Topic: Risk

By Jonathan Norman
June 17th 2015

Developing a Digital Strategy for Major Projects Highlight Report

Digital technologies increasingly lie at the heart of major projects, supporting decision making in all aspects of project development and delivery. Traditionally left to specialist technicians and IT consultants, project leaders are now seeing the requirement to understand technologies as part of their own role.
However, the employment of digital technologies on a project can involve significant investment, change management and risk. Decision making in this area requires technical knowledge beyond the expertise of project leaders and an appreciation of the “bigger picture” beyond the experience of technologists.
This means considerable challenges when developing digital strategies for major projects; a language which works for all stakeholders is elusive and the necessary steps to develop an approach which adequately balances risk and reward are not clear.
This seminar addresses five key questions to overcome these challenges:
• How can we make sure that the very best use is being made of digital technologies throughout the lifecycle of projects?
• How can we maximise the value of information created during projects to support the operations and maintenance of the completed asset?
• How can we avoid the disappointment of technologies which fail to live up to expectations?
• How can we be certain that the transformation to new ways of working will be exciting and fulfilling for people in our industries?
• How can we be certain that we are maximising the potential of digital technologies every project?

This seminar will feature the insights of leaders from a range of sectors to identify an approach to developing a strategy for major projects which meets dual goals of a productive digital life during projects and a valuable digital legacy post completion.

Andy MItchell, Chief Executive, Thames Tideway Tunnel Ltd has agreed to chair this event for us.

By Jonathan Norman
October 8th 2013

Infrastructure Economy – Accelerating Major Projects Full Report

The 2013 Budget placed emphasis on the important role that economic infrastructure can play in providing an early boost to growth of the UK economy. The challenge for MPA members is find ways in which major projects already in a pipeline of activity can be more quickly brought to market and for the build phase to begin. Other projects slightly later in their phasing could bring benefits from increased expenditure on the initiation stage through employment of consultants and other professionals to hasten the award of contracts earlier than otherwise would have been the case.

The Chairman for this half day afternoon seminar is Alan Couzens, a Director at Infrastructure UK. This body sits within UK Treasury and therefore the chair is in a direct line to provide thoughts and advice, as well as take back to Government the outcomes from the seminar.
Economic infrastructure is described as those major projects which directly benefit the economic activity of government and businesses. In addition to civil engineering projects, other forms of economic infrastructure include major IT programmes, defence and broadband and other relevant media channels.

The focus of the seminar will be on the tension of obtaining a quick start of projects in the pipeline whilst recognising that major projects traditionally need sophisticated and longish lead times. Can our industries rise the challenge and provide useful suggestions to speed this process in response to the requirements laid down in the budget?

By Jonathan Norman
May 16th 2013

Delivering Major Projects in Brazil Full Report

In the last 10 years infrastructure investment in Brazil has tripled, reaching $100 billion in 2012. The demands of the economic expansion, the income growth of Brazilians and the social inclusion process have forced the country to accelerate its infrastructure development particularly in the area of logistics and energy. The Government’s Accelerated Growth Program (Programa de Aceleração de Crescimento, PAC) allocated an estimated $800bn to Brazil’s public infrastructure sector between 2008 and 2013. PAC2 continued this rate of investment in major projects. In 2012, in response to these pressing demands, President Dilma Rousseff launched the Logistics Investment Program designed to work with the private sector in order to renew and integrate the transportation network.

Between March and September 2013 the Government will make concession auctions for 7,500 km of highways, 10,000 km of railways as well as extra airport and port capacity. 2013 also sees further bidding rounds for oil and gas, as well as hydropower and wind-power projects and the installation of 23,200 km of electricity transmission lines. The EPL – Brazilian Planning and Logistics Company – which has been set up to deliver these projects – has the largest portfolio of infrastructure projects in the world.

Additionally this year, the Government has (re)scheduled the concession auction for the country’s first high speed railway to connect Rio de Janeiro, Saão Paulo and Campinas – 511 km in length. The country is also in the spotlight as it delivers the 2014 World Cup and 2016 Olympic Games.

These are all good news, but the intended infrastructure boost is coming at a time in which the Brazilian economy is slowing down and the supply chain for major projects is stretched to its limits. This will affect projects and pose corporate, finance and legal challenges to employers and contractors involved in delivering projects in Brazil in the coming years.

This full day seminar will offer an insight into this huge undertakings and how the public and private sectors are planning to deliver these projects and deal with related risks. HM Consul General for Rio de Janeiro, Paula Walsh, will Chair the day bringing her own experience of how Rio is gearing up for the 2016 Games. Experts will set the scene and give the funder’s perspective; and British and Brazilian nationals will share their own experiences of working on transport, energy and other major projects.

This seminar is aimed at those hoping to help deliver these projects as well as those hoping to learn from project professionals around the world about how they do things differently. Delegates attending this event will leave with:

A clear overview of the pipeline of major projects in Brazil
An understanding of how major projects are delivered differently compared to the UK
A “warts and all” view of the challenges of delivering major projects in Brazil

By Jonathan Norman
March 15th 2012

Disaster Planning, Crisis Management and Recovery Full Report

To what extent should major projects plan for and take account of potential disasters and how can we best recover after chaotic events have taken place?

We shall adopt the following definitions:

• Disaster: A sudden event, such as an accident or a natural catastrophe, that causes great damage or loss of life. It is the consequences of a disastrous event and the inability of its victims to cope with them that constitute a disaster, not the event itself.
• Crisis Management. Strategically directed activities to prevent, respond to, mitigate the effects and lead to the recovery from the crisis.
• Recovery: Is the process, policies and procedures related to preparing for recovery or continuation of technology/infrastructure critical to a project after a natural or human-induced disaster.

The half day seminar will run with two parts: firstly, scenario planning, choosing which risks to mitigate against, and deciding on the level of investment; and secondly, detecting the earliest signs of impending disaster and recovering the situation (compared to plan?) once the event has occurred.

Our Chair for this seminar brings substantive experience from military operations, planning at Government level and advising pan-government organisations in anticipating, planning for and recovering significant disasters, both man-made and natural.

We shall hear from an expert in nuclear power generation stations and learn from comparisons between existing power plants and the designs for the next generation, together with lessons for all projects post Fukushima.

With post analysis from BP’s handling of the Gulf of Mexico oil spill at Board level, we will gain an insight to lessons for corporate governance at three levels – in-field, in-country and at HQ.

Finally we shall hear from someone who had planned for a natural event and then had to put in place his own plan for recovery!

By Jonathan Norman
November 2nd 2011

London Games – From Construction to Commissioning Full Report

By November 2011 the London Olympic Park, the Olympic Village and non London facilities will have been handed over to LOCOG for Venue Operations and Games – Time Readiness. By this time the public will be very familiar with the appearance of the main facilities. In this fifth in the series of MPA seminars monitoring the development of the London 2012 Games we shall look backwards at a timely delivery and determine if this is an opportunity to “celebrate UK Construction”.

The seminar will be opened by Jeremy Beeton, Director General of the Government Olympic Executive, who as the key note speaker will provide an overview of the obligations of an Olympic Client and the Government’s aspirations.

Initially the seminar will focus on the part the contractors have played in the more intangible aspects of the programme, namely Legacy and Sustainability.

In addition the role of Schedule Management in the successful coordination of construction and integration on a multi-contractor site will be examined, together with the technical challenges of integrating multiple systems in the testing, commissioning and subsequent handover processes to LOCOG.

The seminar will be chaired by Gordon Masterton, Chairman of the Construction Industry Council and Vice President at Jacobs Engineering.

By Jonathan Norman
February 24th 2010

Governance and Risk – being wise before the event Full Report

Whenever a major project runs into difficulties or fails – the post mortem rapidly identifies what went wrong. Usually, the root cause can be traced back to something fundamental – a series of events or decisions which have contravened the known processes and procedures of major projects delivery. If these “transgressions” or errors in judgement are so obvious after the event why aren’t they more obvious at the time? Why aren’t they picked up by the project team or by the executive or board as part of the normal reporting or governance process.

Why aren’t we wise before the event?

This seminar seeks to explore ways in which senior executives can successfully oversee a project or portfolio by identifying tell tale warning signs early enough so that there is time to intervene. Gate reviews, risk management, maturity metrics, performance profiling and optimism bias will be put under the microscope as well as strategy, reporting, controls, culture and staff selection processes.

Oversight Committees and independent Non Executives can play an important role in spotting future problems yet their effectiveness is limited by the quality and timeliness of the information they receive. The seminar will explore where there is scope for improvement in this area too.

Outcomes should help organisations improve intelligent feed forward mechanisms and help them put in place effective measures to intervene in advance of major problems.

By Jonathan Norman
May 14th 2008

Testing and Commissioning Full Report

John Hudson, the seminar Chairman, defined testing and commissioning as: ‘taking a product or  a system and trying to demonstrate that it operates in a safe manner, meets the design intent, is fit for purpose and satisfies stakeholder expectations.’

As projects become increasingly complex, and as more stakeholders and more disciplines become engaged, the process of validation, integration and testing becomes very much more significant and is a critical driver in major project strategy. In addition, pressures on the budget and the schedule, increasing levels of technology, greater risks and the difficulties of scarce resources mean that the benefits of a well planned and well managed testing and commissioning phase should be apparent for all major projects. Testing and commissioning can be the defining moment between success and failure of a major programme – the last thing any project wants is a systems failure at the vital moment of delivery.

The seminar explored all aspects of the testing life cycle within a systems context, from initial requirements and project planning through to design, build, integration and engineering test, culminating in client acceptance and successful entry into service. It provided valuable insights and best practice examples from a range of sectors and from different perspectives – owner, operator, prime contractor and supplier as well as those responsible for insurance and safety.

By Jonathan Norman
February 7th 2008

Delivering High speed 1: The Successes and the Lessons Full Report

On 14 November 2007, some 13 years after the start of Eurostar services between London, Paris and Brussels, Britain’s first genuine high-speed railway line was completed, on time and within budget.

Originally known as the Channel Tunnel Rail Link (CTRL), the project was renamed High Speed 1 (HS1) in November 2006. HS1 is the UK’s first major new railway in over a century: a high-speed line allowing trains to run at speeds of up to 300 km/h between the Channel Tunnel and London.

Presentations from the key organisations involved on the programme provided an insight into one of the UK’s most successful major projects in recent years, and an opportunity to explore aspects that should be transferred to the many new projects now under way. The seminar examined the planning, financing and project management that went into building the railway, and the work involved in the successful launch of Eurostar services on HS1.

By Jonathan Norman
December 5th 2007

The Growing influence of IT on major projects Full Report

All major projects now have an IT component, which includes control and monitoring systems for all functions of both the facility itself and the people who operate it. Since IT is usually the most innovative feature, it tends to be the most difficult to manage through to effective and reliable operation. Its installation has also become essential to operating the finished project, yet is the one which is finished
last.

Most project management processes, such as financial modelling, communications, design, scheduling, cost control and document management, use IT, but they tend to have developed in isolation and not be well integrated. Chaired by Sir Michael Latham, this seminar had two objectives: to investigate how best to integrate the design and commissioning of those systems which include IT in the totality of the project work, and to establish how best to utilise IT in the management of projects.

The seminar also looked at why IT project work has a poor reputation for successful outcomes, and what can be done to de-risk the management of the IT component. Speakers presented specific examples across a variety of sectors, talked about the reasons for poor success rates and suggested ways to improve the management of major IT projects

By Jonathan Norman
April 18th 2007

Benefits Management and the Business Case Full Report

A business case brings together the strategic information necessary to support governance and decision making from conception through to the final realisation of the intended benefit. It is therefore of crucial importance throughout the life cycle of a major project.

The seminar examined different aspects of benefits management and the business case, such as ways of articulating vision, objectives and value drivers, the essential building blocks of best practice and how to communicate alternative implementation strategies.