Page 51 - Megaprojects Playbook

Diageo Line

LESSONS LEARNED

CONTRACT SCOPE DEFINITION

Detailed scope was not defined when contract price was set. Further, the client's project team did
not have authority to approve cost changes but were held responsible for delivering the scope of
work. This led to the client attempting to add scope to the project without a corresponding contract
increase. The misalignment of authority and responsibility led to challenges between the project
teams, which added obstacles to completion. Review detailed scope of work for clear understanding
with the clients executive and project teams prior to finalizing the contract price.

END USER PARTICIPATION THROUGH DESIGN

The project scope was developed with Diageo's engineering group but wasn't validated by their
operations team. During start-up the operations demanded scope changes because the project scope
didn’t align with how they intended to operate the facility. Require operations engagement during
the design review and scope development process to align expectations prior to execution.

WORK IN OPERATING FACILITY

The project was implemented in multiple operating manufacturing facilities. The schedule for the
project didn't adequately reflect the operational constraints that existed. The client had to continue
delivering product to their business despite the disruptions caused by the construction and installation
activities. Work with operations team during the schedule development process. Include schedule
contingency to accommodate flexibility to manage through operational constraints. Provide senior
leadership on site to lead the execution team and manage operations interface full time.

START-UP AND TESTING BUDGETING

The start-up and testing plan was not developed prior to finalizing the contract scope and schedule. When the
start-up and testing plan was finalized in order to validate system performance and conformance with performance
guarantees, there were issues with responsibilities as well as challenges scheduling the required testing. The
client could not adapt the production schedule to meet the testing requirements. Further, they couldn't fulfill
their responsibilities, including, supplying qualified operators and materials per the required specifications. This
led to frustrations and cost increases for both Haskell and Diageo. Including start-up as an allowance is best
practice as it's typically not feasible to finalize start-up and testing schedule at the time of initial GMP.
Defer finalizing start-up costs until reaching final alignment on the start-up and testing schedule.

46 MEGA PROJECTS PLAYBOOK | 2021
CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION. FOR INTERNAL HASKELL USE ONLY.