Heathrow Airport Limited
Managed Service Provider
Research & Innovation
Presentation
Jan 2011
© Turner & Townsend plc October 10 making the difference
Agenda
Introduction
Our Vision
Operating Model
Cost & Commercial
Management
KPI’s
Summary
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Heathrow Context - Strategy
Intelligent Client
Managed Service Provider
Complex Build Integrator
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Heathrow Context - Capital Spend
3 Programmes of Work
Eastern Campus (T1, T2 & Landside Development)
Western Campus (T3, T4 & T5)
Infrastructure (Airfield & minor works)
£1bn spend in 2011
£1bn spend in 2012
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Heathrow Context - 2011 Highlights
New Terminal on site (T2A)
Replaces the old Terminal 2 & Queens Building)
2nd phase of a new Pier (T2B)
£600m+ project
Construction of a new car park
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Our Vision for BAA
To be integral to the BAA Programme Management team that delivers
world class airport infrastructure and assets
Our contribution:
Turner & Townsend’s best
people in high performing
teams - using integrated
controls & systems to
establish performance
baselines for scheduling,
cost planning and risk
management - to provide
the basis for reliable and
accurate management
information - to support
intelligent decision making
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Operating Model
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Operating Model
Our Service USP’s Blue Red Team
Team
Blue Team
Red Team
Yellow Team
Recognised Industry
Leading sub-consultants
Quality and Assurance
team and drive towards
ISO 9001 accreditation
Yellow Team
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Unique Selling Point:
Managing & Resourcing the Framework
BAA Passport
Tailored training,
learning and
development plan
Linked to Competency
Framework
Suitably qualified
experienced people
Team integration and
motivation
Progress made to date
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Unique Selling Point:
Managing & Resourcing the Framework
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Integrated Approach
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Commercial & Control Function
Cost Plan Work Breakdown Structure
Structured against the
first 4 levels of the
WBS
Coded against the WBS
Element Based by Work Phase - Statement of Work
- Aligned to Contract Type
- EVMT
- WBS aligned - Budgets
- Key milestones - Delivery Orientated (product/
- Cost loaded Accepted system/ zone etc)
- Risk Analysed Programme
- Integrity Tested
Format & structured
with the CBI
Validate against Project
Objectives, Business Case
- Achievable and Acquisition strategy
- Appropriate level
- Client Approved
- Objective Measures of Progress Baseline (+ Change)
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Acquisition Incentivisation and
Controls Strategy
Acquisition / Commercial Activities Good Controls & Performance
Targeted BCWS
Pre-Contract Award Fee (Supplier focused on achievability of
(based on agreed Target Cost)
the Target)
KPI’s strongly linked to
controls data
KPI Award Fee (forecasting accuracy, timely data, key
dates etc)
.
Behavioural Assessment
Discretionary Award Fee (Focus on risk mitigation and
opportunity realisation)
EAC Management & Focus
Pain/ Gain Incentive (Supplier & Client team rewarded for
positive VAC)
‘Commercial strategy developed to drive a positive controls
culture and beneficial project outcomes for all parties’
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Technical Clarification 2
Understanding of Collaborative Working
Integrated Framework
Competencies
Matrix Management Approach
Functional Leads + MSP Leads
MSP Service Handbooks
Roles / responsibilities defined &
communicated
Maturity Based Improvement
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Delivering Successful Programmes
Delivering Successful Programmes
Reduced and
Predictability Demonstrable Value Capital Cost Efficiency Fit for Purpose Managed Risk
Operational Regulatory Sustainability Goals Reputation Stakeholder
Efficiency Legacy Compliance Realised Enhanced Satisfaction
Governance & CAPEX, OPEX & Commercial Design Contract
Assurance Lifecycle Estimating Strategy Management Management
Schedule Contract Requirements Expediting and
Business Case
Management Strategy Management Logistics
Benefits Procurement Stakeholder QA/QC
Cost Control
Management Management Management Coordination
Management
Systems &
Change Contract Interface Construction
Information Mgmt Control Administration Management Logistics
Risk and
Funding Advice Cost Sustainability Strategy Construction
Opportunity
and Due Diligence Management Verification & Carbon Mgmt
Supervision
Performance
Planning Consents Dispute Health. Safety
Measurement & Commissioning
and Obligations Mgmt Management and Environment
Reporting
Organisational
Design &
Document & Supply Chain Value Operational
Data Management Readiness and
Development Management Engineering Transition
STRATEGY DELIVERY IMPROVEMENT ASSURANCE ENHANCEMENT
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Innovation in Practice
• EVM Compass Application
Predictability
• Schedule Quality Toolkits, Schedule community development
• Improved cost data management with cost database (Prism)
Demonstrable • Practical application of maturity models
Value • CapE Toolkit
• Performance Forum Benchmarking club
Capital Cost
Efficiency • Integrated Risk, Issue and Change process
• Risk & Value Maturity Model
Reduced and
Managed Risk • Prendo Simulation to build risk awareness
• QSRA trending to build PM participation in risk process
• Integrated competency framework
Legacy • Integrated training and development (EVM Foundation)
• Multi-discipline awareness training
Sustainability
Goals Realised
• Carbon Accounting
Reputation • Accreditations and Qualifications (ISO9000, EVM Foundation, APMP)
Enhanced • Awards (APM Project or Programme of the Year)
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Interface Management
Interface Management
Integrated systems, manages risk, safeguarding Trigger milestones
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Cost Loaded Schedules
Improved treasury management, influencing outcomes, multi schilling
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Pseudo Project Quality Objectives
and 90 Day Plan
Red Team
Quality
Quality Plan & Objectives
Pseudo
Assurance & Functional
KAM Project 90 Day Plan
Intervention Support Quality
MSP Lead
Objectives •Establish a quality
system that
maintains effective
Blue Team
control of quality
MSP Execution Plan and instils client
confidence
PCIP •Create culture of
support continuous
EVM Implementation Plan improvement
•Dedicated full time
Supplier Engagement Plan senior resource to
roll out process,
Training Plan procedures and
integrated systems
System Roll Out to deliver the step
change
Measure
Set objectives Plan
Performance
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Cost & Commercial Management
Andrew Hazard
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Cost & Commercial Management
COST COMMERCIAL
Cost Estimating / Planning Acquisition Strategy
Benchmarking Incentivisation Strategies
Cost / Risk Analysis Contract Documentation
Change Management Supplier Engagement
Cost Control Supplier Evaluation & Award
Cost Reporting Payment Process
Lessons Learnt / Knowledge Supplier Performance
Management Agreement
Cost Systems Support Dispute Avoidance /
Resolution
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Cost & Commercial Management
Cost plan structured to reflect
schedule and WBS
Specialist estimating capability
Ability to challenge design
assumptions
Integrated VfM and VfT
reports
Incentivisation mechanics and
measurement linked to
controls
Collaborative, one team
approach
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Key Performance Indicators
Mike Collings
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Key Performance Indicators
Capital project EAC vs CIP
BAA’s
Corporate Capital Programme
progress vs plan
KPI’s
KPI’s that will drive
aligned performance
Project level KPI’s
Framework level KPI’s
Client care system
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KPI suite
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Summary
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Summary
We are passionate about what we do
BAA are our most important client
We need to lever the people, knowledge, tools and experience to
deliver an enhanced service
Our objective is to deliver radically improved Schedule & Cost
predictability and increase value
Gain Industry Recognition – for us and the wider practice
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