Change Management on a Mega Project – a case study

Session # EM14CAS03

Suresh NayarBahwan Engineering Co. LLC

“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2013 Permission is granted to PMI for PMI® Marketplace use only.

2

Presentation Brief

3

Objective

“The present is a time of great entrepreneurial ferment,

where old and staid institutions suddenly have to become

very limber.”

— Peter Drucker

4

Objective

• Change in the workplace has become a way of life.

Mergers, layoffs, deregulation, growth, re-organization,

new technology, and increased competition are daily

occurrences

• As a manager and leader, you are challenged to

maintain performance under chaotic, complex

conditions. Your job is to keep your team focused,

engaged, and productive in the midst of re-setting

expectations

5

Objective & Key Message

• Objective: Manage change successfully and keep your

teams engaged and productive in a continuously

changing environment

• Key Message: The way to manage change successfully

is to apply Integrated Change Control

6

Contents

• Introduction

• Change management program

• Technical brief

• The “change” behind the change

• Mitigation

• Integrated Change Control

• Reflection & discussions

7

Introduction

8

Project Highlights

Muscat International Airport

• Expansion and development

• Largest infrastructure project undertaken in Oman

• 12 Mio. passengers/annum, scalable to 24, 36 and 48

• State-of-the-art baggage handling, airport IT systems

• International Civil Aviation Organisation Code F-

compliant runway for Airbus A380 aircraft

9

Main Contracts

Contract Description Contract Awarded To

MC1 Civil Works – new runway, taxiway, apron, landside development and access roads to terminal

Consolidated Contractors Company – TAV Joint Venture

MC2 Air Traffic Control, Air Traffic Management, Data Centre, Contingency & Training Building, Crash Fire and Rescue Building.

Carillion Alawi

MC3 Passenger Terminal Building and Piers BEB Consortium

MC4A Civil Aviation Headquarters Building Towell Construction Co LLC

MC6 IT & Security Systems Ultra Electronics

MC7 Operational Readiness & Airport Transfer Munich Airport

MC8 Baggage Handling Systems Vanderlande Industries

10

Key Stakeholders

• Employer - Ministry of Transport and Communications,

Directorate General of Safety and Aviation Services

representing the Sultanate of Oman

• Engineer - COWI – Larsen JV/HILL International LLC

• Project Management Consultant – ADPi

• Contractor - Bechtel-Enka-BEC Consortium (BEB)

11

Engineer’s Role

• Full suite of duties and responsibilities under a FIDIC-

style contract

• Includes design which was an extension of Engineer’s

earlier capacity as ‘Concept Designer’

• Cowi Larsen JV had prepared architectural and

structural design and specifications that went

significantly beyond the stage conventionally regarded

as ‘Concept Design’

.

12

Contractor’s Role

• “Design Develop and Build” Contractor delegated to

carry out detail design and construction activities for

Main Contract – 3 (MC3) package

• Valued at approximately 1.8 billion USD

13

Contractor’s Scope

14

Change Management Program

15

Contractor’s Change Management Program

• Mechanism to capture all cost and schedule deviations

from inception through startup and turnover.

• Pending Items program

• Periodic reviews

16

Pending Items Program

• Describe the responsibilities and processes for early

identification of any activity, event, condition or situation

which has the potential to cause a commercial impact

(cost and / or schedule) for the Contractor

• Activity, event, condition or situation which has not

previously been identified, considered and disposed of

as part of the Pending Items program

17

Pending Items Register

• Record includes sequential identifier, reference

correspondence, originator, status, and responsibility for

action.

• Automated Pending Item Collection System accessed

via the project web portal.

• Users able to initiate / originate and log Pending Items

• The Prime Contracts and Risk Management team

responsible for the maintenance of overall register.

18

Pending Items Program - Workflow

• Identification

• Originate - automated pending item collection system

• Review of pending items register

• Pending item disposition

• Notification to Engineer/ Employer

• Review of pending items with Engineer/ Employer

• Performance of Work Associated with the Pending Item

• Close out of pending item

19

Pending Item Program – Sample Log

20

Pending Item Schematic

Activity Event

Situation Condition

Claim/Variation (to client)

Deviations(internal)

No issue after evaluation

Pending itemsprogram

Decision

21

Claims workflow

•

Pending items program

Periodic review

Prospective claims

identify

Prime Contracts Division

Claims to Client Lessons learnt

Consortium change management team

22

Technical Brief

23

Design Teams

• Muscat Design Management

• Architectural and Civil Design

• Structural Building Design

• Building Services Design

24

Muscat Design Management

• Responsible for primary interface and point of contact

with Engineer and other main contractors

• Overall design engineering budget and schedule

• Major coordination between construction, procurement,

and project controls (estimating and planning) with

engineering execution teams

25

Muscat Design Management

• Ensure project procedures followed

• Design quality management and compliance of BEB

engineering services and work products with BEB

engineering quality system

• Ensure design done meeting requirements for safe and

efficient construction, operation, and maintenance

processes

26

Architectural and Civil Design

• Istanbul design execution team responsible for support

of New Delhi and Muscat execution teams

• Developed civil and architectural engineering designs,

drawings, specifications and calculations

• Activities carried out with interdisciplinary coordination of

civil and architectural disciplines with structure and

building services

• Team responsible for development of detailed

engineering of civil and architectural works

27

Structural Building Design

• The Structure – New Delhi Execution Team responsible

for support of Istanbul and Muscat execution teams

• Worked on development of structural engineering

supporting early advance underground work packages

• Ensured interdisciplinary coordination of structural

disciplines with civil, architecture, and building services

• Detailed engineering of structural works for all

subsequent work packages

28

Building Services Design

• Building Services – Muscat and Manila Execution Team

were responsible for support of the Istanbul and New

Delhi execution teams

• Management and control of all building services

drawings and documents

• Interface manager responsible for managing all interface

information and coordination

29

Building Services Design

• Support team from Manila office located in Muscat to

coordinate exchange of information/data between

Muscat Design Team and Manila production office

• Interdisciplinary coordination of building services

disciplines with architecture & civil and structural

disciplines

• Detailed engineering of building Mechanical, Electrical

and Plumbing services

30

Design Process

• In accordance with Employer’s Requirements, design

work performed for MC - 3 in three stages:

• Stage 1 - Interim Design–Design Development

• Stage 2 - Detailed Design

• Stage 3 - Final Design—“Issued for Construction”

Documents

31

Stage 1- Interim Design

• BEB’s Design teams worked closely with Engineer’s

staff to provide design evolution information and

resolution of design issues on daily basis

• The project engineers deployed to the execution offices

quickly developed close peer-to-peer working

relationships with the execution unit project staff

• Daily communication of evolution of work

32

Stage 1- Interim Design

• Concurrently, early, informal, “over-the-shoulder”

reviews between Muscat Engineering Management

office and Engineer to facilitate and expedite formal

approvals of advance packages

• The preliminary designs produced by COWI-Larsen

served as the basis of BEB’s design.

• The Engineering team confirmed and adjusted each of

the respective engineering discipline designs to

coordinate and align with the architectural design

33

Stage 1- Interim Design

• Thorough development and issuance of service

coordination drawings by MEP Services

• Interdisciplinary engineering clashes resolved at

preliminary engineering level

• Clash identification, resolution, and verification done by

use of 3D modeling tools

34

Stage 2 - Detailed Design

• Detailed design phase to include completion of

specifications and detailed drawings necessary to obtain

Engineer’s final design approvals

• Support obtaining statutory approvals

• Produce fabrication drawings necessary for the

construction to carry out the works

35

Stage 3 - Final Design - “Issued for Construction”

• The final design, approved by the Engineer issued for

construction.

• Only documentation approved by Engineer in Stage 2

and modified by revision to "Issued for Construction"

status used for construction of works

36

The “Change” behind the Change

37

Sequence of events

• 3 Nov 2011 - Letter of Award of Contract

• 23 February 2011 – Date of Commencement (Contract

Agreement formally executed between Contractor and

Employer)

• 25 May 2011 - Received detailed narrative for Proposal

Nr. 1 (RFP # 01) from Engineer

• 4 June 2011 - Submission of the critical interim structural

design for PTB substructure as per baseline schedule

• 20 July 2011 - Issue of Engineer’s Instruction, EI # 01

38

Impact of EI # 01

• Contractor’s design role changed from design

developer/ detailer to original designer

• Major changes in architectural layouts and functionalities

• Major changes in loading data

• Change management program initiated

39

Contractor’s Design Role Changed

• Issue of EI # 01 fundamentally changed the design relationship

across every design discipline

• Wholesale revisions made to the design intent shown in the

Employer’s Requirements

• Process of preparing the wording of a narrative to define the intent

of the changes took almost three months

• Revisions issued in architectural plans only, leaving the contractor

to attempt to work out the changes across all other disciplines for

itself

40

Contractor’s Design Role Changed

• Contractor’s design role changed from design developer/detailer to

original designer

• The design intent was once again in a primitive state after five

months of work

• Before EI # 1 was issued not a single day of critical delay had

occurred to the completion of the project

41

Architectural Changes

• Engineering changes stemmed from the wholesale revision of

architectural arrangements across all structures

• 200+ rooms either removed, added relocated, resized or changed

in function.

• The removal, addition or relocation of 39 structural columns and the

introduction of new steel trusses to support the roof overhead

• Addition of six new lifts and associated lift shafts, plus the deletion

and the reorientation or extension of 14 other lifts and lift shafts

.

42

Architectural Changes

• Addition, deletion or reorientation of 25 escalators

• Addition of around 100 new "wet areas" (toilets and pantries)

• 11 bridge houses subjected to change

• Addition of two new baggage belts for the baggage handling

system together with the deletion of a number of columns adjacent

to BHS equipment and an increase in the size of the walls to BHS

chutes to compensate for the column removal

.

43

Structural Changes

• The architectural changes affected fundamental support system of columns and beams, already heavily loaded (for example via escalators).

• Changing the location of major masses and the main lateral load resisting systems has direct effect on the lateral seismic resistance, one of the critical load cases to be addressed.

44

Structural Changes

• Structural models and calculations, first submitted as

part of the Interim Design process recommenced; now

essential to derive a new vertical load carrying system

down to foundation level and re-assess ability of

modified arrangement to resist lateral forces and cope

with associated displacements

• Once those calculations were resubmitted and approved

the Contractor proceeded with his Detailed Design work.

In effect, the interim structural design had to be re-run.

45

BHS Changes

• Redesign work was in progress when on 20 September,

2011 the Engineer, following notification by the baggage

handling system (BHS) contractor, instructed Contractor

to revise the structural loads associated with the BHS

systems.

• This was seven months after the commencement date

and 10 months after the Contractor had begun work on

the substructure structural design.

46

BHS Changes

• The BHS system is always at the heart of any airport

terminal project. The areas of the PTB affected by the

loading changes were already the key work areas, and

were now on the critical path of the project.

• Further redesign necessary and structural calculations

recommenced once again. On 22 October 2011 those

calculations were completed.

• Only then could detailed structural design for the critical

zones of the PTB substructure properly commence.

47

Mitigation

47

48

Mitigation Measures

• The Contractor did everything within its power to mitigate

the impact of these late changes from the Employer.

• It started work on the EI # 01 design in June 2011 before

it was formally instructed.

• It agreed to submit the structural detailed design in

separate phases and zones, to assist the Engineer’s

review process.

49

Mitigation Measures

• Works were started on site as and when drawings

became available, in order to pour concrete where it was

possible to do so 

• The Contractor, although entitled to insist on following

the sequence set out in its baseline program, did not do

so following repeated requests from Engineer  

50

Mitigation Measures – Sept 2012

51

Mitigation Measures – Jan 2013

.  

52

Integrated Change Control

53

Four Stages of a Change

Cynthia Scott and Dennis Jaffe have identified four stages

a person goes through when confronted with change:

Denial(a "business as usual" attitude)

 Resistance (increased stress accompanied by

decreased productivity)

 Exploration (the beginning of acceptance)

Commitment (moving forward)

54

Integrated Change Control Process

The discipline of integrated change control involved

• Technical side focus – Project Management

• People side focus – Change Management

• The discipline of change management & project

management provide the structure, processes and tools

to be successful in the change

55

Integrated Change Control – The Technical side

• Technical focus – A technical side focus ensures that the

change is developed, designed and delivered effectively.

56

Integrated Change Control – The people side

• People focus – A people side focus ensures that the

change is embraced, adopted and utilized by the

employees who have to do their jobs differently as a

result of the changes in the project.

57

Importance of the “People”

• Communicate, communicate, communicate!

• Importance of budget analysis – resources, cost,

timelines

• Manage employee resistance to change

• Outcomes are collective result of individual change

58

Stakeholder Management

“Stakeholder management is critical to the success of

every project in every organization I have ever worked

with. By engaging the right people in the right way in your

project, you can make a big difference to its success... and

to your career”

- Rachel Thompson (Mind Tools), change management

consultant

59

Stakeholder Analysis & Management

• Stakeholder analysis gives the necessary information to

plan and manage communication with stakeholders

• Stakeholder management is the process of identifying

your key stakeholders and winning their support

- Greater emphasis needs to be given on this aspect of

project management for managing changes successfully

60 60

Reflection & Discussions

61 61

PTB Status – Jan, 2014

62

North Pier Status – Jan, 2014

62

63

South Pier Status – Jan, 2014

63

64

Final Destination

65

Q & A

66

Thank You

67

Name: Suresh Nayar

E-mail: suresh_nayar2000@yahoo.co.in

Phone: +968 96147074

Session # EM14CAS03

Contact Information