Governance and the art of decision making on Crossrail by "Walter Macharg - Head of Change Control and Cost Assurance for Crossrail, UK" at Project Controls Expo 2017, Arsenal Stadium, London

1. Governance and Decision
Making on Crossrail
Walter Macharg
Head of Change Control

2. Header here max 30 charactersProgramme Overview
Crossrail Route
10%
10% increase in
London’s rail
capacity with up to
72,000 passengers
per hour
100km
The route will run
over 100km,
including through
42km of new
tunnels under
London
40
Crossrail will link 40
stations, including
10 new stations
£42bn
Crossrail will add an
estimated £42bn to
the economy of the
UK.

3. Header here max 30 charactersProgramme Overview
Organisation and Funding

4. Header here max 30 charactersProgramme Overview
Scale and complexity

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e-Mail: learninglegacy@crossrail.co.uk
Web: http://learninglegacy.crossrail.co.uk

6. Header here max 30 characters12 Learning Legacy Themes

7. Header here max 30 charactersDefining Governance
‘Corporate governance involves a set of relationships
between a company’s management, its board, its
shareholders and other stakeholders. Corporate
governance also provides the structure through which
the objectives of the company are set, and the means
of attaining those objectives and monitoring
performance are determined’
Organisation for Economic Co-operation and Development
OECD Principles of Corporate Governance 2004
www.oecd.org
As quoted in:
Directing Change A guide to governance of
project management

8. Header here max 30 charactersDefining Governance
“…The ability to make
effective decisions quickly…”
1. Framework
Repeatable
Reproducible
2. People
Provide the evidence
Provide the culture & environment
…to make AND implement the decision!

9. Header here max 30 charactersWHY is it important?
“…it’s better to make a decision and get it wrong
that to not make a decision at all…”
High PerformanceX X X X
X O X X
X X O X
X X X O
O X X X Chaos
Failure/Low Quality
Lethargy
Frustration
D C O M

10. Header here max 30 charactersOur Hierarchy

11. Header here max 30 charactersCrossrail Organisation

12. Header here max 30 charactersGovernance Framework
Excom
Programme
Delivery Board
Industry
Partners
StationsCivils Systemwide
PMs
Contractors Contractors Contractors
Surface
Directorate
Technical
Directorate
Operations
Directorate
CEG
Safety
Assurance
Tech Info
Integration
Quality
S&C
T&C
NR ONW
HAL/HEX
DOO CCTV
RSD
MTR
Ops
Readiness
Business
Ready
NR ONSIP
Info Systems
Programme
Controls (central)
PMs PMs
Central Section
Delivery Directorate
Commercial & Change
Sub-Committee
Sustainability
Sub-Committee
Property Sub-
Committee
Board
Project Controls
Area Contingency
Tier 1 Principal
Contractors
Directorate
Controls
Programme
Directorate
Programme
Delivery Board
KEY
Railway Integration
Authority
Railway Integration
Authority
Railway Systems and
Operations Programme
Board
Risk Sub-
Committee
Railway Systems
and Operations
Programme Board
Delivery on track? Safe, Time, Budget, World-Class and Effective
Handover of end-to-end railway on track? Safe, performs, operable, maintainable and world-class
Crossrail operations post-opening with our industry partners on track? Schedule integration
Ops
Director
Programme
Director
Operations & Systems
Expert Panel
InfrastructureManagers
(LU,DLR,RfL,LO,andHAL)

13. Header here max 30 charactersImplementing clear Governance
Delegated

14. Header here max 30 charactersScope book

15. Header here max 30 charactersCost baseline budget
FUNDINGAFCDC
TIME
COST£m
CONTROL
BUDGET
Contingency
Delivery and
Financing
Budget
Sponsor
Funding
Contingency
Investment Income
• Authorised by CRL Board
• Analysed in WBS
• Amendments subject to
CHANGE CONTROL
• Comprehensive risk register
• Range of confidence levels
IP2
IP1
IP0
• Forecast cash flows and risk
• PDA defines Intervention Points

16. Header here max 30 charactersDelegation and empowerment
Board
CCSC
Project Sector Programme
> £25m
< £25m
< £10m< £1m< £250k

17. Header here max 30 charactersContingency budget
CONTINGENCYTYPE
Delivery and Financing
Budget
BOARD
SECTOR
PROJECT
CONTRACTOR
(Included in Target Cost)
PROGRAMME
• Top slice above Intervention Point 1
• Board level risks
• Funds excess cost from programme level risk,
• Source of which Contract, Project and Sector Contingency is
allocated through the Investment Authority process.
• Central allocation of risks to manage interface risks between
projects and Sector, managed by the Sector Director.
• Specific contingency to fund project level risk events managed
through a portfolio of contracts.
• Held at project level for the PM to optimise Project performance.
• To fund events such as delivery cost overrun and other
Contractor Risks
Coverage

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We had to develop the systems specifications and procure an integrated
suite of standard systems. The data warehouse formed the ‘single source of
truth’ and enabled dynamic data interrogation
Crossrail Systems Setup
Gaining Control

19. Header here max 30 charactersCrossrail below the surface

20. Header here max 30 charactersCase Study - Deletion of 8 shafts
• Benefits
• Foreseen consequences
• Unforeseen consequences

21. Header here max 30 charactersVentilation Shafts
• x13 ventilation and emergency intervention shafts
• Control air flow and the ‘piston effect’ during normal operation
• ESSENTIAL to control smoke in the event of a fire and to provide
safe egress

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23. Header here max 30 charactersVentilation Shafts
1. Provides a significant reduction in surface impacts
2. £118m cost saving
3. Provides the ability to ventilate tunnels in a fire.
4. Requires the introduction of full height PEDs & platform ventilation
x8 shafts REMOVED… Westbourne Bridge, Hyde Park, Park Lane, Hanbury Street, Lowell
Street, Hertsmere Road, Blackwall Way & Warren Lane

24. Header here max 30 charactersVentilation Shafts
5. Limmo Peninsula1. Fisher Street 2. Stepney Green
3. Mile End
4. Eleanor Street

25. Header here max 30 charactersPlatform Edge Screens
Full height screens 
Ventilation segregation 
£118m cost saving 
 Jubilee Line Extension, London
 Platform Edge Doors
 No ventilation segregation.

26. Header here max 30 charactersChange driven by conditions

27. Header here max 30 charactersSuccess factors for the Connaught Tunnel change
Collaborative approach
Transparency
Good process
Plan for early completion
Expertise

28. Header here max 30 charactersThe Crossrail decision making process

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29
Drivers of
change
Performance
Inflation
New scope
Scope
transfer
Design / OCI




?
Tracking change
Trend
Change
Risk
Knowledge/certainty
Time
Authorizing change
Change to
project budget
Management
approval
Financial
Authority
Trend process
via Prism
Risk ?
Implementing change
Forecast of outturn cost
(AFC)
Budget – performance
measurement (CCB)
Investment Authority –
sanction to spend
Contractor Target Price
(via ICE)
Change to Controlled / regulated by
Trend process, subject to Scheme
of Authorities
Trend process, subject to
Scheme of Authorities and risk
allocation matrix
Reserved to Board subcommittee
Trend process, subject to
Scheme of Authorities,
provides authority to
implement contractual
Compensation Event
Change Control

30. Header here max 30 charactersKey pillars of successful change control
Baseline: scope and budget
Work breakdown structure
Delegation
Systems – capture cost and change, and
control delegation
Approval

31. Header here max 30 charactersThe change approval process
2 week cycle
Delivery or
Programme
Change?
Project Team Complete
Change Paper
Formal Review Process
Commercial and Change
Sub Committee (CCSC)
Reject
Approve
Programme
Project Funded
Change
Delivery
Requirement for
Change identified
Over
£XXm
Refer to Board
Decision
Delegated Authority
Standard template with
details of change request
Captures:
• key issues
• Business case
• Safety implications
• Financial impact
Reviews by all relevant
stakeholders and subject
matter experts.
Change papers are sent
for revision if information
is unclear or incomplete.

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In excess of 20,000
implemented
compensation events
Volume of change
£0.15m
20,187
Total
£3,011m
Total
700 Programme
Changes in six
years

33. Header here max 30 charactersWhat went well
Early baseline
Formalise Sponsor change process, and maintain a
supportive and informed relationship with Sponsors
Work Breakdown Structure and Cost Breakdown Structure
Structured and disciplined process, director buy in
Allocation of risk to appropriate levels of the organisation,
and delegation of contingency
Early capture of change via integrated systems
Formal change control to forecasts and budgets
Continual review of risk via QRA and comparison to
contingency and total budget authority

34. Header here max 30 charactersThings to do better
Level at which to control design change
Try to capture design change at time of issue
Try to get on the front foot, not be a retrospective
budget allocation process

35. Header here max 30 charactersDid we succeed in controlling change?
Little major change to design
But high volume of design change at the detailed level
Contracts let before civils design fully complete
Few major Sponsor changes
Self imposed schedule change, particular at contract interfaces
Contingency budgets were utilised
Crossrail remains on target to open the main tunnel in
December 2018.

36. Header here max 30 charactersThe Elizabeth Line: end to end
Elizabeth line permanent track installation is
complete - Crossrail

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Turner & Townsend in Infrastructure