Key innovation - the partnering set up
The project has been set up on a partnering basis. The two civils designers have worked closely with one another and the civils and process contractors to share design ideas and innovations. This has meant each civils design team being involved in team meetings for the other's scheme and the sharing of design calculations and drawings between designers. Common designs are being adopted where possible and savings in time and cost are being made.
Although target costs for the two schemes were initially developed separately, one overall Agreed Target Cost has been set. Any overall savings below the ATC are to be shared by the partners up to an agreed level. Similarly, if the combined project were to overspend, the project partners would share in the additional cost.
In bringing the two schemes together and sharing the total pain/gain for the combined ATC all partners have an interest in identifying and implementing savings.
In addition to meeting capital cost targets, partners are required to meet stringent annual operating cost targets. This approach ensures that the whole life cost of the project is minimised.
Within the ATC a sum has been included for risk items. This sum has been developed by identifying all the risk items, their probabilities and the associated costs for all risks relevant to all partners.
Statistical methods have been used to set the risk sum within the ATC. This money has become part of the team budget, available to all partners where risk items occur. The payment system previously described means the project team is actively encouraged to manage all risk items, to minimise any need to draw on the risk budget. Although the risk costs are shared by the whole team, risks are managed by the partner best suited for each issue.
Lessons from the project are being used by South West Water in developing its partnering strategies.
South West Water, MJ Gleeson, Paterson Candy,
Babtie Group (Dawlish), Pell Frischmann Water (Sidmouth),
Start: October 1998
Civils completion: November 1999
Operation: December 2000