Structure
Policy and Planning
Operations and Maintenance
Solid Waste Water Liquid Waste
Policy and Planning
Engineering and Construction
Operations and Maintenance
Policy and Planning
Operations and Maintenance
NW Langley
NorthShore
Coquitlam 2nd Intake
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Best Practices Response 1: Re-organization2020 Organizational Structure
Policy and Planning
Operations and Maintenance
Solid Waste Water Liquid Waste
Policy and Planning
Engineering and Construction
Operations and Maintenance
Policy and Planning
Engineering and Construction
Operations and Maintenance
Project Delivery
Major Projects
Asset Management
Project Management Office
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Best Practices Response 1: Re-organization
Project Management
Office Centre of Expertise
Major Projects Delivery
Asset Management
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Best Practices Response 1: Re-organizationFunctions of a Centre of Expertise
Project Management FrameworkPolicy, Processes and Procedures, Standards and Controls
Asset Management Asset Management Strategy and Plan, Policy, Processes and Procedures, Standards, Corporate Reporting
Quality AssuranceQuality Assurance and Control, Monitoring, and Training
Project DeliveryProject Management of Major Complex Projects
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Best Practices Response 1: Re-organizationProject Management Models
Decentralized model
Influencing model
Devolved model
Centralized model
LWSWS
SWS
LWSWS
SWS
PMO
LWSWS
SWS
PMO
Increasing Centralization of Control
Increasing Project / Department Autonomy
LWSWS
SWS
PMO
Source: KPMG
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Key steps:• Document review: key documents including reports from
major projects• Interviews: key project personnel involved in the delivery
of major projects and programs • Focus Group: validation and review of findings with
General Manager working group
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Best Practices Response 2: Independent ReviewKPMG Approach to Project Delivery
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Best Practices Response 2: Independent ReviewBest Practice Project Delivery Framework - KPMG
LEADER
SHIP
STAKE
HOLD
ER
TECH
NICAL
GOVER
NANCE
Source: KPMG
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Best Practices Response 2: Independent ReviewThe 5 Pillar Framework
StakeholderGovernance
Oversight
Decision, Authority & Escalation Protocols
Organizational Design
Reporting/Line of SightPerformance Management
Shareholders
Leadership
Vision, Mission & Values
Organizational Culture
Capability, Capacity and Competence
Management of Change
Communications
Soft Controls
Technical
Engineering ManagementBudget & ScheduleProject Controls
Technology, Systems & Process
Regulatory Requirements &
PermittingAsset
Management
Government & Regulatory
Indigenous Relations
Community/Public Engagement
Internal StakeholdersRelationship ManagementIndustrial Relations
Project StructureProject
EconomicsContract Strategy
Supply Chain & MarketsRisk
Management Finance & Funding
Source: KPMG
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Best Practices Response 2: Independent ReviewStrategic Areas of Opportunity
StakeholderGovernance
Oversight
Decision, Authority & Escalation Protocols
Organizational Design
Reporting/Line of SightPerformance Management
Shareholders
Leadership
Vision, Mission & Values
Organizational Culture
Capability, Capacity and Competence
Management of Change
Communications
Soft Controls
Technical
Engineering ManagementBudget & ScheduleProject Controls
Technology, Systems & Process
Regulatory Requirements &
PermittingAsset
Management
Government & Regulatory
Indigenous Relations
Community/Public Engagement
Internal StakeholdersRelationship ManagementIndustrial Relations
Project StructureProject
EconomicsContract Strategy
Supply Chain & MarketsRisk
Management Finance & Funding
Source: KPMG
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Best Practices Response 3: Response to RecommendationsNext Steps Ja
n
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec 12
M
onth
R
evie
w
Project Delivery Department (PDD)– Initiate PDD - Complete
PA1 Leadership – Capability, Capacity and Competence Needs Assessment and Resourcing Strategy
PA2 Governance – Oversight Oversight Model Development and Alignment
PA3 Governance – Organizational DesignOrganisational Design Model Assessment
PA4 Commercial – Contract Strategy Development and Implementation Assessment
PA5 Stakeholder – Internal Stakeholder– Internal Interface Agreements and Communications Plan
PA6 Technical – Project ControlsControls and Assurance Function Planning
PA7Technical – Technology, Systems and Process
Project Management Tools Assessment and Developments
Change Management and ongoing initiativesTo be layered into the development of the Department
Updates to Boards, Committees, and Advisory CommitteesRegular updates on Project Delivery department progress
Initiate new Department
Contract Strategy – Process Review and Individual Project Assessment
Org Model Review
Needs, Resourcing Strategy & Key Hires
Internal Stakeholder Agreements
Oversight Model Review
Project Controls Functionality
PM Tools and Templates
Change Management Plan
Source: KPMG
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• $1.7 Billion in work underway• Over 40 claims received to date• Coordinated approach to address risk • Working with the Province and industry on COVID
response • Scenario analysis is currently being conducted to identify
the range of potential impacts
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COVID-19 ResponseNext Steps
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Discussion
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