Spectrum 2012-04 En

vol. 21 EDITION no. 4 2012 quarterly magazine of SNC‑Lavalin

Quality

in Everything we do

04 A Quality Vision for the Future Please send all correspondence to:

06 Human Resources: Setting the Bar High

Spectrum SNC‑Lavalin Inc. 455 René-Lévesque Blvd. West Montreal, Quebec, Canada H2Z 1Z3 Tel.: 514 393-1000 Fax: 514 875-4877 E-mail: spectrum@snclavalin.com We invite you to visit our website to learn more about SNC‑Lavalin:

www.snclavalin.com

08 Operations & Maintenance Takes Quality to the Next Level

10 Top Plants Deliver Top Quality

14 A City No Longer Divided

16

Spectrum is published for SNC‑Lavalin Group Inc.

by Global Corporate Communications.

Spectrum est aussi disponible en français.

N.B.: All figures are in Canadian dollars unless otherwise indicated.

Editor-in-Chief: Monica Bhattacharya, Director, External Communications Writing and coordination: Noel Rieder, Senior Writer Contributors: Marie-Claude Dubeault David Kurtz Étienne Plante Craig Segal Copyright deposit: Bibliothèque nationale du Québec.

Articles may be reproduced, with attribution, upon request.

Design and production: mosaic design Printing: L’Empreinte

Rio Tinto Alcan Says “Bravo!” to SNC‑Lavalin’s Hydro Division

18

Cover: An air-cooled condenser fan module being delivered to the Astoria II thermal project in New York City.

ÉnerCible: Making Quebec More Energy Efficient

Paper made from recycled material

C102810

03 President’s Message

Spectrum Edition No. 4 | 2012

Quality in Everything We Do This edition of Spectrum examines one of our core WE CARE principles: quality. We look at different aspects of quality, from the quality of our people and our project planning, to the quality of our customer service. In each case, the quality of our efforts was acknowledged by awards bestowed by various external organizations.

B

ut as you peer down the corridors of our offices, you won’t see slogans and banners proclaiming our allegiance to quality. It is something more deeply engrained than that; quality is a commitment that is, and must always be, faithfully respected by everyone associated with SNC‑Lavalin.

We also need to consider quality as one of the necessary ingredients to being more competitive in the future. Competition in the engineering and cons­truction industry has become increasingly fierce during my 35 years in the business, both as a client and as an engineer/constructor/operator. In addi‑ tion to our North American and European competition, we now have a new set of competitors emerging from Asia who tend to be process-driven, allowing them to make incremental improvements in quality which, over time, increase their competitiveness.

Quality must flourish in an organization, along with good governance and sound health and safety practices, for it to maintain its “license to operate.”

As the public’s expectations regarding ethics, safety and compliance rapidly escalate, those expectations are reflected in our client’s perspectives as well, making quality and repeatability increasingly important criteria in their selec‑ tion decisions. The safety of our employees, project users and third parties is a moral obligation, as well as a business imperative.

Of course, our ability to deliver quality work is directly tied to the dedication and talent of our employees. For more than 100 years, our organization has been building and innovating like few other companies in our industry. And the strength behind these landmarks of place and time is the people of SNC‑Lavalin: a dedicated workforce whose attitude (we don’t have a motto!) is synonymous with innovation and quality itself.

Our work, and especially our people, are truly what set us apart from our competitors. And it is one of the main reasons why I joined this company. Yet I realize, as you must, that there is always room for improvement, even at the top of your game. We must continue to strive for excellence and deliver quality in all that we do, always with the client in mind.

So as we embark on this journey together, let us make it our mission to keep quality as one of our top goals and the hallmark for which we are known.

Bob Card

President and Chief Executive Officer

“Quality is a commitment that is, and must always be, faithfully respected by everyone associated with SNC‑Lavalin.”

04 Interview with the President Spectrum Edition No. 4 | 2012

Interview with

Bob Card

SNC‑Lavalin’s new President and CEO

A Quality Vision for the Future “For us to achieve and maintain the quality necessary for future competitiveness, every aspect of the organization must view it as a principal requirement and must understand and improve upon it.”

Bob Card

SNC‑Lavalin’s new President and CEO

On October 1, Bob Card took the reins as SNC‑Lavalin’s new President and CEO. He comes to the position with close to 40 years of experience in the operations and management of infrastructure and energy projects in the public sector and with the CH2M Hill Companies Ltd. group, a Fortune 500 engineering services firm with 30,000 employees and a presence in more than 80 countries.

Mr. Card was most recently Chief Operating Officer of the consortia responsible for the successful delivery of the challenging $15-billion London Olympics complex, including everything from the design and construction of all facilities, utilities and transportation, to the planning of site demolition and remediation information.

Mr. Card and his team delivered the complex on time and on budget.

On the Olympics project, as he has throughout his career, Mr. Card demonstrated an adherence to the principles of quality, and a keen understanding of how to apply them. Spectrum sat down with him shortly after his nomination to find out what he has learned about quality during his four decades in the business.

Spectrum (S): How would you define quality? Does it have different definitions in different sectors?

Bob Card (BC): There is quality as it pertains to the end result of projects, which can be defined as meeting the expectations of our clients and stakeholders. There is also quality in terms of processes, which is embodied to a great extent in ISO 9001 and related standards. Once an organization reaches the size of SNC‑Lavalin, excellent processes are required to achieve and maintain quality. These can be very challenging to develop and implement, but we have to move in that direction to ensure future competitiveness. Having great processes can support, rather than stifle, entrepreneurship and creativity, which are also important to our growth and success.

S: When a team fails to deliver a quality product in the context of an engineering project, what is likely to have gone wrong?

BC: The list of possibilities is long but the most common causes I have seen include: ▪▪

▪▪

We failed to compile a first-class risk register, both for our‑ selves and the client/project, during the bid phase and/or we did not keep it up and manage it during the execution phase.

We failed to really understand the client’s strategic and tactical objectives for the project; or the client’s objectives changed ­during the project and we failed to detect the change; or our contract was not well aligned with the objectives.

05 Interview with the President Spectrum Edition No. 4 | 2012

▪▪

▪▪

We failed to clearly communicate the objectives to the team and organize to achieve them.

We underestimated, or did not have, the resources (cost, capa‑ bilities, tools) necessary for the project and perhaps did not realize that we had missed the mark until it was too late.

S: For a business like SNC‑Lavalin, is quality most important in the context of engineering and construction projects, or is it of equal importance across all our areas of activity?

BC: For us to achieve and maintain the quality necessary for future competitiveness, every aspect of the organization must view it as a principal requirement and must understand and improve upon it. As I mentioned, major improvements can be made to the support functions through quality processes.

S: SNC‑Lavalin is already known for the quality of its projects. Do you think the company can improve further? If so, how would you propose to drive that improvement?

BC: I’ve never seen an organization that did not have room for improvement. Even a company like SNC‑Lavalin, with a good reputation for quality, can self-identify areas where we’d like to be better. To fully understand how to facilitate an acceleration of our quality processes, I will need to get a better view of where we most need to work on meeting the expectations of our employees, clients and stakeholders.

In the meantime, it is important that I clearly communicate that ethics is my number one priority because it is the greatest ­concern of our 28,000 employees. The same tools which can be used to ensure that we never again have a repeat of our recent situation can also be focused on the other “license to operate” functions like safety, which are also at the top of the priority list.

S: Is it possible to have too much of a focus on quality? In other words, can quality assurance, at the higher limits, become counterproductive?

BC: Even the quality function needs to abide by quality princi‑ ples. Good quality should result in higher efficiency and effecti­ veness and lower cost. Improvements need to be planned to blend into organizational programs and be cost-effective.

S: Does the ability to deliver quality services become more important in a highly competitive global economy like this?

BC: Companies that can attract and retain the best employees will be able to provide the most competitive services to clients and do so with the best safety, ethics and compliance practices. These companies will attract competitive capital, and be best positioned to thrive in any economy, including the difficult one which we ­currently face. It’s clear to me that firms that are not paying close attention to quality won’t be ahead in this game.

06 Human Resources

Spectrum Edition No. 4 | 2012

Human Resources: Setting the Bar High SNC‑Lavalin has an ambitious goal: to become a globally recognized employer of choice, and a pair of recent awards are a sign that the organization is on the right course.

I

n May, SNC-Lavalin was named the sixth best Canadian employer in the 2012 Randstad Award employer survey.

Over 7,000 Canadians were asked to name the top company brands for 2012. The respondents identified companies they would like to work for and evaluated their attractiveness based on criteria such as training opportunities, long-term job security and competitive salaries.

“Everyone I meet wants SNC‑Lavalin to be one of the best engineering companies in the world.”

Ric Sorbo

Senior Vice-President and General Manager Hydrocarbons & Chemicals

And in June, the Quebec chapter of the Certified Management Accountants (CMA) named SNC‑Lavalin Employer of the Year.

The CMA lauded SNC‑Lavalin in an official announcement: “Since 2008, there has been an observable increase of more than 67% of members and candidates to the profession within SNC‑Lavalin.

These statistics confirm SNC‑Lavalin’s trust and appreciation of the added value associated with the CMA profession.”

“Ultimately, these awards belong to the over 28,000 highly com‑ petent and engaged women and men of SNC‑Lavalin,” said Darleen Caron, SNC‑Lavalin’s Executive Vice-President, Global Human Resources. “They are recognition of their passion and commitment to our clients’ success, and of their dedication to expertly executing remarkable projects around the globe.”

Winning graduates and seasoned experts alike As part of its HR strategy, SNC‑Lavalin aims to recruit and retain top talent from a diversified pool. Here are a couple of examples of recent hires that illustrate the company’s ­selection criteria:

Ric Sorbo Age:

59 Senior ­Vice-President and General Manager, Hydrocarbons & Chemicals Ric Sorbo worked in construction, engineering and project management in Africa, the Middle East, Southeast Asia, Europe and South, Central and North America, before ­settling down in Calgary with his wife.

When he was hired in July, he brought with him 35 years of experience, which he is keen to pass on to the next genera‑ tion. “Everyone I meet wants SNC-Lavalin to be one of the best engineering companies in the world,” said Sorbo. “They are not fixated on doing a project their way. They just want to do it the best way possible. The enthusiasm and dedica‑ tion to quality here is beyond anything I’ve ever seen.”

Caron considers recruiting Sorbo to be a positive move for the company. “Experienced employees bring a valuable ­client and contact base with them, along with the wisdom and knowledge that can only be acquired over decades.

We want to appeal to all generations, from all backgrounds, all over the world.”

Christina Pape Age:

28 Junior Electrical Engineer, Transport, Infrastructure & Buildings Christina Pape, who represents the other end of the spectrum, was not going to settle down at just any job after university.

As the daughter of an oil field expert, she spent her childhood moving around the world. Following graduation, she back‑ packed for a few months in Ecuador and Venezuela.

Pape could have worked anywhere but she chose to apply for a job at SNC‑Lavalin’s Edmonton office. “It was wonder‑ ful,” Pape said. “I had great mentors and everyone was really open. Everyone was there to help.” On top of an excellent work environment, and a packed social schedule full of ­outings, dinners and get-togethers, she also had a great time dragon-boat racing with colleagues.

“Communication is so important in our field, and having social programs made it easier to open doors to people from other divisions,” said Pape. “For a Junior Engineer, the resources are amazing.”

When Pape transferred to her current job in Transport, Infrastructure & Buildings in Montreal, she brought that spirit with her. She started a lunchtime running club to foster team building and networking, and it has quickly grown to 12 members.

“I had great mentors and everyone was really open.

Everyone was there to help.”

Christina Pape

Junior Electrical Engineer Transport, Infrastructure & Buildings

Becoming an “employer of choice” Recently, Corporate Human Resources rolled out a wave of large-scale initiatives across all business units, aimed at ensur‑ ing that SNC‑Lavalin becomes an employer of choice. These initiatives include Performance Management (already in use by 10,000 employees), a formal Onboarding Program for new employees, the Internal Job Posting Program that allows employees to find and apply for positions across the company, and the first company-wide leadership training program, the People Leader Development Program (PLDP), which is designed to address the learning needs of new to mid-level people leaders at SNC‑Lavalin, and is part of the company’s larger leadership development strategy.

Another major project in the works is the first SNC‑Lavalin Employee Engagement Survey. Launched in the fourth quarter of 2012, this powerful tool is key to understanding people’s ­perceptions of the organization and identifying areas for improve‑ ment. Such a survey also ensures that SNC‑Lavalin stays ­connected to its people.

“SNC‑Lavalin has the potential to become a g ­ lobally recognized employer of choice,” said Caron. “I think I speak for a vast ­majority of our employees when I say: we’ll get there.”

08 Quality Assurance

Spectrum Edition No. 4 | 2012

Interview with

Greg Howson Vice-President, Safety, Shared Services and Strategy and Arthur Zmudzki Senior Manager, Performance & Quality Management

Operations & Maintenance Takes Quality to the Next Level SNC‑Lavalin Operations & Maintenance (O&M) has built a reputation for quality, whether in industrial, remote site or real estate operations. That reputation for quality no doubt helped it win its first contract in the United States in April: a 62-month water storage project for the San Diego County Water Authority.

While terms like “foresight” and “proactive” are industry buzzwords, the Quality team at O&M takes them to heart. In 2009, two new team members, Greg Howson, Vice-President, Safety, Shared Services and Strategy, and Arthur Zmudzki, Senior Manager,

Performance & Quality Management, began to look at ways to improve quality management.

They both felt strongly that, although the system was working, it could be taken to the next level by better aligning it with business and client objectives.

They rebuilt it, rechristening it the “Performance and Quality Management System,” and began rolling it out in 2012. They are already receiving feedback from O&M employees that it is easier to use, more streamlined and less time-consuming.

Spectrum sat down with the duo to learn how they did it.

Spectrum (S): What was the major instigator for the new Quality system?

Greg Howson (GH): We were passing all of our audits and International Organization for Standardization (ISO) certifications and it was an effective system that met all the quality require‑ ments, such as adequately monitoring measurement and improvement activities, but Arthur and I both felt it could be enhanced. We knew we could integrate the process in a way that would better suit employees’ day-to-day work. It could be even more natural and seamless than it already was.

The business we’re in is all about services and ensuring clients are satisfied with the services we’re providing. We focus on the out‑ puts we provide for our clients and the deliverables they see, and we are always looking at opportunities to become more efficient.

Greg Howson (left) with Arthur Zmudzki

“We come from different backgrounds, but we are definitely on the same wavelength when it comes to quality.”

Greg Howson

Vice-President, Safety, Shared Services and Strategy

Arthur Zmudzki (AZ): With the new system, we capture every single requirement in the contract, such as ensuring that con‑ tractual O&M, ISO and other regulatory requirements are being met. That changes the whole mindset of how we manage quality in the company. Quality has to be in the fabric of the organization.

You don’t have a choice.

S: What advantages does your new quality management system offer?

GH: We have basically started afresh. We now call it our “Performance and Quality Management System.” Unlike generic ISO standards, the key drivers of our system are client satisfac‑ tion and meeting or exceeding expectations. Arthur and his team have developed a service delivery plan, which is a large matrix listing all of the services we offer our clients. What makes it more

09 Quality Assurance

Spectrum Edition No. 4 | 2012

than just a list of services is that it captures information. This includes the person responsible for delivering a specific service requirement, the internal or external performance measures we have in place, and which best practices or procedures we have to deliver those services. It provides an excellent snapshot of what we have to do to ensure success. It also allows us to better capture client feedback through surveys.

I’m especially proud because we’re now able to define quality and performance in a way that all of our employees understand and can relate to. Our new system, with training courses at all levels, delivers the message that quality at O&M is about meet‑ ing client expectations, and that we will constantly measure our performance and look for areas where we can become more efficient. We truly have an innovative performance and quality management system in place now.

umbia British Col rds BOMA Awa ard Earth Aw r quare Towe

for the Libr

ary S

The award recognizes: ✔ Excellence in environmentally sound £ building management ✔ Effective and regular communications £ ✔ Quality service deliveries £ ✔ Improved client satisfaction £

AZ: With the new system, we are seeing a lot more engagement from the team. Employees are regularly advising us of areas of improvement that they are seeing. Our Performance and Quality Management System is now aligned with business objectives, such as delivering “best-in-class” service to our clients, continu‑ ally meeting our clients’ service deliverable requirements, and deeper business integration.

GH: That’s right. Now quality measurement at O&M is practical, quantifiable, and makes good business sense.

S: What distinguishes quality at SNC‑Lavalin O&M from its competitors?

GH: Our approach to quality involves working closely with the client and remaining flexible. If their business drivers change, we can easily adapt key performance indicators to ensure we’re always in touch with their latest reality, and meeting their busi‑ ness needs. Our flexibility and our commitment to our customers help differentiate us from our competitors.

One element that our clients appreciate is that SNC‑Lavalin has a large client base, which allows us to remain up-to-date with the latest and best industry trends. That base, combined with our over 100 years of experience and our global network, allows us to collectively put together best practices that will drive ­savings and efficiencies for the client. We’re constantly challenging ourselves from year to year to look for improvements and costsavings, whether in terms of technology, tools or processes.

THE PROOF IS IN THE APPROVAL RATINGS A system availability rating OF

99.88%

For the Canada Line So far in 2012

A customer satisfaction rating OF

98%

For the William R. Bennett Bridge So far in 2012

10 Feature

Spectrum Edition No. 4 | 2012

Top Plants Deliver Top Quality Each year, Power magazine, a highly regarded trade publication in the energy sector, selects a half-dozen of the world’s most noteworthy gas-fired power plants to be designated “Top Plants.” The competition is stiff, but in 2011 two plants designed and built by SNC‑Lavalin were among them.

T

he 550-MW Astoria II gas-fired power plant in New York City was singled out for the skill with which it was con‑ structed in a dense urban setting, while the 2,100-MW Emal I cogeneration power plant in Abu Dhabi was chosen for the efficiency and reliability of its design. In both cases, project teams managed to overcome significant challenges to deliver facilities that met the highest standards of quality in the industry.

The Astoria II gas-fired power plant – New York City Queens, a borough of New York City, is a patchwork of closely packed residential neighbourhoods and industrial sites. When Astoria Energy decided to expand its existing Astoria I gas-fired power plant by 550 MW, the biggest single challenge was carry‑ ing out a large and complex construction project in one of the most densely populated areas in the US—and all without disrupt‑ ing power production at the existing facilities.

Thanks to creative thinking and careful planning, SNC‑Lavalin managed to turn that space constraint into an advantage. An effi‑ cient off-site modular construction approach was developed that allowed the team to save precious space, while maintaining the highest possible level of quality across all facets of the project.

Construction sites in Tampico, Mexico, and Corpus Christi, Texas, assembled essential components like the heat recovery steam generators and pipe racks, which were then brought to the site by barge at key moments in the project’s 35-month schedule.

Even the plant’s main electrical room and the unit power distri‑ bution centres were preassembled and tested at a facility in Houston, Texas.

“Because of the space constraints at the site, we divided the project into smaller pieces and located that work offsite,” said David Gustat, a 37-year veteran of the engineering and construc‑ tion industry and SNC‑Lavalin’s Project Director for Astoria II.

The SNC-Lavalin Astoria II team at the Top Plant Awards Front row, from left to right: Paul Cutrona, Vice-President, Sales and Marketing; Jim Chatman, Construction Manager, Tampico, Mexico site; Matt Dickinson, Project Engineer; Bob Maso, Construction Manager, Astoria, NY site.

Back Row, from left to right: Chuck McCall, CEO, Astoria Energy; David Gustat, Project Director; Nick Johnson, Assistant Project Manager.

550-MW Astoria II

gas-fired power plant in New York City

“With the majority of the assembly work being done elsewhere, however, we were careful to put quality control and quality assurance people in place where necessary.”

Adding to the challenge was that Gustat and his team had no more than a two-week buffer for delivery times. If any module had arrived later than that, there would have been cascading effects on the project’s schedule. To mitigate that risk, consider‑ able emphasis was put on up-front planning.

“If there’s one lesson that’s continued to come back time and time again, it’s that you have to plan these projects properly up front.

If you go into a job with your eyes half-closed, you’re going to have them opened sooner or later, and it’s going to be 10 times harder to deal with the issue then. That said, the flip side is that you don’t want a schedule that’s so detailed that people are paralyzed with alternatives. It’s all about finding the right balance.”

The Astoria II team clearly achieved that equilibrium.

11 Feature

Spectrum Edition No. 4 | 2012

“With the majority of the assembly work being done elsewhere, we were careful to put quality control and quality assurance people in place where necessary.�

David Gustat

Project Director for Astoria II An air-cooled condenser fan module is delivered to the Astoria II thermal project in New York City.

12 Feature

Spectrum Edition No. 4 | 2012

2,100-MW Emal I cogeneration power plant in Abu Dhabi

1,300,000

tonnes per year WILL BE PRODUCED

BY THE EMAL SMELTER

EMAL I power plant – Abu Dhabi When Emirates Aluminum (EMAL) decided to go ahead with the construction of its 1,300,000-tonne-per-year smelter in Abu Dhabi, the biggest facility of its kind anywhere in the world, there were numerous obstacles.

An obvious one was the project’s location in the Al-Taweelah Industrial Zone, roughly halfway between the cities of Abu Dhabi and Dubai. Getting vast quantities of high tech equipment to a site that was not even reachable by road at the time would require world-class planning and coordination. Another was the project’s great need for energy in a region that did not have any to spare. Emal would have to generate its own power with a massive 3,650-MW gas-fired cogeneration plant.

A team was assembled for the first 2,100-MW phase of the power plant under Project Manager Richard Stephens.

Contractual obligations required that no more than two of the plant’s six gas and steam turbines ever be out of service at one time, so the team put great emphasis on building a reli‑ able facility.

“The choice of equipment was crucial in ensuring the reliability of the plant,” said Stephens. “One of the strategies we employed was to select suppliers who had extensive experience in the

13 Feature

Spectrum Edition No. 4 | 2012

“One of the strategies we employed was to select suppliers who had extensive experience in the region, and avoid equipment that was unproven or new, sticking instead with dependable technologies that people know how to install, operate and repair if necessary.”

Richard Stephens Project Manager for the Emal I power plant

region, and avoid equipment that was unproven or new, sticking instead with dependable technologies that people know how to install, operate and repair if necessary. We also carefully selected in-country sub-contractors. We wanted them to have strength and depth in the region so they could call on support if needed.”

Before anything else, however, Stephens focused on assembling a team that could work well together. While always important, he says, teamwork and communication are especially crucial when a facility is being constructed in a part of the world where there are more unknowns.

“In regions where you’re less familiar with the construction envi‑ ronment, you really want people who are team players, and will communicate with others,” he said. “If you work well as a team, you are much more likely to be able to adapt to unforeseen circumstances. I think that we overcame some of the challenges we faced because of the open lines of communication at all levels of our team.”

14 Expertise

Spectrum Edition No. 4 | 2012

A City No Longer Divided Before the Coast Meridian Overpass (CMO) was built, Port Coquitlam in British Columbia was a city split in two.

For decades, its northern and southern communities had been linked only by a pair of roads at either end of the largest Canadian Pacific railyard in Western Canada.

The inauguration of the Coast Meridian Overpass in March 2010.

15 Expertise

Spectrum Edition No. 4 | 2012

Nuno Pereira (on left), holding the Award of Excellence from the Canadian Consulting Engineers with Zac McGain of International Bridge Technologies.

I

t was clear that a third crossing over the middle of the three‑kilometre-long yard would improve the flow of traffic from one side to the other, but the project remained out of reach until budgetary constraints could be overcome, in addition to the obvious complexities involved in building a bridge over an immense rail yard.

That changed in March 2007, when SNC‑Lavalin took on the­ ­cha­llenge. Once the team had come up with an innovative design for the structure and a concept that met budgetary constraints, it identified and adapted a construction method that would allow the bridge to be built without shutting down operations.

“We were going to be building over a rail yard that sees about 3,000 rail cars go through it each day,” said Nuno Pereira, Vice-President, Roads and Bridges. “We were only allowed to erect five piers across the entire yard and they had to be in spe‑ cific pre-approved locations. The only way to do it was to take a top-down construction approach and ‘push-launch’ the bridge.”

Push-launching is a delicate procedure that requires extensive planning. Five span sections weighing up to 1,500 tonnes would be pushed out from the southern access ramp and inched into place with hydraulic jacks and rollers. Although the method had been used numerous times throughout the world, this would be the largest push launch ever attempted in North America.

While push-launching was an effective way of limiting disruptions to the busy railyard, the technique did not solve the structural problem associated with resting the bridge’s entire 580-metre superstructure on only five piers. For this, the team developed an innovative design solution: a steel twin-box girder structure with a single plane of stay cables. The cables would provide the sup‑ port from above that would be lacking from below, while at the same time creating an elegant, landmark structure.

“Not everything goes precisely according to plan on major pro­ jects, but our team was able to make on-the-spot adaptations that ensured we met our targets,” said Pereira. “There are always unknowns whenever you are using innovative techniques on a

5 span sections

weighing up to

1,500 tonnes

In March 2011, the CMO was presented with an Award of Merit in Engineering Excellence from the Consulting Engineers of British Columbia. In November, it received an Award of Excellence at the Canadian Consulting Engineering Awards. In December, it was given an Honor Award from the California branch of the American Council of Engineering Companies (ACEC). The structure received its fourth honour in February 2012, when it won a National Recognition Award, also from the ACEC.

project. What makes the difference is whether you’re able to quickly adapt and solve the problem, and we were able to adapt every time.”

The team’s ability to combine highly innovative design and con‑ struction techniques, elegant aesthetics, and exceptional sched‑ ule and budgetary management into one project caused industry watchers to take notice. Since the CMO’s inauguration in March 2010, the bridge has garnered numerous industry awards.

“We really wanted to try to do something special,” said Pereira.

“In the end, we were able to combine innovation with aesthetics in a way that pleased the client and caught the eye of engineer‑ ing association juries.”

16 Risk Mitigation

Spectrum Edition No. 4 | 2012

Rio Tinto Alcan Says “Bravo!” to SNC‑Lavalin’s Hydro Division Rio Tinto Alcan (RTA) turned to SNC‑Lavalin in late 2007 to help it develop a major capital project: a $250-million upgrade to one in a string of six key hydroelectric power-generating facilities dotting Quebec’s Saguenay–Lac-Saint-Jean region.

T

he Hydro division, with Bernard Gagné as the SNC‑Lavalin project manager, was awarded the engineering, pro­ curement and construction management (EPCM) ­contract for the optimization of the hydro power station project in Shipshaw, considered at one point to have been the world’s most dynamic powerhouse.

The original mandate called for upgrading the installed generation capacity of the power plant by 225 megawatts to 1,121 mega‑ watts. One newly built 225-megawatt high-efficiency turbine effectively replaces four hydro generator units at a nearby power station owned by RTA, promoting a more efficient use of water resources and helping to position the company as a leader in clean renewable energy.

After a four-phase operation and more than 370,000 personhours later, the Hydro division was recognized by its client for delivering world-class power engineering expertise. Earlier this year, the RTA and SNC‑Lavalin integrated project team was pre‑ sented with the RTA Bravo! Award. It honoured the SNC‑Lavalin Hydro division’s “rigorous work to evaluate and mitigate the numerous risks for the underwater blasting of the intake rock plug located near the new water intake structure.”

To have the water come into the powerhouse, the upstream and downstream rock plugs had to be excavated. The award was given because excavating the upstream plug was a very risky operation. And it was done according to RTA’s strict Health, Safety and Environment (HSE) requirements and high standards.

The Bravo! is related to the HSE aspect of the excavation work.

A detailed risk evaluation was performed in accordance with the RTA risk assessment tool, including several numerical simula‑ tions of the blast to ensure the integrity of all structures and prevent any dam overtopping.

“Our team performed a series of what we call ‘mitigation actions’ to control any risks,” said Gagné. “These involved temporarily lowering the reservoir by one metre and sequencing the blast with over 300 electronic delays. An underwater bubble curtain pressure wave absorber was also created. In the end, the blast was a total success.”

SNC‑Lavalin is no stranger to RTA. For more than a decade, the Hydro division has executed a number of EPCM mandates for RTA on the Saguenay and Péribonka Rivers where the aluminium producer operates its network of hydroelectric power plants.

“SNC‑Lavalin and the Hydro division are honoured to have received this award. Quality and Health & Safety are at the core of what we do.”

Bernard Gagné Project Manager

With the five-year optimization project now in the pre-opera‑ tional verification phase, the Shipshaw project is expected to be commissioned later in 2012 when the turbine unit is put online on the Hydro-Québec network.

As the close relationship between RTA and SNC‑Lavalin continues to strengthen, so does the emphasis on delivering top-of-the-line quality services and managing health and safety concerns.

17 Risk Mitigation

Spectrum Edition No. 4 | 2012

A turbine accelerator in the final stage of assembly.

And for the Hydro team—one that did not have any recordable incidents during the last 18 months of the Shipshaw project— having the bar raised higher and higher has been an invaluable experience that is reflected in its other work.

“SNC‑Lavalin and the Hydro division are honoured to have received this award,” Gagné said. “Quality and Health & Safety are at the core of what we do. And on this project, I think we must thank Rio Tinto Alcan for making us better by helping us under‑ stand how to operate at an even higher level of excellence. Our risk management plan should serve as a model for similar projects in the future, especially when rock plug excavations are involved.”

Bravo, in more ways than one, to the Hydro division for helping Rio Tinto Alcan meet its latest energy challenge.

4-phase operation and more than

370,000 PERSON-HOURS

18 Energy Efficiency

Spectrum Edition No. 4 | 2012

ÉnerCible: Making Quebec More Energy Efficient Chances are that when driving to work in downtown Montreal from the South Shore, you may spot Conrad Larivière crossing the Victoria Bridge on his urban bike to start his day at SNC‑Lavalin. The St. Lambert resident, who drives one of the company’s key energy ventures at Transport, Infrastructure and Buildings (TIB), a division of the Infrastructure & Construction business unit, takes efficiency to heart.

P

ut the two together—energy and efficiency—and you start to get a sense of the man and the team driving one of Hydro-Québec’s flagship initiatives known as the Buildings Program. “Yes,” he acknowledged recently, “we in TIB’s ÉnerCible department are exclusively into energy efficiency, 100%. That’s what we promote.”

An energy-efficient machine The ÉnerCible department was assembled to help Quebecbased organizations better manage their energy needs. By work‑ ing exclusively with Hydro-Québec, the province’s major power utility, the department helps the owners or operators of com‑ mercial and institutional buildings reduce their energy consump‑ tion. The dedicated contingent—now amounting to some 70 SNC‑Lavalin employees—markets, implements and manages nearly 4,000 grant applications for the installation of energyefficient equipment. And that is only since early 2011, when this program began (close to 50,000 projects are forecasted on the books by 2016).

Conrad Larivière (second from right in the front row) and his ÉnerCible team.

Larivière was pulled from SNC‑Lavalin’s TIB Transportation Systems department to lead ÉnerCible as Project Manager. He and his team, which he refers to as “one of the best teams I’ve worked with in my career,” are assigned exclusively to the project.

“Hydro-Québec wanted a dedicated and autonomous team that could invigorate the energy-efficiency market by integrating the commercialization, project management, technical validation and site inspection functions,” said Larivière. “SNC‑Lavalin gave them a team that could do that, and more.”

A Pivotal decision

By May 2011, 400 energy grant applications had already been processed, and ÉnerCible was quickly outgrowing its project and document management system. To successfully juggle thou‑ sands of projects simultaneously, the ÉnerCible team needed to adopt a new approach to managing client support.

19 Energy Efficiency

Spectrum Edition No. 4 | 2012

“Hydro-Québec wanted a dedicated and autonomous team that could invigorate the energyefficiency market by integrating the commercialization, project management, technical validation and site inspection functions.

SNC‑Lavalin gave them a team that could do that, and more.”

Conrad Larivière Senior Director, ÉnerCible

Larivière found the answer ÉnerCible sought in the customer relationship management software solution from Pivotal, owned

by CDC Software. Once a decision had been made to adopt this high-performance tech­nology solution, it took ÉnerCible no more than three months to implement. “ÉnerCible’s success depends on its ability to increase the num‑ ber of Hydro-Québec clients that sign up for the Buildings Program,” Larivière pointed out. “Pivotal helps us do that by com‑ bining all document control processes and requirements, while providing fast, real-time access to energy-efficiency project information. The speed with which we handle case files and our capacity to support clients through the program application pro‑ cess is a key factor in our success. The program also manages documents in a standard and automated manner, thus greatly reducing the possibility of errors.” ÉnerCible has now incorporated SNC‑Lavalin’s document man‑ agement methodology into Pivotal. Later this fall, clients and distributors alike will have access to their files through the Web, enabling them to see the status of their projects. It will translate into a lot of time savings as the program ramps up.

“The team of 70 people rapidly and successfully implemented an integrated project management, sales, marketing, and infor‑ mation system,” Larivière said. “Everyone here uses it, and it has worked well for us and paid dividends to Hydro-Québec’s Buildings Program customers.”

Quality implementation, quality execution For these reasons, CDC Software awarded ÉnerCible the Pivotal CRM Impact Award in the category of Best Overall Deployment of Pivotal Software during 2011. Larivière was on hand in Las Vegas in May 2012 to accept the award at the CRM Galaxy Awards Gala.

Besides significantly reducing administrative processing times, streamlining internal workflows and increasing the productivity of ÉnerCible’s sales force by 50% to 75%, the new CRM system achieved a full return on investment in less than one year. One of the biggest measureable benefits of the Hydro-Québec initia‑ tive is the anticipated $70 million savings in annual electrical energy costs by 2015 for businesses across the province, a figure projected by ÉnerCible.

“It has been very rewarding and enriching to be able to marry the aspect of commercialization with the cause of energy efficiency,” Larivière reflected before switching into high gear for his bike ride home. “Some of our clients tell us that the new Hydro-Québec Buildings Program has transformed their businesses, allowing them to grow in their respective markets and to establish alliances with other companies. It catalyzes things. That’s our success.

And it also improves the economic development of Quebec.”

www.snclavalin.com/sr

Printed in Canada, November 2012

Read SNC-Lavalin’s 2011 sustainability report.