ECRI Sponsors Meeting Hilton Kensington Hotel – London Day 1 – Wednesday 7 th June 2017 WELCOME ECRI ENGINEE RING & CONSTRUCTION 27 September 2006 RISK INSTITUT E 1
Session – 1 Welcome, Safety Moment, New Introductions, Administration, Adoption of Previous Minutes and Review of Agenda Rod Kyle, ECRI ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 2
Programme – Wednesday 7 th June 2017 Session Time Description Discussion Leader 08.00 - 08.30 Registration / Refreshments 1. 08.30 - 08.50 “ Welcome, Safety Moment, New Introductions, Administration, Adoption Rod Kyle of Previous Minutes and Review of Agenda ” 2. 08.50 - 09.50 “ Lessons Learned from the Skanska Project / Risk Review Process ” -- Kevin Morecroft, Head of Risk-Civil Engineering, Skanska UK 09.50 -10.10 Tea / Coffee Break 3. 10.10 -11.10 “ To Disrupt or be Disrupted “ -- Andrew Council, Group Head of Construction Risk, LendLease . 4. 11.10 -12.05 “ Security Peer Group “ -- Tim Potier, Vice President, Chief Security Officer, Parsons Corporation and Darren Albers, Director-Information Security, Fluor Corporation 5. 12.05 -13.00 “ Air Liquide E&C Risk Management “ -- Jean-Claude Joyeux, Director, Business Development EMI Projects, Air Liquide Inc. 13.00 - 14.00 Lunch 6. 14.00 - 14.30 “ Breakout Group Topic Introductions ” Rod Kyle A. ” Strengthening Compliance ” B. “ Dealing with Joint Ventures – Issues, Risks and Possible Solutions “ C. “ Construction Safety / Innovation “ 7. 14.30 -15.30 “Breakout Work Sessions” Groups 1,2 and 3 15.30 -15.50 Tea / Coffee Break 8. 15.50 -16.50 “Breakout Groups Feedback and Discussion” All -- Workshop Topic A, Group 1 Mark Watson -- Workshop Topic B, Group 2 Michael Burch -- Workshop Topic C, Group 3 Greg Ramsay 9. 16.50 - 17.00 Wrap-Up and Close Rod Kyle ECRI 17.00 End of Day 1 Session / Departure ENGINEE RING & CONSTRUCTION RISK INSTITUT E 3
Session - 2 Lessons Learned from the Skanska Project / Risk Review Process Kevin Morecroft, Head of Risk – Civil Engineering Skanska UK ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 4
Session - 3 To Disrupt or be Disrupted Andrew Council Group Head of Construction Risk Lendlease ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 5
Session - 4 Security Peer Group Tim Potier, VP, Chief Security Officer, Parsons Corp. & Darren Albers, Director – Information Security, Fluor Corp. ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 6
Session – 5 Air Liquide E&C Risk Management Jean-Claude Joyeux Director, Business Development EMI Projects Air Liquide Inc. ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 7
Session - 6 Introduction to Breakout Group Workshops Rod Kyle, ECRI ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 8
Session 6 – Breakout Topics Topics taken from Sponsor Inputs, SIG Mtgs. and ECRI’s Annual Risk Survey – 2017 The above plus Group Breakout Feedback used as the basis for possible New Best Practices ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 9
Session 6 – Introduction to Breakout Group Workshops Topic A – “ Strengthening Compliance ” Group 1 Facilitator / Presenter : Mark Watson, Amec Foster Wheeler Group 1 Recorder : Peter Olofson, ECRI (Breakout Group Allocation in Handout Packs) ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 10
Session 6 – Introduction to Breakout Groups Topic A – Strengthening Compliance With many recent cases in the Public domain, Feedback indicates that this is a Major concern across the Board With certain Sponsors, this is identified as their Biggest Risk There are both INTERNAL and EXTERNAL considerations : -- Code of Conduct, Confidentiality, Conflict of Interest, Anti- Bribery & Corruption Policies, Directors Liability etc. -- Compliance with multiple Laws & Regulations, Anti-Trust, FCPA / UK Bribery Act, Anti-Dumping, Conflict Minerals, Child Labour / Worker Welfare, (Anti)-Boycott, Environmental etc. There are Major Consequences of Infringement / Breach : -- Long-Term Damage to Reputation, Stock Prices, Loss of Home / Overseas Market access, Severe Financial Penalties, Attracting Talent, Financing Access, Disbarment and other ECRI Sanctions ENGINEE RING & CONSTRUCTION RISK INSTITUT E 11
Session 6 – Introduction to Breakout Groups Topic A – Strengthening Compliance Also, as Clients continue to shift risk, they are now imposing rigorous Compliance Clauses holding Contractor entirely responsible for any breach including the onerous requirement of guaranteeing compliance by Subcontractors and Suppliers AND to reimburse their costs in the event of an incident ! Apart from being totally unreasonable on Contractor, this is extremely time consuming and costly : -- With say 300 + Suppliers, Does it include $100 Chinese bicycles bought from WalMart for Construction site usage ? -- Or, How do you deal with Leased Construction Equipment form a Caribbean Island Co. or Modularisation / Fabrication where tracing becomes more diffused ? ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 12
Session 6 – Introduction to Breakout Groups Topic A – Strengthening Compliance The Risks are also compounded by current levels of M&A activity, Organisational Change, Pressure to secure new work and the growth of work in high Corruption Index Countries and Countries with Boycott Legislation – all possibly leading to points of weakness in Governance The above certainly underscores the importance of an Effective Compliance Programme for both Internal and External aspects So, some thoughts for consideration : -- Should be driven from the Top as a Core Value -- Value Moment Concept -- Establish proper Systems, Procedures and Controls -- With Clear Lines of Responsibility and Accountability ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 13
Session 6 – Introduction to Breakout Groups Topic A – Strengthening Compliance -- Mandatory Continuous Training & Communication at all levels -- Hotlines and Reporting Channels -- Background Screening of Personnel -- Appropriate level of Incentives and Discipline -- Compliance Risk Assessments as part of overall Risk Mngt. -- Continuous Up-dating / Improvement and Lessons Learned -- Check level(s) of Government Officials interface -- Absolute importance of Counter-Party Due Diligence -- Compliance Agreements with (all ? ) Partners, Subcontractors and Suppliers -- Use of specialist ABAC oganisations - Transparency Intl. WEF’s PACI etc. ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 14
Session 6 – Introduction to Breakout Groups Topic A – Strengthening Compliance So, the Issues for Consideration by Group 1 are : “ What does the Group consider to be the Minimum / Key Requirements for an Effective Compliance Programme ? “ AND “ How do we, as an Industry, ensure the Correct Behaviour and Improve Risk Avoidance / Mitigation Strategy in this area ? “ The Group should also consider whether there is benefit in ECRI setting up a focussed SIG and / or a new Best Practice setting out the Key Features of a Compliance Programme, for the Sponsor Group as a whole ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 15
Session 6 – Introduction to Breakout Group Workshops Topic B – “ Dealing with Joint Ventures - Issues, Risks and Possible Solutions ” Group 2 Facilitator / Presenter : Michael Burch, KBR Group 2 Recorder : Tony Winstanley, ECRI (Breakout Group Allocation in Handout Packs) ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 16
Session 6 – Introduction to Breakout Groups Topic B – Dealing with JV’s Again quite high on the concerns ranking, based upon 2017 Survey Feedback With continuing reports of under-performance by JV Partners A new set of factors has emerged stemming from the fairly recent increase in North American projects with Foreign Companies positioning for market access : -- Buy US Firm or Merger with another Foreign Firm for access -- Or, Form JV with a US Company Worth recalling, From our Lessons learned Data Base that the fundamental problems encountered with JV’s are : -- Lack of Trust among JV Parties -- Meeting Ethical & Safety Standards you require / Reputation ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 17
Session 6 – Introduction to Breakout Groups Topic B – Dealing with JV’s -- Cultural / Language / Appetite difficulties -- Inability of one Party to Perform -- Different / Incompatibility of Quality, Processes, Procedures and Systems -- Contractor / OEM JV is a high-risk structure And, issues do rise exponentially with the number of Parties In Fact, our almost overriding observations are : -- Picking the right Partner is 80% + of the Battle -- The JV might be governed by signed formal documentation but in practice, it only works successfully through positive cooperation between the key people of the Parties ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 18
Session 6 – Introduction to Breakout Groups Topic B – Dealing with JV’s The task for this Breakout Group is therefore : “ With the possible route into North American work by a Foreign Co. In JV with a US Company, in mind – What circumstances or structure have Worked or Failed ?” ECRI ENGINEE RING & CONSTRUCTION RISK INSTITUT E 19
Recommend
More recommend
