Cooperation

Insufficient early project planning and consultation leading to poor procurement outcomes for projects with a high level of complexity.

Poor or insufficient early planning resulting in inadequately scoped projects and the potential selection of an infrastructure delivery model that is unable to deal with the scope, schedule, and budget risks, particularly where these is a complex scope to deliver. This is counter to the aim of structuring procurement works packages that appeal to the market and thereby improve bidder participation and lowering interface risk.

What improvements have been used to address the challenges? Improvement	How have infrastructure projects benefited from improvement? Benefit
Perform early market sounding with potential contractors, consultants, and suppliers to inform possible works packaging options. This type of engagement can inform scope and packaging options based on factors such as capability, capacity, and risk profile, and therefore shape the procurement approach	Case Studies: The Grand Paris Express project (France) involves the construction of an automatic metro that connects the suburbs of Greater Paris to each other with 68 new stations and 200 km of track. Societe Du Grand Paris which is delivering the project conducted ‘sourcing’ dialogues in the initial phases with construction companies that facilitated an understanding of the industry’s capability and resulted in a contractual and packaging model that was able to be bid competitively. Examples: Sydney Metro (Australia) is Australia’s largest public transport project and will include 46 stations and 113 km of metro once complete. As part of its early market engagement, it conducted industry briefings and obtained market feedback which resulted in a whole new packaging configuration. Incorporating industry recommendations resulted in a procurement process that was better informed. Case Studies The Grand Paris Express project (France)
Use Early Contractor Involvement (ECI) to provide early input into design and target price development. Use Front End Engineering Design (FEED) at the planning stage to help develop the design and obtain requisite client and regulatory approvals to facilitate the tender process.	Case Studies: Thames Tideway Tunnel (UK) involves the construction of a 25 km ‘super sewer’ under the Thames River to prevent its continued pollution from sewage overflows. The project used a six-month Optimised Contractor Involvement phase (under the Alliance framework) after contract award to explore how elements of the design could be changed to improve the project. This resulted in the decision to use a model-based design development approach, with the use of Building Information Modelling (BIM) driving efficiencies and enabling a single source of truth and greater collaboration with the client. High Speed Rail 2 (UK) is the second high speed railway system to be built in the UK providing dedicated track to connect more than 25 stations and over 10 million people. The project used an early contractor involvement approach that involved a two-stage process, firstly through integrating design development and construction planning to the client’s objectives and developing a target price. The second stage involved completing the design and constructing the works subject to satisfactory performance and agreement of the target price in Stage 1. By allowing an integrated team to obtain a strong understanding of the requirements early on, it can develop innovative solutions and manage risks more efficiently. One of the main innovations delivered by the SCS JV team in the ECI phase was the use of the GEOBIM solution which combined 3D GIS data with 3D BIM data allowing a common environment for collaboration. This resulted in cost savings through less time spent in planning and design reviews. Examples: FEED allows the identification and mitigation of certain risks (e.g. integration risk, scope achievability) and helps produce a more accurate risk adjusted price. Resources: Australian Constructors Association Industry Practice Note 9 (Australia). Early contractor involvement informs improved project structuring, cost estimation and deliverability, while still allowing the client to retain flexibility in its choice of contractor and ability to obtain competitive pricing. Case Studies Thames Tideway Tunnel (UK) High Speed Rail 2 (UK) GI Hub Resources Australian Constructors Association Industry Practice Note 9 (Australia)
Implement a co-design method to infrastructure design. By having local communities come up with design solutions that meet their needs through a participatory design process with the project design team.	Case Studies: Our Tampines Hub (Singapore) is an example of how a community-focused development used participatory design that involved residents and public sector stakeholders, to create an inclusive community and lifestyle hub serving more than 250,000 residents. By using a participatory design process, it achieved a town centre renewal that allowed greater cohesiveness within the community and improved liveability, while accommodating the co-location of 12 public agencies. Case Studies Our Tampines Hub (Singapore)

Lack of a co-operative approach between client and contractor teams (design or build teams).

Lack of cohesion between client and contractor leading to scope, cost, and schedule issues inefficiently identified, understood or resolved.

What improvements have been used to address the challenges? Improvement	How have infrastructure projects benefited from improvement? Benefit
Use a Progressive Design-Build (PDB) approach that involves a design and build contractor working with the client from the very early stages of the project development phase. Through collaboration a design can be developed that meets the client’s requirements and can be costed by the contractor to ensure it is within the intended budget. The next phase involves the owner progressing toward a design and contract price with the team.	Case Studies: Progressive Design Build (USA) has increasingly been used in the water sector in the United States. Benefits include being able to leverage the contractor’s technology and process innovations as well as relationships. The clients working in conjunction with the contractor from an early stage has allowed joint decisions to deliver the best value based on the available budget. Case Studies Progressive Design Build (USA)
Use Integrated Project Delivery or Alliances to provide a collaborative, no blame approach to delivery. By ensuring cultural alignment between bidders and the client it improves selection of the right team to deliver successful projects. Take an enterprise approach to infrastructure delivery that combines project owners, advisors, contractors, suppliers and partners in a collaborative manner and via incentivisation to deliver improved outcomes.	Case Studies: Team 2100 (UK) used an integrated delivery team under a collaborative delivery framework for a 10-year asset management program. The framework set a unified mission coupled with commercial arrangements to support shared outcomes. This has resulted in the engaged delivery team identifying more than 260 delivery improvements and is expected to deliver an expected GBP 100 million in savings over 10 years. Examples: Project 13 (UK) is a project framework that advocates for a shift for infrastructure delivery to evolve from a transaction to an enterprise. Its inception was based on the transactional model resulting in inefficient delivery and poor innovation. Through using an enterprise-based model characterised by an ecosystem of partners, integrating their capabilities in a way that aligns with risk allocation and commercial incentivisation, greater value is gained. Case Studies Team 2100 (UK) Guidance Project 13 (UK)
Co-locate client and design and construction delivery teams to help create alignment in outcomes and mission and improve knowledge sharing and project issues resolution.	Case Studies: Thames Tideway Tunnel (UK) involves the construction of a 25 km ‘super sewer’ under the Thames River to prevent its continued pollution from sewage overflows. The project owner, its project management consultants, and delivery consortium members all co-located to facilitate transparency and to address issues in a collaborative manner. The co-location created a unique culture that enabled the sharing of ideas and fostered delivery improvement. I-945 Express Lanes (USA) Opened a major project office to house project staff and increase collaboration and communication among teams. This helped deliver the construction phase of the project ahead of time and below budget (case study from the GI Hub PPP Contract Management Tool). Central Berkshire Waste (UK) used co-location of the Project Company and Procuring Authority. This was particularly useful in relationship building and resolving issues before they were escalated through the formal contractual mechanisms (case study from the GI Hub PPP Contract Management Tool). Case Studies Thames Tideway Tunnel (UK) I-945 Express Lanes (USA) Central Berkshire Waste (UK) GI Hub Resources PPP Contract Management Tool
Foster a co-operative mindset regardless of infrastructure delivery model as changes eventuate over the course of a project’s delivery.	Case Studies: Tin Shui Wai Hospital (Hong Kong SAR, China) is a HKD3 billion,12-storey hospital for up to 300 in-patients in the western New Territories. It used an NEC3 (New Engineering Contract) Engineering and Construction Contract Option A (fixed price with activity schedule) to enable fast track design development with complex specialist user requirements. The collaborative framework allowed the design and build contractor to deal efficiently with design changes from stakeholder requirements through strong communication and timely action. Rocky Flats Closure (USA) involved the remediation of a former nuclear weapons plant site in Colorado. Through an Integrated Management contract with commercial incentives, the project was able to be run as a program and completed 50 years earlier than initial projections, and well under the budget. New Genoa Bridge (Italy) demonstrated how a collapse of a significant bridge led to a collaborative mindset to replace a significant piece of infrastructure. By having the requirement to complete the work in the shortest possible time under a legal framework named the Genoa Model, a streamlined chain of command allowed rapid project approvals and supplier contract execution. With good planning and teamwork from all stakeholders, the project was delivered in 15 months despite the Covid-19 pandemic while meeting all safety requirements. Intercity Express Program (UK) benefited from a strong relationship between the Procuring Authority, the Project Company and Hitachi which allowed the Procuring Authority to deal with challenges effectively. This was combined with a payment mechanism incentivising fast delivery to ensure track electrification issues were quickly addressed (case study from the GI Hub PPP Contract Management Tool). Case Studies Tin Shui Wai Hospital (Hong Kong SAR, China) Rocky Flats Closure (USA) New Genoa Bridge (Italy) Intercity Express Program (UK) GI Hub Resources PPP Contract Management Tool
Use dispute resolution boards (DRBs) consisting of an independent panel of experts who can provide an impartial way to resolve major project issues in a more cost-effective way compared to formal arbitration or litigation.	Case Studies: Port of Miami (USA) used a DRB for disagreements between the project company and the procuring company. This was particularly useful when unanticipated geotechnical issues led to additional grouting costs during the tunnel’s construction, and resulted in avoiding litigation. The DRB is used for dispute avoidance, through regular meetings between parties to proactively discuss issues that could become disputes (case study from the GI Hub PPP Contract Management Tool). Case Studies Port of Miami (USA) GI Hub Resources PPP Contract Management Tool
Use client collaboration groups to improve understanding between industry and project owners.	Examples: Infrastructure Industry Innovation Partnership (i3P) (UK) is comprised of a community of client and supplier organisations that are committed to collaboration in the projects delivered to enable innovation. Guidance Infrastructure Industry Innovation Partnership (i3P) (UK)

Conventional operations and maintenance arrangements can lack collaborative planning leading to cost overruns or sub-par performance.

Limited involvement by operations and maintenance in selecting the delivery can result in operations and maintenance contracts lacking the flexibility to meet long-term infrastructure outcomes.

What improvements have been used to address the challenges? Improvement	How have infrastructure projects benefited from improvement? Benefit
Establish longer term partnerships particularly through framework arrangements that enable forward planning and integration of the skills from the client and its private sector partners in the development of projects. Operability and maintainability reviews or embedding someone from the owners’ side to ensure this aspect is covered.	Case Studies: Sydney Water (Australia), Australia’s largest water utility that is wholly owned by the NSW Government used a collaborative enterprise framework called Partnering for Success (P4S). Under this model it appointed three Regional Delivery Consortia under long-term framework partnerships that integrated design, capital delivery, and maintenance working closely with Sydney Water’s own maintenance and operations teams. The framework duration and contract structure incentivised collaboration to achieve end to end innovation. WaterCare (New Zealand) New Zealand’s biggest water and wastewater company recognised that it needed a bolder vision for developing better infrastructure. It developed the Watercare Enterprise Model to achieve its vision of improving sustainability, cost, and safety. Through integrating WaterCare, its two construction partners and design consultants into its Program First business unit, it aims to realise its vision and achieve program-wide benefits through collaboration from the business case stage through to construction. Sydney Ferries (Australia) is a government franchise operating Sydney’s iconic fleet of ferries through an experienced public transport private sector partner. The model which has ensured commercial alignment, has resulted in improved services and cost-efficient operations for the travelling public. Case Studies Sydney Water (Australia) WaterCare (New Zealand) Sydney Ferries (Australia)

What improvements have been used to address the challenges? Improvement

How have infrastructure projects benefited from improvement? Benefit

Establish longer term partnerships particularly through framework arrangements that enable forward planning and integration of the skills from the client and its private sector partners in the development of projects.

Operability and maintainability reviews or embedding someone from the owners’ side to ensure this aspect is covered.

Case Studies:

Sydney Water (Australia), Australia’s largest water utility that is wholly owned by the NSW Government used a collaborative enterprise framework called Partnering for Success (P4S). Under this model it appointed three Regional Delivery Consortia under long-term framework partnerships that integrated design, capital delivery, and maintenance working closely with Sydney Water’s own maintenance and operations teams. The framework duration and contract structure incentivised collaboration to achieve end to end innovation.
WaterCare (New Zealand) New Zealand’s biggest water and wastewater company recognised that it needed a bolder vision for developing better infrastructure. It developed the Watercare Enterprise Model to achieve its vision of improving sustainability, cost, and safety. Through integrating WaterCare, its two construction partners and design consultants into its Program First business unit, it aims to realise its vision and achieve program-wide benefits through collaboration from the business case stage through to construction.
Sydney Ferries (Australia) is a government franchise operating Sydney’s iconic fleet of ferries through an experienced public transport private sector partner. The model which has ensured commercial alignment, has resulted in improved services and cost-efficient operations for the travelling public.

Case Studies
Sydney Water (Australia)
WaterCare (New Zealand)
Sydney Ferries (Australia)

Improving Delivery Models

Evidence-based improvements in delivery models

View challenges and improvements by theme

Insufficient early project planning and consultation leading to poor procurement outcomes for projects with a high level of complexity.

Lack of a co-operative approach between client and contractor teams (design or build teams).

Conventional operations and maintenance arrangements can lack collaborative planning leading to cost overruns or sub-par performance.