Managing Utilities Risk on Major Infrastructure Projects
- Delivery Associates Network
- Aug 21, 2024
- 8 min read
Updated: Mar 21
Webinar
Infrastructure projects play a critical role in shaping our communities and economies. As we embark on ambitious endeavours to build and maintain essential infrastructure, effective utility management becomes paramount to ensure a successful delivery of a project. In this session, we will explore the challenges and solutions for successfully handling utilities within major infrastructure schemes, the associated risks and any lessons learnt from previous projects.
Transcript
These projects are the backbone of our communities and economies. Shaping the way we live and work. Effective management is essential when we undertake ambitious efforts to build and maintain vital infrastructure. In this presentation today we will explore the risks associated with managing utilities the strategies to mitigate them. And discuss some of the latest technologies that can enhance project efficiency and effectiveness. By the end of this presentation you should have a comprehensive understanding of the challenges and best practice of managing utilities in infrastructure projects.
In any utility infrastructure project, collaboration among various stakeholders is critical for success, and each stakeholder plays a vital role in achieving that success. This includes effective collaboration and clear communication among local authorities, the design team, contractors, and utility companies to ensure the delivery of a safe, efficient, and high-quality project. For local authorities, it’s essential to have regulatory oversight, ensuring compliance with local regulations. This can be achieved by conducting inspections to ensure project adherence to safety and quality standards. It’s also the local authorities’ job to manage public engagement, communicating with the community to address any local concerns.
For the design team, their key role is to develop detailed project plans and technical specifications. It’s also essential that they lead the site-wide coordination works by working closely with other stakeholders to ensure design feasibility and address any design-related issues that may arise during construction.
We also have the contractor, whose responsibilities include managing day-to-day construction activities and ensuring site quality control. They must ensure that construction meets design specifications and quality standards while complying with safety protocols to protect their workforce and the public.
Finally, we have the utility companies. Their main responsibility is to ensure continuous utility services throughout the project, which can be achieved by integrating their assets with the new infrastructure. They can do this by utilizing their technical expertise to design alterations to their networks under the New Roads and Street Works Act diversion process. Under this process, utility diversions are split into stages known as C2 to C9. However, the main focus of this presentation will be on the C2 to C4 process, with C2 being initial inquiries and obtaining records, C3 being budget estimates for diversions and utility works, and C4 being detailed designs, including timescales and costs.
Once the utility company has completed a design, they’ll normally dictate whether their designs are categorized as contestable or non-contestable. It’s critical to understand the distinction between the two for effective project planning and execution. Contestable works are tasks to be carried out by third-party contractors and can be appointed by the client or the contractor directly. An example of this may be the installation of a new utility connection such as water, low voltage, or telecoms ducts. Benefits of contestable works include competitive pricing, flexibility in choosing contractors, and potentially faster project completion. However, contestable works still require adherence to utility company standards and often involve inspections to ensure compliance.
In contrast, non-contestable utility works must be performed by the utility company or their approved contractors directly. Examples include works on existing infrastructure such as maintenance, upgrades, or emergency repairs of their network, typically on high-risk assets such as high voltage electric or high-pressure gas mains. The reason works may be non-contestable could be purely for safety, reliability, and integrity of the utility network. These works involve direct coordination with the utility company, who manage and oversee the works. However, due to their management processes, there may be misalignment with project programs and coordination with other site works.
A utility infrastructure project involves several key stages to ensure successful completion, including planning, preparation, procurement, and implementation. The planning stage aims to identify project objectives and requirements, evaluate technical, financial, and environmental feasibilities, and develop a detailed project plan outlining the scope, timeline, and budget. The preparation stage involves creating detailed designs and technical specifications, obtaining necessary permits and approvals from local authorities, and conducting site surveys and assessments to identify potential challenges or site constraints. The procurement stage involves issuing tenders to contractors and suppliers and evaluating bids based on criteria such as cost, experience, and capability. Finally, the implementation stage involves executing construction activities according to the project plan, monitoring construction quality to ensure compliance with specifications.
I’ll now hand over to Martin, who will delve into these stages in more detail over the next few slides, highlighting the risks associated with utilities at each stage and how to mitigate those risks throughout the project.
Thank you very much, Daryl, and good morning, everyone. As Daryl mentioned, I’m going to take you through each of those stages in more detail, drawing on my experience over the past 20-odd years of working on major infrastructure projects in the UK and dealing with utilities on those.
Starting with the planning stage, the first element is making sure that you know exactly what you’re doing and that your scope is very clearly defined. The first step is to identify all existing utilities affected by the works. I’ll move on shortly to discuss the best way of doing that, drawing on previous experience. You need to determine any works required for these utilities, whether diversions or new connections, and also temporary and permanent works required, such as for site compounds during the construction stage and permanent connection works for new facilities in the area.
There is significant risk around all utility works. Determining what utilities you have in the area is critical, but there is always a risk that you won’t know everything. Records are not always kept up to date, so you will likely encounter unforeseen problems, including unforeseen ground conditions that could affect utility installation, such as soil quality, environmental issues, contamination, poor slope stability, and high groundwater levels. Site investigations can mitigate these risks, but they provide only a level of information and cannot cover the entire site.
Legal issues, such as land ownership, are also crucial to understand. When working in a highway, ownership is usually well-defined, but private land carries greater risk and needs to be addressed early in the project. Failure to consider utility outage requirements, such as downtime needed on the network for works, can significantly constrain the program. For example, high-pressure gas mains and high-voltage electric lines can only have downtime in the summer, depending on the wider network. Environmental constraints, such as ancient woodland, can also impact works, both in terms of the electric line itself and construction requirements like site compounds and access.
To de-risk these issues, ensure all utility information is available and reviewed for consistency. Create a utility asset register listing every affected utility within the working area, including details like ownership, whether it’s overhead or underground, size, voltage, and pressure. Engage with utility companies early, holding meetings to discuss scope and program so they understand what is needed. Utility companies are often under-resourced, so early engagement is beneficial.
Identify works critical to the overall project program, such as outages and non-contestable works, which often require specialist contractors. Maintain a record of all contact with utility companies, including meeting minutes and actions. Ensure any contractual requirements with utility companies are identified early, especially if they fall outside the usual processes. Undertake ground investigation surveys in targeted areas to inform design. Having an overall utility manager to coordinate between the project design team and utility companies is critical.
Review the scope of work at the outset to ensure everyone is on the same page and that the utility companies are aware of what is needed and when. Next slide, please, Daryl.
Obtaining existing utility information is very important. Engage a specialist utility search company to undertake desktop surveys, as they have access to utility company records and can provide data within 20 working days. These companies can also provide CAD models in line with project specifications, which can be integrated into the wider engineering and environmental design. Use GIS models to demonstrate how utility designs impact the overall project and model these against time.
Utility design and preparation are crucial for project delivery. Mapping out existing utilities against the proposed scheme allows for safe design and minimizes disruption. Discuss design requirements with utility companies to ensure cooperation. Distinguish between contestable and non-contestable assets, focusing on non-contestable as they carry the most risk. Address land ownership requirements early to avoid delays.
Utilities can be complex, with areas having many utilities and unknown private utilities. Engage with landowners for information on private utilities. Consider the impact of utility designs on the local environment, both underground and above ground, and during construction. Engage with utility companies regularly to ensure they have the latest design information and hold workshops for areas with many utilities. Involve contractors early to address constructability issues.
Procurement involves engaging with asset owners within the site boundary, discussing legal aspects like wayleaves and easements, and ensuring utility companies understand project constraints and milestones. Confidentiality agreements may be required for some projects. Regular meetings and check-ins are essential to keep everyone on the same page.
Managing scope change involves establishing a baseline at the start of the project and using a utility asset register to track changes. Communicate changes carefully to avoid panic and ensure utility companies understand the impact. Regular discussions help manage changes effectively.
In conclusion, early engagement with utility companies is critical. Obtain all existing utility information and ensure it is accessible to the design team. Ensure utility companies have adequate resources and engage contractors early to address constructability issues. Hold design workshops to ensure everyone is coordinated and define the project scope clearly at the start to manage changes effectively.
Thank you, Martin. That’s fantastic, going through all of that in so much detail. Rachel, in terms of next steps for the webinar, will you be stopping the recording and opening it up for any questions?
About the speakers
James Bristow is a Chartered Civil Engineer working in Arup’s Infrastructure Group. He is an experienced civil engineer, providing infrastructure design advice to a range of UK and international clients. Strong project management and stakeholder engagement skills are embedded in James work, from managing multi-disciplinary design teams and approval processes to carrying out research focussed on stakeholder participation.
Martyn Hawkins is a Chartered Civil Engineer and Project Manager with over 20 years’ experience in which he has been responsible for the delivery of a wide range of infrastructure, water/wastewater and site development projects around the UK. Martyn is currently an Associate in Arup within the Civil Engineering team as part of the wider Energy, Water and Resources group in the Birmingham office. Martyn has significant experience of delivering and managing site development and general infrastructure projects, in particular drainage, SUDS, highways and earthworks schemes working within a number of different sectors, especially related to energy, industrial, defence and property.
Daryl Ruane is a Chartered Civil Engineer with a wealth of experience, during which he has demonstrated proficiency in overseeing the successful execution of diverse water, utility, and site development projects across the United Kingdom. Presently, Daryl holds a position in Arup within the Site Development Team at the Manchester Office, where he contributes his expertise to the planning and execution of projects.
