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Agenda. Welcome Safety Moment KBR Speechly Bircham CERN LHC – Keith Jones Drinks & Nibbles – Hogshead, Leatherhead. CERN - LHC Project Large Hadron Collider. The world’s biggest. ... fastest. ... coldest. ... most expensive. CERN. European Organisation for Nuclear Research.

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Agenda
Agenda

  • Welcome

  • Safety Moment

  • KBR

  • Speechly Bircham

  • CERN LHC – Keith Jones

  • Drinks & Nibbles – Hogshead, Leatherhead


CERN - LHC Project

Large Hadron Collider

The world’s biggest

... fastest

... coldest

... most expensive


CERN

European Organisation for Nuclear Research

  • Founded 1953

  • 20 member states

  • High Energy Physics Research

  • 3000 permanent staff

  • 6500 users


LEP/LHC

SPS

PS

The Ever-Increasing Circles


What s cern ever done for us
What’s CERN ever done for us?

Customs scanning of vehicles

X-ray etching computer chips

Laser scalpels

Radiotherapy

World Wide Web

Electron beam sterilisation

Carbon dating

Hardening of metals

Positron-electrontomography

X-ray lithography

Destruction of nuclear waste

X-ray imaging

Astronomical analysis

Mass Spectroscopy

Spinoffs from Accelerator Technologies


Lhc the large hadron collider
LHC - the Large Hadron Collider

  • Reuses existing tunnels

  • Major new infrastructure

  • Helium cooled - 1.9K

  • Absolute vacuum

  • Proton collision 14TeV

  • Pb nucleus 1150TeV

  • 12500t detectors


LHC figures

  • LHC Project

    • 7000 man-years

    • 7 ½ calendar years

    • LHC Capital value £ 1100M

  • Civil Works

    • 6+ calendar years

    • Capital Value £ 146M (€238M - 1998)

    • 4 Packages

      • Package 1 - Meyrin

      • Package 2 - Cessy

      • Package 3a - Dispersed

      • Package 3b - Prevessin


Lhc civil engineering
LHC Civil Engineering

  • International Joint Ventures

    • >6kmtunnels

    • 14 caverns

    • 7shafts

    • 25000m3 buildings

    • >6 calendar years



Package 3a 3b
Package 3a / 3b

Package 3a

  • 3.2km tunnel, 3mØ

  • 11 chambers

  • 11 buildings

  • Spoil disposal

  • Contract Value €55M

  • TW-A-SB

  • BRI

Package 3b

  • 2.5km tunnel, 3mØ

  • 4 chambers

  • Contract Value €14M

  • ATIC

  • BRI


Package 3a
Package 3a

  • Dispersed

    • 8 locations

  • Interfaces

    • Experiments, dismantling, installation

    • >50 contract dates

  • Change

    • Scope

    • Design

    • Programme


Construction
Construction

“Tunnelling for dummies”







Contract
Contract

…making it happen without ending up in court…


Factors in success or failure
Factors in Success or Failure

  • Scope & Programme

  • People

  • Contract

    • Form

    • Valuation

    • Target Cost

    • Change


Scope
Scope

50m


People
People

national pride

personal ego

language

corporate culture

past practice

trust/ mistrust

blame

prejudice - stereotypes

**new ideas**


The contract
The Contract

  • Modified FIDIC “Red Book”

    • Employer control reinforced

    • Variations agreed before work

    • Rigid

    • Adversarial

    • No incentives to perform

  • Heading for trouble


Supplemental agreement
Supplemental Agreement

  • Side-agreement

  • Project focus

    • Collaboration

    • Seek function, not form

  • Target Cost - Incentive

  • Tendered Rates retained - transparent


Cost value
Cost/ Value

+

+

+

%

=

Cost

  • Actual cost of resources

    Value

  • Payment on resources expended

  • Tendered BoQ re-expressed - P/ L/ M/ OSOHP


Safeguards
Safeguards

  • Employer

    • Open-book - audit

  • Contractor

    • Tendered Overhead/ Profit preserved

  • Financial Incentive

    • Gainshare - 70:30


70 30 pain gain
70:30 - Pain/ Gain

Additional Income

+ve = Gain

0

Contractor’s contribution capped

Target + buffer

Target

-ve = Pain

Outcome Cost


Target cost illustration
Target Cost - Illustration

Tenders 100 manhours

Expends 110 m/h

Expends 90 m/h

(Underspend)

(Overspend)

Expends 100m/h

(On-Target)

  • Paid 90 m/h +O/H = 99

  • Reward 30% of 10 = 3

  • Recovers 102, spends 90

  • Outcome +12

  • RoCE +13.3%

  • Paid 110 m/h +O/H = 121

  • Fine 30% of 10 = 3

  • Recovers 118, spends 110

  • Outcome +8

  • RoCE 7.3%

  • Paid 100 m/h +O/H = 110

  • No fine, no bonus

  • Recovers 110, spends 100

  • Outcome +10

  • RoCE +10%

Assumes O/H 10%


Target cost operation changes
Target Cost Operation - Changes

  • Baseline (June 1999)

    • Cost + % = Value

  • Variation - external

    • Modifies Target Value and Costs

      • Employer bears impact

  • Value Engineering/ Economy - internal

    • Target Value unchanged

      • Savings shared


Variation
Variation

  • Prior to Supplemental Agreement - VO

  • Delete secondary lining

.


Value engineering
Value Engineering

  • Relocate radiation shielding

  • Savings €0.75M


Costs savings
Costs/ Savings

Target Works

  • Base Costs

    • Original Value 79.1 MCHF €54M

    • Final Estimated Value 87.9 MCHF €60M

    • Escalation 11.1%

    • Current underspend 10.4MCHF €7M

    • Current underspend 11.8%

  • Including fluctuations

    • Final Estimated Value 97.1MCHF €66M

    • Current underspend 10.7%


Has it worked
Has it worked?

  • Project focus

    • Debate, less disputes

    • Behaviour changes

    • Financial incentive to behave

  • Performance

    • Structures delivered on time

    • 34% escalation within first year

    • 11% escalation since 1999

    • 12% underspend available for gainshare


The end...

… or is it?


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