Commercial managers’ presentation - SCIRT Learning Legacy€¦ · Commercial managers’...
Transcript of Commercial managers’ presentation - SCIRT Learning Legacy€¦ · Commercial managers’...
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A detailed presentation prepared by SCIRT IST’s commercial manager to inform Delivery Team commercial managers about the processes and requirements relating to SCIRT’s commercial model.
Lessons learned from one of New Zealand’s most challenging civil engineering projects:
rebuilding the earthquake damaged pipes, roads, bridges and retaining walls in the city of
Christchurch 2011 - 2016.
This document has been provided as an example of a tool that might be useful for other organisations undertaking complex disaster recovery or infrastructure rebuild programmes.
For more information about this document, visit www.scirtlearninglegacy.org.nz
Commercial managers’ presentation
Story: The Commercial Model
Theme: Finance and Business Systems
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NOP Delivery Team Commercial
Manager Workshop 2
Processes and requirements
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Commercial Managers
• Six parts to the presentation
– The end-to-end process
– Project governance
– Coding Structure and information requirements
– Project allocation
– Reporting
– Insurances
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END-TO-END-PROCESS
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End-To-End Process
Scope
Concept
Detailed Design
Construction
Handover
Strategy and Investigations
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STRATEGY AND
INVESTIGATIONS
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Strategy and Investigations
• In order to identify and prioritise tasks into projects,
there needs to be a process to investigate issues and
risks and develop strategies to give direction to the
rebuild problem.
Strategy and Investigations
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Strategy
• There is a need to take a long term view over many
aspects of infrastructure replacement.
– Red zones
– Isolated assets
– Resilience and redundancy
– Innovation
• CERA and SCIRT are working on these strategies
which will be released
as they are adopted
Strategy and Investigations
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Investigations
• As of 8th August 2011, SCIRT have been responsible
for the investigation of all earthquake related
horizontal infrastructure damage.
• Responsibility was handed over quickly and as such,
it will take a little time to get properly organised
• Undergoing a process of gaining control
• Dedicated team to lead this work
Strategy and Investigations
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Investigations
• A single point of accountability to organise;
– CCTV
– Surveyors
– Physical inspections
– Other data collection
• Using a single GIS database and team to capture and
record all information
• Aim to be more efficient and
effective
Strategy and Investigations
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Investigation Claims
• Until SCIRT has full control of all investigations, the
NOP Delivery Teams will continue to organise and
manage these works.
• The NOP Delivery Teams will submit a claim as per
the normal claim process – more later
Strategy and Investigations
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PROJECT LIFECYCLE
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Scope
• Definition of a project
• Current view
– Between $1M and $10M
– Corridor approach
– Sewerage sub-catchments
• Linking projects to individual assets
Scope
Concept
Detailed Design
Construction
Handover
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Concept Design
• Deciding how to fix the problem
• Dealing with whole of life costs
• Innovation
• Lessons learned
• Understanding strategy
• Updating standards
Scope
Concept
Detailed Design
Construction
Handover
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Detailed Design
• Drawings
• Specifications
• Bill of Quantities (BoQ)
• Total Out-turn Cost (TOC)
• Other project documentation
Scope
Concept
Detailed Design
Construction
Handover
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Construction
• Claims process – more later
• Programme resources
– Stakeholder management
– Consents
– Health and Safety Standards
– Environmental Standards
– Quality standards
– Reporting
Scope
Concept
Detailed Design
Construction
Handover
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Handover
• All project specific information and documentation to
SCIRT and hence CCC
• As-builts
• Operational and Maintenance manuals
• Actual cost information
• Project completion report
Scope
Concept
Detailed Design
Construction
Handover
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PROJECT GOVERNANCE
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Project Governance
• We have shown the high level project process to date
• When we address project governance, we actually
need another level of detail
• Important for NOP Delivery Teams as it outlines the
allocation process – more later
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Project Governance
Scope 0 Project Definition
Manager
Professional
Services Manager
CCC, NZTA,
Delivery Team Alliance Manager ± 15%
Project Allocation
Design 1
Business Systems
Manager
Commercial
Manager
Professional,
Services, VFM Alliance Manager
Concept Design 2 Design Manager Professional
Services Manager
Asset Owner, ECI
Delivery Manager ± 10%
Detailed Design 3 Design Manager Professional
Services Manager ECI
TOC 4 Estimating
Manager
Commercial
Manager VFM
Alliance Manager
Delivery Manager TOC
Project Allocation
Construction 5
Business Systems
Manager
Commercial
Manager VFM Alliance Manager
Construction 6 Project Co-
ordinator Delivery Manager
Commercial Team,
VFM
Handover 7 Business Systems
Manager
Commercial
Manager CCC CCC
Practical
Completion 8 Alliance Manager
Alliance
Leadership Team CCC AOC
Project Completion 9 Alliance Manager Alliance
Leadership Team CCC
Phase Responsible Accountable Consulted Informed Estimate Gateway
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CODING STRUCTURE
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Coding Structure
• An overarching principle we have adopted is one of
simplicity and necessity
• To comply with this, we have adopted a high level
approach to capturing cost information pertaining to
the construction phase.
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Coding Structure
Project Asset Type
(9 off)
Labour
Plant
Material
Sub-Contractor
On Site P&G
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Coding Structure
• We will be collecting costs by asset type – Waste Water Reticulation
– Waste Water Pump Stations
– Water Supply Reticulation
– Water Supply Pump & Reservoir Stations
– Transport – Roading Local
– Transport – Roading NZTA
– Storm Water Reticulation
– Storm Water Pump Stations
– Parks
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Coding Structure
• Under each asset type you will have to break costs
down by
– Labour
– Plant
– Materials
– Sub-Contractors
– On site P&G
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INFORMATION
REQUIREMENTS
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Information Requirements
• All information required monthly for the programme
– Number of staff employed
– Number of certain types of plant employed
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Information Requirements
• All information required for each project
– Life to date costs by asset and activity
– Number of man hours by asset type
– Number of plant hours by asset type
– Forecast cost to complete cash flow by month
– Monthly update of Asta plan (time and quantity)
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What do we do with the information
• SCIRT has been set some stretch goals by the ALT
• These goals are measured by the KRA and KPI
framework
• All the information we gather is to report against
these targets
• The KRAs and KPIs are also used in the allocation
process – more later
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Month End Process
Month End Process
CC
CN
OP
Del
iver
y Te
amSC
IRT
Last Thurs of the month; 17:00Day 1; 17:00 Day 2; 12:00 Day 5; 17:00 Day 7; 12:00 Last Wed of the month; 17:00
Send Claim Estimate
Receive Claim
Estimate
Send consolidated Claim Estimate
Receive consolidated Claim
Estimate
Send Claim
Receive ClaimsSend Consolidated
Claim
Receive
Consolidated ClaimMake Payment
Recieve Payment Make Payment
Recieve Payment
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PROJECT ALLOCATION
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Project Allocation
• Project allocation dependant on two things
– Financial performance
– Non financial performance
• A framework uses to measure what is important to
the success of the programme, what gets measured
gets done.
• A transparent process that is rigorous and is ratified
by the ALT
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Financial Performance
• Financial performance is measured against TOC
• NOP Delivery teams that constantly deliver projects
at a greater percentage under TOC than other NOP
Delivery Teams, will be rewarded with a greater
volume of work – but this is not the only factor that
influences the share of work
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Non Financial Performance
• The KRA and KPI framework outlines non-financial
factors that effect work share.
– Health and Safety
– Quality and Environmental
– Delivery to schedule (time)
– Capability
– Capacity
– Collaboration
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Part A
The Allocation Model
Asta BI Tool JDE
Slippage
Report
KRA
Report
TOC
Perform.
Track
Record
Team
Ranking
Capability
Check
Part B
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REPORTING
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Reporting
• Rubbish in – rubbish out – an accurate axiom
• Principles
– Consistent
– Current
– Correct
– Corroborative
– Do it once
• Heavy reliance on the information you supply
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Reporting
• Do it once
– The alliance will produce a suite of reports that will satisfy a
number of stakeholders with different information needs
– We will produce NOP Delivery Team Reports
• So we can compare like for like
• The alliance takes on the burden and expense –
centralisation
• Exception reporting
• Context required about exceptions
– No surprises
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INSURANCE
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Insurance
• Alliance along with CCC is in the process of procuring
PI, PL and Contract Works insurance for all
construction works and design
• Tension is on the hand over process
– Practical completion certificate is only signed on completion
of hand over process
– Insurance transferred to CCC on signing of PCC
– Vital to get hand over completed quickly
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Transition – IRMO to SCIRT