Establishing
the Team. - Is
It Ever Too Early or
Ever Too Late?
TEAM FOCUS
PUTTING
PARTNERING
INTO
PRACTICE
Construction
Productivity
Network
Granada Studios
Manchester
16 September 1999
Michael Thompson
www.teamfocus.org
CONTENTS
Establishing the Team - Is it Ever Too Early or Ever Too Late?
• Value Management
• Setting up for Disaster!
• “Constructing the Team” and “Rethinking
Construction”
• Best Practice
• Partnering Culture
• Case Histories
• Lessons Learned
• The Future?
www.teamfocus.org
Project VALUE
Management
MANAGEMENT
Quality
Management
CONCEPT
MANAGEMENT
Safety
Management
Environment
Management
DESIGN
MANAGEMENT
CONSTRUCTION
MANAGEMENT
Value
OPERATION
Engineering
MANAGEMENT
Risk
Management
Time
Money
Management
Team Culture
Management
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SETTING UP FOR DISASTER!
• The Client sets the bidding rules
• He may be bound to use competitive bidding
processes (public sector)
• Invariably he chooses the lowest bid when he
should try to determine the likely lowest out-turn
cost
• With intense competition, the lowest bid is
probably under-priced
• DISASTER!
2 + 2 = 3!
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“CONSTRUCTING THE TEAM”
• Sir Michael Latham, at the request of the
Government, reviewed the UK Construction
Industry in 1994
• Amongst other things, he recommended a
different way of working which would be
less confrontational - such as Partnering
www.teamfocus.org
“RETHINKING
CONSTRUCTION”
• Sir John Egan published his report in July
1998 as a sequel to Sir Michael Latham’s
report
• Most significant to Partnering were the
annual performance targets he
suggested………
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“RETHINKING
CONSTRUCTION”
ANNUAL PERFORMANCE TARGETS
Indicator
Capital cost
All costs excluding land and finance.
Construction time
Time from client approval to practical completion.
Predictability
Number of projects completed on time and within budget.
Defects
Reduction in number of defects on handover.
Accidents
Reduction in the number of reportable accidents.
Productivity
Increase in value added per head.
Turnover and profits
Turnover and profits of construction firms.
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Improvement / year
Reduce by 10%
Reduce by 10%
Increase by 20%
Reduce by 20%
Reduce by 20%
Increase by 10%
Increase by10%
EFFECTIVE PARTNERSHIPS
• Set up multi-organisational project teams as
a “single organisation”
• Make them lean and efficient!
• Avoid duplication of roles, and gaps
between roles
• Introduce the Partnering culture, including
effective communication, trust and common
objectives
www.teamfocus.org
BEST PRACTICE
• There is no single definition for Best
Practice.
• One definition:
– It is the achievement of all the goals laid down
by a Project Team (including the Client) for the
final product, by consideration of the best
techniques of procurement, contract strategy,
quality assurance and good supply
management
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BEST PRACTICE
• Pre-partnering, could we
have done better?
• Even with the Partnering
culture can we do better?
• Should we not strive for
100% in “Excellent”?
• Would not then Best
Practice be achieved?
www.teamfocus.org
PARTNERING CULTURE
• Probably less than 10% of all projects in the
UK adopting the Partnering culture in the
last two or three years have had true
Partnering contracts in place
• For many, the culture has been adopted
after contract award
• However, to obtain maximum benefit, a
Partnering “cost plus” contract is preferable.
www.teamfocus.org
PARTNERING CULTURE
• Of over 120 projects that the Presenter has
been involved in, all had clear objectives
and the majority were successful to a
degree in achieving them
• Less than 5% did not succeed
• One that did not succeed required a court
judgement.
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PARTNERING CULTURE
• But when should the culture be introduced
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CASE HISTORIES
• Three case histories:
– Sewage Treatment Works in Southern England
• Project Partnering from Outline Design Stage
– Motorway Bridges Refurbishment
• Partnering culture from Bidding Stage
– High School in Southern Scotland
• Partnering culture for last 20% of Construction Stage
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SEWAGE TREATMENT WORKS
• Four organisations,
working together
without walls
between them
• Partnering
compatible contract
in place
• £12 million contract
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THE CHALLENGE
• Build a brand new
sewage treatment
works from outline
design on a “green
field” site within 21
months and within
budget
• Undertake the
earthworks during the
worst period of the
year!
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A QUICK START
• The Project Team started work on 24 July
1995
• The Team Building Workshop took place on
31 July 1995 and a Charter agreed and
signed
• The Value Management Workshop
commenced on 2 August 1995
• A firm, agreed, outline design was in place
within 10 - 14 days.
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SOME SUCCESSES
• Rapid establishment of
the design with confidence
through Value
Management processes
• Effective Risk
Management relating to
Planning Permission and
Discharge Consent
• Design and construction
taking place concurrently
• Rapid appointment of subcontractors
• Self supervision of
construction works (TQM
approach)
• Joint planning with
Operations the testing and
commissioning of the
Plant
• Fast resolution of
earthworks problems
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CONCLUSION
• Completed and commissioned 2
weeks early
• Handed over the plant £700,000
within budget
• Self-supervised - quality excellent!
• Good Health & Safety record
• Environmental constraints
observed
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MOTORWAY BRIDGES
REFURBISHMENT
• Team approach introduced after
contractor appointed
• In their Charter, the Team undertook to
promote excellent working relationship
in an environment of total trust,
openness, honesty and good humour.
www.teamfocus.org
THE PROBLEM
• Relationships deteriorated on site
between the Contractor and Resident
Engineer staff
• They were working in separate
buildings on the same site and had set
up “opposing camps”
• Team performance was declining
rapidly
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ACTION TAKEN
• Senior Management decided the
team would not fail
• They insisted on a single office on
site, and changed some staff
• There were significant
improvements in relationships and
the Project was a success!
www.teamfocus.org
HIGH SCHOOL, SCOTLAND
•
•
•
•
£4 million contract
30 month construction schedule
Due to finish August 1998
Only 50% spent by month 24 (80%
through schedule)
• Main problems
–inadequate information flow
–quality problems
www.teamfocus.org
ACTION TAKEN
• Partnering culture introduced during a
Team and Management Workshop
with only 5 months to go
• Major issues identified and actions
agreed
• Contractor provided the Client with
assistance to progress
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OUTCOME
• The School was completed on
time, but with some additional cost
• Additional cost more than
compensated for cost of housing
children temporarily
• Satisfied Client
• Reasonable return for Contractor
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LESSONS LEARNED
• It is never too late…...
• But introduce the Partnering culture as
early as possible, ideally as early as Outline
Design Stage
• And introduce an appropriate form of
contract if you can for maximum benefit,
including the sharing of gain
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THE FUTURE?
• Continue the Partnering culture
• Apply more formal performance monitoring
and measurement procedures, such as Key
Performance Indicators through such
processes as Project Alignment
• Continue to strive towards Best Practice by
aiming for the best finished product every
time.
www.teamfocus.org