Interim Management and Troubled Project Turnaround

Medupi Power Station

Lephalale, South Africa
Medupi Power Station

Medupi Power Station

Lephalale, South Africa

The Medupi Power Station is a coal fired high pressure boiler system designed to produce 4788MW of total power or 798MW from each of its six boiler units. Source water for the boilers will be piped from a raw water reservoir. The EPC contractor is responsible for the design, supply, installation and commissioning of the ultra-pure water treatment plant and condensate polishing plants.

Challenge

Project delayed by the customer for more than 7 years with extension of time (EOT) paid as cost-plus. Project experiencing all the signs of a troubled project and tense relationships with the customer. Continuous support of the project management team for over five years. FIDIC EPC contract at fixed price and duration.

Project Governance and portfolio management
  • Assessment of the project situation (financials, scope, schedule, quality, customer relationship).

  • Change of the management team and replace the main subcontractor with the support of the customer.

  • Re-engage the customer in a collaborative relationship.

  • Agreement with the customer on the limits of the scope, the warranty and the maintenance obligations as well as disputed items to be settled amicably.

  • Implementation a strong cost tracking system.

  • Maintain employee engagement and morale during the completion phase through flexibility, social activities, skills development and incentive programs.

Interim Management and Troubled Project Turnaround
  • Implementation of a project steering committee with a corporate and local management team, implementation of KPIs (risk, financials, deliverables, procurement, HR).

  • Act at corporate level as expert to help set up the project framework, organization, resource selection, programming, risk management, monitoring and control, reporting.

Claims & Dispute Resolution
  • Assessment, prioritization, research, documentation, and substantiation of claims with local team and quantity surveyor.

  • Support and coach local project management team with strategies and negotiations. 

  • Claims and settlement workshops with customer and consultants. 

  • Act as escalated level in negotiations with the customer. 

  • Negotiation and assistance to legal counsel for legal dispute with a former subcontractor before the High Court of South Africa.

Project Management, Monitoring and Control
  • Implementation of a management per work package/orders for internal and subcontracted activities. 

  • Strengthen procurement process and purchase order bookings, approval and documentation using the existing ERP and the PMIS. 

  • Implementation of a cost forecasting process based on existing ERP capabilities and earned value measurement.

Project Management Information Systems (PMIS)
  • Implementation of a PMIS using SharePoint to manage project documentation, emails, time sheets, internal work orders, issue tracking and claim substantiation. 

  • Libraries built with workflows to enable quick and accurate contractual response and easy substantiation of claims.

Training & Coaching
  • Mentoring project manager over 3 years. 

  • Implementation of various training programs leveraging the expertise and the best practices of other entities, also offering direct training and external training: FIDIC obligation and limitation, procurement best practices using the capabilities of the ERP, Cost forecasting and earned value measurement, SharePoint for document management...