Penmark – London Bridge Station Redevelopment

Penmark – London Bridge Station Redevelopment

CLIENT: Penmark – London Bridge Station Redevelopment
LOCATION: London Bridge Station
PROJECT SECTOR: Rail
CONTRACTOR POSITION: Tier 1 Contractor
PROJECT VALUE: £1bn

Project details:

This particular project related to the redevelopment of London Bridge Station by Costain Limited as the tier one supplier. The commission was for part of the project working with Penmark Limited on the £110m development of the platform and canopy works, providing commercial management services to develop and manage a team of five surveyors.


Solution:

The London Bridge station was a complex project, and the development of the platform and canopy came with a great deal of responsibility for the client and ProQS. We were required to develop and manage strategies for budget forecasting and cost reductions, then ensure contractual compliance, accountability and continuous application of the client policies. Not only was the role about building operational efficiencies on one element of the project, it also involved strengthening integration with the operational obligations for the wider project. Further responsibilities were required to procure and inspect materials off site, checking this was done in accordance with the contract before purchasing the materials the materials – a responsibility which was part of our appointment. We also recommended and undertook audits of supplier’s rates and prices to demonstrate claims provided value for money to Costain and their client.


Complexities of the project:

  • The site environment was changing daily.
  • The project involved meticulous management of a strategic partner, whose scope was critical to the program.
  • Maintaining the budget.
  • Our work included valuing 1,000 historic variation claims achieving cost certainty.
  • Annual forecasts were required to be fully prepared whilst developing and implementing improvements.
  • Using the clients’ multifaceted information technology system for managing the project finances, without training provided.

Conclusion:

The project reached a very strong and positive conclusion with 5 platforms being handed over, and forecasted, ready to be constructed under budget. A £70m subcontract negotiation and final account, the settlement of £4m of claims with significant saving on the budgeted amount, and 1,000 of outstanding variations positively assessed. We were also very proud in being able to support and develop a talented member of staff who was subsequently promoted within the company.


Kieron has a demonstrable experience in delivering complex major projects. Over the time we worked together at London Bridge, I found Kieron to lead by example, always with the end goal in mind. He was a valued member of the Commercial team, who always sought collaborative solutions whilst not being afraid of doing the hard work. A. Freemantle – Costain Limited SENIOR COMMERCIAL MANAGER COSTAIN GROUP PLC

Key points:

  • A hugely complex project and subsequent successful delivery
  • A very sizeable amount of variations and continuous costing involved
  • A satisfactory negotiation process leading to a final account
  • Project handed over to be completed under budget
  • Strong management, project leadership and people development

Analysis of the work involved:

  • Management and development of the commercial team
  • Develop and implement strategies for target recovery and cost reduction
  • Ensure accountability, transparency and compliance
  • Financial reports
  • Cost control and forecast preparation
  • Change management
  • Risk and opportunity management

Also recommended:

  • Greater integration with the operational team
  • Auditing of supplier’s rates and prices
  • Making sure the procurement and inspecting of materials off site occurred in accordance with the contract before buying.