What do Project Controls look like in the UK today?  How can we get better?

1. CONFIDENTIAL | 1
Featured Project:
Dubai International Airport | US $4.5B Value
Trusted by the world’s largest projects
Project Controls Breakfast Meeting
Avoid the risk & streamline your project controls
Duncan Kneller – Aconex
Saurabh Bhandari – Mott MacDonald
Nick Sansome – Aconex

2. CONFIDENTIAL | 2
Agenda
• 09:15 - What do Project Controls look like in the UK today?
Saurabh Bhandari, Technical Principal, Project & Programme Controls - Mott MacDonald
• 09:45 - How can we get better?
Nick Sansome, Head of Cost Management – Aconex
• 10:15 - Q & A
• 10:45 - Coffee and networking
• 11:00 - Closing

3. CONFIDENTIAL | 3
Are you confident and in control?
3
• Capture all project processes?
• Is information credible?
• At the right level?
• Real-time?
5.4%
of projects meet
“best in class” for
cost and schedule
Source: Constructing Industry Institute, US

4. Golden Era or Death Valley
State of Project
Controls
01 March 2018Mott MacDonald | Presentation 4

5. 70% of projects are:
Over budget
Behind schedule
52% of all projects finish at 189% of their initial budget
some, after huge investments of time and money, are simply never
complete
Source: The Standish Group
Performance and Productivity
Most PMs are focussed on:
• Achieving project success
• Efficiency and
• VfM
BUT
01 March 2018Mott MacDonald | Presentation 5

6. Poor Organization
• Leading to inadequate
decision-making
Inadequate
communication
• Inconsistencies in
understanding the
project health, status,
demands – data silos
Missed Integrations
• Unintegrated
interfaces in design
procurement and
construction.
• Unsuitable
relationships and
contracts
Insufficient risk
management.
• Lack of timely
awareness of threats
and opportunities
Performance and Productivity - Issues
If you had better information, and the time to assess it; could you make better decisions??
01 March 2018Mott MacDonald | Presentation 6

7. Discipline Data Volume
Planning and Schedule Management 20,000 line schedule + Multiple Supplier Schedules - updated monthly
Cost Mgm. & Control Upto 400 cost data stream to be validated every month + timesheet validations
Risk Management Running Log of 1000's of quantified risk with upto 20% impact on TCQ
Governance Atleast 3/4 levels of Delegation - requiring timely submission, direction & authorisations
Change Mgm. Upto 400+ changes per month with emerging EWNs
Contract Mgm. 25 - 100 contracts with various tier 1/ 2 suppliers
Information Mgm. 25000+ design Documents; 1000's of TQs/ RFI; infinite project correspondence
Control & Reporting Integrating all of the above on a fortnightly; monthly basis - accurate and timely
Executive Reporting Summarising all of the above monthly + adhoc - accurate, timely , focussed, narrated
Communication (n+1)n - channels to be controlled efficiently
Collaboration teams distributed over 3/4 timezones in over 10 countries
Design Mgm. /Process 100s of stakeholders; with few technical leads - staged buy in s
Funding Mgm 3 -5 Corporate ERP systems with different level of details, invoicing procedures, timeline
Resource Management 500+ project staff; plant, permitery, operation al staff; with 100s critical resource - requiring personalised scheduling.
Project Management Perspective
The average Project Manager
01 March 2018Mott MacDonald | Presentation 7

8. Project Management Perspective
Project managers are looking at PC differently -
think of it as a Project Information Model :
‘a collaborative approach that makes sure the
right project information gets to the right
people at the right time to make informed
decisions’
Optimised
Decisions
Intelligence
&
foresight
Connected
Information
Productive
Outcomes
Its more than just the performance
information, it’s the entire interconnected
data set.
01 March 2018Mott MacDonald | Presentation 8

9. Whats Stopping Us
01 March 2018Mott MacDonald | Presentation 9

10. Its not - The Market
Declared Portfolio
Undeclared Portfolio
?
Post Brexit
Productivity
challenges
The market forces are there but is the profession ready?
01 March 2018Mott MacDonald | Presentation 10

11. What does it look like
1
Value
Value proposition is
still being debated
and consistently
low performance
across the
profession
3
Standardisation
Proliferation of
bespoke process,
work methods. No
industry wide BoK
5
Knowledge
Reinvention of
data, systems,
processes
2
Skills
Poor supply of
skilled operators as
well as decision
makers
4
Investment
Reservation from the
industry to invest for
consistency
6
Collaboration
Low integration
between work
disciplines
01 March 2018Mott MacDonald | Presentation 11

12. Process & System Issues
Barriers to Success
Evidence based
decision making
Cultural and skill issues
around making data
centric decision and
providing unambiguous
advice
(using data as
ammunition not a
binocular)
Accessibility to the
masses
Most knowledge,
information, data too
expensive, specialist to
interact with on a
dynamic project
Scalability
Decision makers caught
in artificially inflated
barriers to entry,
governance overload
and redundant policies
leading to a hamster
wheel of control outputs
IT systems
Vocabulary
Dearth of
interoperability,
common processes,
vocabulary and volatility
of the IT market.
01 March 2018Mott MacDonald | Presentation 12

13. 1
Culture
Behaviours, ownership of
controls –few are enabling
it; but not on most
People Challenges
3
Competence
No barriers to entry,
Ethics or Professional
certification
requisites.
2
Training
lack of formalised training
in controls management
not just tools. Low
professional pathways for
engaging the talent
4
Awareness
Understanding of
value by commercial
and procurement
colleagues
01 March 2018Mott MacDonald | Presentation 13

14. The challenges the industry in UK is facing
is more about the gaps in supply, demand
and value of controls; in the holistic sense.
It includes the deficiencies we have in
skilled resources (both decision makers
and practitioners), the proliferation of non-
standardised processes and systems and
the reservation from the profession to
invest. The green shoots on all the topics
are emerging, but requires the leadership to
recognise them and nurture them
01 March 2018Mott MacDonald | Presentation 14

15. Cast your mind back on to the last project you completed;
Collective action is required to meet our
industry challenges and organisational
boundaries need to be broken
Can you raise your hand if you believe that knowing
what you knew at the end of the project you could do it
quicker and better!!
Why; because you had better project information
01 March 2018Mott MacDonald | Presentation 15

16. CONFIDENTIAL | 16
How can we do better?
...introducing Aconex

17. CONFIDENTIAL | 17
Manage, measure & report on project performance with confidence
•Every project member connected
through key processes
•Accessible from anywhere – the
office or the field
•Easy to use, intuitive and dynamic
Project-wide
Collaboration
1
•Line-of-sight into issues; red flags are
raised early
•Quickly build customizable reports
•Measure performance at the project and
portfolio level
Early Warnings &
Predictive Insights
3
•Full cost capabilities – budgeting,
forecasting, variance, payments, etc.
•Flexible contracts & change management
processes
•Planning & scheduling integration
Integrated
Cost Controls
2

18. CONFIDENTIAL | 18
INTEGRATED
PROJECT
CONTROLS
PLATFORM
Roy Hill Mine| Newman, Australia| US$10 billion
Schedule
Integration
Cost
Management
Handover
to O&M
Bids &
Tenders
Connected
BIM
Design
Document
Reviews
Inspections,
Quality &
Safety
Submittals
&
Transmittals
Shop
Drawing
Reviews
Daily
Site
Reports
Requests
For
Information
Construction
Process
Platform
Insights &
Reporting
Workflow
Management

19. CONFIDENTIAL | 19
Featured Project:
Kami Iron Ore Mine, Labrador, Canada | US $1.27B Value
Trusted by the world’s largest projects
Aconex Connected Cost
Drive project performance

20. CONFIDENTIAL | 20
Project Cost Management vs ERP Systems
ERP Project Cost (FFC)
Back in Time Forward in Time
Today
Committed and approved budgets. Physical actual amounts of money
that have been spent.
Money that is expected to be (known), or could be (unknown) spent in
the near or distant future, compared to the committed project budget.
Issuance of purchase orders, contracts or commitments to spend (from
above committed budget), for supply chain procurement, including
labour, plant equipment, materials and services.
Tracking actual delivery of procured items to date, assessing and
inspecting delivery, certifying cost of work done and forecasting cost
outstanding items, including cost amount of any variation amounts and
when they will occur in the future.
Manage very high level cost breakdown of project committed budget
and actuals to date, that are all mapped directly to the COA (Chart of
Accounts) in the corporate GL (General Ledger).
Manage a detailed breakdown of project costs, to date and in the
future, including labour, plant equipment, materials, direct and indirect
expenses. These are mapped to a logical sequence of tasks or WBS
(Work Breakdown Structure) that reflect how the project is going to be
executed.

21. CONFIDENTIAL | 21
Demonstration

22. CONFIDENTIAL | 22
Project performance depends on connected teams
Connected
Departments
Design
Cost
Schedule
Safety
Contracts
Connected
Field & Office
Subcontractors
Connected
Organisations
Owner
General
Contractor

23. CONFIDENTIAL | 23
Spreadsheets
Ad Hoc Usage
Multiple User spreadsheets
Managed by e-mail /
Paper Process
No internal process
Departmental Silos
Advanced Spreadsheets
Low Adoption
Excel centralised but not
controlled
Processes not followed
Departmental Silos
Project Controls
Solution
Enterprise Wide
Internal
All users, departments
and projects in portfolio
using the tool
Internal collaboration only
Cost information with
external orgs manually
captured and entered
Point Solution
Project
Implementation
Narrow scope and use of
tool, deployed only to
specific project
Manual entry of
information
Modern Project
Controls Solution
Enterprise Wide
External
All users, departments
and projects in portfolio
using the tool
All external organisations
submitting and capturing
cost information
Well defined processes
manage externally
submitted data to identify
and manage cost in a pro-
active approach
Integrated with ERP &
Schedule
Where does your organisation sit?
Project Controls Maturity Model

24. CONFIDENTIAL | 24
Dubai International Airport, U.A.E | US $4.5B Value
Q&A Session

25. CONFIDENTIAL | 25
Featured Project:
Kami Iron Ore Mine, Labrador, Canada | US $1.27B Value
Trusted by the world’s largest projects
Thank you.