Practical risk management for EPC/design-build projects : manage risks effectively - stop the losses /: manage risks effectively - stop the losses. (2020)

• Record Type: Book
• Further Information: Note: Walter A. Salmon, FRICS MAPM MACostE.
• Authors: Salmon, Walter A
• Contents: Foreword xiii Preface xv Acknowledgements xix 1 Introduction 1 1.1 The Book’s Focus and Objectives 1 1.2 The Book’s Content and Structure 4 1.3 Generality of Contractual Advice Given 7 1.4 Common Elements for Construction Projects 8 2 Construction Project Implementation Routes 11 2.1 Different Approaches 11 2.2 Traditional Contracting Approach 11 2.2.1 Design Team’s Appointment and Role 11 2.2.2 Employer’s Participation 12 2.2.3 Contractor’s Role and Responsibilities 13 2.2.4 Traditional Approach Advantages 13 2.2.5 Traditional Approach Disadvantages 14 2.3 Design-Build Approach 14 2.4 EPC Approach 16 2.4.1 EPC Project Suitability 16 2.4.2 Contractor’s Obligations 17 2.4.3 Employer’s Participation 17 2.4.4 Standard EPC Contracts Available 18 2.4.5 General Notes of Interest 20 2.5 EPCM Approach 21 2.6 Employers Prefer Lump-Sum Contracts 23 2.7 Fixed-Price Lump-Sum Contracts 25 2.8 Selecting the EPC Contractor 26 3 EPC Project Risk Management Overview 29 3.1 Project Risk Management – Definition 29 3.2 Construction Project Hazards Abound 29 3.3 Importance of Project Risk Management 31 3.4 Corporate Risks Versus Project Risks 32 3.5 Greater Risks for EPC Contractors 33 3.6 Principal Disaster Areas on EPC Projects 34 3.7 Maintaining the Project Schedule 36 3.8 Departmental Interface Issues 36 3.8.1 Rework 37 3.8.2 Delayed Technical Bid Evaluations 38 3.8.3 Late Mobilisation of Procurement Team 38 3.8.4 Red-Line Drawings Left Too Late 39 3.9 Forging an Integrated Implementation Team 39 3.10 Allocating Responsibility for Handling Risks 40 4 EPC Project Pre-Implementation Problems 43 4.1 Bidding Process Pitfalls 43 4.2 Failure to Embrace Lessons Learnt 44 4.3 Failure to Understand Contract Terms 45 4.4 Qualifications, Deviations and Exceptions List 46 4.5 False Management Resourcing Plan 47 4.6 Underestimating the Costs 48 4.7 Conceptual Design Bid Pricing Problems 50 4.8 Agreeing to Inadequate Completion Time 50 4.9 Reliance on Employer’s Information/Data 54 4.10 Late Approval of CDVR 54 4.11 Gateway Between FEED and Detailed Design 55 4.12 Extended Review Period for Deliverables 55 4.13 Objecting to Impractical Review Process 56 4.14 Underestimating Equipment Procurement Packages 58 4.15 Rejection of Country of Origin 59 4.16 Responsibility for Governmental Problems 60 4.17 Performance Bond Early Submission 60 4.18 Requirement for On-Demand Bonds 61 4.19 Import Duty Responsibilities 62 4.20 Local Content Obligations Downplayed 63 4.21 Contractor’s Bid Modifications Ignored 64 4.22 Relying on Carrots 65 4.23 Square Pegs and Round Holes 66 4.24 Failure to Check the Margin 68 5 Overseas EPC Project Preparatory Work 71 5.1 Critical Path Identification 71 5.2 Setting Up Contractor’s Administrative Systems 73 5.3 Determining Appropriate Management Structure 73 6 Project Roles, Functions and Responsibilities 75 6.1 The Project Management Consultant 75 6.1.1 Primary Functions 75 6.1.2 PMC’s Duty and Loyalty is to Employer 76 6.1.3 PMC’s Different Take on Time 77 6.1.4 Employer’s Direct Personnel in Lieu of PMC 78 6.2 The Board of Directors 79 6.2.1 Primary Functions 79 6.2.2 Ethical Compliance Responsibilities 79 6.2.3 Shop Floor Compliance Problems 81 6.2.4 Corporate Directives for Limiting Compliance Transgressions 82 6.2.5 Speeding Up Financial Decision-Making 83 6.2.6 Ensuring Veracity of Reporting 84 6.3 The Project Director 86 6.3.1 Standing of Project Director 86 6.3.2 PD’s Functions and Responsibilities 86 6.3.3 Good Communication and Quality Reporting 87 6.3.4 Importance of a Good PD 89 6.4 The Project Manager 90 6.4.1 Primary Functions 90 6.4.2 PM’s Reporting Duties 93 6.4.3 Preparation of Project Execution Plan 95 6.4.4 PM’s Responsibility for Risk Management 96 6.4.5 PM’s Key Considerations for Minimising Risks 97 6.4.5.1 Identifying and Managing the Project’s Major Risks 97 6.4.5.2 Helping to Develop the Project Execution Plan 98 6.4.5.3 Organising, Monitoring and Controlling the Project’s Resources 98 6.4.5.4 Ensuring Safe Working at All Times 99 6.4.5.5 Directing and Monitoring the Project’s Management Staff 100 6.4.5.6 Monitoring and Reporting on the Project’s Actual Progress 101 6.4.5.7 Developing/Implementing Appropriate Plans to Redress Delays 104 6.4.5.8 Completing within the Agreed Time-Frame 105 6.4.5.9 Delivering the Expected Quality of Finished Product 107 6.4.5.10 Completing within the Approved Budget 108 6.4.6 PM’s Preferred Communication Style 110 6.5 The Project Controls Manager 110 6.5.1 Range of Functions May Vary 110 6.5.2 PCM’s Primary Functions in the Wider Role 111 6.5.3 Importance of the PCM’s Reporting 112 6.5.4 Overloading the PCM’s Responsibilities 113 6.6 The Project Controls Department 113 6.6.1 The Department’s Objectives 113 6.6.2 Planning and Controls Explained 115 6.6.3 PCD’s Planning and Controls in Practice 116 6.7 The Planning/Scheduling Team 117 6.7.1 Unrealistically Short Project Schedules 117 6.7.2 Importance of a Sound Project Schedule 118 6.7.3 The Project Schedule’s Owner 119 6.7.4 Managers Must Embrace the Project Schedule 120 6.7.5 Compiling the Work Breakdown Structure 121 6.7.6 Determining the Planning Strategy 121 6.7.7 Finalising the Baseline Project Schedule 122 6.7.8 Schedules Beyond the Project Schedule 122 6.7.9 Major Risks for the Planning Manager 123 6.7.10 Retrospective Compilation of Project Schedule 125 6.8 The Engineering Manager 125 6.8.1 Primary Responsibilities 125 6.8.2 The Engineering Department’s Customers 127 6.8.3 Key Preparatory Activities for Engineering Work 127 6.8.4 Primary Risks for Engineering Work Activities 130 6.8.4.1 Late Delivery of Engineering Documentation 130 6.8.4.2 Gradual Scope Creep 131 6.8.4.3 Inadequate Monitoring of Engineering Subcontractors 131 6.8.4.4 Disruption of Information Management Tasks 132 6.8.4.5 Failure to Rationalise the Information Management System 132 6.8.4.6 Reliance on Document-focused Progress Reporting 133 6.8.4.7 Problems Caused by Employer’s Non-readiness 134 6.9 The Procurement Manager 135 6.9.1 Primary Responsibilities 135 6.9.2 The Procurement Department’s Prime Customer 136 6.9.3 Deciding Equipment/Deliverables Delivery Dates 136 6.9.4 Considerations for Long-Lead Items 137 6.9.5 Late Engineering Deliverables 138 6.9.6 Risk of Corruption Occurring 138 6.9.7 Tracking Manufacturing and Delivery Status 139 6.9.8 Effective Use of Expediters 140 6.9.9 Avoiding Delays from Employer’s Side 140 6.9.10 Due Diligence on Vendors and Subcontractors 142 6.9.11 In-Country Services Problems 142 6.9.12 Customs Clearance Problems 143 6.9.13 Reducing the Risks of Non-Performing Service Providers 143 6.9.14 Obtaining All Available Discounts 144 6.9.15 Arranging On-Site Support Services 144 6.9.16 Ordering More Spares than Necessary 145 6.10 The Expediting/Logistics Manager 145 6.10.1 Primary Responsibilities 145 <
• Publisher Details: Hoboken, NJ : John Wiley & Sons, Inc
• Publication Date: 2020
• Copyright Date: 2020
• Extent: 1 online resource (xix, 299 pages), illustrations
• Subjects: 658.15/5; Risk management; Engineering design; Building; Project management; Building; Engineering design; Project management; Risk management; Electronic books
• Languages: English
• ISBNs: 9781119596257; 1119596254; 9781119596240; 1119596246; 9781119596202; 1119596203
• Related ISBNs: 9781119596172
• Notes: Note: Includes bibliographical references and index.; Note: Description based on online resource; title from digital title page (viewed on May 07, 2020).
• Access Rights: Legal Deposit; Only available on premises controlled by the deposit library and to one user at any one time; The Legal Deposit Libraries (Non-Print Works) Regulations (UK).
• Access Usage: Restricted: Printing from this resource is governed by The Legal Deposit Libraries (Non-Print Works) Regulations (UK) and UK copyright law currently in force.