Alliance Industry Leader Interview: Queensland Water Infrastructure Shares Potential for Excellent Project Outcomes in Alliance Contracts

Contributor: Phil Chipman
Posted: 08/17/2009  12:00:00 AM EDT  |  0
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Tags: PAB | alliance contracts | ALT | alliances | wyaralong dam | QLD | queensland water infrastructure | QWI | phil chipman | alliance contract | project | infrastructure | VFM | reporting | leadership | accountability | governance | alliance leadership team

Phil Chipman is the Chief Operations Officer for Queensland Water Infrastructure Pty Ltd (QWI). Alliance IQ interviewed Phil about his role, responsibility and lessons learned in relation to alliance contracting.

Phil has responsibility to manage the operational activities of the QWI program. The QWI program includes the 15 projects associated with the delivery of the Wyaralong Dam (near Beaudesert, one hour south of Brisbane) and the Traveston Crossing Dam (near Gympie, two hours north of Brisbane).

QWI currently has two Alliances in operation one to design and construct the Wyaralong Dam, the other (a Program Alliance) to design and construct Cedar Grove Weir (complete), Bromelton Offstream Storage (complete) and the Wyaralong Dam Access Road.

He is also the Chairman on the Alliance Leadership Team/ Project Alliance Board for each of these Alliances. This involves chairing ALT/PAB meetings, liaising closely with the Alliance Manager about the passage of information to the Board and Board decisions, a Champion of certain Alliance functional areas and certain delegated responsibilities regarding approvals of Alliance activities.

How long have you been engaged in alliance contracting?
My first involvement was the Burnett Dam Alliance in 2003.

What were your drivers to engaging in this specific project delivery methodology?
Potential for excellent outcomes through risk sharing and a focus on team work and innovation. Allows some flexibility and speed in the development of project documentation. Well suited to major dam projects due to scale and risks involved.

What are your key lessons learned and what pitfalls would you recommend avoiding?
The Alliance principle of no blame doesn’t mean no accountability. Accountability is essential particularly when striving to achieve demanding timeframes and outcomes.

The Alliance principles of Trust and Team Work do not equate to a blind acceptance of proposals, designs and costs. Good practice and governance requires any organisation to challenge and verify proposals, designs and cost estimates to the highest degree.

How has alliance contracting changed the way that you do business?
Allowed Alliance participant businesses to focus on positive lead issues (best for project, team work, innovation, culture) rather than negative lag issues (commercial, litigation, individual gain). Facilitated a hands on approach to the high level governance and management of major projects and requires senior management to be structured to provide this hands on involvement on Alliance Leadership Teams etc.

Value for money is always the challenge on the tip of everyone’s tongues – what have you done in the past to demonstrate it?
Recognise that VFM commences in the planning stage of the project (prior to procurement commencing) and that whether VFM is achieved is largely determined by key stakeholder perceptions. For this reason ensure key stakeholders are well briefed on how VFM will be demonstrated in the separate stages of the project (procurement, delivery, operation of the asset). Ensure stakeholders are similarly briefed on progress against and outcomes of VFM objectives.

If you could go back and do anything differently – what would you change?
Recognize and reduce complexity of Program Alliance reporting.

What’s the future for alliance contracting in your opinion?
Good future for major infrastructure projects with significant risks providing key stakeholders have a positive perception of the Alliancing approach, especially that VFM is achieved.

Alliance IQ thanks Phil for his time!

If you would like to learn more about collaborative contracting you can also visit www.collaborativecontracting.com.au or call 02 9229 1000 for more information.

Click here for information about Phil Chipman