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Capital Projects and Project Delivery
Jerry Dobrovolny, P.Eng, MBACOMMISSIONER / CHIEF ADMINISTRATIVE OFFICER
Cheryl Nelms, P.Eng., Ph.D.
GM, PROJECT DELIVERY
GVS&DD Board Meeting: April 24, 202037132263
Section D 1
Greater Vancouver Sewerage and Drainage District
Staff were directed to:• conduct an independent review of the processes and
decision-making related to major infrastructure projects be conducted; and,
• bring forward for Board consideration recommendations arising from the review.
2
Board Request
Greater Vancouver Sewerage and Drainage District
• Challenges1. Scale 2. Complexity3. Market Influences
• Best Practices Response1. Re-organization2. Independent high level review by
KPMG of major projects3. Response to KPMG’s strategic
recommendations 3
Outline
Greater Vancouver Sewerage and Drainage District
Challenge 1: ScaleMajor Capital Projects as Percentage of Plans
60%67%
46%40%
40%33%
54%60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% o
f tot
al c
apita
l bud
get
Capital Plans
Major ProjectsOther Capital
2010-2014 2015-2019 2020-2024 2025-2029Greater Vancouver Sewerage and Drainage District
7
Challenge 2: Complexity
• Contract structures• Environmental requirements• Stakeholder involvement• Funding approaches• Regulatory requirements• Community benefits• Indigenous partnerships
Greater Vancouver Sewerage and Drainage District
9
Challenge 3: Market Influences
Metro Vancouver Region Projects:• Broadway Extension • Roberts Bank Terminal 2 • Vancouver International
Airport Upgrades• Surrey Langley SkyTrain• Pattullo Bridge Replacement • North Shore Wastewater
Treatment Plant• Annacis Island Wastewater
Treatment Plant Expansion• George Massey Tunnel
Replacement ProjectSource: Top100Projects.ca/2019
Greater Vancouver Sewerage and Drainage District
11
Best Practices Response 1: Re-organizationPre-2012 Organizational Structure
Policy and Planning
Engineering and Construction
Operations and Maintenance
Solid Waste Water Liquid Waste
Solid Waste Water
Water
Liquid Waste
Liquid Waste
Greater Vancouver Sewerage and Drainage District
12
Best Practices Response 1: Re-organization2012-2019 Organizational Structure
Policy and Planning
Operations and Maintenance
Solid Waste Water Liquid Waste
Policy and Planning
Engineering and Construction
Operations and Maintenance
Policy and Planning
Engineering and Construction
Operations and Maintenance
Greater Vancouver Sewerage and Drainage District
Engineering and Construction
Annacis
13
Best Practices Response 1: Re-organization2012-2019 Organizational Structure
Policy and Planning
Operations and Maintenance
Solid Waste Water Liquid Waste
Policy and Planning
Engineering and Construction
Operations and Maintenance
Policy and Planning
Operations and Maintenance
NW Langley
NorthShore
Coquitlam 2nd Intake
Greater Vancouver Sewerage and Drainage District
14
Best Practices Response 1: Re-organization2020 Organizational Structure
Policy and Planning
Operations and Maintenance
Solid Waste Water Liquid Waste
Policy and Planning
Engineering and Construction
Operations and Maintenance
Policy and Planning
Engineering and Construction
Operations and Maintenance
Project Delivery
Major Projects
Asset Management
Project Management Office
Greater Vancouver Sewerage and Drainage District
15
Best Practices Response 1: Re-organization
Project Management
Office Centre of Expertise
Major Projects Delivery
Asset Management
Greater Vancouver Sewerage and Drainage District
16
Best Practices Response 1: Re-organizationFunctions of a Centre of Expertise
Project Management FrameworkPolicy, Processes and Procedures, Standards and Controls
Asset Management Asset Management Strategy and Plan, Policy, Processes and Procedures, Standards, Corporate Reporting
Quality AssuranceQuality Assurance and Control, Monitoring, and Training
Project DeliveryProject Management of Major Complex Projects
Greater Vancouver Sewerage and Drainage District
17
Best Practices Response 1: Re-organizationProject Management Models
Decentralized model
Influencing model
Devolved model
Centralized model
LWSWS
SWS
LWSWS
SWS
PMO
LWSWS
SWS
PMO
Increasing Centralization of Control
Increasing Project / Department Autonomy
LWSWS
SWS
PMO
Source: KPMGGreater Vancouver Sewerage and Drainage District
Key steps:• Document review: key documents including reports from
major projects• Interviews: key project personnel involved in the delivery
of major projects and programs • Focus Group: validation and review of findings with
General Manager working group
18
Best Practices Response 2: Independent ReviewKPMG Approach to Project Delivery
Greater Vancouver Sewerage and Drainage District
19
Best Practices Response 2: Independent ReviewBest Practice Project Delivery Framework - KPMG
LEA
DER
SHIP
STA
KEH
OLD
ER
TECH
NIC
AL
GO
VER
NA
NCE
Source: KPMGGreater Vancouver Sewerage and Drainage District
20
Best Practices Response 2: Independent ReviewThe 5 Pillar Framework
StakeholderGovernance
OversightDecision, Authority
& Escalation Protocols
Organizational Design
Reporting/Line of SightPerformance Management
Shareholders
Leadership
Vision, Mission & Values
Organizational Culture
Capability, Capacity and Competence
Management of Change
Communications
Soft Controls
Technical
Engineering Management
Budget & ScheduleProject
Controls Technology,
Systems & Process
Regulatory Requirements &
PermittingAsset
Management
Government & Regulatory
Indigenous Relations
Community/Public Engagement
Internal StakeholdersRelationship Management
Industrial Relations
Project Structure
Project EconomicsContract Strategy
Supply Chain & Markets
Risk Management
Finance & Funding
Source: KPMGGreater Vancouver Sewerage and Drainage District
21
Best Practices Response 2: Independent ReviewStrategic Areas of Opportunity
StakeholderGovernance
OversightDecision, Authority
& Escalation Protocols
Organizational Design
Reporting/Line of SightPerformance Management
Shareholders
Leadership
Vision, Mission & Values
Organizational Culture
Capability, Capacity and Competence
Management of Change
Communications
Soft Controls
Technical
Engineering Management
Budget & ScheduleProject
Controls Technology,
Systems & Process
Regulatory Requirements &
PermittingAsset
Management
Government & Regulatory
Indigenous Relations
Community/Public Engagement
Internal StakeholdersRelationship Management
Industrial Relations
Project Structure
Project EconomicsContract Strategy
Supply Chain & Markets
Risk Management
Finance & Funding
Source: KPMGGreater Vancouver Sewerage and Drainage District
22
Best Practices Response 3: Response to RecommendationsNext Steps Ja
n
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec 12
M
onth
R
evie
w
Project Delivery Department (PDD)– Initiate PDD - Complete
PA1 Leadership – Capability, Capacity and Competence Needs Assessment and Resourcing Strategy
PA2 Governance – Oversight Oversight Model Development and Alignment
PA3 Governance – Organizational DesignOrganisational Design Model Assessment
PA4 Commercial – Contract Strategy Development and Implementation Assessment
PA5 Stakeholder – Internal Stakeholder– Internal Interface Agreements and Communications Plan
PA6 Technical – Project ControlsControls and Assurance Function Planning
PA7Technical – Technology, Systems and Process
Project Management Tools Assessment and Developments
Change Management and ongoing initiativesTo be layered into the development of the Department
Updates to Boards, Committees, and Advisory CommitteesRegular updates on Project Delivery department progress
Initiate new Department
Contract Strategy – Process Review and Individual Project Assessment
Org Model Review
Needs, Resourcing Strategy & Key Hires
Internal Stakeholder Agreements
Oversight Model Review
Project Controls Functionality
PM Tools and Templates
Change Management Plan
Source: KPMG
Greater Vancouver Sewerage and Drainage District
• $1.7 Billion in work underway• Over 40 claims received to date• Coordinated approach to address risk • Working with the Province and industry on COVID
response • Scenario analysis is currently being conducted to identify
the range of potential COVID-19 financial impacts on Metro Vancouver projects
23
COVID-19 ResponseNext Steps
Greater Vancouver Sewerage and Drainage District