ECRI ENGINEE RING & CONSTRUCTION 27 September 2006 RISK - - PowerPoint PPT Presentation

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ECRI ENGINEE RING & CONSTRUCTION 27 September 2006 RISK - - PowerPoint PPT Presentation

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ECRI Sponsors Meeting Hilton Kensington Hotel London Day 1 Wednesday 7 th June 2017 WELCOME ECRI ENGINEE RING & CONSTRUCTION 27 September 2006 RISK INSTITUT E 1 Session 1 Welcome, Safety Moment, New Introductions,

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

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27 September 2006

ECRI Sponsors Meeting

Hilton Kensington Hotel – London Day 1 – Wednesday 7th June 2017

WELCOME

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session – 1

Welcome, Safety Moment, New Introductions, Administration, Adoption of Previous Minutes and Review of Agenda

Rod Kyle, ECRI

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Programme – Wednesday 7th June 2017

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Session Time Description Discussion Leader 08.00 - 08.30 Registration / Refreshments 1. 08.30 - 08.50 “ Welcome, Safety Moment, New Introductions, Administration, Adoption

  • f Previous Minutes and Review of Agenda ”

Rod Kyle 2. 08.50 - 09.50 “ Lessons Learned from the Skanska Project / Risk Review Process ” -- Kevin Morecroft, Head of Risk-Civil Engineering, Skanska UK 09.50 -10.10 Tea / Coffee Break 3. 10.10 -11.10 “ To Disrupt or be Disrupted “ -- Andrew Council, Group Head of Construction Risk, LendLease . 4. 11.10 -12.05 “ Security Peer Group “ -- Tim Potier, Vice President, Chief Security Officer, Parsons Corporation and Darren Albers, Director-Information Security, Fluor Corporation 5. 12.05 -13.00 “ Air Liquide E&C Risk Management “ -- Jean-Claude Joyeux, Director, Business Development EMI Projects, Air Liquide Inc. 13.00 - 14.00 Lunch 6. 14.00 - 14.30 “ Breakout Group Topic Introductions ”

  • A. ” Strengthening Compliance ”
  • B. “ Dealing with Joint Ventures – Issues, Risks and Possible

Solutions “

  • C. “ Construction Safety / Innovation “

Rod Kyle 7. 14.30 -15.30 “Breakout Work Sessions” Groups 1,2 and 3 15.30 -15.50 Tea / Coffee Break 8. 15.50 -16.50 “Breakout Groups Feedback and Discussion”

  • - Workshop Topic A, Group 1
  • - Workshop Topic B, Group 2
  • - Workshop Topic C, Group 3

All Mark Watson Michael Burch Greg Ramsay 9. 16.50 - 17.00 Wrap-Up and Close Rod Kyle 17.00 End of Day 1 Session / Departure

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session - 2

Lessons Learned from the Skanska Project / Risk Review Process

Kevin Morecroft, Head of Risk – Civil Engineering Skanska UK

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session - 3

To Disrupt or be Disrupted

Andrew Council Group Head of Construction Risk Lendlease

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session - 4

Security Peer Group

Tim Potier, VP, Chief Security Officer, Parsons Corp. & Darren Albers, Director – Information Security, Fluor Corp.

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session – 5

Air Liquide E&C Risk Management

Jean-Claude Joyeux Director, Business Development EMI Projects Air Liquide Inc.

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session - 6

Introduction to Breakout Group Workshops

Rod Kyle, ECRI

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 6 – Breakout Topics

Topics taken from Sponsor Inputs, SIG Mtgs. and ECRI’s Annual Risk Survey – 2017 The above plus Group Breakout Feedback used as the basis for possible New Best Practices

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 6 – Introduction to Breakout Group Workshops

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Topic A – “ Strengthening Compliance ” Group 1 Facilitator / Presenter : Mark Watson, Amec Foster Wheeler Group 1 Recorder : Peter Olofson, ECRI (Breakout Group Allocation in Handout Packs)

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 6 – Introduction to Breakout Groups Topic A – Strengthening Compliance

  • With many recent cases in the Public domain, Feedback

indicates that this is a Major concern across the Board

  • With certain Sponsors, this is identified as their Biggest Risk
  • There are both INTERNAL and EXTERNAL considerations :
  • - Code of Conduct, Confidentiality, Conflict of Interest, Anti-

Bribery & Corruption Policies, Directors Liability etc.

  • - Compliance with multiple Laws & Regulations, Anti-Trust,

FCPA / UK Bribery Act, Anti-Dumping, Conflict Minerals, Child Labour / Worker Welfare, (Anti)-Boycott, Environmental etc.

  • There are Major Consequences of Infringement / Breach :
  • - Long-Term Damage to Reputation, Stock Prices, Loss of

Home / Overseas Market access, Severe Financial Penalties, Attracting Talent, Financing Access, Disbarment and other Sanctions

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 6 – Introduction to Breakout Groups Topic A – Strengthening Compliance

  • Also, as Clients continue to shift risk, they are now

imposing rigorous Compliance Clauses holding Contractor entirely responsible for any breach including the onerous requirement of guaranteeing compliance by Subcontractors and Suppliers

  • AND to reimburse their costs in the event of an incident !
  • Apart from being totally unreasonable on Contractor, this is

extremely time consuming and costly :

  • - With say 300 + Suppliers, Does it include $100 Chinese

bicycles bought from WalMart for Construction site usage ?

  • - Or, How do you deal with Leased Construction Equipment

form a Caribbean Island Co. or Modularisation / Fabrication where tracing becomes more diffused ?

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Session 6 – Introduction to Breakout Groups Topic A – Strengthening Compliance

  • The Risks are also compounded by current levels of M&A

activity, Organisational Change, Pressure to secure new work and the growth of work in high Corruption Index Countries and Countries with Boycott Legislation – all possibly leading to points of weakness in Governance

  • The above certainly underscores the importance of an

Effective Compliance Programme for both Internal and External aspects

  • So, some thoughts for consideration :
  • - Should be driven from the Top as a Core Value
  • - Value Moment Concept
  • - Establish proper Systems, Procedures and Controls
  • - With Clear Lines of Responsibility and Accountability

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 6 – Introduction to Breakout Groups Topic A – Strengthening Compliance

  • - Mandatory Continuous Training & Communication at all levels
  • - Hotlines and Reporting Channels
  • - Background Screening of Personnel
  • - Appropriate level of Incentives and Discipline
  • - Compliance Risk Assessments as part of overall Risk Mngt.
  • - Continuous Up-dating / Improvement and Lessons Learned
  • - Check level(s) of Government Officials interface
  • - Absolute importance of Counter-Party Due Diligence
  • - Compliance Agreements with (all ? ) Partners, Subcontractors

and Suppliers

  • - Use of specialist ABAC oganisations - Transparency Intl. WEF’s

PACI etc.

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Session 6 – Introduction to Breakout Groups Topic A – Strengthening Compliance

  • So, the Issues for Consideration by Group 1 are :

“ What does the Group consider to be the Minimum / Key Requirements for an Effective Compliance Programme ? “ AND “ How do we, as an Industry, ensure the Correct Behaviour and Improve Risk Avoidance / Mitigation Strategy in this area ? “

  • The Group should also consider whether there is benefit in

ECRI setting up a focussed SIG and / or a new Best Practice setting out the Key Features of a Compliance Programme, for the Sponsor Group as a whole

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ECRI

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Session 6 – Introduction to Breakout Group Workshops

Topic B – “ Dealing with Joint Ventures - Issues, Risks and Possible Solutions ” Group 2 Facilitator / Presenter : Michael Burch, KBR Group 2 Recorder : Tony Winstanley, ECRI (Breakout Group Allocation in Handout Packs)

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ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 6 – Introduction to Breakout Groups Topic B – Dealing with JV’s

  • Again quite high on the concerns ranking, based upon 2017

Survey Feedback

  • With continuing reports of under-performance by JV Partners
  • A new set of factors has emerged stemming from the fairly

recent increase in North American projects with Foreign Companies positioning for market access :

  • - Buy US Firm or Merger with another Foreign Firm for access
  • - Or, Form JV with a US Company
  • Worth recalling, From our Lessons learned Data Base that the

fundamental problems encountered with JV’s are :

  • - Lack of Trust among JV Parties
  • - Meeting Ethical & Safety Standards you require / Reputation

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 6 – Introduction to Breakout Groups Topic B – Dealing with JV’s

  • - Cultural / Language / Appetite difficulties
  • - Inability of one Party to Perform
  • - Different / Incompatibility of Quality, Processes,

Procedures and Systems

  • - Contractor / OEM JV is a high-risk structure
  • And, issues do rise exponentially with the number of Parties
  • In Fact, our almost overriding observations are :
  • - Picking the right Partner is 80% + of the Battle
  • - The JV might be governed by signed formal documentation

but in practice, it only works successfully through positive cooperation between the key people of the Parties

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 6 – Introduction to Breakout Groups Topic B – Dealing with JV’s

  • The task for this Breakout Group is therefore :

“ With the possible route into North American work by a Foreign Co. In JV with a US Company, in mind – What circumstances or structure have Worked or Failed ?”

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Session 6 – Introduction to Breakout Group Workshops

Topic C – “Construction Safety / Innovation” Group 3 Facilitator / Presenter : Greg Ramsay, Hatch Group 3 Recorder : Dave Wardlaw, ECRI (Breakout Group Allocation in Handout Packs)

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Session 6 – Introduction to Breakout Groups Topic C – Construction Safety / Innovation

  • “Care for Life” Values are also high on the Survey with Accident(s)

with Multiple People affected as Major Concern

  • Also, Clients are increasingly asking how safety on their Projects will

be taken to the next level with constant and increasing expectations for better safety performance by stakeholders

  • Mixed results within their own operations
  • CURRENT ISSUES AND FACTORS INCLUDE :
  • - A period of “cost cutting” has probably been a contributing factor in

less than expected safety results

  • - More Projects are now being executed in new regions with less

skilled and safety aware workforces

  • - Safety performance impacts Productivity, Project Schedule,

Reputations and our Industry in general

  • - Perception that the construction industry tends to “lag”

manufacturing industries, particularly in productivity

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ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 6 – Introduction to Breakout Groups Topic C – Construction Safety / Innovation

  • SOME POSIBLE MITIGATING DEVELOPMENTS INCLUDE :
  • - Increased use of standardised designs and construction

processes

  • - Use of technology to enable workers to share info’ with the

design office

  • - Construction simulation
  • - Increased use of modular construction
  • - Use of drones
  • - Focus on development of the safety culture and behaviours
  • - Critical controls identified and verification audits increasingly

being used on projects

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Session 6 – Introduction to Breakout Groups Topic C – Construction Safety / Innovation

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RECENT TECHNOLOGY DEVELOPMENT EXAMPLES INCLUDE – Bouygues and Air Liquide:

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ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 6 – Introduction to Breakout Groups Topic C – Construction Safety / Innovation

RECENT TECHNOLOGY DEVELOPMENT EXAMPLES INCLUDE –

Gloves containing tiny sensors are being developed by Nottingham Trent University to help protect construction workers from exposure to vibration.

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Session 6 – Introduction to Breakout Groups Topic C – Construction Safety / Innovation

  • The issues for consideration by the Group are:
  • - What are the leading examples in our industry that

improve and sustain safety performance?

  • - Are we aware of examples from other industries that

are leaders in safety performance that we can apply ?

  • - What technologies or innovations are emerging that

can facilitate this improved performance?

  • - What are the risks with new technology that need to

be identified and managed ?

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Session 6 – Introduction to Breakout Group Workshops

General :

  • Two other basic Questions should be considered by each

Group :

  • 1. What does the Team consider to be the Key Issues in

these areas and Why ?

  • 2. What Avoidance or Mitigation Strategies and Ways

Forward are proposed ? AND

  • 3. We should avoid “So What” type of feedback which

states the issues without suggesting considered steps and measures in response to the issues

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Session 6 – Introduction to Breakout Group Workshops

Breakout Group Room Locations Group 1 – Chelsea Room Group 2 – Jackson Room Group 3 – Holland Suite ( Signage provided )

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Session - 7

Breakout Work Sessions 14.30 – 15.30

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ECRI Sponsors Meeting

15.30 – 15.50 Coming Up – Sessions 8 and 9

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Session 8 – Topic A, Group 1 Feedback

Topic A – “ Strengthening Compliance ” Group 1 Feedback Presenter – Mark Watson, Amec Foster Wheeler

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Session 8 – Topic A, Group 1 Feedback

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  • MINIMUM KEY REQUIREMENTS
  • CORE VALUE OF THE CORPORATION FROM CEO DOWN
  • CHIEF COMPLIANCE OFFICER WITH SIGNIFICANT

EXPERIENCE

  • REGIONAL/BUSINESS UNIT COMPLIANCE OFFICERS
  • SUBJECT MATTER EXPERTS IN KEY AREAS OF COMPLIANCE
  • ROBUST POLICIES AND PROCEDURES
  • TRAINING OF PERSONNEL WITH CERTIFICATIONS
  • PERIODIC AUDITS, BOTH INTERNAL AND EXTERNAL
  • HOTLINE ACCESS FOR ALL EMPLOYEES ON AN ANOMYNOUS

BASIS

  • COUNTERPARTY DUE DILIGENCE
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Session 8 – Topic A, Group 1 Feedback

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  • HOW DO WE ENSURE CORRECT BEHAVIOR AND

IMPROVE RISK AVOIDANCE/MITIGATION STRATEGY

  • CORPORATE CODE OF ETHICS DISSEMINATED TO EVERY

EMPLOYEE THROUGHOUT THE ORGANIZATION

  • REGULAR VIDEOS,WEBINARS AND OTHER FORMS OF

COMMUNICATION FROM CEO AND OTHER APPROPRIATE EXECUTIVES, INCLUDING CHIEF COMPLIANCE OFFICER, REINFORCING AND EXPLAINING ETHICAL CONDUCT AND PRACTICES AND THE SEVERE CONSEQUENCES OF FAILURE TO COMPLY

  • CONTINOUS TRAINING AT ALL OFFICES AND PROJECT SITES

BY SUBJECT MATTER EXPERTS

  • STAND DOWN FOR ETHICS AT ALL REGULARLY SCHEDULED

MANAGEMENT AND PROJECT MEETINGS

  • STANDARD COMPLIANCE AND ANTI-BRIBERY/CORRUPTION

PROVISIONS IN ALL CONTRACTS AT EVERY TIER

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Session 8 – Topic A, Group 1 Feedback

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  • MONITOR DEFAULT EVENTS UNDER CONTRACTS RELATED

TO COMPLIANCE

  • BE PREPARED TO WALK AWAY FROM FAILED/CORRUPT

STATES, CORRUPT CLIENTS, PARTNERS, AND SUBCONTRACTORS

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Session 8 – Topic A, Group 1 Feedback

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  • ANY VALUE IN ETHICS SIG?
  • PROBABLY NO, BUT CONSIDER ETHISPHERE INSTITUTE AND

PACI

  • ANY VALUE IN NEW BEST PRACTICE
  • PROBABLY NO
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ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 8 – Topic B, Group 2 Feedback

Topic B – “ Dealing with Joint Ventures – Issues, Risks and Possible Solutions “ Group 2 Feedback Presenter – Michael Burch, KBR

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Session 8 – Topic B, Group 2 Feedback

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  • Formation of JV-Drivers.

Client driven or contractor decision Tailored to fit the circumstances Better chance of meeting project objectives Spread financial risk. Financial integrity of partner. Cultural issues critical Partners to agree ‘upfront’ on type of formation (Leadership, Risk, Profit, Contingency, work split etc)

  • Alignment. Make sure expectations are clear/understood

Less partners better. Works best with only two. Proposal development

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Session 8 – Topic B, Group 2 Feedback

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  • Execution.

Formation of JV Board. Governance. Drive JV culture. Team Building Management tools. How to chose. Best systems to suit project. Financial management practices. 1 book? Performance problem resolutions. Avoid by continuous monitoring Project ‘close out’ to be agreed upfront.

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Session 8 – Topic C, Group 3 Feedback

Topic C – “Construction Safety / Innovation“ Group 3 Feedback Presenter – Greg Ramsay, Hatch

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Session 8 – Topic C, Group 3 Feedback

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  • Engineering design for safer constructability
  • Construction HAZOP to identify critical construction activity
  • More construction simulation e.g. as for heavy lifts to look at safely
  • Better safe constructability feedback from field to engineering leading to

a more structured “safe design” process – standard designs

  • Workforce equipment & monitoring
  • Equipment that signals it is being used e.g. harness that lights
  • Better protection equipment e.g. sports industry
  • Better sensors in workers equipment to avoid dangerous activities BUT

avoid worker invincibility syndrome

  • Drones to monitor sites and identify dangerous activity
  • Anonymous reporting of issues from workers on site at remote

terminals – London Bridge Project

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Session 8 – Topic C, Group 3 Feedback

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  • Car accidents
  • Monitoring vehicle speeds and driver actions remotely and intervene

if dangerous behaviour observed e.g. fatigue

  • Singapore
  • Government driven safety targets and rewards to workforce for

hitting LTI levels etc

  • Management lead by example
  • Walk-throughs by Senior Management to show commitment to

safety

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Session 8 – Topic C, Group 3 Feedback

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  • Worker welfare
  • More emphasis on mental health as well as physical health e.g. airline

industry monitors pilots and regulates their work hours to ensure they are always fit for work

  • Virtual Reality
  • Better use of VR to walk through sites as part of safety reviews
  • Remote Control
  • More use of machines by remote control to take workforce away from

the dangers – automotive & mining industry

  • Behavioural training
  • Injury Free Training by skilled behaviouralists rather than safety officers
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ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session - 9

Day 1 Wrap – Up and Close

Rod Kyle, ECRI

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Session 10 – Day 1 Meeting Wrap - Up

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  • All of today’s material will be posted on the ECRI private

website

  • Cocktails / Dinner tonight is at 19.15 hrs. at “The Royal

Automobile Club (RAC) ”

  • Restaurant address: Pall Mall, London SW1Y 5HS
  • Bus transportation provided for departure from Hilton

London Kensington Hotel 18.30hrs sharp

  • Dress Code is “ jacket & collared shirt “. No tie required.
  • Tomorrow, we will re-convene in this Room for Day 2 Mtg.

from 8 am. for a 8.30 am start.

  • Day 2 Meeting ends after lunch at 2 pm.
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ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Thank you

At ECRI – We are raising the Bar in Risk Management THANK YOU