Practical Risk Management for EPC / Design-Build Projects. Walter A. Salmon

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down and disposal of wrongly installed components (and, sometimes, demolition of work already completed), and

      5 consequent loss of time on the Project's Critical Path.

      This will inevitably require a Contractor to invest in a good quality enterprise-wide Electronic Document Management System (EDMS) that is capable of allowing documents and drawings to be shared between all Departments in real time, so that every Project participant can be well-informed at all times. However, this can prove to be a problem for those many Contractors who do not have their own internal Engineering design capability and, instead, sublet the Engineering design work to third parties. The resultant communication gap does not allow the Contractor to obtain enough real-time knowledge at any point to have confidence about the timely delivery of the Engineering outputs. Under such circumstances, it is not surprising to find that the Engineering mistakes are very often not discovered until as late as the commissioning stage, when the problem becomes an embarrassment, as well as being more costly and time consuming to rectify.

      3.8.2 Delayed Technical Bid Evaluations

      3.8.3 Late Mobilisation of Procurement Team

      A dedicated full-time Procurement Team may not have been set up quickly enough because the intended members of that Department are either busy on other Projects or have not yet been brought into the Contractor's company. This can happen on an EPC Project simply because the Procurement Department will not be required to be at full capacity until such time as a suitable number of Materials Requisitions (MRs) have been completed by the Engineering Department. This means that the staffing for the Procurement Department tends to arrive almost on a drip-feed basis until the full complement has been achieved. Consequently, even though the date will have been set for when the MR for the earliest of the critical Long-Lead Items (LLIs) is to be made available, the appropriate person may not be around in the Procurement Department in time to sound the alarm bell about the probable lateness of that MR. This may then become a major problem that is difficult to overcome. However, simple questioning of the Engineering Department's Work Package Engineer by the Procurement Department's Buyer would usually very easily establish whether or not the required MR will materialise on time.

      I have experienced the above embarrassing situation occurring a number of times, and it was almost always impossible to make up the lost time for the LLIs involved. It was not the direct fault of the Procurement Department, since the delays/snags had occurred in the Engineering Department. However, the fact that the person next in line (the Buyer) was not around to chase for the completed engineering information meant that the Engineering Department's problem was allowed to drag on unresolved for too long. Nowadays, even if no EDMS has been set up for more direct communication purposes, a standard emailing alert system (such as Microsoft Outlook) can be utilised to issue reminder notices to check that essential activities are being progressed as required. This simple technique could prove of great benefit to the Procurement Manager before the full Procurement Team is in place on a full-time basis. However, I have yet to see even such simple, readily-available technology being utilised adequately. Ironically though, I have seen somebody who failed to use Outlook to remind them of an important work deadline employ it to remind them to leave work early so as to be on time for a doctor's appointment.

      3.8.4 Red-Line Drawings Left Too Late

      Another area of Project working that is all too often overlooked or not accorded enough attention is building an integrated implementation team that is working to the same objectives. I have observed that if the people on the tools can see that the Project Management Team members are concerned with the welfare and well-being of all staff when working in difficult overseas situations, then it can generate a good team spirit. I am not advocating that management personnel should jump into the trenches to help out with urgent cable pulling if the labour force is understaffed. However, I once saw that done to very good effect, and it demonstrated to a lot of the management staff (including me) the benefit of breaking down the traditional barriers that often still exist today between management staff and the manual workforce. I am referring more to the need to make the lives of the workers more tolerable in tough environments where they are far from their families and loved ones.

      In such cases it costs very little extra to arrange a sports day where the emphasis is on fun, or a barbecue-on-the-beach day. Holding film nights with the latest movies on show also helps boost morale, as does ensuring that televisions are provided to everybody, with access to a good selection of movies, and even Internet entertainment (with a stable connection). Providing wholesome and tasty food too, as well as worthwhile gymnasium facilities for excess calories to be worked off, also helps people feel more comfortable when they are working away from home. The list of other possibilities for making the lives of the workers better is long, and it just needs a little imagination and effort to give effect to such ideas.

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