a1 darrington to dishforth dbfo project
TRANSCRIPT
Safe roads, Reliable journeys, Informed travellers
REGIONAL WORKSHOP ON PPP IN TRANSPORTRIGA, LATVIA – 6 to 8 MARCH 2007
MEASUREMENT OF PERFORMANCE IN CONSTRUCTION CONTRACTS THE UK EXPERIENCE
by
ALEC BRIGGS, SENIOR PROJECT LEADER, HIGHWAYS AGENCY
and
BARRY DREWETT, TECHNICAL DIRECTOR, PELL FRISCHMANN CONSULTANTS LIMITED
Safe roads, Reliable journeys, Informed travellers
OUTLINE OF PRESENTATION
Part 1 - Alec BriggsPerformance Measurement Generally
• A Toolkit for Performance Management
• Performance Indicators for the preparation and delivery of Major Projects
• The Scoring of Performance
Part 2 - Barry DrewettPerformance Measurement – PPP/DBFO Contracts
• DBFO Co’s 5-Year Management Plan / Performance Indicators
• Core Service Delivery Requirements
• Quality Management
• Monitoring and Auditing (including Remedy)
Product
Service
Right First Time
Cost Time
Safety
Commun icatio n
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Responsive ness
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Teamwork
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
ECC Use
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Morale
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Innovat ion
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Risk M mt
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Health & Safety
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Commun icatio n
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Responsive ness
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Teamwork
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
ECC Use
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4
Commun icatio n
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Responsive ness
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Teamwork
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
ECC Use
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Morale
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Innovat ion
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Risk M mt
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Health & Safety
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1
0 607Q1 0 607Q2
Morale
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506 Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Innovat ion
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Risk M mt
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Health & Safety
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506 Q2 0 506 Q3 0 506Q4 0 607Q1 0 607 Q2
Product Service
Safety Right First Time
Safety Right First TimeTime Cost
Safe roads, Reliable journeys, Informed travellers
The Highways Agency has recently developed
a new Performance Measurement Toolkit for
Major Schemes
The Toolkit will be used for all new major schemes. Integrated Project Team members will need to be familiar with its application
Motivating SuccessA Toolkit for Performance Measurement
-Major Projects-
Issued 2006Version 1.02
PMPA
TO
OL
KIT
FO
R P
ER
FO
RM
AN
CE
MA
NA
GE
ME
NT
Safe roads, Reliable journeys, Informed travellers
It is believed that the Toolkit will help the Agency realise its business objectives
• Continued performance improvement
• Long-term relationship with Suppliers
• Benchmarking Performance
• Identification of Best Practice
• Learning Lessons
Scheme Objectives
Customer Service
Best Value
Safe roads, Reliable journeys, Informed travellers
Areas of Measure
The Areas of Measure are closely aligned with the Highways Agency’s business objectives and provide a scorecard of Integrated Project Team
performance
Team Culture
Client Per-formance
Product
Service
Right First Time
Cost
Time
Safety
Safe roads, Reliable journeys, Informed travellers
Performance evidence is used to reduce the subjectivity in Performance Indicator scoring, and the likelihood of scoring disagreements between Supplier and Client
Performance of the Integrated Project Team
“Hard” Quantitative Measures, e.g.
• Change in Scheme Cost
• Predictability of Cost
• Predictability of Time
• Accident Frequency Rate
“Soft” Qualitative Measures, e.g.
• Delivery to Project Brief
• Organization & Management
• Management & Improvement of (Client, Customer, Third Party Relations)
Evidence Supporting Performance
Safe roads, Reliable journeys, Informed travellers
Most Highways Agency Major Schemes consist of three separate phases: Phase 1A, Phase 1B and Phase 2
The Toolkit accommodates the changing nature of a major scheme from start to finish. In special circumstances given Performance Indicators can be
partially or totally excluded from the measurement process
Phase 1A (Orders Prep)
Phase 1B (Statutory Processes)
Phase 2 (Design &
Construction)
Major Scheme Lifecycle
Safe roads, Reliable journeys, Informed travellers
TYPICAL PERFORMANCE INDICATORSEach “Area of Measure” consists of a number of Performance Indicators
The Performance Indicators have been selected to reflect the Highways Agency’s performance expectations of its Suppliers
Product
Delivery to Project Brief
Highway Design
Structures
Environmental Assessment
Traffic & Economic Assessment
Draft Orders & Statutory Processes
Risk Register and Opportunities Plan
Service
Organisation & Management
Procurement of Specialists & Suppliers
Supply Chain
Management & Improvement of Client Relations
Management & Improvement of Customer & 3rd Party Relations
Innovation & Value for Money
Management of Change
Right First Time
Right First Time
Quality Management System
Cost
Reliability of Estimating & Forecasting
Change in Scheme Cost
Predictability of Cost
Time
Change from Accepted Programme
Reliability of Programming
Predictability of Time
Safety
Health, Welfare & Workforce Development
Compliance with CDM Regulations
Safety of the Public
Accident Frequency Rate
Safe roads, Reliable journeys, Informed travellers
SCORING OF PERFORMANCE (based on Client Satisfaction Levels)
Scoring Performance Indicators requires the Integrated Project Team to have aligned understanding of what the Client expects
Interpretation & Notes
>5 Client satisfied
<5 Client dissatisfied
=5 “neutral performance”, i.e. the Client is neither satisfied nor dissatisfied
=10 indicates total client satisfaction
= 0 indicates total client dissatisfaction
A score of 6 is regarded as indicating “good overall performance”
No intermediate scoring is permissible (scores of 1, 3, 7 and 9 cannot be awarded)
Satisfaction levelDissatisfaction level
0 102 4 5 6 8
Score
Level of client satisfaction
Totally diss
atisfie
d
Very diss
atisfie
d
Slightly
dissatis
fied
Neither s
atisfie
d nor diss
atisfie
d
Just
Satisfie
d
Highly sa
tisfie
d
Totally sa
tisfie
d
Safe roads, Reliable journeys, Informed travellers
Measuring performance provides the information required to drive continuous improvement of the Supplier and the Highways Agency
Performance management is the responsibility of the Project Leader. It is expected that the Integrated Project Team will fully support Performance
Management interventions in order to realise benefits.
Radar diagrams can be used to present all Areas of Measure scores for a given measurement period. Areas of poor and excellent service can readily be identified.
Line graphs or histograms can be used to identify trends in performance for Area of Measure or Performance Indicator level.
Product
Service
Right First Time
Cost Time
Safety
Commun icatio n
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Responsive ness
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Teamwork
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
ECC Use
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Morale
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Innovat ion
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Risk M mt
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Health & Safety
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Commun icatio n
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Responsive ness
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Teamwork
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
ECC Use
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4
Commun icatio n
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Responsive ness
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Teamwork
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
ECC Use
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Morale
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Innovat ion
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Risk M mt
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Health & Safety
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1
0 607Q1 0 607Q2
Morale
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0 506Q3 0 506Q4 0 607Q1 0 607Q2
Innovat ion
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Risk M mt
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Health & Safety
0 .0
1 .0
2 .0
3 .0
4 .0
5 .0
6 .0
7 .0
8 .0
0 405Q4 0 506Q1 0 506Q2 0506Q3 0 506Q4 0 607Q1 0 607Q2
Product Service
Safety Right First Time
Safety Right First TimeTime Cost
Safe roads, Reliable journeys, Informed travellers
In Summary:
By making performance measurement an integral part of a major scheme,
the required outcomes will be realised to the mutual benefit of both Supplier
and Client
Safe roads, Reliable journeys, Informed travellers
Par
t 2
- B
arry
Dre
wet
t
Per
form
ance
Mea
sure
men
t –
PP
P/D
BF
O C
on
trac
ts
•D
BF
O C
o’s
5-Y
ear
Man
agem
ent
Pla
n /
Per
form
ance
In
dic
ato
rs
•C
ore
Ser
vice
Del
iver
y R
equ
irem
ents
•Q
ual
ity
Man
agem
ent
•M
on
ito
rin
g a
nd
Au
dit
ing
(in
clu
din
g R
emed
y)
Safe roads, Reliable journeys, Informed travellers
DBFO Co’s 5-YEAR MANAGEMENT PLAN
● Operates over whole Contract Period (normally 30 years)
● Initial DBFO Co’s 5-Year Management Plan – in DBFO Contract
● Thereafter, amended Plan submitted each Contract Year on rolling basis
● Each plan to be agreed with Department’s [Agency’s] Representative
Eac
h P
lan
in
clu
des
:
●P
erfo
rman
ce In
dic
ato
rs a
nd
Tar
get
s fo
r m
eeti
ng
Ag
ency
’s o
vera
ll
aim
s an
d o
bje
ctiv
es
●A
Res
ou
rced
Im
ple
men
tati
on
Pla
n f
or
mee
tin
g s
uch
Tar
get
s
●M
eth
od
olo
gy
for
mea
suri
ng
an
d m
on
ito
rin
g p
erfo
rman
ce
Safe roads, Reliable journeys, Informed travellers
Typical Performance Indicators
● Road safety (accidents)
● Journey time reliability
● Keeping road users informed
● Congestion management
● Accident / Incident response times
● Complaints and claims
● Condition / availability of facilities
● Environmental management
● Sustainability management
Safe roads, Reliable journeys, Informed travellers
CORE SERVICE DELIVERY REQUIREMENTS
DB
FO
co
ntr
acts
in
clu
de
Co
re R
equ
irem
ents
, w
hic
h D
BF
O c
om
pan
ies
mu
st c
om
ply
wit
h,
refl
ecti
ng
Hig
hw
ays
Ag
ency
’s p
rim
ary
‘cu
sto
mer
ca
re’ a
ims,
in
clu
din
g r
equ
irem
ents
to
:
●P
rovi
de
a sa
fe h
igh
way
●M
inim
ise
dis
rup
tio
n t
o r
oad
use
rs
(an
d o
ther
aff
ecte
d p
arti
es)
●K
eep
tra
vell
ers
info
rmed
and
als
o t
o:
●P
rom
ptl
y an
swer
all
qu
erie
s fr
om
th
e p
ub
lic
●M
eet
ob
ject
ives
of
En
viro
nm
enta
l S
tate
men
t
●A
chie
ve h
igh
sta
nd
ard
in
aes
thet
ic
app
eara
nce
of
Pro
ject
Safe roads, Reliable journeys, Informed travellers
● Contract operates on basis of SELF-CERTIFICATION
● DBFO Co, Contractor, Designer, Maintenance Contractor, etc required to work under self-regulating QUALITY MANAGEMENT SYSTEMS
● DBFO Co required to employ a QUALITY DIRECTOR to oversee the operation of all Quality Management Systems
● Contract includes a DESIGN AND CERTIFICATION PROCESS for confirming that the Works and maintenance operations are carried out in accordance with the Contract
● Department’s Nominee REVIEWS DBFO Co’s proposals, and MONITORS and AUDITS the operations
● Department’s Nominee RECEIVES and RESPONDS to all certificates
QU
AL
ITY
MA
NA
NA
GE
ME
NT
Safe roads, Reliable journeys, Informed travellers
Typical DBFO ContractOrganogram
Secretary of StateHighways Agency
Department's Agent(Design & Construction)
Department's Representative(O&M)
DBFO Company
Contractor
Designer
Design sub-consultants
Operation and Maintenance
Funders(Shareholders)
(Bond Finance)(Bank Loans)
DBFO Agreement(inc. Direct Agreement)
Finance Company
ConstructionContract
O & M Contract
Design Contract
MO
NIT
OR
ING
AN
D A
UD
ITIN
G –
Ro
le o
f A
gen
cy’s
Re
pre
sen
tati
ves
Safe roads, Reliable journeys, Informed travellers
Main Activities of Agency’s Representatives:
● REVIEWING and AGREEING DBFO Co’s 5-Year Management Plan
● REVIEWING and AUDITING DBFO Co’s quality procedures
● REVIEWING DBFO Co’s design and construction, and operation and maintenance proposals
● MONITORING on site construction, and operation and maintenance activities
● APPLYING REMEDY (where appropriate)
Safe roads, Reliable journeys, Informed travellers
● Non-Conformance Reports
● Letters
● Remedial Notices
● Penalty Points (generally up to 5 per breach)
● Warning Notices (material breach or 100+ penalty points in 3 years)
● Increased monitoring at DBFO Co’s cost (50+ penalty points in one year or one Warning Notice)
Co
ntr
act
ua
l Re
med
ies
:
Safe roads, Reliable journeys, Informed travellers
Health & Safety
Design Review
Structures
Construction
MotorwayCommunications
EnvironmentalManagementQuality
Management
Non-Conformities,Certification &
Records
TrafficManagement
Operations &Maintenance
Public Relations&
Communications
Land & Third Parties
Project Forum
Senior ManagersHA
DA/DRDBFO Co
ContractorDesigner
Informal Partnering
Safe roads, Reliable journeys, Informed travellersSafe roads, Reliable journeys, Informed travellers
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630
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ett@
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man
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44(0
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