delivering the london 2012 venues & infrastructure
TRANSCRIPT
Delivering the London 2012 Venues & InfrastructureGerry MurphyChief Operating OfficerOlympic Delivery Authority
Winning the Bid: July 2005
Setting the scene: ODA and LOCOG
Games
Legacy
LOCOG
BOA
GLA
GOVT
Olympic
Board
LOCOG
Staging the Games
Olympic Delivery Authority
Building Venues and Infrastructure
London Legacy Development Corporation
Delivering the Legacy
Setting the scene: the London 2012 landscape
Setting the scene: the Olympic Park challenge
Transform• 200 hectares of brownfield land across
four London boroughs • waterways and rail lines• 200 buildings; 52 electricity pylons in
situfor Games to• 80 hectares of new parklands• 5 permanent and 2 temporary sporting
venues and a media centre• the Olympic Village • 12km new roads, 13km tunnels, 26
bridges, an energy centre and new utilities infrastructure
and then to• a vibrant new quarter of London with
2,818 new homes, excellent transport links, parklands and top class sporting facilities for local communities as well as elite athletes
Newham
Waltham Forest
Hackney
Tower Hamlets
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Setting the scene : Olympic Park, April 2006
Delivery strategy : the challenges
An immoveable deadline
27 July 2012
Scale and complexity
Fit for purpose for
Games and legacy
High public profile
and
global reputational impact for UK Plc
Multiple stakeholders
Scrutiny as befits a large publicly funded programme
The delivery strategy : critical success factors
Commercial
Strategy
Delivery Partner
Governance
Scope definition , change control
and programme controlsAssurance,
risk management
Strategic Framework
Transparency
Get in front, stay in front
Ten milestones were set out for the first year, and achieved :
Building the management team Appointing the Delivery Partner Agreeing the Masterplan and programme timetable Starting venue design Engaging the local community Acquiring the land Cleaning, clearing and creating the platform Developing the Park Publishing the Transport Plan Publishing the Procurement Policy
Strategic Framework
Sustainable Development Strategy
Accessible Transport Strategy
Programme Baseline Report
Lifetime Corporate Plan
Other Projects
Village Vertical Build
Venues
Time, Cost and Fit for purpose
Site Platform
Objectives Priority themes
Overarching themes
MissionTo deliver venues, facilities, infrastructure and transport on time for the London 2012 Olympic and Paralympic Games that are fit-for-purpose and in a way that maximises
the delivery of a sustainable legacy within the available budget.
Transport
Operations
Stratford Projects Equa
lity
and
Incl
usio
n
Heal
th,
Safe
ty &
Sec
urity
Lega
cy
Empl
oym
ent a
nd S
kills
Desi
gn a
nd A
cces
sibi
lity
Sust
aina
bilit
y
Strategic Framework : Health & Safety Priority Theme
Preventing accidents, raising the bar
Safe working - ODAs number one priority
Set a standard Leadership - SHELT Briefings, black hat conventions, stand downs, recognition for good
practise
and promoting health
Park Health – occupational health and treatment services, such as health checks for every worker by nurses and other trained staff through an on-site medical facility
Monitoring dust and noise levels to prevent any negative health impacts on workforce and local residents
Education programme across the boroughs to teach local children how to stay safe near construction sites
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500000
1000000
1500000
2000000
2500000
Total Hours Worked
Rolling Monthly Reportable AFR
Strategic Framework : Health & Safety Outcomes
AFR lower than all-UK employment and ⅓ of general UK construction
Delivery Partner
• Rapid mobilisation of delivery capability– given the time constraints, the ODA would not be able to build the requisite organisation internally, or have the required flexibility to match the programme needs with the required skills.
• In August 2006, following a competitive dialogue process, the ODA appointed CML – a consortium formed from CH2MHill, Laing O’Rourke and Mace as delivery partner.
• Programme and project management of scope on the Olympic Park, including integrated commercial management of ODA supply chain with programme and project controls .
DP : critical factors
• ODA intelligent client
• Clarity of roles and responsibilities
client and DP
DP and contractors
• Building the partnership
empowerment and delegation
integrated working
• Governance and organisation structure clear and appropriate to programme requirements, flexed as required
• ODA and DP alignment - shared delivery and commercial goals
Executive Management Board
ODA Programme Governance
Change BoardImplementation Review (DP led)
ODA Board
Commercial Board
Procurement Board
Strategy and policy
approvals
Issues resolution
• Programme level Boards monitor performance across the whole ODA Programme
Project Boards
Priority Theme Boards
Transparency
Transparency: Community engagement
Significant engagement with the local community that live around the Olympic Park, right from the off.
Community meetings and open days, drop-ins, business events.
Park visits programme – 200,000+ people on tours, Open House.
Regular leaflets and publications to explain progress.
24 hour construction hotline for local community and business
Priority themes E&Skills:
25% local workforce
(vs 15% target)
Construction Crew meet the Queen
Scope definition, change control and programme controls
Establishing the programme baseline scope, cost, schedule and risk.
Change control.
Rigorous programme management, monitoring and controls.
Image
The baseline : the Yellow Book
• Budget for entire programme secured in March 2007
• Programme Baseline Report published (November 2007) - cost, programme, risk and scope aligned
• Key stakeholder document
• Included an estimate of contingency required based on assessment of risks - held in 3 ‘buckets’ – Project, Programme and Funders, access tightly controlled
• This programme baseline was the basis for performance measurement during execution
Base Project Contingency
Programme Contingency (P80)
Funders Contingency(P95)
Total Big Build Completion
OBB £5.15bn £0.98bn £0.97bn £1.0bn £8.1bn 27 Jul 11
Managing the baseline
Monthly Programme Change Board.
Clear delegations of authorisation for changes
Trends process to show potential changes looming, which gave sufficient time to mitigate
Change control
Three contingency pots Project – held within project budgets
available with Change Board approval
Programme held by the ODA accessible with approval from Funders
Funders – Held by the Funding bodiesonly available by application to Funders
Change Control : Olympic Projects Review Group (OPRG)
Treasury (HMT)
Government Olympic
Executive (GOE)
Culture, Media & Sport (DCMS)
Communities & Local
Government (DCLG)
Transport (DfT)
Office of Government Commerce
(OGC)
Greater London Authority (GLA)
Olympic Lottery Distributer
(OLD)
Programme Management, Monitoring and Control
• Clearly defined governance, roles and responsibilities
• c70 individual projects – planned, approved and run independently BUT common programme management disciplines, process and tools applied, mandated in contracts, disciplined application by DP – allowed roll up of date across the programme – reliable and consistent
• Comprehensive progress review and reporting processes aided the extensive integration task
• Robust change control and clear delegation of authority but DP empowerment through delegation – fleet of foot in decision making
• ODA “3 lines of Defence” and external assurance
• Comprehensive risk management process
Assurance : three lines of defence
1. Identification – development of risk register2. Assessment – determination of the likelihood
and impact of risks3. Control – Formulation of mitigation plans and
actions
Risk management
• Key programme management and controls process
• Managed at project level but with programme oversight – DP and ODA PAO
• Early warning of risk and mitigation
• Key element of the change control , contingency management and cost forecast processes
• ODA Audit & Risk Committee
• Funders Risk Working Group
Commercial and Procurement Strategy
• Procurement strategy
• Commercial management and oversight
• Using the right contract, risk sits appropriately
• Dispute management
• Commercial Close Out
Procurement
Control & Governance – ‘Planning & Delivery Phase’
Contract ManagementCommercial Close Out
Procurement Strategy
• Procurement Strategy developed July 2006, published March 2007
• Integrated procurement team : CLM lead, ODA assure and approve
• Management tools and policies
Procurement Policy
Procurement Code (and pocket guide)
eTendering and eEvaluation
Competefor – portal for use by ODA and all contractors
• ‘Balanced Scorecard’ approach - inclusion of priority themes
Commercial : Strategic Approach
• Oversight and strategic direction Commercial Compliance and Assurance Working Group Commercial Board ODA commercial team
• Dispute Management Integrated approach between ODA / CLM commercial teams Independent Dispute Avoidance Panel (IDAP)
• Commercial Close Out
Management policy and procedure
Commercial : Strategic Approach
• CLM commercial team manage main Tier 1 contracts
• ODA commercial team provide assurance and governance Commercial Compliance and Assurance Working Group Commercial Board ODA Commercial team
• Risk owned and managed by most appropriate party
• Choice of contract
NEC 3 for construction and key professional services
• Minimal use of retention and LADs
• Training NEC form of contract
Change management
Commercial : Dispute management
• Integrated approach between ODA/DP commercial teams
• Independent Dispute Avoidance Panel (IDAP)
Established by the ODA
Representative panel of industry experts
Quarterly meetings to maintain connection with the project
Included within each construction contract as part of dispute resolution but NOT mandatory
Consideration of disputes and issues at any level of the supply chain
Commercial : Commercial Close Out
• Management policy and procedure
• Established while contracts still live
• Facilitated by NEC3
• Results speak for themselves
Summary
• People, process and planning
• Collaboration and alignment
• Monitoring and assurance
• Decision making and empowerment
• Transparency and reporting
• Leadership
Questions?