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3 Scientific Conference on Project Management, “Clustering in Construction Project Management”,

24-25 September, 2004, Thessaloniki, Greece.

CASE STUDY: LONDON HEATHROW TERMINAL 3 – PIER 6 PROJECT CONTROL

Dimitris Antoniadis
Senior Project Manager, Turner & Townsend Project Management, London, UK
E-mail: [email protected]

ABSTRACT: A major process within Project Management, which supports the Project
Manager (PM) and the Team to set up, coordinate and subsequently monitor the project
is that of Project Control.
Standard structures, i.e. Work Breakdown Structure (WBS), Cost Breakdown
Structure (CBS), etc., as described in Project Management Book of Knowledge (PM BoK),
and other project coding need to be defined from the very early project stages.
Management of interfaces between Planning, Estimating, Cost Control, Commercial and
Finance disciplines, as well as processes such as Change Control, Progress Monitoring /
Reporting, level(s) of rolling up of information from Contractors, Suppliers, Designers,
Consultants, etc. is the work ‘arena’/environment where Project Control performs its daily
functions.
This paper will describe the approach taken by the Project Control Manager and the
Project Team in setting up the above for the Management of the Definition, Design and
Construction of the £112.5M London Heathrow Terminal 3 Pier 6 project. It will also
highlight the benefits derived from the implementation of Project control.

Keywords - Project Control, Project Structures

1. INTRODUCTION

The introduction of one of the biggest passenger aircrafts in the world, the Airbus A380, with an
expected first commercial flight in the early months of 2006, has introduced a number of
demands on the airports around the world.
2
With its enormous size - wing area of 845m - and capacity – 840 full economy passengers
(it can carry 35% more than a 747-400) - it demands special infrastructure.
British Airports Authority (BAA) responded to this requirement with the construction of a
new pier – Pier 6 – at London Heathrow Terminal 3 (LHR T3).

Fig 1. Lay out of new Pier 6 at London Heathrow Terminal 3

Pier 6 is the second biggest project under construction within BAA, the first one being the
new Heathrow Terminal 5 with a budget of approximately £4bn and a total duration of
approximately 6 years.
Some succinct data about Pier 6:
§ Project duration 30 months from feasibility to completion of construction,
§ A critical completion date of December 2005,

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§ Construction period 19 months,

§ Budget £112.5M
§ Stringent energy targets for the new building,
§ Double height gate lounges for segregation of passengers, with plant located at roof
level,
§ Demolition of the existing pier, which has a number of internal and external tenants,
§ Relocation of the 9 external tenants.
§ Resource constraint due to the fact that the project workload peak, March to July 2005,
coincides with the T5 peak

The BAA Project Leader and a number of consultants comprise the Management team.

Fig 2. The Pier 6 project organigram.

The project has a large number of interfaces and these will increase further as it moves
through the stages into construction. These interfaces are between the project team and
external organisations (the nine tenants, the framework agreement construction companies and
others) and internal (the various BAA departments).
This case study will present the Project Control approach taken by the Project Team and
the Project Control Manager.

2. PIER 6 - PROJECT CONTROL

Project Control, through processes and system solutions (the set up), has to enable smooth
interfacing and transfer of project information to the appropriate recipients and at the
appropriate level.
It aims to integrate, seamlessly, processes and functionality of disciplines and the
supporting tools.
For Pier 6 the established Project Control methodology will be followed during all the Major
Project Process (MPP) Stages (MPP is part of the BAA standard processes) of the project. The
overall approach will be based on the principle of integrating time and cost to an adequate level
in order to:
§ Know what must be done (i.e. the plan),
§ Know what has been done (i.e. measuring performance),

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§ Know what has gone according to plan, what has not, why, and what remains to be
done (i.e. monitoring and comparing performance against the plan),
§ Support proactive management actions and decision-making.

The table below gives a brief indication of some of the major process and disciplines
involved within the Pier 6 project, excluding Project Management and Construction
Management.
Table 1. Process and functions

Processes performed
Scheduling, resourcing and cost control
Progress monitoring
Change Control
Risk Management
Monthly reporting cycle
Disciplines involved
Planning
Estimating & Quantity Surveying
Supply Chain
Commercial team
Accounting / Financial reporting

For Pier 6 the Project Control processes and the set up are described in two documents,
primarily in the Project Control Handbook (PCH) and also in the Project Execution Plan (PEP).

3. THE PROJECT CONTROL HANDBOOK

The objective of the PCH is:

§ To outline the overall strategy for Project Control for the duration of the Pier 6 project
§ To provide adequate guidance for those who will work with the project structures, the
setting of priced activity schedules and progress/performance monitoring for the
duration of the Pier 6 project.
As a standard document it describes, in adequate detail, the input required by all the parties
to the project, how certain important processes will be performed and sets up the basis for
communication and monitoring of the project throughout its life.
It is part of the standard contractual documentation and is issued to all the parties at a very
early stage. Also for ease of access and updating it is stored in a common area within the
Document Control system.
Some of the topics that are explained in the PCH are:
§ The project Work Breakdown Structure, together with other necessary coding
§ Scheduling and resourcing
§ Cost control
§ Milestone Management
§ Change control
§ Risk monitoring
§ Reporting
§ Organisational Structure and roles and responsibilities within Project Control.

4. THE SET UP

Throughout the PCH diagrams representing interfaces, the flow of information and the
supporting structures give guidance to the users.
The figures below represent, diagrammatically, the management of the interfaces and the
transfer of information, including the structure/set up within the software tool
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P ie r 6 - P r o j e c t C o n t r o l
S y ste m S e t-u p - 1
17766
A ll W o r k

BD DF
F e a s ib i li ty & P ro d u c tio n KPI
D e f in i t i o n Phase

B S ta g e C S ta g e D S ta g e E S ta g e F S ta g e

M ngt of E n a b lin g M anagem ent M a in W o r k

T im e C o s t & R is k W o rk s - o f P r o je c t D e f in itio n
D e l iv e r a b l e s D e f in i t i o n

M ile s to n e M ngt RPP

R is k R PP
M ngt T & C
M ngt
M a s te r GMW GMW
P r o je c t
S c h e d u le see page
2

Fig 3. Pier 6 Structure within software tool

The following figures (4 & 5) represent how the different systems, BAA (Client), Contractor
and Construction Manager are/should be linked.

P ie r 6 - P r o je c t C o n tr o l
S y ste m S e t-u p - 2

M a jo r P ro je c t
M ile sto n e s
L o g ica lly lin k ed
M a ste r P ro je c t & res o u rc e d
S ch ed u le (w ith L /P /M )
ac tiv ities .

Σ
1 .2 .1 T im e & R o llin g u p to
1 .2 .2 C ost C o n tr. S u m m a ry L ev 4 , o r L ev 5
1 .2 .3
C o nLtr.
evSeul mS cmh ae ry
d u le W B S e le m e n t
L e v e l S c h e d u le
1 .2 .1 .1 C o n tr.& S u b -c o n t

Σ
C o n tro l & M o n ito rin g 1 .2 .1 .2
1 .2 .1 .1 D e ta ile d S c h e d u le
o f R isk E le m e n ts
1 .2 .1 .2
1 .2 .1 .3 T im e &
A M A S ta g e
1 .2 .1 .3 C ost
1 .2 .1 .1
A M A S ta g e 1 .2 .1 .1 .1
R isk C o n tro l A M A S ta g e
le v e l o f d e tail
C - 3 0 to 5 0 a ctiv .
1 .2 .1 .2
D - 5 0 to 1 0 0 ac tiv . C o n tro l A c co u n t
E - d ep e n d s le v e l o f d eta il
F - m ax . 3 0 0 a ctiv .
W ith rea s o n ab le
le v el o f n u m b e r o f
a ctiv ities N o t in C a sc a d e b u t lin k ed
a n d m o n ito r ed v ia W B S

Fig 4 BAA/Client – Contractor interface management and integration of information

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L in k in g p r i c e d a c t i v i t y s c h e d u l e s a n d s y s t e m s / o r g a n is a t i o n s

C a s c a d e C o n tr o l A c c o u n t p ric e d
a c tiv ity s c h e d u le
C o n tr a c to r S u m m a r y
L ev e l S c h ed u le S u p p l ie r ’ s d e t a il e d p r ic e d a c ti v it y
s c h e d u le s u m m a r i s e d u s i n g W B S
1 .2 .1 . 1 £
1 .2 .1 . 2 £
1 .2 .1 . 3 £ C o n tr a c t o r .& S u b - c o n t
D e t a ile d R e s o ’ d S c h e d u le

P ro g re ss
1 . 2 .1 .1
1 . 2 .1 .1 . 1 L /P /M
L /P /M

S u p p l ie r ’ s d e ta i l e d p r ic e d 1 . 2 .1 .2
I n te r fa c e L / P /M
a c tiv it y s c h e d u l e in i ti a te s
d e ta i le d p la n s .
L i n k s v ia W B S t o
6 w k l o o k a h e a d s c h e d u le P ro g re ss In te r fa c e

P r o d u c t i o n d e t a i le d s c h e d u l e s
3 m o n t h , 6 w e e k lo o k a h e a d a n d w e e k l y
p la n s u s i n g - L a s t P l a n n e r
Fig 5. BAA/Client, Contractor, Construction Manager interface management and
integration/transfer of information

4.1 Appropriate Structures

The first step that should be taken when starting a project is the establishment of the
appropriate structures and coding of information (as described by all official Project
Management bodies).
Structuring of information and the various processes within a project enables transparency
between the different parties and the different levels.
Understanding how information is rolled up from the contractors’/suppliers’ detailed priced
activity schedule to the summary Master Project Schedule (MPS) instils confidence and
reduces disruptive conflict.
Tools are merely there to provide information at a certain point in time, however these
should contain the required level of detail to infuse confidence as well as trust.

4.2 Project Structures

The structures that have been identified by the project team in Pier 6 are:
§ The Work Breakdown Structure (WBS).
The team established a five level WBS that will enable the structuring of project
information at different levels of granularity, for the different organisations.
At the same time the WBS will allow for transparency in both directions (top-down and
bottom-up) as well as enable all parties to report to their respective management levels.
A section of the project WBS is shown below.
Level 1 Level 2 Level 3 Level 4 Level 5
Project
Pier
Zone A
Zone B
Substructure
Superstructure
Steelwork
Cladding & Roof
On a number of occasions contractors are required to expand to level 6 and beyond
with their preferred structure.
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§ The Cost Breakdown Structure (CBS).

In a similar manner cost information is broken down into the standard BAA cost
elements / structure so that reports at local, project, level as well as global, company
wide, level can be created, i.e. Suppliers Workload Forecast, etc.
§ A number of other codes at schedule/activity level have been set up to allow lateral
interrogation of information within different software systems and to create various
reports.

4.3 The Organisational Structure within Project Control

As mentioned above the organisational structure and the roles/responsibilities are described
separately within the PCH, because of their importance.
The handbook describes the disciplines that come under the umbrella of Project Control
and how these interact in terms of responsibilities (R) and accountabilities (A) as well as who
needs to be consulted (C) and/or informed (I) (forming detailed RACI chart(s)).

4.4 The Master Project Schedule

From the Client’s perspective a ‘project’ commences at a very early stage and information is
driven from top-down with high-level estimates of time and cost.
For Pier 6, and due to its complexity, establishing as accurately as possible time and cost
information from the early stages has been of paramount importance, considering the large
number of stakeholders, the critical deadline of December 2005, as well as the magnitude of
the investment in financial terms.
Therefore the team had to establish at a very early stage a clear and sound top-down
Master Project Schedule. However, the level of accuracy, and therefore level of comfort of the
output from the project control tools, can only be increased as more information becomes
available and it is rolled-up (using the WBS) from the various parties.
It is the accuracy and the structuring of this information that Project Control aims to achieve
at a very early stage, with clear instructions to the various parties. This not only will improve
clarity at an early stage, but it will also enable improved management of the project at a later
stage, e.g. progress monitoring.

4.5 The Tools used

The tools used on the project are:

Cascade.
Cascade is a programme management software package that is used by BAA to manage the
large number of projects and the extensive investment in the future years.
It operates at the highest level and uses MS Project to link to the detailed schedules.

MS Project.
Used at the lowest level, within Cascade, to mirror rolled up versions of the other parties’
detailed schedules, using WBS and a number of Cascade unique identifiers.

PMS / ASite
The Document management tool where by using a specific attribute users will be able to obtain
information by contractor/supplier.

Last Planner
Last Planner is used by the Construction Manager for the week-by-week planning of operations
in the field. At the six week look-ahead level it links with the higher level schedules via WBS,
thus enabling complete transparency from the highest level to the lowest level (from Cascade,
to contractors’ schedules, to the weekly tasks).

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Contractors’/Suppliers’ scheduling tools.

Third parties are advised, for ease of integration, to use MS Project, however, this is not a
limiting factor.
Detailed logically linked priced activity schedules are required to be structured using the WBS
and be resourced at a Labour / Plant / Material level.

5. IMPLEMENTATION

A number of challenges need to be managed from the Project Control side during roll-
out/implementation.
Some of the challenges that need to be considered and resolved are listed below (without
giving any importance/weighting to any individual ones).
§ Managing interactions from Top to Bottom (T2B) and from the Bottom Upwards (BU).
Project Control must operate as one of the gears that interacts with all levels and
parties, in order to achieve timely and accurate receipt of information through the
SYSTEMS (software and other),
§ The large number of partners / organisations who usually have their own processes and
systems,
§ The structured approach to managing projects,
§ The interwoven relations with other disciplines, e.g. Commercial, Capital Management,
Finance and Accounting,
§ The company wide introduction of Project Controls, which must include a Change
management approach.

To enable a smooth implementation of Project Control in Pier 6, all parties to the project are
issued the Project Control Handbook. During the very early stages of engagement road
shows/workshops are held at various levels so that most of the issues/questions can be raised
and discussed.
Training needs are identified for those users that need to have access to BAA corporate
tools, e.g. Cascade, A-Site, etc.
In many occasions the Project Control Manager and other members follow up closely with
clarifications and in many cases one to one sessions.

6. GENERAL BENEFITS FROM PROJECT CONTROLS

Implementation of Project Control obviously in most cases aims at and enables reporting of
Earned Value (EV), Cost / Schedule Performance Indices – CPI / SPI and some of the
company wide Key Performance Indicators (KPIs). However, without all the above creating
reports on Earned Value, Indices and KPIs is impossible.
In addition to creating reports on the above – EV, CPI, SPI, etc., a number of other benefits
could be gained from implementing a structured Project Controls approach and these are
presented below in a simple bullet point format.

Benefits at Project level:

• Provides the mechanism(s) and structure for effective delivery of projects
• Integration T2B & B U - Rolling-up and analysing project data.
• Provides effective links between project and financial data.
• Improved transparency/clarity and decision-making.
• Improved reporting on performance - EVA.
• Improved forecasting, cash-flow information and monitoring of income.
• Improved Resource Management ∴ Finance Management ∴ Avoid financial perils
(overheating, etc.)
• Reduction of the duplication of effort

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• Reduction of conflict, improves communication

• Holistic approach/integration of time and cost

Benefits at a purely Company level:

• Improved financial information (cash-flow), which allows for improved borrowing policy, cost
of money analysis, etc.
• Improved Capital Management
• Improved Supply Chain / Commercial management
• Improves Company “Knowledge base Organisation/System”
• Contributes to Best Practice Programme and Project Management
• More time on High Value Added tasks

7.CONCLUSION

The challenge of implementing / rolling out Project Control requires a methodical and
structured approach.
It demands excellent understanding of Project Management and Commercial processes
(Kerzner, 2004), familiarity with Financial / Accounting processes, ability to identify and manage
the interfaces as well as the introduction and management of change.
If the implementation of Project Controls was to be treated as a project, some of the
benefits mentioned above could become short and/or long-term tangible targets that can be
measured thus establishing the Return on Investment (RoI). However, one must not forget the
intangible benefits that are derived.
At Pier 6, almost 12 months now in the project, a number of reports are produced for
different recipients, from the same source of data (the priced activity schedules), using the
structures described above. Almost all the primary contractors have started working on the
project and they are producing the required reports.
The careful and methodical implementation process and the continuous support from all
levels of management, BAA and contractor/supplier, have enabled the successful rollout of
Project Control.

Project Control enables proactive rather than passive/re-active monitoring of projects.

8.REFERENCES

1. Kerzner, H., 2004, Advanced Project Management – Best Practices on Implementation,

Second Edition, John Wiley & Sons, Inc, New Jersey
2. Project Management Book of Knowledge, 2000, Fourth Edition, Association for Project
Management, UK

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