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

1 Cover

2 Foreword

3 Preface

4 Acknowledgements

5 Chapter 1: Introduction 1.1 The Book's Focus and Objectives 1.2 The Book's Content and Structure 1.3 Generality of Contractual Advice Given 1.4 Common Elements for Construction Projects Notes

6 Chapter 2: Construction Project Implementation Routes2.1 Different Approaches 2.2 Traditional Contracting Approach 2.3 Design-Build Approach 2.4 EPC Approach 2.5 EPCM Approach 2.6 Employers Prefer Lump-Sum Contracts 2.7 Fixed-Price Lump-Sum Contracts 2.8 Selecting the EPC Contractor Notes

7 Chapter 3: EPC Project Risk Management Overview3.1 Project Risk Management – Definition 3.2 Construction Project Hazards Abound 3.3 Importance of Project Risk Management 3.4 Corporate Risks Versus Project Risks 3.5 Greater Risks for EPC Contractors 3.6 Principal Disaster Areas on EPC Projects 3.7 Maintaining the Project Schedule 3.8 Departmental Interface Issues 3.9 Forging an Integrated Implementation Team 3.10 Allocating Responsibility for Handling Risks Notes

8 Chapter 4: EPC Project Pre-Implementation Problems4.1 Bidding Process Pitfalls 4.2 Failure to Embrace Lessons Learnt 4.3 Failure to Understand Contract Terms 4.4 Qualifications, Deviations and Exceptions List 4.5 False Management Resourcing Plan 4.6 Underestimating the Costs 4.7 Conceptual Design Bid Pricing Problems 4.8 Agreeing to Inadequate Completion Time 4.9 Reliance on Employer's Information/Data 4.10 Late Approval of CDVR 4.11 Gateway Between FEED and Detailed Design 4.12 Extended Review Period for Deliverables 4.13 Objecting to Impractical Review Process 4.14 Underestimating Equipment Procurement Packages 4.15 Rejection of Country of Origin 4.16 Responsibility for Governmental Problems 4.17 Performance Bond Early Submission 4.18 Requirement for On-Demand Bonds 4.19 Import Duty Responsibilities 4.20 Local Content Obligations Downplayed 4.21 Contractor's Bid Modifications Ignored 4.22 Relying on Carrots 4.23 Square Pegs and Round Holes 4.24 Failure to Check the Margin Notes

9 Chapter 5: Overseas EPC Project Preparatory Work5.1 Critical Path Identification 5.2 Setting Up Contractor's Administrative Systems 5.3 Determining Appropriate Management Structure Notes

10 Chapter 6: Project Roles, Functions and Responsibilities6.1 The Project Management Consultant 6.2 The Board of Directors 6.3 The Project Director 6.4 The Project Manager 6.5 The Project Controls Manager 6.6 The Project Controls Department 6.7 The Planning/Scheduling Team 6.8 The Engineering Manager 6.9 The Procurement Manager 6.10 The Expediting/Logistics Manager 6.11 The Construction Manager 6.12 The Commissioning Manager 6.13 The Operational Readiness Manager 6.14 The QA/QC Manager 6.15 The HSE Manager 6.16 The Camp Boss 6.17 The Project Information Manager 6.18 The Document Control Manager 6.19 The Information Technology Manager 6.20 The Interface Manager 6.21 The Contract Administration Team 6.22 The Human Resources Manager 6.23 The Administration Department 6.24 The Financial Management Team 6.25 The Compliance Team 6.26 The Legal Department Notes

11 Chapter 7: Reducing Joint-Venture/Consortium Risks7.1 Joint Venture Versus Consortium 7.2 JV Considerations 7.3 Setting Up a JV Steering Committee 7.4 Objectives of JV Steering Committee 7.5 JV Members are Partners Note

12 Chapter 8: Claims Management Risks and Problems8.1 Relying on Claims to Achieve Profitability 8.2 Factors Legislating Against a Claim's Success 8.3 Key Ingredients for Worthwhile Claims 8.4 Proving Excusable Delay 8.5 Key Components of Successful Claims Notes

13 Chapter 9: Identifying Hazards and Managing the Risks9.1 Introduction 9.2 Potential Hazards for Construction Projects 9.3 Responsibility for Project Risk Assessment 9.4 Identifying and Managing Project Risks 9.5 Project Main Risks Register 9.6 Risk Assessment Team Inputs 9.7 Relative Risk Factor Assessment 9.8 Risks Arising from Safety Studies 9.9 Dealing with Safety Risks to On-Site Personnel 9.10 Dealing with Health Matters for On-Site Personnel 9.11 Dealing with Risks to the Environment Notes

14 Attachment A: Matrix of Project Risk Areas and Corresponding Risk Management Solutions

15 Attachment B: Matrix of Prime Risk Considerations, Impacts & Consequences

16 Attachment C: Example Project Main Risks Register

17 Attachment D: Steps in Task Risk Assessment

18 Attachment E: Task Hazard Assessment Worksheet

19 Appendix A: Abbreviations and Acronyms

20 Appendix B: Glossary Notes

21 Appendix C: EPC Project Management Team Organisation Structure

22 Appendix D: EPC Project Departmental Organisation Structure

23 About the Author

24 Index

25 End User License Agreement

1 Chapter 6Figure 6.1 Interfaces for EPC Project's Departments and Teams.

1 Cover

2 Table of Contents

3 Begin Reading

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