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Sydney Water, Partnering for Success (P4S)

Oceania

Sydney Water identified a need to undertake an enterprise-wide view of its supply chain and conceived and implemented the Partnering for Success (P4S) supply initiative; the biggest transformation program any water utility in Australia had ever undertaken. P4S was designed to help Sydney Water simplify procurement, optimise value throughout the supply chain and drive better outcomes for customers.

Notably, Sydney Water is one of the first Australian organisations to adopt principles of Project 13 and the NEC contract which promotes collaboration and collective risk sharing with supply chain partners.

Brief

The primary objectives included:

  • Improving collaboration, integration, and quality across the value chain
  • Optimal management of lifecycle costs across all stages of the asset lifecycle
  • Simplifying the supply chain
  • Effective management of safety and the environment
  • Building a diverse and inclusive environment
  • Enhancing reputation and customer trust
  • Innovating for new and better solutions that deliver benefits to customers
  • Developing a flexible long-term model that promotes strong partnerships
  • Simplifying the supply chain.

What we did

HKA provided a multi-disciplined team to design and implement the P4S model, lead the procurement activities and manage business transformation. The transaction included full end-to-end management from design and management to contract award. HKA drafted all tender and evaluation documentation and worked with Sydney Water probity advisors to manage risk.

HKA also undertook extensive engagement with the supply-chain, via industry briefing sessions, to rigorously test the market. The significant level of market engagement created buy-in and support from the market which led to the project’s overall success.

In leading the transformation, HKA formed an integrated team with Sydney Water to design and deliver the organisational change management components relating to people, process, and systems. We designed the transition governance, managed all stakeholders, and supported Sydney Water in leading the program.

HKA worked with Sydney Water and the Regional Development Consortia to stand up the teams ready to deliver both capital and maintenance services. We managed the oversight at the point of go-live to ensure that the operational risk was minimised and carefully controlled.

HKA helped Sydney Water to build governance structures to drive change and accountability and to build collaborative teams and ways of working that enabled Sydney Water and its partners to realise the benefits of long-term partnering arrangements.

HKA also worked with P4S to develop a maturity matrix which is being used to guide and measure the performance of P4S over its 10-year lifespan. The matrix establishes benchmarks and sets maturity targets against internal and external indices across operational and strategic focus areas. This is an innovative industry-leading maturity model and the first of its type for a water utilities program like P4S.

Outcomes

The P4S model is the first to successfully incorporate a consortium of design, delivery, and maintenance for an Australian utility company. The program transformed the business from a transaction model to a partnering enterprise model, committed to collaborative contracting.

P4S is an enterprise-wide transformation with integrated asset delivery, maintenance, and facilities maintenance, using Project 13 principles and implementing the NEC4 contract. Sydney Water has subsequently entered into a number of new 10-year partnerships to deliver planning, end-to-end design, construction, maintenance and facilities management on a range of water and wastewater infrastructure. P4S transforms the water sector supply chain for the entire Greater Sydney region.

Over 10 years Sydney Water will invest at least $4 billion in infrastructure under the new delivery model and the Regional Delivery Consortia are investing in skills, capability and training of the workforce. Implementation of the model is expected to create 1,200 jobs over the next decade as well as support local industry. From apprenticeship programs through to engagement with universities, the future skills and resources will be an ongoing legacy of the program. The regional-based model will help deliver further efficiencies, improve network resilience, and provide greater assurance on delivery of services.

"An award-wining project having successfully won: NEC Awards: Client of the Year; AIPM Project Management Achievement Awards: NSW Transformation Program of the year; and 2020 World Commerce and Contracting Awards: Strategic Direction."
Project Details
  • Client
    Sydney Water
  • Year
    2018-2020
  • Value
    Confidential
  • Services
    Advisory
  • Sectors
    Power & Utilities