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A Signalling Project - MTRC & Alstom

In 2001 The Hong Kong Mass Transit Railway Corporation and Alstom Transport Information Solutions were working together on a project to provide the signalling of a new section of track for the interchange of metro line trains with the Kowloon and Canton Railway Company's new Westrail Line.

The 4-Tracking Signalling Project works included a complex implementation of existing technology to the existing railway. Interface works were extremely complex between the new portions and the existing. Installation and test and commissioning could only be performed during a narrow window of time in the early hours of the mornings between operating hours of the existing railway. As well as being technically complex the contract also had the challenge that there were three separate geographically located offices that undertook the work - France , Australia and Hong Kong . The design, software and most of the hardware were produced in France with a small portion of design and software produced in Australia and the installation, test and commissioning being undertaken in Hong Kong .

JCP Consultancy had worked extensively with MTRC for several years during their Tsueng Kwan O extension project - some £3 billion worth of engineering and construction where partners saved £1 billion.

In the first 6 months of the contract, the signalling team's performance was well below expectations. Not one milestone was achieved - the contract was essentially 6 months late. The initial cost of the contract of HK$73.3 million was beginning to look in jeopardy. MTRC decided to call JCP in and try a more cooperative approach to the project.

As a starting point JCP Consultancy advised a two day workshop involving all the key members of the project team. Prior to the workshop JCP also interviewed key members of the contractor and client to ascertain perceptions and uncover some of the important issues around the project. The workshop centred not only on the theory of cooperation but also the practicalities - the behaviours required for real cooperation and the development of real systems to measure change and performance.

A Partnering Charter was also drafted in the workshop and later finalised and signed by all attendees. Partnering Charters are easy to sign however. Really this is just the beginning of the journey to effective collaboration. JCP Consultancy worked hard to ensure that this was the case so that cooperation could become the real-life daily norm and not something that happens on a workshop but then stays there when everyone returns to work.

A Contract Partnering Steering group was set up to both actively monitor and steer the client-contractor relationship. Measurement systems were put in place to identify the danger signs of faltering cooperation, and these systems took into account both 'hard' and 'soft' issues. Another aspect of sustaining the partnering was the holding of partnering review sessions at least every six months. These were one-day sessions where JCP and the partners could reaffirm the benefits of partnering and continue the relationship building. They also provided an excellent vehicle to introduce new team members into cooperative contract culture.

Two years later the project was completed. Its performance can be measured overall by the following:

• No claims
• No safety issues raised nor injuries sustained
• Completed ahead of program by 11 weeks
• Completed to budget
• There were no outstanding commercial issues on completion
• Only minor works outstanding and on target for completion 12 weeks after completion and during the Defects Liability Period.

These successes are even more impressive when one remembers that 6 months after the inception of the project nothing had been achieved.

The hugely improved relationship between Alstom and MTRC, supported from the highest levels also spawned further benefits. The success of the 4-Tracking Signalling contract spurred a Value Engineering Workshop on a subsequent contract between the parties. The workshop identified savings that resulted in gross savings of HK$12 Million that was shared 50:50 between the parties. This could not have been achieved without the success of the relationship developed on the 4-Tracking contract.

There is now in progress a follow-on contract between the parties and although there are new people in the team the cooperative approach remains entrenched. There is a realisation that there is no better way to do a project than to cooperate. The other alternative is unpalatable.

JCP Consultancy continue to work with the partners.