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Increasingly, owner organizations are asking fabrication and construction contractors to perform lump sum projects where they are accountable for the Engineering, Procurement, and Construction (EPC) phases of a oilfield or marine project even though the basic design parameters are often not yet set and agreed to at the time of award. (Some add installation and refer to this as EPCI.) In the oil and marine industries, where “average” projects can run into the hundreds of millions, the risks associated with lump sum EPC project are enormous. PMCC has assisted in the project management of EPC projects all over the world. Over the years, key PMCC staff have been involved in multiple phases of projects such as Bullwinkle, Ram-Powell, Genesis, Nokia, Harvest, WAGP, and Belingue-Belize to name just a few. We have worked on shallow water, deepwater, sub-sea, pipeline, petrochemical, and shipbuilding projects that required the effective integration of the engineering, procurement, and construction scopes of work. PMCC training courses reflect our years of experience and “know how” in applying best practice under the stress and pressure associated with EPC projects.
Key concepts and processes that PMCC can help your company incorporate include:
Read the Contract! On EPC projects, particularly lump sum ones, it is important that the project manager and team for the contractor understand the contract. As simple a concept as that sounds, our experience has been that project teams don’t do it. They must also understand how to resolve ambiguities in the agreement. If the contractor is accountable for the design but the owner through the review process mandates larger and more expensive equipment and material to mitigate their risks, who pays? PMCC can help your estimating staffs and project teams understand the EPC process, its pitfalls, and ways during the initiation and planning phases to mitigate very dangerous risk events that can occur during construction and installation.
What does integration mean? Many owner companies buy into the “integration” pitch of contractors. The contractor will claim to have an engineering branch that is among the best, a construction outfit that has won major awards, and some of the “best buyers and negotiators for your procured items” on the face of the planet. While all of these claims may be true, the real question is whether the E, P, and C organizations are truly integrated. Does the construction team have meaningful input to the constructability of the proposed design? Does the impact of updated information on the procured items get reflected in the updated construction schedule? Is document management integrated across all phases? PMCC can help train and mentor your project teams on how to effectively plan for and execute an “integrated” EPC project.
Not sure where to start? Measure your organizations’ current PM maturity and chart improvements: PMCC staff are trained and certified in PMI’s Organizational Project Management Maturity Model (OPM3) Product Suite, which has as its focus the Knowledge-Assessment-Improvement triad. Then chart your organizations progress through the SMCI stages of Standardize, Measure, Control and continuously Improve while keeping in mind that alignment of the PM process with Organizational business goals and vision are the primary focus.
For more information or to schedule a conference call to discuss how PMCC might help your company or project team with EPC project management or to inquire about our OPM3 capabilities to measure and enhance your organizations PM posture, please call Ben Voivedich or Burt Campbell at 713-278-PMCC (7622).
Sampling of PMCC training courses related to EPC project management that can be tailored for your organization:
