The Channel Fixed Link : le Projet du Si

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The Channel Fixed Link le Projet du Siècle

• Case Study Feedback

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Major Projects Benchmarks
Performance Criterion Megaprojects1 Average Channel Fixed Link
Budget increase 88 69
Programme Overrun 17 14.2
Conformance Quality 53 not up to expectations Performed as expected
Operational Profitability 72 not profitable Operationally profitable
1) source Merrow (1988)
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The Channel Fixed Link 1the external environment

• Political uncertainty
• The 1987 UK election
• Suspicions of the banking community
• The initial contract
• Mortons role
• Booming EU economies
• Cost inflation, especially trains
• Rising revenue forecasts

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The Channel Fixed Link 2governance

• Rolling stock percentage fee
• Largest budget overrun failed to motivate TML
• Terminals and services fixed price
• Smallest budget overrun but largest source of
  contention effectively became inoperable
• Tunnels incentive contract
• Medium budget overrun, but on programme
• Motivated both sides to solve problems

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The Channel Fixed Link 3stakeholder analysis

• Internal
• Eurotunnel
• TML
• Workers
• Contractors and suppliers
• Shareholders /-

• External
• Travelling public
• British and French states
• Local communities /-
• Banks - -
• Future generations

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The Channel Fixed Link 4organisation design

• Phase 1 separated construction co-located
  design
• Limited coordination required for construction as
  two sites separate
• Phase 2 integrated organisation
• Breakthrough joined sites
• ME a common project
• Phase 3 flattened organisation
• Key tasks, commissioning and claims

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The Channel Fixed Link 5lessons

• Clear allocation of roles and responsibilities
• Integrate or separate client and contractor
• Package project
• Let packages as separate projects
• Strong clients mean successful projects
• Motivate resource bases through incentive
  contracts
• Defined the project mission fully

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The Channel Fixed Link 6/7success and failure

• Whose success?
• Whose failure?
• Your opinion