The Channel Fixed Link le Projet du Sicle

The Channel Fixed Link : le Projet du Siècle Case Study Feedback © Graham M Winch Case Study Feedback 1

Major Projects Benchmarks Performance Megaprojects 1 Criterion Average Budget increase 88% Channel Fixed Link Programme Overrun Conformance Quality Operational Profitability 17% 14. 2% 53% not up to expectations Performed as expected 72% not profitable Operationally profitable 1) source : Merrow (1988) © Graham M Winch Case Study Feedback 69% 2

The Channel Fixed Link 1 the external environment • Political uncertainty – The 1987 UK election • Suspicions of the banking community – The initial contract – Morton’s role • Booming EU economies – Cost inflation, especially trains – Rising revenue forecasts © Graham M Winch Case Study Feedback 3

The Channel Fixed Link 2 governance • Rolling stock – percentage fee – Largest budget overrun; failed to motivate TML • Terminals and services – fixed price – Smallest budget overrun but largest source of contention – effectively became inoperable • Tunnels – incentive contract – Medium budget overrun, but on programme – Motivated both sides to solve problems © Graham M Winch Case Study Feedback 4

The Channel Fixed Link 3 stakeholder analysis • • • Internal Eurotunnel ++ TML ++ Workers + Contractors and suppliers + Shareholders +/- © Graham M Winch • • • External Travelling public +++ British and French states + Local communities +/Banks - Future generations ++ Case Study Feedback 5

The Channel Fixed Link 4 organisation design • Phase 1 – separated construction; co-located design – Limited coordination required for construction as two sites separate • Phase 2 – integrated organisation – Breakthrough joined sites – M&E a common project • Phase 3 – flattened organisation – Key tasks, commissioning and claims © Graham M Winch Case Study Feedback 6

The Channel Fixed Link 5 lessons • Clear allocation of roles and responsibilities – Integrate or separate client and contractor • Package project – Let packages as separate projects • Strong clients mean successful projects • Motivate resource bases through incentive contracts • Defined the project mission fully © Graham M Winch Case Study Feedback 7

The Channel Fixed Link 6/7 success and failure • Whose success? • Whose failure? • Your opinion © Graham M Winch Case Study Feedback 8