Business need

Costain approached Penmark for support with their Commercial supply chain management approach on the London Bridge Station Redevelopment contract. The coordination of Sub Contractor works was impacting planned delivery dates, resulting in unplanned commercial cost being adsorbed on the contract. The current working practices required a process review to identify the root causes of identified issues from a delivery, commercial and process perspective. Penmark was tasked with the implementation of management tools and techniques to support the business needs and imbed sustainable change.

Penmark’s approach

Historically progress was managed through review and monitoring of a twelve week look ahead programme, a contractual requirement for all Sub Contractor to submit on a rolling twelve week basis. This approach did not capture the critical interfaces between Sub Contractor works or capture changes to the main programme activity start and end dates in real time. Penmark introduced a three week look ahead tracker, rolled out to all key Sub Contractors. Key stakeholder attendance was critical, ensuring all delivery and commercial aspects were discussed and captured. The three weekly tracker offered the opportunity to:

  • Monitor Sub Contractor planned versus actual performance.
  • Monitor key interface with other Sub Contractor works.
  • Trigger the commercial early warning process for any foreseen interface related issues.
  • Track and monitor Sub Contractor interface mitigation meetings.
  • Identify the need for programme acceleration.
  • Monitor resource deployment and utilization.
  • Identify, capture and distribute actions with owners and timeframes for completion.
  • Apply PDCA.

Penmark planned to facilitate the three weekly trackers over a six week period, with the aim of standardizing the approach and handing back to the applicable teams to manage from that point forward. This approach would ensure the tools and techniques utilized were embedded and maintained on the contract moving forward.

The outcome

Penmark successfully rolled out the Three Weekly Tracker to fifteen Sub Contractor work packages. The process adopted encouraged the Sub contractors to work together, proactively overcoming interface related work issues. The Costain delivery team benefited from a live programme that identified actual performance against planned activities and encouraged meaningful dialogue with the supply chain, proactively identifying and solving delivery related issues.

  • Risk Mitigation
  • Improving coordination and communication between Sub Contractor work packages.
  • Tracking Supply Chain attendance.
  • A governance mechanism to offset commercial risk by cross charging the Sub Contractor responsible for scope creep and consequent delay charges from affected Sub Contractor work packages.
  • Supported Network Rail KPI compliance through Construction Force for Early Warning Notices and Sub Contractor claims.
  • Planned meetings and attendance of key stakeholders monitored to ensure robust decision making of identified planning related issues.
  • Embedded process sustained by Costain delivery team for phase 3 works.

Client Testimonials

Don’t take our word for it – here’s what our clients say:

Agent – Platforms, Canopies & Steel Work

“The tracker system is an effective tool for tracking progress and identifying critical delay against baseline programme dates. Prior to implementing this with Prater Severfield we were struggling to get any transparency with status of works which made it very difficult to plan ahead and mitigate any delay. We also had a big issue with Prater’s 4 weekly programme not being reflective of the clause 14 or Severfield’s works, the 3 weekly has helped to align all these together which in turn allowed us to link any interfaces from the clause 14 to each activity. Having the interfaces visible has helped to prompt conversation with the required third parties to coordinate works. By being involved at the lower level of daily planning with the subcontractor, Costain have been able to improve the quality in which this is done and we have now taken a step back to a higher level review where we should be.”