The Channel Fixed Link : le Projet du Siècle

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Presentation transcript:

The Channel Fixed Link : le Projet du Siècle Case Study Feedback Case Study Feedback

Major Projects Benchmarks Performance Criterion Megaprojects1 Average Channel Fixed Link Budget increase 88% 69% Programme Overrun 17% 14.2% Conformance Quality 53% not up to expectations Performed as expected Operational Profitability 72% not profitable Operationally profitable 1) source : Merrow (1988) Case Study Feedback

The Channel Fixed Link 1 the external environment Political uncertainty The 1987 UK election Suspicions of the banking community The initial contract Morton’s role Booming EU economies Cost inflation, especially trains Rising revenue forecasts Case Study Feedback

The Channel Fixed Link 2 governance Rolling stock – percentage fee Largest budget overrun; failed to motivate TML Terminals and services – fixed price Smallest budget overrun but largest source of contention – effectively became inoperable Tunnels – incentive contract Medium budget overrun, but on programme Motivated both sides to solve problems Case Study Feedback

The Channel Fixed Link 3 stakeholder analysis Internal Eurotunnel ++ TML ++ Workers + Contractors and suppliers + Shareholders +/- External Travelling public +++ British and French states + Local communities +/- Banks - - Future generations ++ Case Study Feedback

The Channel Fixed Link 4 organisation design Phase 1 – separated construction; co-located design Limited coordination required for construction as two sites separate Phase 2 – integrated organisation Breakthrough joined sites M&E a common project Phase 3 – flattened organisation Key tasks, commissioning and claims Case Study Feedback

The Channel Fixed Link 5 lessons Clear allocation of roles and responsibilities Integrate or separate client and contractor Package project Let packages as separate projects Strong clients mean successful projects Motivate resource bases through incentive contracts Defined the project mission fully Case Study Feedback

The Channel Fixed Link 6/7 success and failure Whose success? Whose failure? Your opinion Case Study Feedback