capital projects and project delivery … · major projects other capital 2010-2014 2015-2019...

Capital Projects and Project Delivery

Jerry Dobrovolny, P.Eng, MBACOMMISSIONER / CHIEF ADMINISTRATIVE OFFICER

Cheryl Nelms, P.Eng., Ph.D.

GM, PROJECT DELIVERY

Finance and Intergovernment Committee: April 15, 202038143365

5.1

Finance and Intergovernment Committee

Staff were directed to:• conduct an independent review of the processes and

decision-making related to major infrastructure projects; and,

• bring forward for Board consideration recommendations arising from the review.

2

Board Request


• Challenges1. Scale 2. Complexity3. Market Influences

• Best Practices Response1. Re-organization2. Independent high level review by

KPMG of major projects3. Response to KPMG’s strategic

recommendations 3

Outline


4

Challenge 1: Scale


Challenge 1: ScaleMajor Capital Projects as Percentage of Plans

60%67%

46%40%

40%33%

54%60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% o

f tot

al c

apita

l bud

get

Capital Plans

Major ProjectsOther Capital

2010-2014 2015-2019 2020-2024 2025-2029 5


6

Challenge 2: Complexity


7

Challenge 2: Complexity

• Contract structures• Environmental requirements• Stakeholder involvement• Funding approaches• Regulatory requirements• Community benefits• Indigenous partnerships


8

Challenge 3: Market Influences


9

Challenge 3: Market Influences

Metro Vancouver Region Projects:• Broadway Extension • Roberts Bank Terminal 2 • Vancouver International

Airport Upgrades• Surrey Langley SkyTrain• Pattullo Bridge Replacement • North Shore Wastewater

Treatment Plant• Annacis Island Wastewater

Treatment Plant Expansion• George Massey Tunnel

Replacement ProjectSource: Top100Projects.ca/2019


10

Best Practices Response


11

Best Practices Response 1: Re-organizationPre-2012 Organizational Structure

Policy and Planning

Engineering and Construction

Operations and Maintenance

Solid Waste Water Liquid Waste

Solid Waste Water

Water

Liquid Waste

Liquid Waste


12

Best Practices Response 1: Re-organization2012-2019 Organizational Structure

Policy and Planning



Policy and Planning



Policy and Planning





Annacis

13

Best Practices Response 1: Re-organization2012-2019 Organizational Structure

Policy and Planning



Policy and Planning



Policy and Planning


NW Langley

NorthShore

Coquitlam 2nd Intake


14

Best Practices Response 1: Re-organization2020 Organizational Structure

Policy and Planning



Policy and Planning



Policy and Planning



Project Delivery

Major Projects

Asset Management

Project Management Office


15

Best Practices Response 1: Re-organization

Project Management

Office Centre of Expertise

Major Projects Delivery

Asset Management


16

Best Practices Response 1: Re-organizationFunctions of a Centre of Expertise

Project Management FrameworkPolicy, Processes and Procedures, Standards and Controls

Asset Management Asset Management Strategy and Plan, Policy, Processes and Procedures, Standards, Corporate Reporting

Quality AssuranceQuality Assurance and Control, Monitoring, and Training

Project DeliveryProject Management of Major Complex Projects


17

Best Practices Response 1: Re-organizationProject Management Models

Decentralized model

Influencing model

Devolved model

Centralized model

LWSWS

SWS

LWSWS

SWS

PMO

LWSWS

SWS

PMO

Increasing Centralization of Control

Increasing Project / Department Autonomy

LWSWS

SWS

PMO

Source: KPMG


Key steps:• Document review: key documents including reports from

major projects• Interviews: key project personnel involved in the delivery

of major projects and programs • Focus Group: validation and review of findings with

General Manager working group

18

Best Practices Response 2: Independent ReviewKPMG Approach to Project Delivery


19

Best Practices Response 2: Independent ReviewBest Practice Project Delivery Framework - KPMG

LEADER

SHIP

STAKE

HOLD

ER

TECH

NICAL

GOVER

NANCE

Source: KPMG


20

Best Practices Response 2: Independent ReviewThe 5 Pillar Framework

StakeholderGovernance

Oversight

Decision, Authority & Escalation Protocols

Organizational Design

Reporting/Line of SightPerformance Management

Shareholders

Leadership

Vision, Mission & Values

Organizational Culture

Capability, Capacity and Competence

Management of Change

Communications

Soft Controls

Technical

Engineering ManagementBudget & ScheduleProject Controls

Technology, Systems & Process

Regulatory Requirements &

PermittingAsset

Management

Government & Regulatory

Indigenous Relations

Community/Public Engagement

Internal StakeholdersRelationship ManagementIndustrial Relations

Project StructureProject

EconomicsContract Strategy

Supply Chain & MarketsRisk

Management Finance & Funding

Source: KPMG


21

Best Practices Response 2: Independent ReviewStrategic Areas of Opportunity

StakeholderGovernance

Oversight

Decision, Authority & Escalation Protocols

Organizational Design

Reporting/Line of SightPerformance Management

Shareholders

Leadership

Vision, Mission & Values

Organizational Culture

Capability, Capacity and Competence

Management of Change

Communications

Soft Controls

Technical

Engineering ManagementBudget & ScheduleProject Controls

Technology, Systems & Process

Regulatory Requirements &

PermittingAsset

Management

Government & Regulatory

Indigenous Relations

Community/Public Engagement

Internal StakeholdersRelationship ManagementIndustrial Relations

Project StructureProject

EconomicsContract Strategy

Supply Chain & MarketsRisk

Management Finance & Funding

Source: KPMG


22

Best Practices Response 3: Response to RecommendationsNext Steps Ja

n

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec 12

M

onth

R

evie

w

Project Delivery Department (PDD)– Initiate PDD - Complete

PA1 Leadership – Capability, Capacity and Competence Needs Assessment and Resourcing Strategy

PA2 Governance – Oversight Oversight Model Development and Alignment

PA3 Governance – Organizational DesignOrganisational Design Model Assessment

PA4 Commercial – Contract Strategy Development and Implementation Assessment

PA5 Stakeholder – Internal Stakeholder– Internal Interface Agreements and Communications Plan

PA6 Technical – Project ControlsControls and Assurance Function Planning

PA7Technical – Technology, Systems and Process

Project Management Tools Assessment and Developments

Change Management and ongoing initiativesTo be layered into the development of the Department

Updates to Boards, Committees, and Advisory CommitteesRegular updates on Project Delivery department progress

Initiate new Department

Contract Strategy – Process Review and Individual Project Assessment

Org Model Review

Needs, Resourcing Strategy & Key Hires

Internal Stakeholder Agreements

Oversight Model Review

Project Controls Functionality

PM Tools and Templates

Change Management Plan

Source: KPMG


• $1.7 Billion in work underway• Over 40 claims received to date• Coordinated approach to address risk • Working with the Province and industry on COVID

response • Scenario analysis is currently being conducted to identify

the range of potential impacts

23

COVID-19 ResponseNext Steps


Discussion


capital projects and project delivery … · major projects other capital 2010-2014 2015-2019...

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