Framework programmes will inevitably at some point be subject to scope changes and/or unforeseen conditions. In this feature Jamie Harrison Delivery Director Highways at Octavius discusses how with the right culture and collaborative approach these issues do not necessarily have to impact key project milestones and capital investment budgets.
Jamie highlights that it starts with a proven approach, one that ensures all parties are working towards a carefully defined and common goal. Undertaking a robust assessment of emerging project issues, making a thorough evaluation of the potential implications and developing preferred mitigation options. This enables the collective team to make more informed decisions and the project cost plan to be updated to provide the accurate financial data to inform and control the client’s budget.
Jamie adds that the hard work does not stop there, it is just as important that lessons learned sessions are held after completion to critically review and analyse the effectiveness of the cost-saving measures that were adopted, along with the overall project performance.
Understanding the issues
Our project manager and commercial manager lead the process, bringing the project team together including client, designer and supply chain to understand the scope. This provides a shared understanding and ensures we are all working towards a common goal in mitigating the impact of the change. We use our cultural development training at this point, taking a STOPThink! moment. We review the issue and ensure we have a full understanding of it before developing solutions. This reflection point helps ensure we solve the correct issues. We agree at the outset how and when the client would like the information presented, managing this through preferred contact management software reporting tools and the early warning protocols.
Assessment
The team assess any new scope requirements such as unforeseen ground conditions, evaluating their implications and comparing them against the original budget, programme
and quality requirements. They identify solutions and review the cost implications and jointly address revised scope and emerging issues and explore options to meet the client’s budget while maintaining project objectives. We use value engineering sessions for the scope change and unforeseen conditions to create a longlist of options to be considered for further, more detailed assessment. Each option is assessed against a balanced scorecard of project objectives, each factored to reflect the specific importance for that scheme.
We carry out impact assessments with the client, considerations may include limits on site working hours, areas of possession or restrictions on techniques to be used. Our project team review the construction programme to consider savings that can be realised through reduction of the constraints. The use of performance specifications allows the supply chain to identify cheaper alternatives to meet the project requirements and provide an options report for consideration.
The remaining options are then explored in more detail. Further value engineering workshops led by our project manager more fully assess the cost, quality and programme implications of each option. We carry out cost and programme scenario planning to understand the consequential impact to the scheme.
Our project manager leads the evaluation of alternative materials, construction methods, and technologies that could lower costs, e.g. consideration of innovative construction methodologies, recycled materials or modular construction techniques. Changes to specifications and potential savings, allowing for any differences in construction durations are then provided for consideration.
Preferred options
Regular meetings are held with the client to openly discuss the cost implications of the options developed, undertaking reviews to check and challenge the use of proposed valued engineered solutions and establishing the preferred options. Construction programmes using the preferred options are developed with activity resources allocated to deliver the project efficiently. We work with our supply chain to provide optimal rates for delivering the project with revisions.
Lean construction techniques are used to reduce waste and enhance productivity. This includes just-in-time delivery, efficient site management, and continuous improvement practices. Octavius have trained Lean champions, including a six-sigma black belt champion, providing expert support to the team so that those closest to the project are able to rationally optimise the very bust options for the project’s delivery.
Updating the cost management plan
Alongside the programme and works management, our commercial team update the work breakdown structure, prioritising critical components and enhancing cost monitoring, using project management software to track expenditures and analyse variances in real-time to ensure that essential elements are completed within budget.
Lessons learned
Following completion, we analyse the effectiveness of the cost-saving measures and overall project performance, documenting cost-saving measures and lessons learned to improve future cost management and project delivery.
Jamie concludes having the right culture and mindset is of course crucial, but so is having proven and continuously improved assessment, risk evaluation and mitigation processes that are more able to reduce or remove the impact of scope changes and unforeseen conditions.
By way of example, Jamie recalls at Clophill roundabout the Octavius team was advised that the required scope of works was over budget. The client sought to reduce the project cost to ensure the essential improvements for highways users could be implemented. The outcome was that a significant sum was saved by making amendments to the proposed carriageway widening, while a lesser but also meaningful amount was saved by retaining existing drainage within the permanent works and the project completed two months early.
