Keynote Address

Seminar On
Best Practices In The Construction Industry
BPCI 2008

The KL International Airport Project

PROJECT MANAGEMENT EXPERIENCE
“Doing The Wrong Things Right!”

TAN SRI DATO’ Ir. JAMILUS HUSSEIN

CHAIRMAN CIDB MALAYSIA
PRESIDENT/CEO KLIA PREMIER HOLDINGS SDN BHD
Project Management & Value Management

The essence of Project Management is

really about delivering value.

The value (business) of the project

 to the Client
 to the Contractors & sub-contractors
 to the Consultants
 to the Public at large
2
 Project Management Value Proposition
 Completing project more quickly and cost effective.
 Saving effort and cost with proactive scope management.
 Better solution “fit” the first time through better planning.
 Resolving problems more quickly.
 Resolving future risk before the problems occur.
 Communicating and managing expectations with clients,
team members and stakeholders more effectively.
 Building a higher quality product the first time.
 Improved financial management.
 More focus on metrics and fact-based decision-making.
 Improved work environment.
 How These Values Achieved

 Project Management is a discipline – it has its own

“way” (using methods/available tools/practice) to
do the “wrong things right!” in managing a project.
 One of the tool is Value Management method &
techniques.

 Project Management leads, and take responsibility &

ownership to ensure healthy progress and successful
completion of project.
 it is not the Client’s “postman”.
 it is not monthly progress meeting.
 How These Values Achieved

 You need the knowledge, experience, the right

attitudes, and competencies.
 You need the right multi-disciplinary structured
organization.
 You need the right system and procedures.
 You need disciplinary and project management
competent personnel.
 You need to have (established) the right project
management working culture to drive the Client and
project team.
 State of Project Mgt Practice in Malaysia
 No real study has been done to ascertain at what state and
levels of practice.
 Almost everyone in the industry claim to know what project
management is and that they practice it.. but still many projects
are abound with problems.
 Having a person called Project Manager or Construction Manager
and a bunch of personnel constitute to project management
being practice.
 Projects can be manage through “remote control” – monthly
progress meetings, progress reports, cctv etc
 Administering & monitoring project = managing project =
Project Management
 Project performance & success is the sole responsibility of
contractors – that’s what they are paid for anyway!
 Proper and Formal
Project Management Practice will translate into..

Derive equitable commitment from stakeholders & action

holders as a “will” enabler & driver to achieve project
performance & success.
Definitive outlay of measures for effective monitoring,
control, and decision-making throughout project life-
cycle.
Making sure project goal in time, cost, quality, and total
cost are mutually consistent and attainable throughout
the delivery processes.
Clear & definitive strategy and planning to achieve
project deliverables throughout life-cycle phases.
 Formal PM Practice..

Putting in-place clear policies, organization/team,

managerial system and procedures for effective &
efficient monitoring an control processes.
Creation of an informed & supportive working culture
environment that foster dynamism & teamwork within
the project delivery organizational setup.
Provide strong leadership, disciplined & innovative
performance orientated organization & personnel to
the project & the Client.
 Project Management:
Pondering on the Basic
 The Art & Science of PM

PM is a science…
it relies on proven and repeatable processes
and techniques to achieve project success.

PM is an art…
it involves managing and relating to people
and require the project manager (leader &
leadership) to apply intuitive skills in situation
that are totally unique for each project.
 Project Management & Leadership

A good project management methodology will

provide the frameworks, processes, guidelines
and techniques to manage the people and the
workload thus increasing the odds of being
successful.
But,
Without a good leader and an effective leadership
the “right thing may be done wrongly”!
(It may takes only one or two things done wrongly
to waylaid the whole project performance)
 WHAT
PM Role &

Client
Client Vision, Goals

Management
& Objectives

Project

Approach
Management
HOW

Lead Stakeholders
Construction

Design Industry
Consultant

Project Development Environments

Disciplinary
Consultants

Main Contractor & Determination of Project’s Managerial Approach

Sub-Contractors

Mission Shared Values

What

Strategy Critical Success Factors

MGT Style Cultural behavior & strong traditions

Structure Roles, Responsibilities, Powers & Structure

How

Systems Putting in-place Mgt & Admin Procedures

Skill
Staff Allocating Skilled Staff as a result of above
 PM and Contractor Construction
Management Organization
WHAT

Client
Contractor
Construction Management
Project
Management Organization
HOW

Client

Construction
Industry
Client
Lead
Project Management Consultant
Organization Disciplinary
Consultants PD/PM
Client Main Contractor & PM Org
Sub-Contractors

Both organization compliment

PD/PM
PM Org to work towards PD/PM
Contractor Org
achieving project objectives

Cost Cost Design Dev

Planning & Quality Design Dev Planning & Quality
Contract HSSE Contract HSSE Engineering
Integration QA/QC Engineering Integration QA/QC
Risk Risk (Consultants)

Construction Management
&
Supervision
 Competing Demands:
“Influencing the End Result”
MECP = Major Executive
High Control Point
Economic Studies It is at the Initial
Order of Magnitude

Stages of the Project

60% Design Review

Cost, Time & Quality
Ability to Influence

100% Design
(Pre tender)
Functional Design
Feasibility

Capital Appropriation

Detailed Design
Tender Award

Construction
Commission
MECP MECP MECP MECP
Low
-75% -35% -7% 0% +75% +100%
Approximate Percentages of Construction Time
 Competing Demands: “The
Information Explosion”
The Information Explosion is
during this stage
100%

85%
Economic Studies
Functional Design
Information

Detailed Design
Tender Award
Construction

Commission

15%
Operate

0%
-75% -35% -7% 0% +75% +100%
Approximate Percentages of Construction Time
 Project Management
Performance & Success
Is about marginalizing potential
Conflicts, Issues, & Problems
through

Effective Control Timely

Problem-solving through Decision-making

Strategic & Project Planning

and
Project Management
Organization & System
 Project Controlling Principle
T
Each Development
Phase must be C
Controlled to ensure the
Project Development is
Q
in accordance with the O
set
Broad Plan for

I
subsequent Phases

Project END RESULT or Detailed Plan & Approach

for next Phase
GOAL Project Result

Controlling Aspects

Each Phase will be subjected to Controlling Processes

in
Time, Cost, Quality, Organization & Information
 The 3 Cornerstones of PM

C
O Ph a s i n g
N
T
R
O Decision-making
L
This represents the BASIS
for the Project Management Working Method
 Phased Project Development

Project Phasing
Idea What How How to Do Preserve
Make
P1 P2 P3 P5 P6
P4 O&M
Inception Definition Design Procurement Construction
Phase Phase Phase Phase Phase Phase

Dividing the Overall Project Development into

Distinct Project Phases.
Each with their unique Development Content.

Formulating UPFRONT
how the Execution Processes takes place,
Making the Total Development Scope MANAGEABLE!
 Project Management ‘Wedge’ Principle
i -D Construction on Paper 2-D

Quality
Construction in Practice 3-D
Start Operations
Cost
Project Controls

& Maintenance

Master Detailed Design Detailed Tender

Time Overall Interfacing Programme
Programme Schedules Schedules

Commissioning
Phase
Organization
Construction Acceptance
Phase

Procurement Delivery
Information
Phase
Design
Phase
Contract
Study &
Awarding
Definition
Final
Phase
Design
Feasibility Pre-Q & Tender
Study
 The Managerial Integration

Project Phasing
Idea What How How to Do Preserve
Make

Initiative Definition Design Procurement Construction O&M

Phase Phase Phase Phase Phase Phase

Remaining Scope

Achieved Result
T C Q O I T C Q O I T C Q O I T C Q O I T C Q O I Control
Project Project Project Implementation Operation &
Inception Program Design Program Maintenance
Program

Decision-making
Leads to a Decisive, Controlled and therefore
Manageable Overall Process!
 Project Management:
The KL International Airport Project
Experience
 KLIA Project - What not known

 A green field 25 mppa airport on a 10 x 10 km peat

soil, palm oil plantation and secondary forest site.
 7 yrs completion (a record! of sort) – from decision
to initiation, site study & selection to physical
construction, testing & commissioning, and crucial
airport operation operational readiness & transfer.
 2 yrs into project, sudden fundamental shift from a
Contractor-driven turnkey design & build to a Client-
driven total project management approach.
 Value of Good Project Mgt Practice
 52 months (a record!) physical construction
completion including test & commissioning and
operational readiness & transfer.
 from a RM20b turnkey to a Client-led RM6.9b final
construction cost.
 first ever airport to have successfully develop,
design, and implement a fully integrated airport
management system TAMS.
 all these with NO operational breakdown on opening
day except a minor glitch on the Communication
System.
 KLIA International Awards

 Dedalo-Minosse International Prize for

Commissioning a Building ~ Italy
 International Illumination Design Award ~ USA
 FLIGHT Aerospace Industry Award ~ France
 ASEAN Energy Efficient Award
 ASEAN Engineering Achievement Award
KLIA is sited on a green field site, 25,000 acres of
peat soil agricultural plantation
and secondary forest.
 Airport Layout – 1st Phase -7850 acres
1 AIR CARGO (EAST)
2 AIR CARGO (WEST)
3 COMMON SERVICES *
KL INTERNATIONAL AIRPORT 4
5
AIRPORT ENGINEERING *
SUB FIRE STATION
6 MOTOR TRANSPORT *
AIRPORT LAYOUT 7
8
TERM CONTRACTORS PLOT *
INCINERATION *

(25 MPPA) RESERVOIR 9

10
11
COGENERATION
WASTE MANAGEMENT *
FUEL FARM
12 TRACK TRANSIT SYSTEM
13 ULD YARD
14 EGR
15 MAS LINE MAINTENANCE *
16 AIRFIELD SAFETY UNIT
17 FORWARD TECHNICAL AREA
18 PETROL STATION
19 FORWARD FUEL
CONTROL POST
TNB INTAKE
AIRCRAFT DISCHARGE FACILITIES
SEWAGE PUMP STATION
TNB SUB-STATION
ERL RESERVE
MAS CAMPUS
BALANCING POND PETROL
STATION * ACTUAL LOCATION TO BE FINALISED
FLIGHT CATERING
AIRPORT BOUNDARY
AIRLINE
OPERATIONS ANIMAL, FISH &
RESERVE PLANT QUARANTINE
RUNWAY 1 FIRE BURNING GROUND

SATELLITE 'A'
FUTURE RUNWAY RESERVE

TAXIWAYS

J3
J5
MAIN FIRE STATION, TELECOM
EXCHANGE & TNB SUB-STATION
18 1
RETAIL PARK 13 FREE ZONE
TAXI WAITING 2
ADMINISTRATION BUILDING
17 16 J6

PUBLIC LONG TERM CAR PARK

J4 6 8 9
STAFF LONG TERM CAR PARK 19 3
12 11
PETROL STATION CONTROL TOWER 4 7 10
POLICE STATION CAR RENTAL BASES
HADJ COMPLEX HOTEL PLOTS SATELLITE 'B' RESERVE 15
TAXI & BUS HOLDING AREA
MOSQUE AIRCRAFT MAINTENANCE
SHORT TERM CAR PARK BUILDING
MAIN TERMINAL BUILDING 14 COMPASS BASE
5
AIRSIDE HOTEL
PETROL STATION VVIP
FUTURE RUNWAY
J1 TAXIWAYS RESERVE

PERIMETER ROAD (WEST)

J2
Welcome
Gate
RUNWAY 2
SEWAGE TREATMENT PLANT
0 1000m 2000m GROUND HANDLING AGENTS BALANCING POND
BALANCING POND METEOROLOGICAL AIRLINE GROUND HANDLING
STATION BASE

FOLLOWING ARE POSSIBLE LIST OF FACILITIES TO BE PROVIDED WITHIN

THE AIRPORT AREA IN THE FUTURE. LOCATION OF EACH FACILITY WILL
BE DETERMINED LATER.
- GOLF COURSE
- SPORT COMPLEX NOTE :
- THEME PARK
- REMOTE SEWAGE TREATMENT PLANTS 1. THIS LAYOUT IS BASED ON "AIRPORT LAYOUT 25 MPPA"
- CUSTOM COMPLEX 2. THIS DRAWING IS TO BE USED FOR INFORMATION ONLY
20 JUNE 95
25MPPA-3
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Earthwork commenced in January 1994. At the height of

earthwork construction (mid-1994), more than 300
excavators and 1,500 dump trucks worked around the clock
to remove a record of 2.5 million m³ of earth in a week. An
incredible 130 million m³ of earth was removed.
Site Support Facilities and Workers’
Accommodation Complex.
Access Road B20
Birds-Eye-View (June 1997)
View Towards Northeast of KLIA
View Towards Southwest of KLIA
Overview Satellite
VVIP Building
Control Tower
Runway-1 and Taxiway (June 1997)
Administration Building
Satellite Central Core –
Tropical Jungle Garden
Fuel Farm Facility
Quarantine Facility
Total Airport Management System (TAMS)

TAMS is a computer - based distributed management overlays that

integrates formerly de-coupled or standalone airport systems to support the
business and operational goals of KLIA.
 Some Examples of
Project Management
Implementation Strategies
(KLIA Experience)
 Planning Levels and Process
Deliverable/s
Planners Level of Conceptual & Managerial Skills

Level 5
Strategic Master Plan, Business Plan,
Planning Strategies, Roadmaps

Project Organization &

Level 4 Tactical Operational Scheme, Control
Planning Systems,Communication Plan
Project Activities Approaches
Level 3 Master & Strategies, 4D Planning,
Programming Master Implementation Progm

Level 2 Multi- Integrated logic Network

Disciplinary Progm, Interface Mgt System

Level 1 Singular Detailed Project Activities

Disciplinary Schedules & Sub-schedules
 Level of Conceptual & Managerial Complexity of Projects
 The Four Managerial Levels of KLIAB

1 Overall Project Level

KLIA Bhd Management
- BoD, M&C Committees
- MD, CD, SCGM Ext. new
Conc. users
- GM Parties devpmt

2 Overall Construction Level

Daily
3
Area Area Area Area Area Area Area
Area Coordination meetings
level level level level level level level
for monitoring & control.

Daily Package Level meetings

4 Package Level With Contractors,
Consultants, etc.
 Policy Decision & Monitoring Strategy

Chairperson
&
Frequency of Meeting

DEPUTY PRIME MINISTER

CABINET COMMITTEE :
( EVERY 2 MONTHS)

KLIA BERHAD CHAIRMAN

PROGRESS MONITORING COMMITTEE :
( EVERY 2 WEEKS )

KLIA BERHAD MANAGING DIR

PROJECT COMMITTEE :
( EVERY WEEK )

KLIA BERHAD CONSTRUCTION DIR

CONSTRUCTION COMMITTEE : ( EVERYDAY )
KLIA Timing Strategy:
“Master Implementation Programme”
 KLIA Interfacing Strategy

 With numerous Contract Packages present in the KLIA Project there

was a high demand for controlled interfacing between the works.
 Being fully aware of the stringent timeframe for the total
development, it was of paramount importance that work integration
and coordination was properly organized.
 Therefore the Interfacing Strategy applied to the implementation of
the KLIA project was planned and formalized well-ahead of the actual
execution of each of the Contract Packages.
 This created a controlled environment where little was left to chance
and technical (timely) interfacing became a contractual requirement.
 The next slides will provide a visualization of how each of the
Contract Packages was related to one another:
 KLIA Interfacing made Contractual
2003 2004 2005
2003 2004 2005
2003 2004 2005
2003 2004 2005
SUB STRUCTURE 2003 2004 2005
SUB STRUCTURE 2003 2004 2005
SUB STRUCTURE

Many separate contract package programmes

SUPERSTRUCTURE 2003 2004 2005
SUB STRUCTURE 2003 2004 2005
SUB STRUCTURE SUPERSTRUCTURE
SUPERSTRUCTURE
WET TRADES SUB STRUCTURE
SUB STRUCTURE SUPERSTRUCTURE
WET TRADES
SUPERSTRUCTURE
WET TRADES SUB STRUCTURE
SUPERSTRUCTURE
WET TRADES
ROOFWET TRADES

Each with its specific interfacing requirements

SUPERSTRUCTURE
ROOFWET TRADES
SUPERSTRUCTURE
ROOF
FACADE WET TRADES ROOF
ROOF FACADE WET TRADES
FACADE
MECH. & ELECTR. ROOF
ROOF FACADE
MECH. & ELECTR.
FACADE
MECH. & ELECTR. ROOF
FINISHINGS FACADE
MECH. & ELECTR.
MECH. & ELECTR.

High importance that each was

FACADE FINISHINGS
FINISHINGS MECH. & ELECTR.
FACADE
FURNITURE & ID& ELECTR.
MECH. FINISHINGS
FINISHINGS FURNITURE & ID& ELECTR.
MECH.
FURNITURE & ID FINISHINGS
FINISHINGS FURNITURE & ID
FURNITURE & ID FINISHINGS

carefully integrated through

FURNITURE & ID
FURNITURE & ID
FURNITURE & ID

Package
Pre-defined Interfacing schemes Package
Contract Contract

KLIA
INTERFACE
Package MANAGEMENT Package
Contract Contract
SYSTEM

2003 2004 2005 2003 2004 2005

Pre-defined Interfacing schemes

2003 2004 2005 2003 2004 2005
SUB STRUCTURE 2003 2004 2005 SUB STRUCTURE 2003 2004 2005
SUB STRUCTURE 2003 2004 2005 SUB STRUCTURE
SUPERSTRUCTURE SUPERSTRUCTURE 2003 2004 2005
SUB STRUCTURE SUB STRUCTURE

that became part of the Package Contract

SUPERSTRUCTURE
WET TRADES SUPERSTRUCTURE
WET TRADES
SUB STRUCTURE SUB STRUCTURE
SUPERSTRUCTURE
WET TRADES SUPERSTRUCTURE
WET TRADES
ROOFWET TRADES ROOFWET TRADES
SUPERSTRUCTURE SUPERSTRUCTURE
ROOF ROOF
FACADE WET TRADES FACADE WET TRADES
ROOF ROOF
FACADE
MECH. & ELECTR. FACADE
MECH. & ELECTR.
ROOF ROOF
FACADE
MECH. & ELECTR. FACADE
MECH. & ELECTR.
FINISHINGS FINISHINGS
MECH. & ELECTR.
FACADE MECH. & ELECTR.
FACADE
FINISHINGS FINISHINGS
FURNITURE & ID& ELECTR.
MECH. FURNITURE & ID& ELECTR.
MECH.
FINISHINGS FINISHINGS
FURNITURE & ID
FINISHINGS
FURNITURE & ID

FURNITURE & ID
Contractual Interfacing became FURNITURE & ID
FINISHINGS
FURNITURE & ID

FURNITURE & ID

the basis of the KLIA Interface

Management System
 Interfacing

Interfacing

Interfacing

Interfacing

Interfacing

Interfacing
Contractual
Interfacing

Interfacing
Contract
Packages
KLIA Interfacing Visualized

Interfacing

Interfacing

Interfacing

Interfacing
 KLIA Contract Packaging Strategy

PACKAGING CONCEPT
PROJECT LEVEL
PROJECT
LEVEL

Independent
Package Package Package Package Package Package Package Works
Group A Group B Group C Group D Group E Group F Group G Package
Group H
PACKAFES

FAST TRACK FAST TRACK D&B D&B FAST TRACK

MAIN

MAIN MAIN MAIN MAIN MAIN

PACKAGE PACKAGE PACKAGE PACKAGE PACKAGE
PACKAGE LEVEL

PACKAFES

VARIOUS VARIOUS VARIOUS DIRECT

SMALLER

DIRECT DIRECT DIRECT INDEPENDENT

SMALL SMALL SMALL PACKAGES
PACKAGES PACKAGES PACKAGES

NSC NSC NSC NSC NSC

NSC PACKAGE

PACKAGES PACKAGES PACKAGES PACKAGES PACKAGES

PACKAFES
NSC
LEVEL
GROUPS
SPECIAL

SPECIALIZED SPECIALIZED SPECIALIZED

WORKS WORKS WORKS
PACKAGES PACKAGES PACKAGES
23 December 2004
 Procurement (Contract) Strategy

Due to Time constraint to complete and

operate within 6 years from point of
decision to build (normal 10-12 years)
a Fast-track strategy was crucial.

A combination of all (running parallel),

depending on the size, scope, and complexity:

 Fast-track Design and Build

 Fast-track Conventional
 Conventional
 KLIA Fast Track Implementation

 Due to the stringent Project timeframe available, most of the major

Project Scopes will be implemented on a Fast Track Basis
TIME
Detailed Design
Tender Design Completed

Detailed Design
Construction
Drawings
Procurement Completed

Construction
Construction Drawings Completed

Construction
Overlap between
Design & Construction
KLIA Formal Communication Strategy
FORMAL MEETING STRUCTURE KLIAB CONSTRUCTION MANAGEMENT

TYPES OF MEETING w eek 1 w eek 2 w eek 3 w eek 4 Chairman

M T W T F S M T W T F S M T W T F S M T W T F S
1
2 KLIAB Managem ent m eeting Tan Sri Dato' Ir . Jamilus Hussein
3 KLIAB Projects Com m ittee m eeting Tan Sri Dato' Ir . Jamilus Hussein
4 KLIAB Progress Com m ittee Meeting
5
6
7
8 Overall CM Meeting Dato' Ir. Hamzah Hasan
9 KLIAB Material Com m ittee Dato' Ir. Hamzah Hasan
10
11 Consultants Contractors Consultants Contractors
12 Area Coordination m eetings
13 Central Area Ir. Yeong Chee Meng
14 Passenger Terminal Complex Ir. Liang Hian Ching
15 Runw ays & Apron Area Dato' Ir. Ng Chong Yuen
16 Southern Support Area Ir. Edw ard Tan
17 Underground Services Ir. Wang Chung Ta
18
19
20 Passenger Term inal Com plex
21 PTC 1 MTB + CP + BHS Ir.Lee Soon Jin
22 PTC2 Satellite A Ir.Rashid Bin Omar
23 PTC3 TTS Ir.Zainal Abidin Ishak
24 PTC4 TAMS Ir.Nazaruddin
25 PTC5a PLB & Aprons Services Ir.Nasir Hamed
26 PTC5b PLB & Aprons Services Ir.Nasie Hamed
27 PTC6 Landscaping at MTB Ir.Hamdan Mohd Kassim
28 PTC7 Airport seating & loose furniture Ir.Mohd. Jais Basiran
29 PTC8 Landscaping at SB Ir.Hamdan Mohd Kassim
30 PTC9 Artw orks Ir.Hamdan Mohd Kassim
31
32
33 Runw ay & Apron Area
34 RA01 Runw ay 1 + T-w ay Ir.Chow Weng Khoon
35 RA02 Runw ay 2 + T-w ay Ir.Chow Weng Khoon
36 RA03 Aprons West Ir.Chow Weng Khoon
37 RA04 Apron East Ir.Chow Weng Khoon
38 RA05 Aprons South Ir.Chow Weng Khoon
39 RA06 Quarry Operation Hill 33 Ir.Chow Weng Khoon
40 RA07 Operation Buildings Ir.Lee Soon Jin
41 RA08 Approach Guid. & AGL Ir.Kok Soo Chon
42 RA09 Apron Floodlighting Ir.Kok Soo Chon
 Quality Management Strategy
KLIA Bhd QUALITY MANAGEMENT MANUAL

CONSULTANT Submit CONTRACTORS

KLIA Bhd - review - review
Submit - monitor - monitor
- Develop - audit - audit
Audit
- Review
- Strategize
Prepare Internal Audit Prepare Internal Audit
- Monitor
- Audit
- internal Consultant’s Contractors
Audit
- external Quality Plan Quality Plan
 Conclusion

 The KLIA Project is a good example of how Project

Management has benefited the stakeholders,
project team, the public, and the country.
 To benefit, Project Management has to be
formally implemented through its proper methods
and best practices within a structured Project
Management organization.
 Knowledge, experience, and personnel
competencies in Project Management determine
greatly the practices within the project
environment.