News

Collaboration is the key

Posted on 22 May, 2011 in Stornoway News

Managing risk and complexity in long-term business relationships was the topic for discussion when Tim Gardner took to the stage at the Collaborative Contracting Excellence Summit held on May 16 – 18 in Sydney.

As Managing Director of Stornoway, a specialist services provider, Tim has many years’ experience establishing and managing contracts with local and state government and private business.

Stornoway has a well-established partnership with the Tasmanian Government, maintaining important public assets and supplying high quality quarry products.

Stornoway also works with the Department of Infrastructure, Energy and Resources (DIER), Hydro Tasmania, local councils and business to deliver asset management and road maintenance services across the state.

Tim’s presentation centred on the experience of developing and maintaining a relationship-based approach to long-term road network management for Hydro Tasmania, Australia’s largest producer of renewable energy.

The contract, established in January last year, sees Stornoway taking responsibility for the management and maintenance of Hydro Tasmania’s entire road network (around 600 kilometres) for up to five years.

Stornoway delivers a complete asset management package including:

• asset inspection
• road condition data analysis and risk assessment
• works prioritisation and programming
• delivery of all required construction and maintenance works.

As a relationship-based contract, Stornoway and Hydro Tasmania worked jointly to develop the scope of works, maintenance methodology and the form of contract required to ensure effective long-term management of Hydro Tasmania’s road network.

Tim’s presentation covered this journey including:

• Using a relationship-based contract as a basis for a long-term asset management project
• Setting up the basis for a long-term relationship
• Managing the risk in transition from project initiation to project delivery
• Handling the relationship complexities that inevitably arise in the “family”.

Positives

• Short-term gains in asset (road) condition
• Strong safety and environmental focus
• Detailed and regular reporting on project delivery
• Strong relationship development at the operational level.

Learnings

• Managing the transition from project establishment to project delivery is critical
• Organisational culture (on both sides) plays a major role in the success of the model
• Succession planning is essential as changes in key personnel can have a significant impact
• Clarity and joint understanding around project delivery and key result areas is critical
• Develop stakeholder relationship management as a key skill within the project team
• Keep working on the relationship at all times!

 

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