Overall Contractor responsibility and mega project: Client leaves interface responsibility with Contractor On-Shore vs Off-Shore, different set-up On-shore: must set-up Temporary Site facilities and camp in remote location Vs Off-Shore: at a shipyard
Every facility is unique: necessary Engineering phase
Technical? The processes and technology are proven, no prototype. Quality: The project execution systems are well developed and standardized: vocabulary, methods and tools (planning, progress measurement, management of change, plant mechanical completion etc.) and fairly standard throughout the industry. Cost? Lump Sum Contract: qties + market conditions risks with CONTRACTOR. Precise specifications, list of approved vendors, market conditions. E 10, P 50, C 40. Schedule: Projects must now be completed in 36 months vs 45 months a few years ago Schedule risk is with CONTRACTOR: both liquidated damages and time related costs Size: Not a human size: Mega LNG Project 75,000 tons of equipment, 42,000 tons of steel (6 Eiffel towers!) Multiple and ever changing actors, e.g. Engineering home office+ low cost center Construction is sub-contracted The challenge is to keep control of the project Safety challenge Mega Projects 25,000 people at peak, 80 nationalities Various levels of education, supervision, time pressure Diffusion of safety culture : raise awareness, STOP card etc. Management leadership: leadership by example: safety walkthrough, safety talks, address of worker
Numerous and ever changing actors
Tightened schedule changed the execution from sequential to concurrent. The change from sequential to concurrent execution pushed the project to sharpen its execution, identify and focus on critical path, improve controls: suppliers, sub-contractor
Engineering/Procurement interface: Close coordination for anticipated orders and revision of quantities, including cancellation etc. Engineering/Construction Interface: Prioritization based on start-up and construction sequence Understanding of mutual needs Agreement on deliverables Frequent up-dates (work volumes and delivery schedule) communicated by Engineering to Construction for better planning: Integration of tools (IT)
Some Engineering needs to be done by suppliers, as equipment are rarely standard
Estimates must be done to meet the schedule The cost of engineering re-works can be significant: For the off-sites and utilities of a jumbo LNG Project (USD 4bln), erection costs (only i.e. excluding supply) of structural re-works was USD5mln, without the consequential time related cost (disruption)! The trade-off is over-design
An example of such integration is the issue, by Engineering, of schedule of standard pipe supports to allow mass pre-fabrication by Construction
The impact of a change will be exponential with time as the progress of engineering develops e.g. civil, piping, instrumentation etc It may also involve cancellation of orders, additional purchasing, stopping construction activities etc.
Only through detailed status, broken down by individual work item and work step completion, can one ascertain the exact progress of the work.
The cable pulling progress is good Glanding is behind Termination progress is good, as it shortly follows glanding