Lesson Learned #1: Risk management
T5 agreement is an innovative agreement that BAA held all the accountability for the risk releasing the burden of responsibility form contractors and suppliers.
Risk management is one of the main aspects that need to be considered in a project especially with those involving tunneling. It is well known that all risks cannot be eliminated. However, the proactive management, which can decline the probability of risk occurrence, is accepted. It is also great helpful that the severity of the risk event would be minimized with strong control processes.
In mainstream cost plus contract, the client and the contractors are sharing the responsibility for the delay and mistakes of the project. However, from given historical …show more content…
In the contract, the client holds the risk and the profit of suppliers’ are ring-fenced. It focuses in non-adversarial style on relationships and behaviors with risk management as a core issue. Moreover the T5 agreement outlined processes and strategies in an uncertain environment instead of contractual positions if things go wrong (Williams, 2007). It pays attention on principles including performance and success. Individuals in integrate teams contributed to achieve the same goal. This strategy provided an environment in which all integrated team members were equal. Innovations and solutions were encouraged so that all unnecessary costs, including claims and litigation, could be reduced (Douglas, …show more content…
BAA took a proactive leadership role in this approach. The American technical director appointed by BAA proceeded with this totally different way based on simplicity. The teams were divided into three clusters: the client team, the principal architect/engineer team and the principal contractor team (Brady, Davies and Rush, 2006). It means that the individuals in the T5 project were identified as having the right ability set for the activity in hand stead of who employed them. British consultants have never used these management techniques in the
T5 agreement is an innovative agreement that BAA held all the accountability for the risk releasing the burden of responsibility form contractors and suppliers.
Risk management is one of the main aspects that need to be considered in a project especially with those involving tunneling. It is well known that all risks cannot be eliminated. However, the proactive management, which can decline the probability of risk occurrence, is accepted. It is also great helpful that the severity of the risk event would be minimized with strong control processes.
In mainstream cost plus contract, the client and the contractors are sharing the responsibility for the delay and mistakes of the project. However, from given historical …show more content…
In the contract, the client holds the risk and the profit of suppliers’ are ring-fenced. It focuses in non-adversarial style on relationships and behaviors with risk management as a core issue. Moreover the T5 agreement outlined processes and strategies in an uncertain environment instead of contractual positions if things go wrong (Williams, 2007). It pays attention on principles including performance and success. Individuals in integrate teams contributed to achieve the same goal. This strategy provided an environment in which all integrated team members were equal. Innovations and solutions were encouraged so that all unnecessary costs, including claims and litigation, could be reduced (Douglas, …show more content…
BAA took a proactive leadership role in this approach. The American technical director appointed by BAA proceeded with this totally different way based on simplicity. The teams were divided into three clusters: the client team, the principal architect/engineer team and the principal contractor team (Brady, Davies and Rush, 2006). It means that the individuals in the T5 project were identified as having the right ability set for the activity in hand stead of who employed them. British consultants have never used these management techniques in the