Delivering the London 2012 Venues & InfrastructureGerry MurphyChief Operating OfficerOlympic 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

situfor 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

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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 controlsAssurance,

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

MissionTo 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 Equa

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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

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1500000

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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 BoardImplementation 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

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 bodiesonly 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 register2. Assessment – determination of the likelihood

and impact of risks3. 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 ManagementCommercial 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

Questions?