Contractor Alliancing Sean Mooney Programme Manager

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1 1 Contractor Alliancing Sean Mooney Programme Manager

2 Today s Agenda Introduction Background Contractor Alliancing The Process Alliance Electricity Alliance North (EAN) Optimise Water (LLP) JV Benefits of Alliancing Questions and Answers

3 Definitions Contractor An organisation or individual that contracts with another organisation or individual for the construction of a building, road or other facility Alliance Is an agreement between two or more parties, made in order to advance common goals and to secure common interests. Contractor Alliancing Two or more organisations sign an agreement to deliver a specific Programme of Works that meets with their respective Business goals aligning with their common interests

4 Definitions Joint Venture (JV) A business agreement in which parties agree to develop a new entity and new assets by contributing equity. The parties then exercise control over the enterprise and consequently share revenues, expenses and assets.

5 + = The Process Alliance

6 Who is KMI+?

7 Electricity Alliance There are six Alliances Four Substations North, Central, South East, South West Two Overhead Lines East and West Contract Period April 2007 March 2012 (option for additional 5 years). All Alliances have now extended their respective Contracts to March 2017

8 Electricity Alliance The Alliance is a partnership between National Grid and 15 construction companies It has been formed to deliver a major investment programme to update and develop the high-voltage transmission network

9 Electricity Alliance North (EAN) National Grid (NG) are committed to upgrading their current capacity and the robustness of the Electrical Power Network the transmission lines as each substation affected will need to be upgraded to suit.

10 Electricity Alliance North (EAN) 14 th February 2012 Committed to safely delivering robust and reliable substations, ensuring improved efficiency and value through collaboration

11 EAN Priorities 2011/12 Drive a Zero Harm culture Generate safe, sustainable, quality lifetime solutions Value+..year in, year out Programme Management across Development, Design, Construction and Closure Develop all our people, our identity... a great place to work Engage with our stakeholders Forward resource planning Deliver the Capital Plan Get ready for RIIO

12 Optimise Water (LLP) Joint Venture Optimise Water (LLP) is a Joint Venture between The JV was awarded the AMP5 Framework with Thames Water for Capital Works on Network Infrastructure, covering Thames Valley and North London

13 Optimise Water (LLP) JV Victorian Mains Replacement Upgrading sewers Developer Services, and: Repair and Maintenance of underground Water Network, covering Thames Valley and South London

14 Safe Working

15 Donations to Charity

16 Investment in Training

17 Industry Awards

18 Industry Awards

19 Benefits of Alliancing - Client Early Contractor Involvement (ECI) Programme Management Managing Risk - Early Identification and Mitigation Consistency in Project Lifecycle Establishing Long Term Relationships

20 Benefits of Alliancing - Client Efficient Management Reporting Advanced Procurement Right Solutions Contractor Resources and Expertise Provides Best Value Cost Certainty and Commercial transparency

21 Benefits of Alliancing - Contractor Future workload with committed Turnover and Profit (?) Better understanding of the Clients needs and drivers Processes and Systems Investment in Training, Development and Resources including People, Equipment and Supply Chain Input to Projects in the Concept and Definition Phases to ensure the right solution

22 Benefits of Alliancing - Contractor Constructability support with input to schedules and key Milestone dates Collaborative Working with Best Practice and Value Engineering Teamwork Innovation Lessons Learnt Continuous improvement

23 Summary Over 75% of our business is based on design and construct with the key to our success being achieved through close collaboration with customers, consultants and the supply chain. This is in both formal and informal relationships

24 Q and A??? ThanQ for listening...

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