TAN SRI DATO’ Ir. JAMILUS HUSSEIN CHAIRMAN CIDB MALAYSIA

1. 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

2. 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

3. 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.

4. 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.

5. 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.

6. 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! State of Project Mgt Practice in Malaysia

7. 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. Proper and Formal Project Management Practice will translate into..

8. 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. Formal PM Practice..

9. Project Management: Pondering on the Basic

10. 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.

11. 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)

12. Stakeholders WHAT Project Development Environments Client Client Vision, Goals & Objectives Determination of Project’s Managerial Approach Project Mission Shared Values Management What HOW Strategy Critical Success Factors MGT Style Cultural behavior & strong traditions Structure Roles, Responsibilities, Powers & Structure Lead Design Consultant How Systems Putting in-place Mgt & Admin Procedures Industry Construction Skill Staff Disciplinary Consultants Allocating Skilled Staff as a result of above Main Contractor & Sub-Contractors PM Role & Management Approach

13. PM and Contractor Construction Management Organization Contractor Construction Management Organization WHAT Client Client Client Project Management Organization PD/PM PM Org Project Client Management HOW PD/PM Contractor Org PD/PM PM Org Industry Lead Consultant Construction Planning & Integration Quality QA/QC Cost Contract Risk HSSE Design Dev Engineering (Consultants) Planning & Integration Quality QA/QC Cost Contract Risk HSSE Design Dev Engineering Disciplinary Consultants Construction Management & Supervision Main Contractor & Sub-Contractors Both organization compliment to work towards achieving project objectives

14. Competing Demands:“Influencing the End Result” = Major Executive Control Point MECP It is at the Initial Stages of the Project Order of Magnitude 60% Design Review 100% Design (Pre tender) Feasibility Capital Appropriation MECP MECP MECP MECP High Economic Studies Functional Design Ability to Influence Cost, Time & Quality Detailed Design Tender Award Construction Commission Low -75% -35% -7% 0% +75% +100% Approximate Percentages of Construction Time

15. Competing Demands: “The Information Explosion” The Information Explosion is during this stage Operate 100% 85% Economic Studies Functional Design Detailed Design Information Tender Award Construction Commission 15% 0% -75% -35% -7% 0% +75% +100% Approximate Percentages of Construction Time

16. Project Management Performance & Success Is about marginalizing potential Conflicts, Issues, & Problems through Control Effective Problem-solving Timely Decision-making through Strategic & Project Planning and Project Management Organization & System

17. T Each Development Phase must be Controlled to ensure the Project Development is in accordance with the set Project END RESULT or GOAL C Q O Broad Plan for I subsequent Phases Detailed Plan & Approach for next Phase Project Result ControllingAspects Each Phase will be subjected to Controlling Processes in Time, Cost, Quality, Organization & Information Project Controlling Principle

18. The 3 Cornerstones of PM C O N T R O L P h a s i n g Decision-making This represents the BASIS for the Project Management Working Method

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

20. Project Management ‘Wedge’ Principle i 2-D -D ConstructiononPaper Economical & Quality 3-D Functional Construction in Practice Quality Design & Technilogical Quality Value Engineering Start Operations Cost & Maintenance Master Budget Technical Design Estimates Quality Review Tender/Construction & Budgets Budgets Contract Admin. & Change Order Project Controls Detailed Tender Master Detailed Design Overall Interfacing Programme Time Schedules Programme Schedules Commissioning Phase Organization Acceptance Construction Phase Delivery Procurement Information Phase Design Contract Phase Study & Awarding Definition Decision-making throughout all ProjectPhases Final Phase Design Feasibility Pre-Q & Tender Study

21. The Managerial Integration Project Phasing What Preserve Idea Do How How to Make Definition O&M Initiative Design Construction Procurement Phase Phase Phase Phase Phase Phase Remaining Scope Achieved Result Control 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 Operation& Project Project Project Implementation Inception Program Design Program Maintenance Program Decision-making Leads to a Decisive, Controlled and therefore Manageable Overall Process!

22. Project Management: The KL International Airport Project Experience

23. 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.

24. 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.

25. 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

26. KLIA is sited on a green field site, 25,000 acres of peat soil agricultural plantation and secondary forest.

27. AIRPORT LAYOUT (25 MPPA) BALANCING POND PERIMETER ROAD (EAST) FLIGHT CATERING AIRPORT BOUNDARY ANIMAL, FISH & PLANT QUARANTINE FIRE BURNING GROUND SATELLITE 'A' AIRPORT BOUNDARY 18 1 FREE ZONE 13 2 17 16 6 9 19 3 11 12 4 7 10 POLICE STATION SATELLITE 'B' RESERVE 15 HADJ COMPLEX MOSQUE AIRCRAFT MAINTENANCE 14 COMPASS BASE 5 PETROL STATION TAXIWAYS WESTERN ACCESS ROAD PERIMETER ROAD (WEST) RUNWAY 2 SEWAGE TREATMENT PLANT BALANCING POND GROUND HANDLING AGENTS BALANCING POND METEOROLOGICAL AIRLINE GROUND HANDLING STATION BASE Airport Layout – 1st Phase -7850 acres 1 AIR CARGO (EAST) 2 AIR CARGO (WEST) 3 COMMON SERVICES * KL INTERNATIONAL AIRPORT 4 AIRPORT ENGINEERING * 5 SUB FIRE STATION 6 MOTOR TRANSPORT * N 7 TERM CONTRACTORS PLOT * 8 INCINERATION * 9 COGENERATION RESERVOIR 10 WASTE MANAGEMENT * 11 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 AIRCRAFT DISCHARGE FACILITIES TNB INTAKE SEWAGE PUMP STATION TNB SUB-STATION ERL RESERVE MAS CAMPUS PETROL * ACTUAL LOCATION TO BE FINALISED STATION AIRLINE OPERATIONS RESERVE RUNWAY 1 FUTURE RUNWAY RESERVE TAXIWAYS J3 J5 MAIN FIRE STATION, TELECOM EXCHANGE & TNB SUB-STATION RETAIL PARK TAXI WAITING ADMINISTRATION BUILDING J6 PUBLIC LONG TERM CAR PARK 8 J4 STAFF LONG TERM CAR PARK PETROL STATION CONTROL TOWER CAR RENTAL BASES HOTEL PLOTS EXISTING ROAD - B20 TAXI & BUS HOLDING AREA SHORT TERM CAR PARK BUILDING MAIN TERMINAL BUILDING AIRSIDE HOTEL VVIP J1 FUTURE RUNWAY RESERVE J2 Welcome Gate 0 1000m 2000m 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

28. 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.

29. Site Support Facilities and Workers’ Accommodation Complex.

30. Access Road B20

31. Birds-Eye-View (June 1997)

32. View Towards Northeast of KLIA

33. View Towards Southwest of KLIA

34. Overview Satellite

35. VVIP Building

36. Control Tower

37. Runway-1 and Taxiway (June 1997)

38. Administration Building

39. Satellite Central Core – Tropical Jungle Garden

40. Fuel Farm Facility

41. Quarantine Facility

42. 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.

43. Some Examples of Project ManagementImplementation Strategies(KLIA Experience)

44. Planning Levels and Process Deliverable/s Strategic Planning Master Plan, Business Plan, Strategies, Roadmaps Level 5 Project Organization & Operational Scheme, Control Systems,Communication Plan Tactical Planning Level 4 Project Activities Approaches & Strategies, 4D Planning, Master Implementation Progm Master Programming Level 3 Planners Level of Conceptual & Managerial Skills Integrated logic Network Progm, Interface Mgt System Multi- Disciplinary Level 2 Detailed Project Activities Schedules & Sub-schedules Singular Disciplinary Level 1  Level of Conceptual & Managerial Complexity of Projects

45. Overall Project Level 1 • KLIA Bhd Management • BoD, M&C Committees • MD, CD, SCGM • GM new devpmt Ext. Parties users Conc. 2 Overall Construction Level Daily Area Coordination meetings for monitoring & control. Area level Area level Area level Area level Area level Area level Area level 3 Daily Package Level meetings With Contractors, Consultants, etc. Package Level 4 The Four Managerial Levels of KLIAB

46. Chairperson & Frequency of Meeting : DEPUTY PRIME MINISTER ( EVERY 2 MONTHS) CABINET COMMITTEE : KLIA BERHAD CHAIRMAN ( EVERY 2 WEEKS ) PROGRESS MONITORING COMMITTEE : KLIA BERHAD MANAGING DIR ( EVERY WEEK ) PROJECT COMMITTEE : KLIA BERHAD CONSTRUCTION DIR ( EVERYDAY ) CONSTRUCTION COMMITTEE Policy Decision & Monitoring Strategy

47. KLIA Timing Strategy:“Master Implementation Programme”

48. 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:

49. Package Contract Package Contract Package Contract Package Contract KLIA Interfacing made Contractual Many separate contract package programmes Each with its specific interfacing requirements High importance that each was carefully integrated through Pre-defined Interfacing schemes KLIA INTERFACE MANAGEMENT SYSTEM Pre-defined Interfacing schemes that became part of the Package Contract Contractual Interfacing became the basis of the KLIA Interface Management System

50. Interfacing Interfacing Interfacing Interfacing Interfacing Interfacing Interfacing Interfacing Interfacing Interfacing Interfacing KLIA Interfacing Visualized Contract Packages Contractual Interfacing