IRRIGATION AUSTRALIA 2009 MODERNISATION CONSTRUCTION & DESIGN LEARNINGS FROM THE FIELD

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1 IRRIGATION AUSTRALIA 2009 MODERNISATION CONSTRUCTION & DESIGN LEARNINGS FROM THE FIELD (Stream 4 Irrigation System Modernisation) Alex Marshall General Manager Irrigation, Comdain 7a Telford Drive, Shepparton, 3630 Ph: amarshall@comdain.com.au Ross Titchmarsh Senior Project Manager, SKM 55 Old Dookie Road, Shepparton, 3630 Ph: ross.titchmarsh@futureflow.com.au As one of Australia s leading engineering construction and maintenance service providers, Comdain, with a 400 strong workforce, has a solid reputation for reliable project delivery in the water and irrigation sectors. SKM is recognised for its worldwide leading irrigation design groups employing some 6,500 multidisciplinary project managers, professional engineers, planners, economists and scientists. Comdain and SKM have recently gained significant experience in the delivery of large volume irrigation modernisation works through their involvement in the $2b Northern Victorian Irrigation Renewal Project (NVIRP), and since January 2008, Goulburn-Murray Water s (G-MW) FutureFlow Alliance. Both companies have also been involved in providing lead design support (SKM) and construction delivery (Comdain) for NVIRP for the Managing Contractor works since Jan This paper focuses on the unprecedented challenges associated with the scale, short delivery time frames, geographic spread, resourcing, and narrow access timeframes, necessitating changes in the approach to irrigation engineering. It reflects on the various challenges and the lessons learnt in both the FutureFlow alliance and the Managing Contractor works. Comdain and SKM have many project management lessons to share that are applicable to the pending large scale irrigation modernisation works planned across Australia. These include: data collection, design, procurement, project execution, innovation, safety, environment, quality, coordination and relationships. It is anticipated that the ongoing modernisation works will enable new and improved irrigation design and construction work practices across Australia. 1. BACKGROUND Northern Victoria Irrigation Renewal Project (NVIRP) has been tasked with the recovery of 425 gigalitres of long term average water savings currently lost to the irrigation system, via a $2 billion investment. The project is currently being implemented across the Goulburn Murray Irrigation District and will establish the platform for northern Victoria s ongoing economic viability. Modernisation works underway to replace and upgrade irrigation infrastructure in order to achieve water savings targets include the following: automation of irrigation channels via the integration of radio controlled, solar powered technology enabling regulating structures to be operated remotely around the clock to control and monitor flow accurately; dethridge meters upgraded to integrate automation and improve accuracy, providing opportunity for increased measurement accuracy on-farm, and potential for further recovery of lost water; hot spot channels lined with either clay or HDPE to prevent water loss via seepage and leakage; and 1

2 redundant or obsolete infrastructure rationalisation including restructuring the supply system to reduce water loss. The early NVIRP works were delivered by the FutureFlow Alliance with Comdain, Transfield Services Australia (TSA), SKM and Goulburn-Murray Water. This integrated delivery team enabled rapid mobilisation to complete challenging timelines with evolving scope. Subsequent NVIRP works are being delivered by a managing contractor model, with primary contractor (TSA) packaging bundles of works of a similar scope and geographic region. Design works are undertaken by SKM and TGM as the lead designer and construction undertaken by contractors. Comdain has delivered a range of these work packages. 2 Works Program 2009 The construction program for 2009 was led by the managing contractor as lump sum construct only contracts, bundled geographically and according to type of works. Design works were undertaken by a SKM and TGM as the lead designers and construction undertaken by contractors. Comdain has delivered a range of these work packages. The total program was around 1000 gates and approximately 15 kilometres of plastic lining. Four contractors were successful in being awarded gate work and four contractors were awarded plastic lining work Comdain winning a significant portion of the works. Although similar works were undertaken in 2008, many believed that the quantum of work proposed was highly challenging to complete given the shortened winter shutdown timeline for Despite this, the NIVRP construction program was successfully completed, and the irrigation modernisation works continue to demonstrate successful outcomes for the irrigation sector and for the broader community. To meet the unprecedented construction timeframe, Comdain mobilised a workforce that at its peak engaged in excess of 250 specialist personnel. Our team was mobilised in as little as one day of contract award to commencement of the irrigation shutdown period. The pre-mobilisation team workshops and the determination of the team to deliver the works to the quality standards Comdain commit to required a highly responsible approach to any changing conditions or scope, and a commitment from every one of the 250 personnel. An overview of the scope and scale of the works delivered: 394 gates and 2.5 km of channel lining Across the 300km region of Pyramid Boort, Rochester, Torrumbarry, and Murray Valley regions In excess of 45,000 civil labour hours Over 16,000 plant hours Poured 2900m³ of concrete Installed 9400m³ of beaching rock Reinstated 27km of access roads The scope of works being similar in nature to the works Comdain has been involved in at FutureFlow and for other irrigation authorities, enabled us to fully appreciate the enormity of the challenge. Our commitment to irrigation modernisation delivery and the sheer determination of the team was pivotal to embracing this. The challenges during the 2009 program meant that the broader project management and delivery teams, from principal right through to work crews in the field, were required to embrace a strong culture of getting the job done. The energy associated with this, was outstanding and all parties should be proud of what was achieved. Both SKM and Comdain are elated by the opportunity to deliver works for the irrigation modernisation, and we have seen the benefits of local teams, understanding the irrigation sector, and importantly, being part of the community and a successful project. Examples of the can do culture demonstrated through Comdain embracing additional responsibility include: Regulator Gate Works 2

3 Took over cartage of quarry materials from the Managing Contractor Carried out in situ concrete civil replacement when precast was unavailable Took on access works to all sites Undertook design verification Developed walkway designs. Channel Remediation Dewatering Temporary fencing Site cleanup Desilting Landholder negotiations. Project Management Extended resources and accelerated program to meet deadlines Developed a system to coordinate concrete suppliers Undertook landholder consultation in order to get access to sites Developed administration processes including works tracking and contractor claims Reschedule to fit in with environmental approvals and design delays Took on additional civil works to repair poor quality regulator structures. This was all achieved through a positive team approach across NVIRP, TSL and Comdain. Without the can do culture between the organisations the project would not have been the success that it was. Despite the challenges, Comdain met our construction targets and we are very proud of our achievements. This year s construction program has provided a wealth of experience for the Comdain Irrigation construction team and learnings that we would like to share with the Australian irrigation sector. 3. LEARNINGS FROM THE FIELD 3.1 Challenging timeframes and separation of design, construction and procurement Comdain has delivered diverse contractor packages this year for the managing contractor. SKM as the Lead Designer for NVIRP have been designing work packages for the managing contractor and the various contractors undertaking works. Accurate existing asset information is always challenging to obtain on older infrastructure assets, resulting in design challenges and the need to be highly responsive to the new information obtained as contractors commence works. This has been managed with rapid re-designing and seamless interfacing with the various parties involved. However, for all parties, this has created many challenges. The most significant challenge for Comdain during this period has been the separation of procurement, design and construction. Despite this being a preferred delivery model for many authorities, it did require us to bring in a team of irrigation specialists able to solve the many project delivery challenges. Our team was able to get on with the project and work closely with the managing contractor and NVIRP to deliver our work packages. Over an eight week period Comdain completed the full scope of works allocated. The construction period this winter was inherently short with irrigation network shutdown periods as follows: Pyramid Hill gates: June 16 August 15 (9 weeks) Control structures: June 19 August 15 (8 Weeks) Channel lining: June 22 - August 15 (8 Weeks) 3

4 The constraints that were largely outside the control of the organisations involved and impacted on all parties involved in the project: NVIRP, G-MW, TSL and the contractors. From a design perspective the constraints provided the following challenges: The short time frame that the design had to be completed in Accuracy of data Unavoidably poor existing asset information resulting in the requirement for rapid re-design, sudden changes to the procurement scope requirements and scope variations for the delivery requirements Number of sub-consultants engaged by NVIRP/TSL to provide other services, eg survey, flora and fauna, cultural heritage Database development and management Changing scope. From a delivery perspective the constraints provided the following challenges: Delayed access to many sites due to environmental approvals Dealing with installing access tracks concurrently with civil works completion A number of iterations of works schedules to accommodate dewatering, environmental issues, site re-designs, access and wet weather issues and procurement issues (geofabric, anchors, gate and frame supply) Suppliers who had insufficient resources to meet our schedule Our ability engaging sufficient resources to enable works completion against an increasing scope of works, (repairs to structure floors, addition of and changes to abutment walls designs, large number of structures that had been identified as requiring only minor modification, however on investigation the entire structure required significant modification or replacement). 3.2 Benefits of improved asset information In order to design irrigation channel regulator automation upgrades, G-MW collected and collated data on regulator structure condition and sizing for the appropriate gates from both their database, and measurements in the field. Working on infrastructure that was constructed in the 1940s means that it is often difficult to obtain detailed as built information. Where this is available it is often out of date and variable due to subsequent repairs and maintenance on the system. The 2009 automated gate design information for the Comdain area had measurement errors at 19% of the sites that required redesign during the construction period. We believe there would be significant benefits realised for irrigation modernisation through improved data collection of the current irrigation network. This should be undertaken by a team of personnel with a combination of structural condition assessment skills and the relevant gate installation experience, applying a consistent and rigorous data collection process. Another option is to provide skills enhancement training and knowledge transfer from the recent works completed, enabling the team to collect more accurate information and identify site anomalies. A rigorous asset data collection process we believe will dramatically reduce re-design, the need to reorder or change procured items, and delivery contract scope increase. This would be a best for project outcome for all parties involved. 3.3 Rethinking the design approach The 2009 design program used similar methods to previous years where field measurements were used by Rubicon to fit standard gates to existing structures and civil works designs were undertaken by SKM. Design information was distributed to contractors via site specific work packs. To some degree, the design process was quite standardised, making it challenging for a construct only delivery approach. The extreme site variability experienced with the program delivered this year led to significant scope changes and corresponding cost variations. In addition, the tight timeline for delivery of the works was exacerbated with the ongoing scheduling and planning re-forecasting to deliver on an immovable deadline of Aug 15 th when the irrigation channels were to go live again. 4

5 The implication of the inspection data collection challenges, combined with site conditions varying considerably from the designs at many sites, resulted in immediate capital works delivery challenges for the contractors and hence for the managing contractor. The 2009 automated gate design information for the Comdain scope increased significantly as 62% of sites required significant changes to civil works and 50% of sites had design issues associated with data interpretation resulting in additional works. With the aim of reducing scope change the managing contractor requested an inspection of all regulator sites to highlight constructability issues prior to construction start of the 2009 program. In addition a desktop review of the gate design data was undertaken to highlight any anomalies. These were important initiatives that uncovered many constructability issues however due to the lack of full design information at the time; many issues were not able to be identified. The inspection was also constrained by many channels not being dewatered a reality that will always exist for irrigation network work upgrades. The shortened time frames for this year s program of winter works resulted in a number of sites at which gates were installed in civil structures where a more appropriate solution may have been a civil replacement. This comment is connected to the proposal for improved civil structural analysis in the early design phase. Considering changes to the data collation approach and the design development may provide owners and investors with opportunities to balance these critical considerations. Reflecting on the lessons learnt from this, and what might we do differently next time, Comdain and SKM believe considerable scheduling and cost increases could be alleviated through a revised and more detailed design process. The irrigation network upgrade is inherently challenging, given the presence of water during the critical data collection phase and the need to have specialists as structure assessors. An alternate proposal for consideration is to have an integrated design construction delivery team that encourages early contractor involvement in the solution, and a seamless one team approach to addressing the structural changes that need to be made with minimal cost or time delays. Furthermore, the design engineer s key structural design assumptions and decisions can be adjusted to take into consideration the constructability implications of design changes. This includes first hand delivery knowledge that discussion can radically change the structural design and the associated construction requirements to deliver a better project outcome, thus ensuring optimal whole-of-life considerations. SKM and Comdain believe that both NVIRP and the managing contractor as key stakeholders for the program of works would benefit considerably from this slight change to the delivery model. 3.4 Potential to consider alternate supply approaches Seamless and optimal procurement approaches for key items such as gates, frames, quarry materials, geofabric, concrete and HDPE plastic are integral to the overall success of delivering the NVIRP program of works. Interfacing with designers, constructors and the existing asset owner to ensure that the right item is procured at the right time, sounds like a rather simple activity, but the various parties involved in current irrigation works understand that this is not the case, given the challenges. Procurement directly impacts successful and cost effective project delivery. Under the managing contractor model, TSA procure and deliver most of the materials for the construction program. In 2009 this included items such as Rubicon gates and frames, quarry materials, geofabric, concrete and HDPE plastic. Some materials were provided by contractors such as reinforcing, formwork, walkways and handrails, and minor consumables. The advantage of the scale of the NVIRP works is that it provides opportunities for economies of scale when purchasing key items, thus reducing procurement costs. Procurement for the 2009 program successfully delivered the requirements for construction to be undertaken. There were some construction delays resulting from procurement challenges, due to design changes, but overall things were delivered as expected. In some cases, contractors managed delivery of certain materials to overcome any likely bottlenecks or delays. This enabled risk mitigation of scheduled delivery programs and provided a mechanism for seamless liaison. It may be 5

6 possible for NVIRP to work with the contractors to identify key procurement items that may result in increasing the chance of construction delivery delays, and implement some alternate fit for purpose procurement options. In terms of mitigating risk of delays and price overruns, procurement is a key item for the irrigation works. It also provides an opportunity for bundling larger packages of work to procure, or other options for ongoing improvements to mitigate the risk and enhance the value for money for NVIRP and the irrigation community. 3.5 Retaining the skills and culture essential to deliver The enormous quantum of irrigation upgrade works delivered over the past few years across the Goulburn Murray region will leave a positive legacy for the community and the broader irrigation sector. The skills enhancement involving the local workforce in delivering these works has provided Comdain with an opportunity to develop a strong local presence in the irrigation market. The development of our specialist irrigation networks skill has provided us with the ability to develop a pool of experts and a flexible resourcing model that has adapted to the emerging needs of the market. Retaining and enhancing the local skills underpins our success and the ongoing successful delivery of these works for the region. Local contractors have embraced working with our team, increasing their capacity and improving their systems. The scale, quantum and the geographic spread of the various works provides a unique opportunity to develop and retain skills and sector specialists, which we believe will be pivotal in delivering the $2b irrigation modernisation works. The journey continues to evolve for contractors delivering the works. Experienced work crews are delivering high quality results to schedule and self-manage with cost effective outcomes. Along the way we have also found inexperienced crews on the other hand are inefficient and require micro-management and fail to meet the necessary project standards. Ensuring that we continue to provide opportunities to enhance and retain the quality experienced work crews is critical to the ongoing success of this program of works. Comdain has developed models to ensure this, which will require us to commit to the sector long term. We know that this is essential to the overall success, and we embrace the opportunity to continue to enhance the skills and resources for the community. An ongoing challenge for contractors is the winter program resource swelling, a reality that we are learning to manage effectively, and results in additional costs to maintain a core skill pool. This has associated challenges for NVIRP, particularly given that these works need to be completed within five years. Short term contracts can result in short term thinking and lack of commitment from the market. Considering options to increase the size or duration of contracts, particularly when the contractors are embracing the inclusion of local resource pools and local contractor partnerships, is an option for NVIRP and the managing contractor, and could provide a longer term benefit to contract term resource planning; delivering improved efficiencies which could be passed on as a cost saving. We encourage these sorts of ideas as this enables Comdain to give a longer term commitment to the broader local workforce, and importantly, the lessons learned are passed on by using the same skills pool over multiple delivery periods. 3.6 Delivering value for money is of paramount importance All owner and investor stakeholders involved in modernisation delivery are committed to ensuring that the works are delivered in a way that demonstrably delivers value for money. The concept of value for money is one that is regularly discussed and analysed by the broader stakeholder community, as we are all aligned to the concept that we need to ensure that the $2b is spent to deliver the best outcomes for the irrigation and broader farming sector in the short, medium and long term. Sustainability of the region underpins these works, and is critical in ensuring that this is achieved in a cost effective manner. Value for money is sometimes seen as being the cheapest price, but that is often not the case. Value for money inherently implies that the holistic value proposition that is provided is greater than if another option was selected. It also implies that the cost you pay for that value proposition, the real cost rather than the upfront dollars should be less than if you chose another option. 6

7 Value for money can come from not having to do rework; high quality; better productivity; leveraging of economies of scale; excellence in project management and project delivery, innovative solutions through early contractor involvement or creative design solutions; or a range of other opportunities. Comdain and SKM both work hard at ensuring that we do the job right the first time, a partnering culture with our clients and committing to project outcomes. Having delivered construction projects to the broader water networks sector for many years, our team believes that we add the most value when we can work closely with the various stakeholders. 3.7 Safety always comes first Under the NVIRP managing contractor model, contractors provide their own OHS systems with supervision from TSA as the Managing Contractor. Comdain and our subcontractors worked more than 45,000 hours during the 2009 NVIRP construction period with zero lost time injuries and zero medical treatment injuries. The scale of the NVIRP project and the involvement of medium to large constructors is having a positive impact on OHS practices for the irrigation construction industry. We continually endeavor to ensure OHS integration and performance above the requirements is adopted in the field. Our key strategy is to have the OHS team integrated into the construction team and learn from our experience. Integration of OHS and project management tasks ensures a functional approach and embeds the culture that safety comes first. It also eliminates an us and them or policing culture that can be a problem. 3.8 Zero environmental impact Minimising environmental impact associated with modernisation works has numerous implications, however from a contractor s point of view, the goal is to minimise work site impact. The 2009 program was impacted significantly by delays in obtaining environmental approvals aimed at identifying environmental values and preventing work site impact. Environmental approvals delayed the start of the work program by almost a month and full access was not granted until almost three quarters of the way through the program. The lesson is that the environment must be taken very seriously in any modernisation program. Approvals must be considered well ahead of construction due to lack of control of this process. 3.9 Modernisation is about upgrading the system From the asset owner s point of view, modernisation is about upgrading the system for the future so that it can perform more efficiently and provide benefits not only to the investor but also to system operators and their customers. This means that high quality modernisation infrastructure is critical to achieving modernisation goals. The quantum and pace of the Victorian modernisation works means that quality is critical and something that we must get right. With such a fast project there is a risk that mistakes could be made and not emerge for some time. Given that the channels are wet for the majority of the year, it is a costly exercise to undertake reworks in any channel system. The quality focus should be on proactive management of quality at the start of the project above audits at completion Understanding each other s goals and issues Coordination is critical on any major infrastructure project; however it is not always achieved. In the NVIRP project, coordination is even more critical due to the competing interest of the broad range of stakeholders across the owner, NVIRP, government, managing contractor, lead contractor, subcontractor, farmer, interest groups, etc. It is imperative that a good communication loop is developed so that policy makers, designers and constructors understand each other s goals and issues. Often constructors are left out of this loop resulting in a repetition of errors in the field where it costs the project. From a constructor s point of view, improvements could be made by 7

8 streamlining the planning, design and construction interfaces. Consideration should be given to sharing knowledge and learning from our experiences Relationships empower delivery During the 2009 NVIRP project, relationships between constructors, the managing contractor and the principal, as well as the common goal of completing the project, have empowered all involved to overcome any of the issues encountered along the coordination path. The project challenges have been significant; however the great relationships developed have enabled us to achieve an enormous construction program on time. 4.0 Conclusion The irrigation modernisation works across Australia are providing tremendous opportunities to grow design and delivery capacity and capability that will ultimately benefit the irrigation infrastructure owners and investors for years to come. Designers and constructors are responding to the opportunity by committing to building a long term sustainable business, as we undertake this exciting journey. The 2009 NVIRP works program continued to push the boundaries of what is achievable in irrigation modernisation from the Future flow s achievements in There are however opportunities for improvement that will benefit the entire industry: Policy, scoping and planning must occur well ahead of the design and construct program in order to clear the path for the constrained construction program. Design is a critical job that cannot be underestimated. It has to be done with a high degree of detail in order to reduce cost and scope expansion. Design and construct procurement may be able to address scope variability issues. To compare value site variability and quality differentiation should be considered. Building first class contracting resources requires commitment from investors and contractors alike. Quality is key at the beginning rather than auditing at the end of the project. Finally, we all should acknowledge that coordination and relationships are the oil that makes the modernisation cogs turn and without a can do culture success is unlikely. 8