APPENDIX 22
Memorandum submitted by Lloyd's Register
Rail Ltd
1. EXECUTIVE
SUMMARY
This short memorandum presents Lloyd's Register's
contribution to the Transport Committee consultation on the transport
links for the 2012 Olympic Games.
Founded in 1760, Lloyd's Register is independent
of any government or any other body and is non-profit distributing.
As an independent risk management organisation, it routinely helps
clients to deliver their business goals, while optimising safety,
quality and preservation of the environment. The Lloyd's Register
Group has a world class track record in verification and related
activities.
Defining the requirements for the transport
infrastructure for the local and national geography will be key
to success. It will also be important to ensure these requirements
reflect the needs, up to 2012 for the Games themselves, and for
the life of the infrastructure thereafter.
Proper definition of the requirements, and appropriate
risk based verification of their delivery throughout the programme
of works, will provide assurance of meeting the overall goals.
It is important that we learn the lessons from
other cities that have hosted major games and that appropriate
benchmarking is performed to learn from and build upon best practice.
Adopting a best practice structured approach
will provide a solid framework for the management of the infrastructure
to ensure effective risk management of the delivery, operation
and through-life management of the transport assets. Such a framework
is provided by British Standards PAS 55 ("Specification for
the optimized management of physical infrastructure assets",
published in May 2004) which is increasingly being applied with
great effect internationally.
These factors of proper requirements definition,
specification, risk based verification and a best practice structured
approach to asset management will reassure investors, infrastructure
owners, operators and most importantly the users of the transport
infrastructure that the transport system satisfies all expectations
when benchmarked against previous Olympic developments.
2. INTRODUCTION
The Transport Committee has requested views
regarding the delivery of transport links for the Olympic Games
in 2012. Lloyd's Register Rail welcomes the opportunity to provide
advice especially concerning:
— drawing on the experience of other
Games host cities through benchmarking;
— the benefits of risk based verification
in delivering major projects efficiently;
— identification of a best practice
structured approach to the management of assets.
The Lloyd's Register Group has a strong capability
and experience world wide in asset management, management systems
and assessment, as well as a full understanding and extensive
application experience of risk management and risk based systems.
In Taiwan, for example, we are providing a full scope verification
service for the High Speed Rail project, which is valued in excess
of US$14 billion. Covering Safety, Quality and Environmental and
Functional compliance, the risk based verification activity is
at the core of the successful delivery of the infrastructure.
Our submission draws on this type of experience
of major infrastructure projects in the transport sector.
3. BUILDING ON
EXPERIENCE
Learning the lessons from other cities that
have hosted the Olympics and other major games is essential to
providing the professional response to this challenge. It is important
to learn from the past: how can we avoid the mistakes and take
due cognisance of previous best practice, not just in the plans
themselves, but also in the management, delivery and longevity
of the infrastructure afterwards?
There is an opportunity to benchmark some of
the past host cities developments. The metrics must include not
only delivery of the results for the Games, but also the effectiveness
of the solution for the community and the nation thereafter. The
sustainability of the solution and the pain of its creation must
be factors considered in establishing best practice. A systematic
approach to this evaluation is required addressing quantified
and qualitative indicators of success that are equally applicable
to the situation in London.
4. DELIVERY—ASSET
MANAGEMENT AND
VERIFICATION
It is imperative that the solution is holistic
and takes account of the impact on the whole of the UK. It is
also important that the critical decisions are taken without delay
and the responsibilities to implement them are clearly defined
and allowed to be implemented without undue interference. Once
the design is agreed, and the money committed, let the contractors
take the responsibility to deliver, unhindered by late changes
of mind, or reallocation of budgets.
It is, of course, entirely right and proper
to put in place appropriate checks and balances, but this can,
and should be achieved without intrusive regulation. The widely
used method of defining the requirements and testing the outcome
against them is ideal here, with appropriate independence of those
performing the checks. Monitored adherence within agreed frameworks
with cleverly and fairly devised performance measurement will
ensure that the outputs are as required and to good time and cost.
Complex high value projects benefit from risk
based verification. Performing verification activities based on
the identified project risks allows assessment resource to be
allocated to those areas where the potential for material failure
is most significant. The risk based verification output either
provides the reassurance of a well controlled project providing
the correct outputs, or alternatively provides valuable information
for early management action. Risk based verification reduces risk
and minimises unforeseen impacts on functionality, safety, health
and the environment.
In May 2004, the British Standards Institution
published Publicly Available Specification 55 (PAS 55): "Specification
for the optimized management of physical infrastructure assets".
It is applicable to any organisation where physical assets are
a key or critical factor in achieving business objectives and
effective service delivery. This provides a best practice structured
approach to the management of assets over their lifetime. Lloyd's
Register was the prime author of this standard.
A system developed and implemented in accordance
with the requirements of PAS 55 has a structure that directs all
asset management activities towards achievement of the business
plan, at optimal cost, within the law and on a sustainable basis.
Provision of visibility of such arrangements
comes through independent assessment, and certification, giving
a public statement of the credibility of the Asset Management
practices and asset performance in the company concerned.
Adopted as a framework for the management of
the transport infrastructure, it will provide a means for ensuring
all "best practice" elements are in place, and a way
of continuing to meet those elements by effective measurement.
5. CONCLUSION
It is clear that there is a need for sustainable
transport provision not just for the 2012 Olympics, but also for
the years that follow.
Adopting a best practice structured approach
such as PAS 55, learning from benchmarking of recent Games developments
and applying risk based verification of the full scope of the
transport projects will ensure that all the elements are present
to allow the achievement of performance as defined. It will ensure
risks are both controlled and managed whilst delivering the transport
solution in a cost effective and sustainable way.
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