Engineering, Procurement, And Construction Management Research Articles

Managing stakeholders in engineering procurement construction management projects in Africa by Chinese project managers

Africa is growing very fast in term of population and economy currently. To enable the productivity and sustainable economic growth across the African continent, the infrastructure development projects are needed. Recently Africa has become a destination of Chinese Engineering, Procurement, and Construction Management (EPCM) companies. The majority of these large Chinese EPCM companies find it difficult to manage projects in the way that satisfy all stakeholders in Africa due to a number of issues – political, social, historical, personal contexts, and technical. Chinese management approach is regarded as informal by nature generally referred as guanxi management. Literature review and media reports reveal that Chinese model of managing stakeholders in projects is characterized by the informal management approach (guanxi). The informal Chinese management is vital to projects success in China therefore, it is important to explore the informal (guanxi) management approach in EPCM projects in Africa. This paper investigates how Chinese Project Managers manage stakeholders in EPCM in Africa by adopting a mix research method to investigate the Chinese stakeholder management approach in West Africa. The research uses a field observation and survey questionnaires. It is found in practice that the Chinese only use guanxi management approach when certain stakeholders such as project owners and sponsors, in addition, the whole stakeholders’ group in EPCM projects are not all satisfied with the informal (guanxi) management approach of the Chinese PM.

Project status reporting system (PSRS) for pipeline relocation programs

PurposeSuccessful performance and execution of construction projects depend highly on a good project control system capable of tracking and reporting project status on a desired time interval. The purpose of this paper is to propose such a control system by integrating spreadsheet and Visual Basic for Application to produce a customized tracking system for Pipeline Relocation Programs under Engineering, Procurement and Construction Management (EPCM) contracts.Design/methodology/approachThe project status reporting system (PSRS) proposed here was developed to produce a single page summary report that would include scope information, financial status, descriptive status updates and top-level task schedules. This information is retrieved from various sources and transformed further utilizing specific formulas and algorithm needed to compute the budget and schedule status of the pipe relocation project. A practical case study is used to demonstrate its unique application.FindingsThe system has successfully integrated project finance and schedule information into a central control hub. Financial and schedule performance of a project is tracked and monitored by the PSRS automatically.Originality/valueThe proposed system utilizes the powerful computing capability of MS Excel and the user-friendly VBA programming tool to customize the reporting needs of a project and program environment. The proposed system, whose functionality has been validated by the intended users, tries to achieve a balance between simplicity, accuracy and effectiveness for the flow of information at a much lower cost compared to the other readily available project control software.

Applying Modelica Tools to System Dynamics Based Learning Games: Project Management Game

Learning simulation games are interactive simulations with game characteristics. This paper presents a learning simulation game for EPCM (engineering, procurement, and construction management) project management training. The simulation model utilises system dynamics, which is a methodology for understanding the behaviour of dynamic complex systems of different domains using modelling and simulation. The system dynamics model in turn uses the equation-based Modelica modelling language: a system dynamics model created with the graphical user interface is converted to a pure Modelica model. Two Modelica environments, namely, OpenModelica and the custom Modelica solver, have been used to simulate the generated Modelica model. The focus of this article is on how generic systems modelling and simulation platforms such as Modelica based environments can be utilised in developing a learning simulation game: what benefits do they bring and what disadvantages do they have? On the one hand, it is evaluated how the Modelica language as such is suitable for being used in a learning game development. On the other hand, the suitability of the selected implementation environments, that is, OpenModelica, the custom Modelica solver, Simantics, and Simupedia, is evaluated. The paper also shortly presents how the project management game was received by its players.

EPCM contracting: clearing the minefield

The past year has seen a downturn in the number of new mining and infrastructure projects in Australia. Despite that, the authors are noticing a continuation of the trend towards a greater use of engineering, procurement and construction management (EPCM) style contracting. The increased use of EPCM contracts is in part due to projects becoming larger and more complex. As these projects can only be delivered by multiple contractors who all seek to limit their liability, the EPCM contract offers a useful framework for coordinating and managing those contractors, and maximising the owner’s recourse to them. This is particularly so in the oil and gas industry, with many projects using this form of project delivery. As there is no standard-form EPCM contract, however, and given the complex technical nature of these types of projects, negotiating an EPCM contract can be fraught with danger, especially for owners who may not have used this style of contract before. This paper discusses the unique characteristics of the EPCM contract (particularly in contrast to the engineering, procurement and construction style contract), the typical risk allocation, and the creative use of compensation and incentive regimes to drive optimum performance. The EPCM model is not suited to all projects, but if it is appropriately negotiated and drafted, and is well managed by an appropriately skilled and resourced owner’s team, it can provide a platform for excellence in project delivery.

Controlling megaproject capital intensity using a new project methodology

Oil and gas mega-projects are becoming more complex. They are more technically challenging and they face stiffer competition for resources and greater pressure from external stakeholders. Mega-project costs are now an order of magnitude greater than the previous generation. Effective project delivery is increasingly a source of competitive advantage: the ability to bring projects on faster and at lower capital intensity will determine longer-run market share, for example in LNG. Yet mega-project management techniques have not kept pace. We have seen three-fold increases in capital intensity. Project over-runs are growing disproportionately with project size.Several projects have been delayed or abandoned. The Boston Consulting Group (BCG) reviewed its accumulated experience in mega-projects across sectors including petroleum, mining, nuclear, and manufacturing. BCG identified common root-causes of major project failure and summarised an approach to improving outcomes—the LESS (lean, efficient and effective, standardised, and structured) Capital methodology: Lean—design and build the minimum technical solution. Efficient and effective—delivering productivity without jeopardising safety or quality. Standardised—capture experience benefits using modular, repeatable designs and an industrialised approach. Structured—align all parties using clear roles/responsibilities, operating discipline, and incentives. The approach can be applied at portfolio, program, and individual project levels. It has implications for the projects organisation design, project development and delivery processes, interfaces and contracting with engineering, procurement, and construction management (EPCM)/contractors, and frontline labour practices. Companies that get this right reduce capital intensity by about 20%, increase construction productivity by about 20%, and reduce the risk of delays. This extended abstract describes how companies can apply the LESS methodology to minimise capital intensity.

Conformity Assessment as a Tool for Organizational Learning in Large Engineering and Construction Projects

For the successful realization of large engineering and construction projects (LECPs), a systemic organizational learning framework for institutional cooperation is critical. Due to the long project life-cycle of LECPs, this is particularly important for this kind of project. The objective of this paper is to analyze to what extent the conformity assessment of LECPs, carried out under Engineering, Procurement and Construction management (EPCm) services, can be used as a tool for organizational learning and cooperation between typical stakeholders (project owners, engineering contractors, EPC contractors; subcontractors and certification bodies). The research, from which this paper emanates, was based on a case study concerning LECPs in an oil and gas company in Brazil. Based on its results, we suggest that the proposed organizational learning framework, supported by the conformity assessment rationale, constitutes an important management tool that can be disseminated in other organizational contexts where conformity assessments of LECPs take place.

A continuous improvement approach: Closing the loop in an engineering, procurement, and construction management environment

Continuous improvement initiatives are of increasing importance due to the high operating risks of engineering, procurement, and construction management (EPCM) firms in the oil and gas sector ($188 billion worth of oil and gas projects in 2008). This article describes a continuous improvement framework that translates performance problems into an action plan and helps to prevent their recurrence.

Modelling a Global EPCM (Engineering, Procurement and Construction Management) Enterprise

This paper investigates the applicability of enterprise architectures in the context of current business environment by examining the application of Purdue Enterprise Reference Architecture to WorleyParsons, a global engineering, procurement and construction management enterprise, under the backdrop of a similar study carried out on Fluor Daniel during mid-nineties of the last century. The outcome of this study recommends the need for new enterprise architecture, the People-Centric Enterprise Architecture that not only focuses on human dimension in modern enterprises as the central thread, but also includes more business characteristics of the enterprise other than engineerings.

Bucking the Trend: Cost-Plus Services in Lump-Sum Turnkey Market

Engineering, procurement, construction, and startup of cogeneration plants in the United States has evolved into a set pattern of lump-sum turnkey performance by engineering contractors and major equipment vendors. This method of designing, constructing, and starting up cogeneration plants has been driven by the requirements of project financing and long-term, nonrecourse funding. Design and construction of plants in Canada, though, has tended to be performed on a cost-plus basis, despite pressures from its southern neighbor. This paper reviews the results from the cost-plus contracting of three of Canada's first cogeneration plants. It also examines the contracting strategy used by the nonregulated division of a major Canadian electrical utility to acquire engineering, procurement, and construction management (EPCM) and startup (SU) services for two subsequent cogeneration plants—one in Ontario and one in Quebec—both on a reimbursable-cost basis. It explains why this owner felt the “cost-plus” approach w...