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Sydney Water, Partnering for Success (P4S)

Greater Sydney Region

AIPM Award for NSW Transformation Program of the year (2020)

Sydney Water identified a need to undertake an enterprise-wide view of its Supply Chain and conceived and implemented the Partnering for Success Supply initiative; the biggest transformation program any water utility in Australia had ever undertaken. P4S identified the optimum means by which Sydney Water could simplify procurement, drive better outcomes for customers and optimise value throughout the Supply Chain. Notably, Sydney Water is the first international organisation to adopt principles of Project 13.

 

Brief

The primary objectives included:

  • Managing safety effectively
  • Focusing on the outcomes that customers value
  • Innovating for new and better solutions that deliver the benefit customers need
  • Standardising assets
  • Simplifying the Supply Chain
  • Managing the total lifecycle cost across all stages of the asset lifecycle
  • Improving collaboration and integration across the value 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.

In leading the transformation, HKA has 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.

A key element was to break down the silos internally whilst developing a partnering model at the same time. The solution was to bring business functions together to collaborate and drive efficiency by integrating maintenance of assets.

HKA also undertook extensive engagement with the supply-chain via industry briefing sessions, to rigorously test the market. We reflect that the market engagement led to the overall success through the buy-in and support by the market as reflected in supplier feedback.

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 white and blue collar workforce. Implementation of the model is expected to create 1200 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.

Project Details
  • Client
    Sydney Water
  • Year
    2019
  • Services
    Advisory
  • Sectors
    Power & Utilities