Reinventing the Works Department looks at how the good aspects of the Government and Council Works Departments, can be reinvented using Collaborative Contracting. The presentation also challenges a number of fundamental aspects of current Alliance contracts being used in the New Zealand Roading Maintenance & Operations industry.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1. Reinventing the Works Department?Collaborative Contracting
for Roading Maintenance & Operations Simon Gough November
2011
2. Reinventing the Works Department?Collaborative Contracting
for Roading Maintenance & Operations
3. Reinventing the Works Department?Collaborative Contracting
for Roading Maintenance & Operations
4. Ministry of Works Ministry of Works Touring Car 1918 NZs
Ministry of Works Bad Tie Competition -1984 Nelson Photo News 1961
First Motorway Johnsonville Motorway 1950 Haast Road Construction
c1959 Works Camp - North Island Main Trunk Line c.19081876 1988
(incl Public Works Dept)
5. A Looming Problem Statistics New Zealand
6. Impact of Ministry of Works1000009000080000 Kilometres
of70000 Metal Roads6000050000400003000020000 Kilometres of Sealed
Roads10000 0 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970
1975 1980 1985 1990 1995 Statistics New Zealand
7. So what Should we Reinvent?1. Training & Development
Ground2. Variety of Experience3. Knowledge Continuity4. Closer
working relationship between the contractors, consultants and
clients Can collaborative contracting help to rediscover these lost
elements?
8. Objectives1.Value for Money2.Healthy
Industry3.Collaboration4.Outcome & Performance Focused5.Skills
& Knowledge6.Innovation7.Middle & End
9. Why do we need Contractors& Consultants?1. Specialist
skills and equipment2. On demand resources3. The ability to spread
the costs of under-utilised resources.4. Access to a wider network
of expertise, experience and knowledge sharing5. Creating a
commercial tension and focus (the missing ingredient for the
Ministry of Works)
10. Collaborative Procurement isAn umbrella term forclients,
contractors and consultantsworking together in a seamless team
tocommon objectives that deliverbenefits to all, but most
importantlythe project outcome. Source: U.K. Constructing
Excellence
11. Current Challenges withCollaborative Contracting
12. Who owns or controls theCollaboration?1. Perception exists
that the Alliance is the contract2. We limit our selves by thinking
in terms of the length of the contract1. The client should
establish and own the collaborative framework2. The client will
then procure partners to assist with delivery3. On this basis the
client should provide the day to day business operations to reduce
the end risk and cost
13. How do you Create Incentiveswith Fixed Budgets?1. In todays
financial environment clients usually work to fixed and declining
budgets2. Maintenance & Ops collaborative contracts very
different to Projects1. Need to focus on cost productivity to
calculate improved performance and create the bonus pool2.
Performance metrics then used to determine how the bonus is
shared
14. How do you Maintain HighPerformance?1. A new well
performing collaborative team will take 5 to 8 years to optimise
their operations2. The commercial model is only the catalyst for
creating a high performing team1. The incentives need to be added
to and updated to ensure they encourage the team to keep performing
at a high level
15. Is the Clients Knowledge &Skills Enhanced?1.
Significant long term risk is associated with the deteriation of
knowledge and skills in the client organisation2. Current Alliances
often dont have enough client staff in them to mitigate this risk1.
Clients should aim to build their staffs skills & knowledge
over the contract duration
16. What Should the End LookLike?1. A smooth transition and
continuity of services2. No impact from knowledge loss3. No large
costly tendering process to select the incumbent who has all the
track record, experience and resources1. I suggest using two main
contractors and staggering the retendering to create a perpetual
service delivery
17. Two Main Contractorsin a Collaborative Contracting
Arrangement
18. SummaryClient establishes and owns long termCollaborative
FrameworkUse Cost Productivity to determineefficiency gains &
focus behavioursContinuously monitor performance &modify
incentivesInclude more client staff in yourcollaborative teamsUse 2
main contractors in yourcollaborative team
19. Kind of Have we reinvented Yes, but with a commercial the
Works focus Department? Works Department Conclusion
20. Questions? More Information? Simon Gough [email protected]
Whangarei District Council