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

ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

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27 September 2006

ECRI Sponsors Meeting

Nassauer Hof Hotel – Wiesbaden Day 1 – Wednesday 5th June 2019

WELCOME

ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session – 1

Introduction of Jon Nield, CEO

Sara Peterson, Bechtel

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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

Jon Nield, ECRI

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ECRI

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Programme – Wednesday 5th June 2019

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Session Time Description Discussion Leader 08.00 - 08.30 Registration / Refreshments 1. 08.30 – 09.00 “ Introduction of Jon Nield, CEO ” “ Welcome, Safety Moment, New Introductions, Administration, Adoption

• f Previous Minutes and Review of Agenda ”

“ Dedication of Wiesbaden Meeting to Rod Kyle ” “ Review and Update of Guidelines on Complying With Competition and Antitrust Laws “ Sara Peterson Jon Nield Sara Peterson Xanthe Larsen 2. 09.00 - 09.20 “ Company Introduction – ASE ” – Victoria Petrovskaya, Digital Transformation Project Office, ASE 3. 09.20 -10.00 “ ECRI SIG Meetings – Key Take-Aways “ John Ruckert 10.00 -10.20 Tea / Coffee Break 4. 10.20 -11.10 “ New Trends in Project Risk Management “ – Eduardo Gamez, Associate VP, Managing Director Risk Management Practice, AECOM 5. 11.10 -12.05 “ Positive Risks in E&C Industry: Identification & Treatment “ - Mayank Agarwal, Global Risk Management Director, Air Liquide 6. 12.05 -13.00 “ EU Antitrust Considerations for Risk Management Cooperation ” – Julian Ellison, Partner, and Déborah Faure, Associate, Mayer Brown LLP 13.00 - 14.00 Lunch 7. 14.00 - 14.30 “ Breakout Group Topic Introductions ”

• A. “ The Pitfalls & Risks of Entering New Geographic

Regions/Countries ”

• B. “ Risk Group Man Hours. Are they Delivering Value? “
• C. “ How Important is and What are Best Practices for Engaging our

Clients and Building Relationships? “ Jon Nield 8. 14.30 -15.30 “Breakout Work Sessions” Groups 1,2 and 3 15.30 -15.50 Tea / Coffee Break 9. 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 Victoria Petrovskaya Mayank Agarwal Jamie Reekie 10. 16.50 - 17.00 Wrap-Up and Close Jon Nield 17.00 End of Day 1 Session / Departure

ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session – 1

Dedication of Wiesbaden Meeting to Rod Kyle

Sara Peterson, Bechtel

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session – 1

Review & Update of Guidelines on Complying with Competition & Antitrust Laws

Xanthe Larsen, ECRI

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

ECRI GUIDELINES on COMPLYING WITH COMPETITION AND ANTITRUST LAWS

ECRI and the companies which contribute financially to its operations and participate in its programs (“the Companies”) will avoid the following when engaging in ECRI events and meetings:

1)

Reaching agreements or concerted practices with competitors to:

• The notion of “agreement” is interpreted very broadly and encompasses any

“meeting of minds” which removes uncertainty when competing on the market

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• Fix selling and purchasing prices, discounts, any other price setting

element, or contract terms

• Divide customers or markets or engage in bid rigging
• Limit or control production, markets or technical development
• Collectively boycott a competitor, customer or supplier

ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

ECRI GUIDELINES on COMPLYING WITH COMPETITION AND ANTITRUST LAWS

ECRI and the Companies who participate in ECRI shall avoid:

2)

Exchanging commercially sensitive information (“CSI”), i.e. information which is not normally public and influences conduct on the market

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• pricing & discount information
• terms & conditions
• costs & margins data
• ther price setting factors
• information on suppliers or

customers

• business/investment plans
• production capacities
• production/sales volumes
• import volumes
• market shares
• commercial strategy
• product innovations
• technologies

In principle, it is OK to share information which is aggregated and sufficiently historic, and does not allow the identification of individual competitors

ECRI

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ECRI GUIDELINES on COMPLYING WITH COMPETITION AND ANTITRUST LAWS

Additional Guidelines of Conduct

➢ Demonstrate that ECRI and its Sponsors are committed to strict compliance with

Competition Laws and ECRI’s Guidelines

➢ Refreshers, careful communications, professionalism among Sponsor Representatives

➢ Prior review and approval of Sponsor presentations by/with internal counsel, as

dictated by the Company’s internal policies

➢ Consider if the information being shared would be contrary to, or could make

misleading or incomplete, the information that the Company has publicly disclosed

➢ Our goal is to discuss:

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• General issues in the industry related to risk
• Best practices for creating a safe and risk-reduced work environment
• Historical analysis that is instructive to risk management
• Industry innovations that are in the public domain and general trends
• Lessons learned
• Risk management challenges and general methods that may or may not have worked to address such

challenges

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Session - 2

Company Introduction – ASE

Victoria Petrovskaya Risk Manager, Methodology Department ASE

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Session - 3

ECRI Special Interest Group Meetings Key Take-Aways

John Ruckert ECRI

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ECRI

CO CONST STRU RUCTI CTION

SIG Meeting – Key Takeaways

Best Practices Education & Training Programme Special Interest Groups Risk Based Review / Audit Secondary Data Bank Website & Data Bank Client / Industry Outreach Secondary Stakeholder Engagement

Seven (7) Core Work Fronts and Strategic Initiatives as Focus Areas:

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ENGINEE RING & CONSTRUCTION RISK INSTITUT E

ECRI

CO CONST STRU RUCTI CTION

SIG Meeting – Key Takeaways

Best Practices Education & Training Programme

Special Interest Groups

Risk Based Review / Audit Secondary Data Bank Website & Data Bank Client / Industry Outreach Secondary Stakeholder Engagement

Seven (7) Core Work Fronts and Strategic Initiatives as Focus Areas:

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SIG Meeting – Key Takeaways

SPECIAL INTEREST GROUPS (“SIG”) – OVERVIEW

➢ Established In 2010 to facilitate more informal discussions of

common and emerging risk issues among ECRI Sponsors in a similar sector of the E&C industry

➢ Existing SIGs are: Mega Projects; Development, Civil Building,

Power & Infrastructure Projects; Onshore/Offshore Oil & Gas and European Major Projects

➢ Members with a common interest can address their specific

issues rather than trying to deal with all matters within one meeting involving all of the Sponsors of ECRI

➢ Important issues identified in SIG meetings are often slated for

presentations at Sponsors Meetings and development of ECRI Best Practices

➢ Excellent Feedback from Sponsors regarding usefulness and

value-added by SIG concept

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SIG Meeting – Key Takeaways

THE BACKDROP New geographies More difficult clients New type clients Govts Political v Economic Focus Trends in T&Cs Skill / expertise leaving

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SIG Meeting – Key Takeaways

THE BACKDROP New geographies More difficult clients New type clients Govts Political v Economic Focus Trends in T&Cs Skill / expertise leaving >>>converging risks?

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SIG Meeting – Key Takeaways

Knowledge Transfer and Resource Retention

➢ Step Change in Experience Loss

➢Not a transitional process ➢Losing to clients, retirement and consultants ➢Lasting impact of market downturn ➢Industry image – not green ➢Less traditional focus on “career” ➢Expectations of Millennials – 5 to 6 years and move on

➢Resources needed for Mega Projects

➢ Mitigation

➢ Employee engagement

➢ Improve E&C marketing ➢“Invest” for the future ➢“Small” project training ground

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SIG Meeting – Key Takeaways

Trends in Contract Terms

➢ Elevated Risk Profile

➢Proposals – “no exceptions” to terms ➢Reimbursable Work with LS Contract T & C’s ➢Consequential damages – Waivers // Carve-outs ➢LD caps increasing ➢Overall limits of liability increasing ➢Extended payment terms (use of contractor’s cash) ➢Change Order terms – “must execute” ➢Penalties for removing key people - excessive #s (e.g. 70) ➢Insurance companies seem to be giving reductions in rates to clients if they can push off risk – incentive to push to E&C

➢ Far East Contractors more willing to accept

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SIG Meeting – Key Takeaways

Operational Risks

➢ Owner Movement of Risk to Contractors

➢Accept results of FEED performed by others ➢Subsurface risks contractor’s responsibility ➢Procurement mindset by owner – no value placed on quality, safety, schedule certainty ➢Ownership of schedule float ➢Accept risk of inflation ➢Accept responsibility for evolving technology

➢ No longer true that party best able to bear the risk

de facto does

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SIG Meeting – Key Takeaways

Risk Trends in PPP Projects

➢ Owner Movement of Risk to Contractors

➢$$ penalties in addition to LDs ➢Counterparty indemnifications, e.g. revenue loss from related party to contractor ➢Administrative penalty framework during the design-build phase on P3s ➢ P3 remains challenging, particularly in the US which has not fully embraced or supported this framework

➢ Selection of JV partner critical

➢Unique skill sets are needed for successful JV operations ➢Selection based upon commercial and scope considerations often skimps on due diligence resulting in project execution problems

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SIG Meeting – Key Takeaways

Informal Survey – Use of Parallel Estimates

➢ Use of two independent estimates

➢For verification when self-performing large projects – not full estimate, just order of magnitude ➢If sole-prime use to check subs math and scope gaps ➢In JV use as a cross-check of partner, but not full detail est. OR ➢In JV each partner prepares estimate and compares

➢ Employed as risk mitigation and to improve win rate

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SIG Meeting – Key Takeaways

➢ Manage risk cultures between multiple partners,

subcontractors and owners

Includes managing different regional and cultural approaches to executing projects and different levels of experience and sophistication

➢ Mitigation

➢Senior executives spend time in-country – assigned responsibility ➢Hire management locally when feasible ➢Require executive approval to undertake projects in certain countries due to associated risks ➢Use structured “alignment process’ to achieve cooperative attitude and to address expected issues

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SIG Meeting – Key Takeaways

➢ Strategies to manage large projects with multiple

contractors where client does not share schedule information

Lack of integrated schedule for total project

➢ Mitigation

➢Contractor’s schedule contingency should be very transparent ➢Strive for contractor coordination meeting chaired by Client and best if made a contract requirement ➢Typically the main (or largest) contractor has schedule integration responsibility

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SIG Meeting – Key Takeaways

➢ Client directed changes

➢T&Cs require contractor to execute change ➢Typical E&C contractor response is to accept and fight about it later ➢Note: standard terms in a FIDIC contract

➢ Mitigation

➢Ensure adequate resources available to assess and pursue ➢Track changes as a risk – provides additional layer of controls ➢Consider contingency - needed to account for less than full compensation

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SIG Meeting – Key Takeaways

➢ Schedule Risk – mega-project often means mega-

• schedule. How to manage escalation risk?

➢More lumpsum work is being requested by clients (O&G) ➢Feasibility and FEED stage – client want certainty of cost ➢Reality that escalation could wipe out E&C margins if not addressed ➢Estimates from subs and suppliers are only valid for a very short time

➢ Mitigation

➢Corporate estimating group – potential to standardize and lock prices/costs pieces of equipment across projects ➢Assess as Estimate Risk and include Contingency ➢Indexes may be of some use but difficult to match to scope and ineffective in volatile markets

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SIG Meeting – Key Takeaways

➢ Dealing with the balance between demand and

environmental impact on Oil & Gas projects

➢Environmental impact assessment drives design ➢Middle East is changing while Europe is more long- standing and settled ➢Large international oil company will have their own compliance system that is often more stringent than the law ➢Need environmental impact assessment (EIA) to complete a bid ➢Challenge is that projects from now on will incur extended periods of time to do the environmental assessment – extending the front end

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SIG Meeting – Key Takeaways

➢ Joint/Open Risk Management with Client/Key Suppliers.

➢Integration of RM with key suppliers, sub-contractors and the Client can lead to better project management and a reduced risk exposure ➢Depends upon culture and maturity of the parties which would vary from industry to industry ➢Highly market dependent. In E&C down market Clients seek to contractually move all of the risk to the contractor ➢Absence of experienced staff makes it more difficult ➢Requires a “best for project” mindset

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SIG Meeting – Key Takeaways

➢ FINAL POINTS

➢Economy is rebounding but client-favourable terms remain a concern particularly with the E&C hunger for projects ➢E&C may experience more up-front involvement, but may also be expected to provide a benefit (risk-assumption) for this involvement ➢Regulatory frameworks, particularly environmental laws, have changed and Sponsors and projects have not yet been able to fully assess the risks and needed mitigation ➢Client micro-management and over-involvement is a risk that the industry has not yet successfully addressed ➢Market still has not course corrected for risk-sharing and is

• ne reason the industry is seeing significant E&C mergers

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SIG Meeting – Key Takeaways

SIG Meetings – Wiesbaden 2019

➢ Development, Civil, Buildings, Power and Infrastructure

➢ 6th June (14.30hrs – 17.30hrs) ➢ Chagall Room ➢ Hotel Nassauer Hof

➢ Onshore / Offshore Oil and Gas

➢ 7th June (08.00hrs – 13.00hrs) ➢ Chagall Room ➢ Hotel Nassauer Hof

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Session - 4

New Trends in Project Risk Management

Eduardo Gamez Associate Vice President, Managing Director Risk Management AECOM

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Session – 5

Positive Risks in E&C Industry: Identification & Treatment

Mayank Agarwal Global Risk Management Director Air Liquide

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Session – 6

EU Antitrust Considerations for Risk Management Cooperation

Julian Ellison, Partner Déborah Faure, Associate Mayer Brown LLP

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Session – 7

Introduction to Breakout Group Workshops

Jon Nield, ECRI

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CONSTRUCTION

Session 7 – Introduction to Breakout Group Workshops

ENGINEE RING & RISK INSTITUT E

Topic A – “The Pitfalls & Risks of Entering New Geographic Regions / Countries” Group 1 Facilitator / Presenter : Victoria Petrovskaya, ASE Group 1 Recorder : John Ruckert, ECRI (Breakout Group Allocation in Handout Packs)

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CONSTRUCTION

➢ Due diligence required - local labor laws, local content ➢ Could require use of agents ➢ May have immigration restrictions – staff and craft ➢ Adequacy of assessing local labor availability, productivity ➢ Adequate infrastructure to support logistics ➢ Potential cultural issues – language, customs, ethics ➢ Lack of locals experience with foreign constructors ➢ Risks with legal systems and political structure ➢ Security of people, property and equipment

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Session 7 – Introduction to Breakout Group Workshops Topic A – The Pitfalls & Risks of Entering New Geographic Regions / Countries

Lack of knowledge and experience can significantly impact project results…..negatively

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CONSTRUCTION

➢ Ability to assess adverse climatic conditions ➢ Existence / Adequacy of local health care ➢ Will local camps be required ➢ Could be new Client as well as new geography! ➢ Ability to assess the above during bid period !!

Questions for the Group are therefore:

➢ Assume the scenario of an active bid for an unfamiliar geographic

• region. Based on your experience, what risks should the proposal team

consider and what guidance will you give the team to encourage a rigorous risk assessment?

➢ Also the Breakout Group should identify mitigation strategies that

would reduce the risk profile of the bid.

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Session 7 – Introduction to Breakout Group Workshops Topic A – The Pitfalls & Risks of Entering New Geographic Regions / Countries

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Session 7 – Introduction to Breakout Group Workshops

Topic B – “Risk Group Man-Hours – Are They Delivering Value?” Group 2 Facilitator/Presenter: Mayank Agarwal, Air Liquide Group 3 Recorder: Jon Nield, ECRI (Breakout Group Allocation in Handout Packs)

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Session 7 – Introduction to Breakout Groups Topic B – Risk Group Man Hours – are they delivering Value?

➢ The Risk Management function seems to face a perennial debate in

terms of cost vs benefit to the organisation

➢ At times of austerity there can be a temptation to cut the budget /

investment made in the Risk Management function

➢ As a central management function is can be difficult to assess its

performance when the risk within the business takes so many different forms throughout a diverse portfolio of contracts

➢ “Value” can be subjectively linked to the organisation’s past

experiences, maturity and culture

➢ there’s nothing like a ‘near-death experience’ to cause the business to take risk seriously

➢ “Active use of risk registers and contingency allocation / management at

the project level does not necessarily translate directly into a measure of Risk Group performance or value”

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Session 7 – Introduction to Breakout Groups Topic B – Risk Group Man Hours – are they delivering Value?

Questions for the Group are therefore:

➢ “Are there any quantitative measures to assess the true value of

the Risk Management function to the organisation?”

➢ “What other comparators are available to put the function’s cost

and value into perspective?”

➢ “Are there notable differences in how the value of Risk

Management can be measured or assessed between Project Risk and Enterprise Risk?”

➢ Value may include avoided risks and development of opportunity

➢ “Are there any external benchmarking methods that can help?”

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Session 7 – Introduction to Breakout Group Workshops

Topic C – “How Important is and What are Best Practices for Engaging our Clients and Building Relationships” Group 3 Facilitator / Presenter : Jamie Reekie, Wood Group 3 Recorder : Xanthe Larsen, ECRI (Breakout Group Allocation in Handout Packs)

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Session 7 – Introduction to Breakout Groups Topic C – Client Engagement and Relationships

➢ No contract can cover or protect every project risk and enforcing

contract terms is expensive – financially and with respect to the relationship with the client

➢ Reported specific concerns around :

• - Lack of engagement limits the opportunity to understand key business

drivers related to developing marketing and proposal strategies

• - Little opportunity to “have a seat at the table” to negotiate fair contract

terms in a bid process and otherwise

• - Cheaper, less experienced firms turning the heads of our clients with

less expensive proposals -- and often less solid E&C results

• - Micro-management of projects by clients or their hired consultants
• - Damage to relationship and future business opportunities when

conflicts with client arise

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Session 7 – Introduction to Breakout Groups Topic C – Client Engagement and Relationships

• E&C contract rights that cannot be enforced until completion has
• ccurred
• - Delay and costs of arbitration or litigation
• - Volatile world and geo-political issues that create unforeseen risks such

as: – Increases in the cost of materials – Change in law – Regime changes

• - Third-Party Stakeholders scrutinizing projects and looking to place blame

– a divided house vs a coordinated team response The questions continue to arise:

➢ How do we mitigate these more nebulous risks? ➢ Do client relationships matter?

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Session 7 – Introduction to Breakout Groups Topic C – Client Engagement and Relationships

➢ Questions for the Group are therefore: ➢ “ Are there ‘soft’ risk management tools that the industry can

employ to help avoid or better resolve potential conflicts with clients?” and if so

➢ “What are some best practices around client engagement and

relationship building?” and

➢ “How can we quantify or demonstrate the value of cultivating

these “soft” assurances as part of risk management’s toolbelt?”

➢ Value may include avoided risks and development of opportunity

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Session 7 – Introduction to Breakout Group Workshops

Breakout Group Room Locations Group 1 – Klee Group 2 – Chagall Group 3 – Mozart ( Signage provided )

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Session - 8

Breakout Work Sessions 14.30 – 15.30

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ECRI Sponsors Meeting

15.30 – 15.50 Coming Up – Sessions 9 and 10

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Session 9 – Topic A, Group 1 Feedback

Topic A – “ The Pitfalls & Risks of Entering New Geographic Regions/Countries ” Group 1 Feedback Presenter – Victoria Petrovskaya, ASE

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Session 9 – Topic A, Group 1 Feedback

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➢ Client new to the region/country ➢ Ability to investigate conditions at the location in a brief

bid period

➢ Loyalty / behaviour of local resources very small market ➢ Ability to evaluate local subcontractors for capabilities

needed to suit the scope of work

➢ Understanding of local culture – concern that work

instruction are apparently understood, but they are not

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Session 9 – Topic A, Group 1 Feedback

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➢ Lack of flexibility in terms provided by local suppliers ➢ Ability to understand capabilities of local utilities to

provide needed services on a timely basis

➢ Ability to assess resources required for administrative

requirements, customs, permitting, procurement, etc and potential changes that could occur during the project duration

➢ Awareness of clients long term in-country strategy ➢ Understanding of restrictive zones Ukraine example ➢ Ability to understand thus estimate local craft

productivity

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Session 9 – Topic A, Group 1 Feedback

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➢ Ability to understand local codes, regulations and

standards during the bid period

➢ Ability to assess environmental regulations ➢ Risk of impact to indigenous people ➢ Stability of local laws and potential for change ➢ Experience of Contractors bid team with respect target

location

➢ Knowledge of competitors and their existing relationship

with client

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Session 8 – Topic A, Group 1 Feedback

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➢ Lack of client capability to meet his requirements for

commission and acceptance

➢ Use local personnel in selected management positions

if appropriate / capable

➢ Local and national sensitivity to nature of project ➢ Having bid team identify gaps in their knowledge and

pass on to negotiating team in an attempt to mitigate

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Session 8 – Topic A, Group 1 Feedback

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MITIGATION

➢ Use the published list of country risk ratings when considering

• pportunities

➢ Use relationships of colleagues with local experience to assist ➢ Draw on experience of state institutes / engineering authorities

to gain knowledge

➢ Import material, equipment & supplies through local companies ➢ Make a digital solution to catch up with fast custom

requirements changing

➢ Establish a public relations campaign to address potential

negative attitudes about the new project

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Session 8 – Topic A, Group 1 Feedback

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MITIGATION

➢ Use insurance companies as sources of knowledge of local

requirements, customs, etc

➢ Rely on local partners or local consultants (if exist) ➢ Establish bid strategy using local partner ➢ Set up local trade schools as mitigation to productivity concerns

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Session 9 – Topic B, Group 2 Feedback

Topic B – “ Risk Group Man Hours. Are they Delivering Value? “ Group 2 Feedback Presenter – Mayank Agarwal, Air Liquide

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Session 9 – Topic B, Group 2 Feedback

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➢ Are there quantitative measures to assess the true

value of the RM function to the organisation?

➢ Difficult to point at hard measures of value (and

difficult to value what never happened!)

➢ More likely the answers lie in indicators e.g.

➢ Report on avoided cost losses i.e. compare pre-mitigation vs

post-mitigation risk contingency $$$

➢ Annual insurance premiums – good RM performance should

result in fewer insurance claims, reduced premiums

➢ Measure compliance with procedure on projects – direct

correlation between high compliance and good value RM

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Session 9 – Topic B, Group 2 Feedback

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➢ What other comparators are available to put the

function’s cost and value into perspective?

➢ With enough time periods to compare ‘before’ and

‘after’ implementation of RM processes

➢ How much does the RM function cost the business

when compared to cost of insurance premiums?

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Session 9 – Topic B, Group 2 Feedback

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➢ Are there notable differences in how the value of RM

can be measured or assessed between Project Risk and Enterprise Risk?

➢ Significant difference between the 2 types of risks

(though some mega projects can be Enterprise too)

➢ Different processes/different orders of magnitude $$$

for ER when compared to majority of contracts within project portfolio

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Session 9 – Topic B, Group 2 Feedback

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➢ Are there any external benchmarking methods that can

help?

➢ Not that we’re aware of ➢ Maybe we should be focusing on leading indicators (like

near-misses in safety) e.g. real-time client satisfaction/complaints

➢ Potential for a new Best Practice in and around this

topic

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Session 9 – Topic C, Group 3 Feedback

Topic C – “ How Important is and What are the Best Practices for Engaging our Clients & Building Relationships “ Group 3 Feedback Presenter – Jamie Reekie, Wood

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Session 9 – Topic C, Group 3 Feedback

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➢ Relationship is important because: ➢ Complicated contracts/cannot go back and revise

contracts; need a relationship / trust established early

➢ Particularly given contract type selected. ➢ Some clients are less focused on Risk Management so

need to develop avenues to address issues at appropriate management levels.

➢ Client more likely to share information and evolving

issues early and more fully – helps them to engage and share with operations teams.

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Sesson 9 – Topic C, Group 3 Feedback

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Best Practices to Develop the Relationship:

➢ Trust – walking the walk / delivering what you promise. ➢ Prove yourself through quality of work provided. ➢ Transparency – having the difficult discussions demonstrates

integrity and respect.

➢ Spending non-work time building the relationship. ➢ Sharing reports:

➢ Tornado graph – opportunity to focus Client’s attention and guide

client’s approach to the schedule.

➢ Plot plan – a great communication tool for the schedule without bog

down with line by line schedule

➢ Must add value and be applicable to the project and understandable by

client – remember clients have their own KPIs.

ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 9 – Topic C, Group 3 Feedback

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Educate Client about Risk Management

➢ Volunteer to use client’s risk management systems -

dependent on client and client’s appetite and ability to engage and assist.

➢ Early stage workshop with Client and we take the

notes and provide a minutes / agree to TOR.

➢ Collaborative approach and risk sharing. ➢ Interface document to formalize risk management. ➢ Certain clients lack maturity with Risk Management. ➢ Other clients have a standard view of what is

required for Risk Management

ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 9 – Topic C, Group 3 Feedback

63

➢ Work with client to mitigate – interface – make Client’s job

easier.

➢ Battle fear of complying with transparency or contractual

clauses such as change management program.

➢ Do it early and it gets the process rolling and the client comfortable

with engaging in the process.

➢ But know client’s KPIs – what is the client able to do? Help the

client help you.

➢ However, do not omit documentation for soft-side deal on

a handshake – the relationship party may move on during the project.

➢ Insist client do its job as the interface between contractors.

ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 9 – Topic C, Group 3 Feedback

64

➢ Treat client as an “account” not a “project”- improve

communication and generate a long-term relationship and potential for repeat work.

➢ A single point of contact – provides consistency and

coordination.

➢ Work on relationship when you are not expecting an

immediate gain – outside of the project.

ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session - 10

Day 1 Wrap – Up and Close

Jon Nield, ECRI

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ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Session 10 – Day 1 Meeting Wrap - Up

66

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

website

➢ Cocktails / Dinner tonight is at 19.00hrs. at “ Schloss

Vollrads ”

➢ Restaurant address – 65375 Oestrich-Winkel ➢ Bus transportation provided for departure from Hotel

Nassauer Hof 18.20 hrs sharp

➢ Dress Code is “ Smart Casual “ ➢ 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.

ECRI

ENGINEE RING & CONSTRUCTION RISK INSTITUT E

Thank you

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