Partnering at the MTR Tseung Kwan O Extension Hang Hau Station project.

Partnering at the MTR Tseung Kwan O Extension Hang Hau Station project.
How this approach saved money, shortened the programme ... and led to a 'win win' situation for client and contractor.

When the MTR Corporation proposed introducing a Partnering charter for the Hang Hau station project, part of the MTRC Tseung Kwan O extension, Dragages was delighted to accept. This meant approaching the project in a spirit of co-operation and mutual understanding and with four key objectives: to have structured and open communication lines; to identify mutually beneficial goals; to streamline administrative processes; and to solve problems promptly and at the lowest possible level.

The benefits of Partnering became clear right at the start of the project when Dragages proposed an alternative. The company's 'top-down' method for construction of the station was not included in the contract at the time of the award, and a further design alternative was required to make it acceptable to the MTRC and for it to work as efficiently as possible.

"Despite the feeling that such a major change could jeopardise the tight programme for concreting works" explains Dragages Project Director Bernard Senouci, "The MTRC agreed to look at it. They agreed it was feasible and approved it. This kicked off the project in a win-win spirit and we kept this spirit throughout the project in all aspects including safety, quality and production".

MTRC Project Director, Russell Black, agrees: "We have seen savings of several million dollars, which we can directly attribute to partnering ... Dragages' suggestions accounted for much of the savings which will now be split between the MTRC and the contractor. It also cut construction time by five weeks."

Kenny Kong, Construction Manager with the MTRC for the project cites a specific example of how Partnering helped production: "We saw that the late possession of a certain area would delay part of the contractor's work. So we had long discussions with Dragages, the government and the government's contractor. We all came to a solution whereby the MTRC would take over the area at a later stage while Dragages started some works in other areas. We reached a win win situation for the government, ourselves and the contractor".

Dragages Contract Manager, John Edwards, says that Partnering also enabled an innovative concept for controlling costs - a Target Cost Incentive Mechanism: "With this mechanism a sum was agreed between Dragages and the MTRC for defined potential changes. Whatever remains unspent upon completion of the contract is shared 50/50 between client and contractor".

In all aspects of the project, Partnering has proved its worth. "It is the way of the future for our business" says Mr Senouci.