1. Large Underground Projects - Project Management in a Risk Perspective Large Underground Projects - Project Management in a Risk Perspective Professor Håkan Stille Department of Soil and Rock Mechanics Royal Institute of Technology Stockholm, Sweden

2. Underground project are complex Stille Varying and often difficult conditions Varying demands High technical level Uncertainty (for example soil and rock mass) Complex contracts Large organisations with several actors Political and environmental focus

3. Background Stille 2002 Hongkong Difficult environmental acceptance Cost and time overruns Claim situations Accidents of different types

4. Accidents with impact on the environment, excavation work or operation of the facility Stille 2002 Hongkong Many of these types of accidents have been reported in the litterature. Many of the accidents have its origin in geological risks as well as organisational shortcoming and obstacles.

5. Comprehensive View - Look at Things as a Whole Comprehensive View - Look at Things as a Whole A project should be considered as a process with associated risks, obstacles and decisions Stille

6. Risk From Sturk, 1998 HazardHazard Damage event Initiating event Damage Time Warning bells Risk object Soil and rock Organisation Contract

7. Risk - Hazards Stille Geological hazards Organisational hazards Contractual hazards Hazards related to construction methods Environmental hazards

8. Risk - Warning bells Risk - Warning bells Warning bells always exist and it is important to notice them in due time Warning bells exist for all types of hazards Stille

9. Obstacles General obstacles –Lack of knowledge, ignorance –Contractual blocking –Wrongly defined demands Organisation obstacles –Indistinct organisations and responsibilities –Indistinct flow of information and decisions –Indistinct working procedures Human obstacles –Lack of competence and insight –Prestige –Human errors (carelessness and negligence)

10. Important Factors of Success Stille Comprehensive view Clear common objectives Knowledge and competence Management/leadership and information A dual quality system

11. Comprehensive view Decision problems Stille Always under uncertainty Always several actors involved Continuous throughout project life

12. Comprehensive view Possibilities to Influence Stille Early project phase (budget) –Standards –Forms of co-operation –Project and project management concepts Tender phase –Time and cost level –Technical solutions Construction phase –Final standards –”Co-operation climate” –Initiating events

13. Clear Common Objectives Stille Risks are unavoidable He who can control the risk should be responsible for it He who takes a risk should be given reasonable compensation Shared risks should be identified and clearified Clear organisation and contract

14. Knowledge and Competence Stille Technical matter (obvious) The nature of risks Our human obstacles Comprehensive view - concept of projects as a process

15. Knowledge and Competence Require Increased Use of; Stille Project models Risk analysis Techniques for avoiding obstacles –team qualitfication Techniques for assuring a compre- hensive view –technical audits

16. Project model Definition of project From Stille, Sturk & Olsson

17. Risk analysis From Stille, Sturk & Olsson

18. Technical audits( Board of experts/Soil and Rock Committee) Stille Independence Knowledge Ability to work in group Competence

19. Team Qualification Right man on right place Ability to work in group Complementary competence

20. Information Requirements Stille Information should be; Related to the current situation Clear concerning uncertainty Understandable Quality assured

21. Good Project Management is Quality Assurance The dual quality system From Stille, Sturk & Olsson It is not enough to do things right (ISO 9001) we also have to do the right things (risk assessment)

22. ISO 9001 Stille Good tool for doing the thing right Developed for manufacturers and suppliers Underground projects cannot fully be seen as a manufacturing process

23. Quality tools Tools for risk assessment Stille Risk analysis and system analysis Technical audits

24. Conclusions Stille Hongkong 2002 Do the right thing and do the thing right Identification of all customer needs and hazards threatening the fulfilment of these needs Difficult to achive sufficient quality within underground projects only by using ISO 9001

25. Conclusions Stille hongkong 2002 Change our behaviour Increase knowledge and competence Increase the degree of co-operation between actors