PROJECT MANAGEMENT OF A MAJOR MASS TRANSIT PROJECT - KCR WEST RAIL

Transcription

1 PROJECT MANAGEMENT OF A MAJOR MASS TRANSIT PROJECT - KCR WEST RAIL Ian M Thoms Director, West Rail Kowloon-Canton Railway Corporation 7/F, Citylink Plaza Hong Kong * Presentation by C N Fung, Project Manager South, West Rail Kowloon-Canton Railway Corporation Abstract West Rail is currently the Hong Kong's largest construction project. It is also the biggest capital expansion project ever undertaken by the Kowloon-Canton Railway Corporation. The planning, design and implementation of such a massive infrastructure project requires the use of proven and effective project management techniques to ensure success. Efficient project management will avoid delays in project completion, budget over-runs and unsatisfactory performance of the final product. West Rail is more than half way through its construction phase, and is well within budget and ahead of schedule. This paper gives an overview of West Rail development and sets out the key elements of its project management system. INTRODUCTION West Rail, at an estimated cost of HK$46.4 billion (US$5.9 billion), is a 30.5-km domestic passenger railway linking urban Kowloon with the North West New Territories in Hong Kong. When the system becomes operational near the end of 2003, West Rail will serve over 300,000 passengers a day. Demand is expected to grow to 500,000 passengers a day by the year Construction of West Rail involves building nine stations, a 32.5-hectare maintenance centre, and laying 88 km of track along a route line comprising 13.4 km of viaduct, 14.7 km of tunnels and 2.4 km of surface alignment (Figure 1). The project also requires the purchase of 154 new train cars, and the installation of a state-of-the-art Seltrac signalling system together with other tried and tested, modern railway systems along the line, including traction power and overhead line, telecommunications, main control system, etc. The Kowloon-Canton Railway Corporation (KCRC) commenced construction of West Rail following the Hong Kong Special Administrative Region Government's authorisation of the railway scheme in September The project is currently progressing smoothly to programme, with overall implementation 63% complete at the end of December 2001, and is on target for operation to commence before the end of This achievement is due to a combination of factors, including the expertise, 1

2 experience and demonstrated capability of the West Rail team in managing this large multi-disciplinary project; and the skill, endeavours and cooperation of a significant number of contractors and consultants, who have responded remarkably well to West Rail's informal partnering style of project management and highly collaborative approach to problem solving. Figure 1 Route plan and forms of construction of West Rail Phase I PROJECT MANAGEMENT OF THE WEST RAIL PROJECT The prime objective of the project management strategy for West Rail is to ensure that the new railway is commissioned safely, on time, within budget, and to the satisfaction of all the stakeholders. Contracting and Procurement Strategies KCRC has established a procurement strategy for West Rail following fair, open and competitive tendering practices in accordance with the World Trade Organisation procurement rules. Contract conditions set out in the KCRC documents are based on ICE and FIDIC requirements, both being internationally recognised standards. The actual wording of the contractual clauses also draws upon the experience of Hong Kong s Airport Core Programme and the various terms of contract used by Government, the MTR Corporation and the Airport Authority. West Rail adopts two contracting approaches, one is to combine the design and the construction works into a single design-build (DB) contract, and the second is to separate the design activities from the 2

3 works, resulting in design-only contracts plus separate construct-only (CC) contracts. These two different approaches are used for improved flexibility and cost-effectiveness, the choice depending upon the nature, magnitude and complexity of the works involved. In terms of contract packaging, the detailed civil engineering design of West Rail is split into 5 Detailed Design (DD) contracts. The civil construction works are split into two Design-Build contracts for the two major tunnel sections, plus 15 construct-only contracts for the stations and running lines. The contract split is based upon size, geographical location and nature of work, thus allowing economic use of plant and maximum opportunity for participation by local as well as international contractors. The railway operating systems, for which conceptual design and preparation of performance specifications have been carried out in-house, are packaged into 8 DB contracts, 3 Supply and Installation (SI) contracts, and 9 Supply and Purchase (SP) contracts. In addition, there are 2 permanent way (CC) contracts. The underlying principle for the form of contract adopted in each particular case for both the civil and the systems contracts is to apportion contractual risks fairly between the Employer and the Contractor. The major West Rail contracts are scheduled at Annex 1. The timing of contract award was critical. The five main design consultancies were let in early 1998, to be completed by the end of 1998 to facilitate construction contracts to be awarded as early as possible in 1999, based on 100% completion of detailed design. All construction contracts and the core systems contracts were awarded by the end of 1999, in line with the master programme objectives, despite significant design changes brought about by a very major value engineering exercise carried out in the second half of West Rail s procurement procedures follow those of the Hong Kong SAR Government, which complies with the World Trade Organisation s Agreement on Government Procurement. The procurement selection goes through a number of rigorous processes including pre-qualification, short-listing, tendering, tender assessment and award. These processes ensure openness, fairness and competition with the aim of awarding contracts to tenderers who are technically and financially capable. Project Management Team The establishment of a project management team with clearly defined roles and lines of communication is essential in meeting the demanding requirements of any massive project. A major component of West Rail s project management system is people and their organisation. The overall strategy is to have sufficient number of suitable calibre staff available to complete required tasks at each stage of the project. As staff contributes significantly to overall costs, they should be employed such that marginal benefit exceeds marginal cost, taking into account both construction and operating phases. To achieve this, certain activities are carried out by consultants, such as land acquisition and detailed design. Other activities are generally carried out by in-house staff, who are mostly on two year renewable contracts. Both internal and external resources operate as an integrated team. Given the scale and complexity of the project, the task for the West Rail project management team is demanding and challenging. Figure 2 shows the major processes and functional areas of the project which are required to be managed in a structured and integrated manner. 3

4 Programme management Quality assurance Environmental management Design process Contract formulation Procurement Construction implementation Testing & commissioning Trial operation Change management & cost control Risk management Community relations Systems safety assurance Construction safety management Figure 2 Major process and functional areas of the West Rail Project Management System To manage these issues, KCRC s 800 strong West Rail Division is divided into three main departments. Figure 3 shows the project management team of the West Rail Division. The Construction Department is responsible for civil design and construction management, land matters, environmental aspects and construction safety. The Railway Systems Department is responsible for design management, manufacturing, installation, systems integration, and testing & commissioning of all railway systems contracts. The Project Support Department is responsible for all support functions including financial, human resources, legal, cost and programme control, procurement, information technology, and public affairs. In addition, a small Operations and Maintenance Section ensures that the ultimate operational requirements are catered for throughout the design, construction and commissioning phases. Director West Rail Manager Operations & Maintenance General Manager Railway Systems General Manager Construction General Manager Project Support - End user s requirements - Systems safety - Rail systems equipment installation - Testing & commissioning - Statutory inspections - All railway systems contracts - Conceptual design - Design management - Manufacturing - Installation - Systems planning & control - Systems integration - Testing & commissioning - Design management - Land acquisition - Environmental - Construction safety - Construction planning - Construction management Figure 3 The West Rail Project Management Team - Financial - Administration - Human resources - Cost control & programme - Procurement - Information technology - Legal - Public Affairs 4

5 Construction Management For the civil engineering works, the Corporation has adopted the practice of appointing Resident Site Staff (RSS) through the Detailed Design Consultant (DDC), to ensure that their design responsibilities are carried through to the construction phase (see Figure 4). The KCRC acts as the overall project manager, the DDCs serve as the Engineer and provide RSS who integrate with KCRC staff to work with the contractors on site. Delegation of authority and responsibility with accountability are well defined. Figure 5 shows the relationship of the three parties forming a management triangle. KCRC employs consultants to design the railway and then awards the contracts to contractors accordingly. The consultants and their resident site staff take up the role of monitoring contractors' work while KCRC oversees the whole project and coordinates with the consultants and contractors, as well as with external bodies within the Government and the community sectors. Each party's role is clearly defined and frequent dialogue is carried out among the three parties. The close partnership developed within the triangle has proved effective in keeping the project on the right track towards successful completion in terms of quality, cost and time. Employer Design Respon. DDC The Engineer CRE & Resident Site Staff Consultant KCRC RSS SITE BASED Delegation of Powers of the Engineer KCRC Project Manager Employer s Representative Contractor Structure B/S Arch. Work Interfacing Contractors Rolling Stock Signalling Track Work L& Esc Master Control Systems etc. Interfacing Agencies Highway Water Supply CLP HK Tel DSD etc. Figure 4 Construction Management Structure 5

6 KCRC Management Triangle Contractors RSS/Consultants Figure 5 The West Rail Management Triangle The organisational framework enables structured interfaces with all the stakeholders for accurate forecasting of programme and cost parameters. These are regularly compared with the established baseline to assess any overall impact. As soon as there is evidence of a deviation, the project team mitigates proactively any negative impact of change. Partnering Approach KCRC recognizes that communication is key to the successful running of the West Rail project. With over 30 major contracts in full swing, and over 11,000 staff and site operatives working towards completion of West Rail, the project requires a dedicated level of co-ordination and communication to allow necessary information to flow freely. By developing an organisation that embraces partnering to enable the successful completion of West Rail through the efforts of the Employer, the Engineer s staff and the Project Contractors, the Corporation intends to create a level playing field where the interests of all parties are addressed professionally and fairly. In this vein, the Corporation invites all its contractors and consultants to come together once per quarter, on an informal basis, for an information exchange at the Quarterly Review Meeting (QRM) to solve problems, raise and discuss concerns, and share experiences. Involving over 150 representatives from the civil and railway systems contractors, the design consultants, resident site staff and KCRC's own project team, the logistics for these quarterly review meetings are complex, but results have already proved positive in opening lines of communication and cutting through complicated issues to reach agreed solutions. Key short-term targets to be achieved in the coming quarter are also agreed at the meetings and monitored through to the subsequent QRM. Cost Control The objective of the cost control process is to ensure that budgetary requirements are adhered to during the design and implementation of the project and that the out-turn cost is in line with the KCRC's and the Government's expectations. 6

7 On a weekly basis, potential changes to the planned scope of work are identified and quantified. The details of proposed changes are entered into a computer system, which automatically routes the information to all concerned parties. Review, assessment and interim approval are done on line, and the senior management of the project meets once a week in the Cost Control Committee for final vetting prior to implementation of any changes. The cost control system for West Rail has proved effective as it enables the management to identify problem areas early and to initiate timely corrective action so as to maximise the chances of completing the project within the established budget. Programme Management Programme Management in the global sense requires that the individual contracts, most of which are significant projects in their own right, be progressed in a manner that efficiently supports the aims of the scheme as a whole. The parameters of design, construction methods and time must be compatible, and all contract interfaces must be rationalised so that contractors can gain physical access to site areas in a smooth and well-planned manner. To effectively perform the programme management function and ensure that all these interfaces are compatible, KCRC has developed a Master Programme of major activities to be performed (Figure 6). They form a critical path network that relates individual activities of one contract to another through a large number of controlled interfaces. The West Rail Master Programme is a computerised database containing the individual activities forming the execution of the West Rail scope of work. Activity records in the database are described by various attributes that provide planned and actual status of the work represented by the selected records. The information about the relative sequence of activities enables flexibility in analysing the impact of one activity on another. The database also provides the capability of assigning, sorting, summarising and allocating resources needed to perform activities. The software used to develop the West Rail Master Programme is Primavera Project Planner. Each contractor's own programme can be imported into the programme system and assessed for compatibility. The Master Programme spans a period of time beginning with the work included in the preliminary engineering or Technical Studies phase, and continues through to Systems Commissioning and trial running. The Programme is organised into sections and contracts, based upon the way works will be carried out. Major activities, Key Dates, and Key Event Indicators are developed from the Master Programme. Through these interlinked relationships, the impacts of delays are assessed for criticality to the objectives of the West Rail Programme as a whole. Robust systems and procedures are in place to track, control, and adjust activities as needed to achieve the required results. Each year, senior management reviews and assesses Key Event Indicators for the coming year and recommends programme adjustments to reflect the Corporation s long-term objectives for the project. 7

8 Responsibility Development of Master Programme Director, West Rail NO KEIs Approved? Review and approve Key Event Indicators (KEI) YES Project Controls West Rail Functional Organisations West Rail Designated Managers Identify Key Event Indicators & issue for review Review Key Event Indicators Review Key Event Indicators Confirm Key Event Milestones Indicators Develop draft Master Programme & issue for review Review draft Master Programme. Review draft Master Programme. Project Controls conduct working meetings to finalize Master Programme & forward to Approval Authorities for review and aproval. Issue Master Programme using PCN Approval Authorities Review and approve Master Programme through PCN NO Master Programme Approved? YES Figure 6 Development of master programme In addition, three specialised types of programme are being employed to help manage the intricacies of the project. Co-ordinated Installation Programmes (CIPs) are being developed for each distinct facility (e.g. a station, the depot or a ventilation building) to delineate the required sequencing of detailed activities so that project contractors can be well prepared for the window of time that they will have access to specific areas to perform their duties. For example, the civil contractor for a station will provide access to the lifts and escalators contractors who will install their equipment and then hand the areas back to the civil contractor for installation of architectural finishes. The CIP is a composite programme to be prepared by the Engineer. Following the issue of the CIP by the Engineer, the Contractor and the Project Contractors involved are to revise and resubmit their respective programmes accordingly. The Engineer prepares and issues the integrated CIP to the Contractor and may from time to time revise and re-issue the CIP. 8

9 The purpose of the CIP is to facilitate the co-ordination of the delivery, installation, testing and commissioning of the system-wide E&M contract works with the civil construction, building services and architectural, builder's works and finishes. It serves to organise the management of interfaces between the works of the Project Contactors. Similar to the CIPs, the Track Related Installation Programme (TRIP) has been developed for the contractors who are involved with installing trackwork, signalling, traction power, and other equipment along the railway line itself. This is a detailed network of activities that allows shared use of works trains once the initial rail has been installed. The TRIP was implemented in August 2001 and is reviewed weekly. This programme co-ordinates all installation activities along the track, based on the input received from each of the Project Contractors. The allocation of track access and works trains will be in accordance with the overall project sequence and criticality of each work activity. The third special programme being developed for the West Rail project is the Operational Readiness Plan and Programme. This will provide a systematic approach to make sure that West Rail operates smoothly and safely from day one of operation onwards. Activities covered by the Operational Readiness Plan and Programme are essentially all those items necessary for successful Day-One operation which are not part of the project works deliverables. The Operational Readiness Programme was initially developed in late 2000 when the project works were approximately 40% complete, and structural works were in excess of 70% complete. Whilst the critical path to Day-One operations essentially runs through the delivery of the West Rail project works, the non-project activities, relating to approvals by governmental and regulatory bodies and services provided by other activities (e.g. feeder buses to stations), will progressively become more critical to Day-One operations, and it is vital to identify the timing requirements of these issues and to co-ordinate with these bodies to ensure that necessary arrangements are made in time. The first formal operational readiness forum was convened in July 2001 with the senior management of relevant government departments. Detailed working level meetings are now being conducted, and these plenary forum sessions will continue on an ongoing basis until West Rail opening. The management structure of the operational readiness process for West Rail within KCRC comprises a steering committee and a working group. The Operational Readiness Steering Committee oversees and provides high-level coordination of all matters concerning West Rail Day-One operational readiness. It defines the strategy and sets policy with respect to all aspects of operational readiness including any necessary submissions to the Government and outside organisations. The role of the working group is to implement the policies and strategies set by the Steering Committee (Figure 7). Part of the Operational Readiness Programme involves integrating the Light Rail and West Rail Operations organisations and providing a training programme for all those who will be manning the trains, control rooms and station platforms. The organisational structure and training plan are due to be finalised around the end of

10 West Rail Operational Readiness Plan West Rail Operational Readiness Programme Successful Day One operation West Rail Commissioning Plan Figure 7 Operation readiness plan and programme THE CULTURAL AND SOCIAL ASPECTS OF PROJECT MANAGEMENT Building a major railway has never been purely an engineering undertaking. For the implementation of any mega project, the cultural and social aspects of the project have to be taken good care of from the initial planning stage. This is especially so when West Rail is a rail project which cuts through urban centres as well as culturally and environmentally sensitive area in the tranquil setting of the rural New Territories. While no one would ever doubt the value of West Rail, nonetheless significant effort was still required to address community concerns relating to land resumption and traffic diversions required for the construction works, as well as dealing with objections to noise nuisance, shifting of the alignment, naming of stations, etc. Apart from being very vocal and vociferous, some resistance elements were very well-organised and highly politicised. If not handled efficiently and effectively, such resistance and pressure might lead to serious delays in the project in addition to adverse publicity. Hence, community relations has a key role to play in project management. It is of vital importance to establish and sustain a harmonious relation with the community such that the project can proceed smoothly according to programme. A comprehensive community impact assessment had been conducted during the inception stage so that all the potential community impacts and problems could be catered for, as far as possible, and in a practicable manner during the early design stage. It should be understood that not all the community impact issues could be identified prior to actual construction and many unexpected issues will manifest themselves subsequently. Adopting a preventive and proactive attitude helps to reduce considerably many of the potential troubles. Respect for traditional beliefs and culture of the indigenous villagers is a must for any major project in Hong Kong, especially in the rural New Territories. In order to respect Fung Shui, a total of 19 Pai Laus and a Fung Shui Pavilion will have to be built along the West Rail alignment, as well as relocating a Fung Shui Well and reprovisioning many Fung Shui trees. For other Fung Shui cases which cannot be resolved by these options, engineering and technical solutions may be required. On West Rail grave locations necessitated shifting the railway alignment and a village shrine required a redesign of the station structure. 10

11 Comprehensive pre-condition surveys were conducted to cover all the facilities and structures within a reasonable distance of the works, listing out all existing defects in adjacent structures, with photographic records taken and dated. This has facilitated the subsequent handling of claims for compensation for cracks and damage. In order to enlist the support of the community for the West Rail project, community briefings, media briefings, school talks and exhibitions are held regularly to keep the community updated on the development of the project. To maintain close dialogue with residents along the alignment, community liaison offices have been set up to provide a one-stop rapid response facility for complaints and enquiries. A 24-hour complaint and enquiry hotline is operated on West Rail. Working groups with local representatives are set up to deal with specific issues, as and when required. NEW INITIATIVES AND OBSERVATIONS The West Rail project management system has been operating effectively overall. Compared to previous large railway projects in Hong Kong, several new initiatives have been adopted on the West Rail project. Below are some observations that highlight the nature and benefits of the new initiatives and strategies adopted. 1. The strategy of prevention is better than cure has proved successful. The proactive approach adopted on West Rail has resolved numerous concerns long before they ever became serious problems. Consequently it is also considered to be the best approach for other projects. 2. Managing a project under strict budgetary and programme control has proved advantageous. It imposes a discipline that is sometimes lacking on construction projects, resulting in cost escalation and programme over-runs. 3. Value engineering has proved to be beneficial to the project. The change of the West Rail scheme from a 12-car to a less expensive 9-car configuration not only resulted in substantial saving in capital cost but also brought about the inclusion on certain contracts of a value engineering clause to effect shared savings. However, the major review exercise was only completed at a late stage in the design. Had the change been made earlier, there would have been less disruption and greater savings. Figure 8 shows how the opportunity to influence project characteristics decreases over time. 4. The use of interface specifications as a contract requirement detailing the responsibilities between the contractors was provided during the tendering period, to form the basis for understanding the responsibilities of each contractor. The interface management plans developed by the contractors minimise interface inconsistencies and misunderstanding on interface requirements and designs, and will greatly facilitate installation and the overall commissioning process. 5. The cultivation of an informal partnering relationship between client and contractor encourages the willingness to solve problems regardless of who is directly responsible and reinforces the prevention is better than cure strategy. 6. The effort put into community relations has contributed significantly to the smooth implementation of the project programme. By taking good care of the social and cultural aspects of the project, possible resistance and disturbance by the residents along the alignment is minimised. In addition, such efforts have also helped to establish a positive and proactive image for West Rail. 11

12 100% Degree of Influence 0.0% Award of Contracts Day One of Operation Design Period Construction Period Operation Period Decreasing Influence Figure 8 Opportunity to influence project characteristics CONCLUSION The West Rail experience has proved that a robust project management system is essential to the implementation of a project from design, through construction to the commissioning stage and day one operation. KCRC, working together in partnership with the project's contractors and design consultants, has been able to resolve technical and commercial issues to the satisfaction of all parties whilst maintaining the major objectives of meeting time and cost constraints. West Rail is well on schedule to serve the people of Hong Kong by the end of KCRC believes the project management approach developed for West Rail may provide a useful reference for other projects to draw upon. 12

13 List of Major Contracts of the West Rail Phase I Annex 1 Civil Construction Contracts Package Title Contract Number Award Date Contract Sum (HK$ million) Consultant / Contractor Kwai Tsing Tunnels DB-320 Oct ,903 Dragages-Zen Pacific JV Tai Lam Tunnel DB-350 Sep ,790 Nishimatsu-Dragages JV Viaduct-Kam Sheung Road to Tin Shui Wai CC-201 Jun ,213 Maeda-Chun Wo JV Yuen Long and Long Ping Stations CC-202 Sep ,762 AMEC-HK Construction JV Tin Shui Wai Station CC-203 Jul ,126 Chun Wo-Fujita-Henryvicy JV Viaduct-Tin Shui Wai to Siu Hong CC-211 Jun Maeda-Chun Wo JV Siu Hong Station CC-212 Jul ,386 HKACE JV Tuen Mun Station CC-213 Jul ,353 HKACE-JV Tsuen Wan Section CC-300 Sep ,779 Penta Ocean-Kier JV Tsuen Wan Reclamation CC-302 Mar Sino-European JV Nam Cheong Station CC-402 Sep ,238 Balfour Beatty-Zen Pacific JV Tunnel Works-Mei Foo to Nam Cheong CC-403 Jun China State-Zen Pacific JV Mei Foo Station CC-404 Jul ,243 Kier-Zen Pacific JV Civil and Infrastructure Zen Pacific-China State-Ngo CC-601 Jun Works Kee JV Kam Sheung Road Station CC-602 Sep NECSO Entrecanales Cubiertas SA West Rail Headquarters CC-603 Feb Sun Fook Kong JV West Rail Depot CC-604 Dec Costain-China Harbour JV Railway Systems Contracts Train Control and Signalling Alcatel Canada Inc Transport DB-1300 Mar System Automation Traction Power and Overhead Line DB-1400 Sep Siemens-CITIC Consortium Telecommunications Systems DB-1500 Nov Siemens Ltd Main Control System DB-1510 Jul Siemens Ltd Commercial Communications DB-1520 Jul Andrew Corporation Integrated Training System DB-1530 Dec Booz Allen & Hamilton (Australia) Ltd Automatic Revenue Collection DB-1650 Oct Thales e-transaction CGA S.A. Platform Screen Doors DB-1700 Oct Nissho Iwai-Nabco Consortium Escalators SI-1120 Oct Constructions Industrielles De La Mediterranee Lifts SI-1121 Oct Ryoden Lift & Escalator Co Ltd 13

14 Tunnel Ventilation System SI-1200 Jan Shinryo Corporation Electric Multiple Units SP-1900 Mar ,102 IKK Consortium Cab Simulators SP-1901 Feb Mitsubishi Electric (HK) Ltd Diesel Locomotives SP-2100 Jun Shenzhen Sunray Group Co Ltd Works Wagons & Rail Buses SP-2101 Jun LORIC Consortium OHL Maintenance Vehicles SP st Qtr 2002 (F) - - Rail Grinding Vehicle SP st Qtr 2002 (F) - - Track Tamping Vehicle SP st Qtr 2002 (F) - - Viaduct Inspection Unit SP-2105 TBD - - Ladder Trolleys SP-2106 TBD - - Permanent Way - Southern Area CC-1810 Sep Leighton-RSA JV Permanent Way - Northern Area Detailed Design Contracts (Civil) CC-1820 Sep Shun Wo-Henryvicy-China Railway Construction Corporation-Queensland Rail JV Yuen Long Section DD-200 Mar Ove Arup and Partners Hong Kong Ltd Tuen Mun Section DD-210 Mar Maunsell Consultants Asia Ltd Tsuen Wan Section DD-300 Mar Atkins China Ltd Sham Shui Po Section DD-400 Mar Hyder Consulting Ltd West Rail Depot and Station DD-600 Mar Parsons Brinckerhoff (Asia) Ltd F: Forecast TBD: To be determined 14

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