Contractor Alliancing
Sean Mooney
Programme Manager
1
Today’s Agenda
 Introduction
 Background
 Contractor Alliancing
 The Process Alliance
 Electricity Alliance North (EAN)
 Optimise Water (LLP) JV
 Benefits of Alliancing
 Questions and Answers
Definitions
Contractor
 An organisation or individual that contracts with another
organisation or individual for the construction of a building,
road or other facility
Alliance
 Is an agreement between two or more parties, made in order
to advance common goals and to secure common interests.
Contractor Alliancing
 Two or more organisations sign an agreement to deliver a
specific Programme of Works that meets with their respective
Business goals aligning with their common interests
Definitions
Joint Venture (JV)
 A business agreement in which parties agree to develop a
new entity and new assets by contributing equity. The parties
then exercise control over the enterprise and consequently
share revenues, expenses and assets.
The Process Alliance
+
=
Who is KMI+?
Electricity Alliance
 There are six Alliances
 Four Substations – North,
Central, South East, South
West
 Two Overhead Lines – East
and West
 Contract Period – April 2007
– March 2012 (option for
additional 5 years). All
Alliances have now
extended their respective
Contracts to March 2017
Electricity Alliance
 The Alliance is a
partnership between
National Grid and 15
construction companies
 It has been formed to
deliver a major
investment programme
to update and develop
the high-voltage
transmission network
Electricity Alliance North (EAN)
 National Grid (NG) are
committed to upgrading
 their current capacity
and the robustness of
the Electrical Power
Network
 the transmission lines
as each substation
affected will need to be
upgraded to suit.
Electricity Alliance North (EAN)
14th February 2012
Committed to safely delivering robust and reliable
substations, ensuring improved efficiency and value
through collaboration
EAN Priorities 2011/12
Drive a Zero Harm culture
Generate safe, sustainable, quality lifetime solutions
Value+…..year in, year out
Programme Management across Development, Design,
Construction and Closure
Develop all our people, our identity... a great place to work
Engage with our stakeholders
Forward resource planning
Deliver the Capital Plan
Get ready for RIIO
Optimise Water (LLP) Joint Venture
 Optimise Water (LLP) is a Joint Venture between
 The JV was awarded the AMP5 Framework with
Thames Water for Capital Works on Network
Infrastructure, covering Thames Valley and North
London
Optimise Water (LLP) JV
 Victorian Mains Replacement
 Upgrading sewers
 Developer Services, and:
 Repair and Maintenance of
underground Water Network,
covering Thames Valley and
South London
Safe Working
Donations to Charity
Investment in Training
Industry Awards
Industry Awards
Benefits of Alliancing - Client
 Early Contractor
Involvement (ECI)
 Programme
Management
 Managing Risk - Early
Identification and
Mitigation
 Consistency in Project
Lifecycle
 Establishing Long Term
Relationships
Benefits of Alliancing - Client
 Efficient Management
Reporting
 Advanced Procurement
 Right Solutions
 Contractor Resources
and Expertise
 Provides Best Value
 Cost Certainty and
Commercial
transparency
Benefits of Alliancing - Contractor
 Future workload with committed
Turnover and Profit (?)
 Better understanding of the
Clients needs and drivers
 Processes and Systems
 Investment in Training,
Development and Resources
including People, Equipment
and Supply Chain
 Input to Projects in the Concept
and Definition Phases to ensure
the right solution
Benefits of Alliancing - Contractor
 Constructability support with
input to schedules and key
Milestone dates
 Collaborative Working with
 Best Practice and Value
Engineering
 Teamwork
 Innovation
 Lessons Learnt
 Continuous improvement
Summary
 Over 75% of our
business is based on
design and construct with
the key to our success
being achieved through
close collaboration with
customers, consultants
and the supply chain.
 This is in both formal and
informal relationships
Q and A???
ThanQ for listening........