Published on March 18, 2014
Delivering the London 2012 Venues & Infrastructure Gerry Murphy Chief Operating Officer Olympic 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 situ for 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
6 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 controls Assurance, 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 Mission To 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 EqualityandInclusion Health,Safety&Security Legacy EmploymentandSkills DesignandAccessibility Sustainability
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
0 500 1000 1500 2000 2500 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 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 Board Implementation 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: 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 bodies only 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 register 2. Assessment – determination of the likelihood and impact of risks 3. 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 Management Commercial 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
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