Infrastructure Projects

1Date 21.11.12 1

Realising Benefits of a Collaborative Procurement

Strategy in Rail Infrastructure Project Delivery

Motsi Madangombe, Assistant Commercial Manager, EGIP

Infrastructure Projects

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Context

Preface

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Context

• A Personal Reflection

• Why Collaborate?

• Cross Industry Benchmark

• Realising Benefits of a collaborative procurement strategy

• Summary and Close

Infrastructure Projects

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A Personal Reflection

Section 1

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Paisley Corridor Improvement Project

Overview

• Provision of a three track railway between Gower Street and Arkleston and a 4 track railway between Arkleston and Wallneuk junction

•

Project chainage 8750 11125 13500 15875 18250123009950 14600 17050

9.5 Kilometers

Gower St. Ibrox Arkleston East

Arkleston West

Wallneuk Brown St.

Cardonald Stn. Hillington Hillington

Paisley Gilmour St. Stn.

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Paisley Corridor Improvement Project

Contract

• ICE Standard, Design & Construct 2nd edition incorporating NR Schedule of Amendments NR9

Lessons Learned

• Significant risk transfer to the contractor

• A contractual environment that encourages claims

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Advanced Route Clearance 2012

Project consist of 28 mixed structures which include bridge

demolitions, bridge reconstructions & track lowers

Contract: ICE Target Cost

Lessons Learned

Infrastructure Projects

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Why Collaborate?

Section 4

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Traditional Contractual Environment

• Us vs. Them

• Misaligned interests

• Ineffective communication

• Poor relationships

• Lack of trust

• Lose/win situation rather than win/win situation

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Collaborative Contractual Environment

• Introducing a new culture

• Collective responsibility

• Shared risk & reward

• Promote trust

• ‘No man marking’

• Direct channels of communication

• Win/win situation rather than lose/win situation

Infrastructure Projects

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Cross Industry Benchmark

Section 3

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Cross Industry Benchmark

Australian Public Sector Alliancing

Success factors

• Shared cost & risk

• Reduced overheads

• Mutual benefit

Oil and Gas Industry Alliancing & Partnering

Success factors

• Improved cost certainty

• Commercial viability of new field developments

Infrastructure Projects

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Realising Benefits (Theory to Practice)

Section 5

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Collaboration Attributes

• Collaboration is one aspect you can compare to a marriage

• Marriage being a union between individuals is a result of attraction, agreement or consent

• And marriage bring many benefits …but can also be costly

• And Lastly do remember that all marriages end either in

…Divorce or Death

• Hence it is necessary to outline key factors necessary for a successful collaborative procurement strategy

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Link to successful collaboration

• Focus on a client centred approach rather than organisational

• Our leaders have a responsibility to develop and maintain a shared vision

• Regular contact through purposeful meetings

• Appropriate representation on the team

• A change in culture

• Trust among team members

• Information sharing

• Attributes

• Determination

-Learn from mistakes &

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Relationship Effectiveness Model

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Summary & Close

•It is widely accepted that the rail industry is in need of change and…

•The pace of change is determined by initiating new ways of working amongst all key stakeholders in the industry and…

•Success can only be realised by developing people, changing attitudes, training and development and creating an environment of openness and trust.

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Infrastructure Projects

Thank You and Any Questions