233471225 Module 10 Managing Construction and Completions Participants Manual Rev0
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Managing Construction and Completions Project Management Training Module 10 Rev B 06/02/2008
© Copyright 2007 WorleyParsons Services Pty Ltd This document has been prepared on behalf and for the exclusive use of WorleyParsons. This document may not be reproduced without the express permission of the Business Process Owner
Level 12, 333 Collins Street Melbourne Vic 3000 Australia Telephone: +061 3 8676 3500 Facsimile: +061 3 8676 3505 www.worleyparsons.com WorleyParsons Services Pty Ltd ABN 61 001 279 812
Project Management Training Module 10 Managing Construction and Completions Rev
Description
A
WorleyParsons Approval
Date
Bruce Leigh
Mike Reilly
6/02/2008
Bruce Leigh
Mike Reilly
Mike Reilly
26/02/08
Bruce Leigh
Mike Reilly
Mike Reilly
04/03/08
Orig
Review
Initial draft
Joslin Guest Jane Woodhead
Bruce Leigh Mike Reilly
B
Issued for trial
Jane Woodhead
C
Issued with trial comments
0
Issued for Use
Managing Construction and Completions About this Module ..................................................................................................... 1 Overview of the WorleyParsons Project Management Process............................. 3 Overview .................................................................................................................... 4 Roles and Responsibilities ....................................................................................... 9 Role of the Project Manager ........................................................................................ 9 Role of the Construction Manager ............................................................................... 9 Construction Manager’s Responsibilities ........................................................... 9 Role of the Completions Manager ............................................................................. 10 Completions Manager’s Responsibilities ......................................................... 11 Project Planning ...................................................................................................... 14 Project Initiation ......................................................................................................... 14 Principles of Scheduling ............................................................................................ 14 Pre-mobilization of Construction ................................................................................ 16 Construction Pre-mobilization Meeting ...................................................................... 16 Completions Pre-mobilization .................................................................................... 16 Completions Pre-mobilization Meeting....................................................................... 16 Construction Methodology (Brownfield vs Greenfield) ............................................... 17 Prerequisites / Critical Construction Inputs ................................................................ 17 Preliminary Construction Planning............................................................................. 18 Detailed Construction Planning.................................................................................. 19 Site Establishment and Logistics ............................................................................... 20 Constructability and commissionability ................................................................ 23 Construction and Completions Teams Input into Execution Planning and Design ..... 23 Constructability Reviews............................................................................................ 24 Opportunities for Modularization and Pre-assembly .................................................. 26 Pre-assembly............................................................................................................. 26 Modularization ........................................................................................................... 26 Benefits of Modularization ......................................................................................... 27 Site Organization and Resource Management ...................................................... 31 Site Organization ....................................................................................................... 31 Resource Management ............................................................................................. 35 Construction Staffing Plan ............................................................................... 35 Obtaining Suitably Experienced Staff, Subcontractors..................................... 35 Demobilization ................................................................................................. 35 Communication and Team Work ............................................................................ 37 Project Culture, Trust and Team Work....................................................................... 37 Home Office and Site Office Communication and Teamwork .................................... 37 Contractor Communication and Team Work.............................................................. 37 Coordination .................................................................................................... 38 Cooperation..................................................................................................... 39 Issue Resolution...................................................................................................... 40 Quality Management................................................................................................ 41 Construction Contractor’s Responsibilities for Quality Control ................................... 41 Inspection and Test Plans ......................................................................................... 42 Checklists and Rectification of Defects ...................................................................... 42 Inspection Completion and Punch Listing .................................................................. 42 Quality Records ......................................................................................................... 42 Protocols for Construction Site Visits ................................................................... 43 Security Plan ............................................................................................................. 43
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Visitors....................................................................................................................... 43 Inducted but Infrequent Visits .................................................................................... 43 Surveillance Visits ..................................................................................................... 44 Dress Code................................................................................................................ 44 Health, Safety and Environment (HSE) .................................................................. 46 Safety ........................................................................................................................ 46 Zero Harm ................................................................................................................. 46 Strategies for Promoting Safety ................................................................................. 46 Risk Analysis ................................................................................................... 46 Contractor Selection ........................................................................................ 46 Other Strategies .............................................................................................. 47 Proactive Involvement of Key Construction Contractors .................................. 47 Health and Safety Plan .................................................................................... 48 Communication................................................................................................ 48 Environment .............................................................................................................. 49 Impact of Unforeseen Environmental Problems............................................... 49 Industrial Relations ................................................................................................. 50 Management of Construction Contractor Industrial Relations .................................... 51 Risk Management—Construction........................................................................... 53 Aligning with Corporate Zero Harm............................................................................ 53 Construction Risk ...................................................................................................... 53 Risk / Hazard Control................................................................................................. 53 Risk Assessment Register Management ......................................................... 54 Mitigation Plans ......................................................................................................... 54 Construction and Field Procurement..................................................................... 55 Types of Construction Contracts................................................................................ 55 Examples of Contract Types............................................................................ 55 Interface between Construction and Procurement ........................................... 55 MARIAN .......................................................................................................... 56 Materials Management .................................................................................... 56 Third-party Suppliers and Their Subcontractors .............................................. 57 Managing Site Contracts ........................................................................................... 57 Vendor Representations .................................................................................. 57 Contracts Placed by the Customer .................................................................. 58 Construction Control and Reporting...................................................................... 60 Construction Progress Measurement and Control ..................................................... 60 Measurement Tools and Methodologies .................................................................... 60 Construction KPIs............................................................................................ 60 Construction Progress ..................................................................................... 61 Construction Forecasts.................................................................................... 61 Contractor Performance Measurement............................................................ 61 Construction Reports ................................................................................................. 62 Report Format ................................................................................................. 62 Construction Site Reports................................................................................ 62 Project Meeting.......................................................................................................... 63 Construction Project Meetings ......................................................................... 63 Document Management .......................................................................................... 65 Controlled Documents ............................................................................................... 65 Document Control Procedure for the Construction Site ............................................. 65 Document Review and Sign-off ................................................................................. 65 Document and Drawing Libraries..................................................................... 66 Document Control Registers...................................................................................... 66 Completions—Commissioning and turnover to the Customer............................ 67 Pre-commissioning .................................................................................................... 67 Commissioning .......................................................................................................... 67
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Commissioning Stage 1 — Mechanical Completion ........................................ 67 Commissioning Stage 2 — Function Testing ................................................... 68 Commissioning Stage 3 — System Commissioning ........................................ 68 Commissioning Stage 4 — Start-up and Ramp-up .......................................... 69 Operation and Performance Testing................................................................ 70 Interim Turnover to the Customer .................................................................... 70 Interim Facilities Turnover ............................................................................... 70 Commissioning and Interim Turnover Documentation ..................................... 71 Completions Management Tool (CMT) ...................................................................... 71 Change Management............................................................................................... 73 Overview ................................................................................................................... 73 Key Procedures for Construction ............................................................................... 73 Appendix A Glossary .............................................................................................. 75 Appendix B References .......................................................................................... 81 Appendix C Types of Construction Contracts ..................................................... 83 Comparison of contracts.................................................................................. 86 Appendix D Answers to Review Questions ........................................................... 88
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ABOUT THIS MODULE The Managing Construction and Completions module is a critical and complex part of project management training. The module, Managing Construction and Completions, provides training in process (es) that WorleyParsons uses to understand how construction and completions are managed and progressed. This includes the relative responsibilities of the Project, Construction and Completions Managers as part of the project team and managing construction site activities. The principles and processes described in this module are valid for all sizes of projects and business process, and to all regions / locations. This module is the 10th module in the suite of WorleyParsons Project Management Skills Development Training. The modules in the suite are:
¾
Module 1
Project Initiation, Scope Management and Project Close-out
¾
Module 2
Project Controls and Commercial Management
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Module 3
Managing Project Risk
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Module 4
Business Management Systems
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Module 5
HSE Management
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Module 6
Proposals
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Module 7
Managing Project Quality
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Module 8
Team Leadership and Communications
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Module 9
Managing Project Procurement
¾
Module 10
Managing Construction and Completions
These modules are primarily targeted at providing entry level training for personnel entering Project Management at the Project Engineer level, although they may be used to enhance the skills of a wider set of personnel.
Module Learning Objectives Following completion of this module you will have:
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A basic understanding of what the Construction and Completions functions provide to complete their part of an EPCM project.
¾
An understanding of the methodologies and tools that will enable you to work with Construction and Completions to successfully deliver a project.
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Module Learning Outcomes On completion of this module, you will be able to:
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Understand the importance of having Construction and Completions involvement early in project initiation with input into the Total Installed Cost (TIC) estimate, input to Work Breakdown Structure (WBS), Layout / Model boundaries and planning
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Understand the needs of Construction, including AFC drawings and materials being available on time, and how this determines Engineering and Procurement priorities
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Plan and incorporate constructability reviews and construction lessons learnt into project design and contracting
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Address design strategy opportunities for design standardization, modularization and pre-assembly
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Understand typical Construction and Completions organization charts and associated roles and responsibilities
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Have a basic understanding of the key processes used by Construction and Completions
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Understand the importance of HSE in Construction and Completions including some key processes to achieve Zero Harm
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Have a basic understanding of Industrial Relations (IR) requirements
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Have a basic understanding of the typical progress reporting provided by Construction and Completions.
Training Method The WPMP Managing Construction and Completions training should be facilitated by a trained facilitator. Case studies are provided.
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OVERVIEW OF THE WORLEYPARSONS PROJECT MANAGEMENT PROCESS This module covers the process by which projects are constructed and commissioned. The Managing Construction and Completions module is a critical part of project management. The principles and processes presented in this module apply to all five phases of a project. Figure 1. WorleyParsons Project Management Process
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OVERVIEW The primary objectives of WorleyParsons are to successfully deliver to a Customer the specified project safely, on time, at the contract price and achieve a reasonable profit in return for performance of its work. Construction and Completions Management involvement through every stage of the project, beginning with the original concept and project definition, yields the greatest possible benefit to Customers.
What is Construction Construction is the building, fabrication or assembly of any infrastructure on a site or sites. Although this may be thought of as a single activity, in fact construction involves multitasking. It may be likened to a very large and complex set of building blocks (such as Leggo) where detailed and structured layers of assembled items are crucial to the success of all subsequent layers. The construction site(s) are managed by the Construction Manager, supervised by the Project Manager, with additional assistance provided by the Design Engineer or Project Architect. Every construction project requires a large number of managers and skilled tradesmen to complete the physical task of construction. The construction process:
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Commences during the Conceptual Design / Basis of Design (BOD) phase (i.e. Identify/Evaluate) — where budget and schedule, organization structure, documentation and information requirements, supplier deliverables and site requirements are identified. The Estimate will be required to capture the Customer expectations, objectives and schedule constraints in forming a Total Installed Cost (TIC) estimate into categories, such as quantities, labor hours, plant equipment and material costs, fabrication, modularization, and installation, purchasing plans, contracting strategy and the Project Execution schedule. The Total Installed Cost (TIC) estimating information generated during proposal phase provides the point of departure for the project budget (Control Budget). The distribution of the project budget is an allocation process that results in each costelement receiving a budget that represents its value in the overall project (weightingprocess)
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The project Estimating Methodology by construction should include as a minimum;
Staffing levels
Temporary facilities
Equipment Requirements
Quantity and Scope Derivation.
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¾
Manual Labor Pricing.
Unit Manhours for Installation.
Productivity.
Pre-Assembly, Offsite Fabrication, Modularization.
Contractor’s Indirect costs.
Freight.
It is absolutely essential for Class 3 (end of Define Phase) and Class 4 (definitive) estimates, that the Work Breakdown Structure (WBS) is agreed with the project team and customer before commencing preparation of the estimate. It is therefore very important that Construction and Completions have an input into the development as once the Work Breakdown Structure (WBS) is defined, the cost estimate is the point from which all project control processes commence. When there is disconnect between the cost estimating, cost control and schedule processes, a project will be extremely difficult to manage. We have the opportunity to then collect history data that can be used for verification of ‘norms’ and provide reference data for ‘order of magnitude’ type estimates. Finally, we can demonstrate to our customers (and prospective customers) that we have a solid process for managing their work and the skills and systems to back this up.
¾
Continues through the Front End Engineering Design (FEED) phase, engineering and procurement, fabrication and construction and testing. (i.e. Define/Execute)
What is Completions Completions describes the management, development, planning and site preparation for the final stages of a project, where the new or upgraded plant and equipment is checked, tested, commissioned and started up to first time operational status. The completions process:
¾
Commences during the Conceptual Design/Basis of Design (BOD) phase (i.e. Identify/Evaluate) — where budget and schedule, organization structure, documentation and information requirements, supplier deliverables and site requirements are identified
¾
Continues through the Front End Engineering Design (FEED) phase, engineering and procurement, fabrication and construction and testing, and completions phases (i.e. Define/Execute)
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¾
Ends in the completed and operating facilities being turned over to the Operator. This Turnover is generally before the Project Closeout and formal turnover of documentation and will therefore include an interim delivery of specific documentation and data to enable the plant to be effectively and safely operated and maintained.
What is Commissioning Commissioning is the demonstration that the plant and equipment has been built to the plans and specifications and performs to the design intent. Commissioning can also be described as the field activities of the completions process. The process of field commissioning:
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¾
Commences during the construction phase (Commissioning Stage 1)
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Ends with the facility started up and turned over to the operator.
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Figure 2 Stages in Construction and Completions
BOD Basis of Design
FEED Front End Eng Design
Engineering Early Procurement Activity
Construction/Completions Engineering Support Construction & Completions Engineering
Construction/Completions Procurement Support Construction & Completions Procurement Support
Procurement Early FAT Activity
Early FAT Activity
Support
FAT (Factory Acceptance Testing)
Construction Development & Preparation Early Const Activity
Early Const Activity
Attend Punch Lists
Construction
Completions Development & Preparations Commissioning Stage 1 (Mechanical Completion) Commissioning Stage 2 (Function Testing) Commissioning Stage 3 (System Commissioning) Commissioning Stage 4 (Start Up & Ramp Up) Operation & Performance Testing
Interim Facilities Facilities Turnover Turnover
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Review Questions Q1
What are the two objectives that you will expect to be satisfied at the completion of this module? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
Q2
Name four things that you will be able to do at the completion of this module. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
Q3
Briefly describe, a) Construction, and b) Completions. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
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ROLES AND RESPONSIBILITIES Role of the Project Manager The primary role of the Project Manager is to establish management processes and controls that result in a successful project and is therefore ultimately responsible for the total project delivery. On an EPCM project, this involves working with the Construction (and Completions) Manager to ensure an integrated project delivery
Role of the Construction Manager The Construction Manager is ultimately responsible for all construction activities, Industrial Relations and HSE standards compliance relating to the project’s scope of work at the construction site(s). As a result, the most important role of the Construction Manager is single point accountability for the delivery of the construction scope of work. The common responsibilities of a Construction Manager fall into the following eight categories:
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Safety Management and promotion of HSE culture
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Construction Management Planning
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Cost Management
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Time Management
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Quality Management
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Contract Administration
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Construction Management
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Industrial Relations.
Construction Manager’s Responsibilities Construction Managers have the following responsibilities:
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Single point accountability for the delivery of the project construction Scope of Work, encompassing constructability during design and execution at site
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Liaising with the Engineering Manager on the progress and status of engineering for each plant facility inclusive of priority of design deliverables and sequence of events
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Carry out constructability reviews on all project Workpacks
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Liaise with the purchasing and contracts managers on the progress and status of contract awards, scheduled milestone dates and priority long lead item purchase orders
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Prepare the construction contracting strategy proposed and implemented for the project
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Ensure that owner-procured items are being expedited in a timely manner to meet the required on site dates
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Monitor construction progress, in particular the critical path, in conjunction with the Controls Manager, so that schedule slippage can be monitored and the effects minimized
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Monitor overall construction labor by discipline and that adequate staffing resources are available to ensure that facilities are provided to fully service the site requirements
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Review the sequencing of activities, co-ordination of procedures and systems, construction strategy proposed and implementation of the strategy for the project
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Consult with the owner’s construction team and operations staff to ensure minimal disruption to both operations and construction activities
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Supervise the procedures for tag outs, outages and tie-ins to maximize existing productivity, minimize safety risks and integrate with the project schedule
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Ensure all mechanical completion activities are completed to the prescribed quality and in line with the project schedule
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Sign off system / commissioning packs and punch lists to the Completions Team
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Provide construction support and resources during commissioning stages
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Execute the project safety management plan and ensure the highest safety standards attainable are achieved through good safety management
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Manage the Industrial Relations strategies and issues with other project team members, including the Project Manager and the Human Resource / Industrial Relations Manager
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Ensure all environmental and community guidelines and requirements are met
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Ensure that Change Management is functioning and that Completions are notified of all changes.
Role of the Completions Manager The Completions Manager is ultimately responsible for all completions activities, including the planning and preparation for the site commissioning activities, and interim turnover of the facilities to the Customer after start up. The Completions Manager inherits from the Construction Manager the responsibility for the Site and its administration, including Industrial Relations and HSE compliance. As a result, the Completions Manager becomes the single point accountability for the delivery of the completions and commissioning scope of work.
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The common responsibilities of a Completions Manager fall into the following eight categories:
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Safety Management and continued promotion of HSE culture
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Completions Management Planning, Development and Execution
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Cost and Time Management
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Quality Management
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Site Operator interfaces
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Site Administration after construction
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Operator Training
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Interim Facilities Turnover to the Customer / Operator, pending formal project Turnover by the Project Manager
Completions Manager’s Responsibilities Completions Managers have the following responsibilities:
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Single point accountability for the delivery of the project completions Scope of Work, encompassing commissionability during design and development stages
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Liaising and coordinating with the Engineering Manager on the progress and status of engineering for each plant facility inclusive of priority of design deliverables and sequence of events
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Liaising and coordinating with the Project Manager and Engineering Manager to provide early completions input to the design process and ensure the engineering design deliverables interface with the Completions Management Tool (CMT)
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Facilitate the early selection and set up of the CMT
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Carry out commissionability reviews on all project work packs
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Liaise and coordinate with the purchasing and contracts managers on the progress and status of contract awards, scheduled milestone dates and priority long lead item purchase orders
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Liaise and coordinate with the purchasing and contracts managers to provide completions interest input to selected purchase orders and agreements, including identification of completions requirements for Factory Acceptance Testing
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Prepare the Completions Strategy, Completions Management and Completions Execution Plans and Completions Schedule for the project
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Ensure that owner-procured items are being expedited in a timely manner to meet the required on site dates
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Monitor construction progress, in particular the critical path, in conjunction with the Controls Manager, so that schedule slippage can be monitored and the effects minimized
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Liaise with the Construction Manager and Constructor to ensure construction completion is System focused
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Ensure adequate resources (personnel) are identified, trained and available to address the completions plan and schedule
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Ensure adequate site resources (e.g. offices and accommodation; plant tools and equipment; test instruments and equipment; fills and lubricants etc) are identified and available to address the completions plan and schedule
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Ensure adequate supplier support and specialists are identified and available to address the completions plan and schedule
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Liaise with Regulators and other Statutory Bodies as necessary during the Completions process
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Consult with the Customer operations staff to ensure minimal disruption to both operations and construction activities
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Select and implement the Permit to Work System, Tagging and Lockout and Energization Notice systems to minimize safety risks and integrate with the project schedule
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Ensure all completions activities are completed to the prescribed quality and in line with the project schedule
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Prepare System handover/turnover packs and ensure all all signatures, check lists, punch lists and agreed attachments are available
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Provide completions support and resources during early operation and performance testing
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Execute the project Safety Management Plan and ensure all risks are reduced to an ALARP level
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Manage the Industrial Relations strategies and issues with other project team members, including the Project Manager and the Human Resource / Industrial Relations Manager
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Ensure all environmental and community guidelines and requirements are met
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Ensure that Change Management is functioning and that Completions are notified of all changes
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Deliver Customer operator training as identified in the Contract
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Review Questions Q4
Provide at least three of the common responsibilities of the construction manager. __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Q5
How would you describe the single most accountable role of the Construction Manager on the site? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Q6
Is the Construction Manager the sole person responsible for Industrial Relations on a project? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Q7
Who is ultimately responsible for construction and project delivery? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
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PROJECT PLANNING The overall Project Schedule aligns the logic, precedence and duration for each engineering, procurement, construction and completions task. Engineering, procurement, construction and completions groups develop deliverable and requisition registers, identifying all deliverables to be produced on the project including defined Scopes of Work for selected Contractors to perform. The Project Schedule should be driven from the back end (i.e. starting at the facility start up and turnover to the operator and working backwards). Therefore the Construction and Completions Manager will influence the Project schedule and deliverables. The developed scope of work may consist of a number of separate packages of work with limited constraints and interfaces between packages. Priority in scheduling will be given to those packages that are critical path to achieving the overall project start-up schedule and/or that add greatest value, taking into account Operational constraints dictated by shutdowns and the logic that dictates start-up of the plant where applicable. Early Construction and Completions involvement is absolutely necessary for all phases of a project as stated on page 4, namely; ¾
Proposals
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All types of projects, and not isolated to EPCM styled projects.
¾
There is no project that cannot benefit from Constructability and Commissionability Reviews.
Project Initiation The Construction Manager and the Completions Manager must ensure that the project set-up fully considers the needs of construction and completions processes; and include their input into the Engineering, Procurement, and Contract Plans and strategies. The Construction Manager, working with the Project Management Team, should ensure the Project WBS will meet with the minimum Contracting and Construction requirements, thereby allowing the project team to track Engineering progress, deliver IFC deliverables and materials, to suit the Contracting Packaging and Construction Sequencing. For example by area, by work package (if required), by system.
Principles of Scheduling Scheduling is dealt with in detail within Module 2 - Project Controls and Commercial Management
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The key considerations the Project Management Team should address to incorporate Construction and Completions requirement into the Project Schedule are:
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The Project Schedule should be driven from the back end
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Early Construction and Completions involvement is absolutely necessary
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Project WBS must meet with the minimum Contracting and Construction requirements
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It must identify issue of key deliverables
Following initial approval, the schedule should be re-issued monthly as a minimum and weekly during construction. Changes to contractual key dates and the baseline schedule should be managed and agreed with the Customer by the Management of Project Change (MOPC) process. The timely availability of Approved for Construction (AFC) engineering deliverables and the Required on Site (ROS) dates for procured equipment and materials to meet the Construction Team’s needs is what should drive the Engineering and Procurement Team’s schedules. These requirements are input into the planning process by the Construction Team. A simplified example of the completions requirement, driving construction, and in turn driving engineering and procurement would be:
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A Fin Fan Cooling System – A Fin Fan Cooling System is required to be operational by Day X.
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To achieve this a commissioning period of say 5 days is required. Therefore the constructor must complete construction by Day X – 5
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The constructor requires 21 days to build the system (footings, structure, assemble and fit cooling assemblies, tie in electrics etc). Therefore all equipment must be on Site by Day X – 5 - 21
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As the equipment takes 45 days to assemble, fabricate and deliver, the Purchase Order must be issued by Day X – 2 – 21 – 45.
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Assuming the supplier/fabricator does not require final engineering drawings until 5 days after purchase order issue; Engineering must be complete by Day X – 5 – 21 – 45 + 5
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Construction Pre-mobilization The Construction Manager should complete pre-mobilization details with the Construction Team. The Construction Team with the help of the Construction Manager determines whether sufficient backlog exists to support initial and ongoing field activities. The Construction Team must ensure drawing and material deliverables exist to support as a minimum, continuous construction activities avoiding unnecessary downtime and delays. Materials Management, Procurement and Contracts will be responsible for supporting this effort as it is the expectation that primary construction contracts would have been awarded at this time in preparation for a notification to prepare to commence site activities. It is important that the Project Manager; ¾
Ensures that the Construction Team does not mobilize too early, and
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Ensures that the mobilization plan is based on an assured flow of ongoing work
Construction Pre-mobilization Meeting A pre-mobilization meeting should be held to determine if Construction should mobilize to support the scheduled Start of foundations date, initial earthworks date and Temporary Facilities installation. The Project Manager is responsible for organizing and chairing the Construction premobilization meeting attended by the project team and other invited parties. Predicted dates for release of engineering information and documents and material / equipment deliveries will be analyzed for the effect on the planned start of construction. A consensus decision will be confirmed for holding the existing date or for the establishment of a revised date. The Completions Manager may also be in attendance
Completions Pre-mobilization Prior to mobilization of the Completions Team, the Construction Manager will consult with the Completions Manager to identify the site facilities, support and processes that will remain after the Constructor demobilizes.
Completions Pre-mobilization Meeting Prior to mobilization of the Completions Team, the Completions manager will arrange a Completions HAZID to address safety and risk issues associated with the site commissioning activities.
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Construction Methodology (Brownfield vs Greenfield) The inherent problems associated with Brownfield construction projects (on-shore and offshore) that differ from Greenfield construction projects (on-shore and off-shore) is the need for early engineering and construction input into the design and plant layout to determine a clear understanding of operational needs and risks associated with construction installation, additional safety requirements, and tie-ins of piping / electrical / instrumentation / control systems, equipment and commissioning activities. There must be a very clear understanding that the need for additional constructability reviews substantially increases for Brownfield Projects whereby Customer Operations and Maintenance require an early input and a dedicated Tie-in Manager may be necessary due to the complexity and nature of tying into live operating plant. Emphasis is required to ensure that expected delays to construction will be captured in our estimate due to Operational interruptions and inherent conditions of a Greenfield project e.g.; ¾
Lower productivity
¾
Length of time to obtain Work permits
Refer to:
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Detailed Construction Planning Procedure, FCP-0004
¾
Construction Preliminary Planning Procedure, FCP-0002
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Construction Management Plan Task Sheet, FCP-9001
Prerequisites / Critical Construction Inputs For the successful execution of a Project, effective planning is essential. Those involved with the design and execution of the infrastructure must consider the:
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Environmental impact of the job
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Successful scheduling
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Site safety
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Availability of materials
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Logistics (Road transport limitations, shipping schedules, resources etc)
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Inconvenience to the public caused by construction delays
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Preparing tender documents.
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Comprehensive management through every stage of the project, beginning with the original concept and definition of the project, maximizes the benefit to Customers from Construction Management.
Preliminary Construction Planning The purpose of preliminary construction planning is to ensure that construction management issues are considered during the early phases of a project. The details of the requirements are set out in the Construction Preliminary Planning Procedure, FCP0002. The Construction Manager is responsible for:
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Completing all the necessary construction preliminary planning
¾
During the course of the preliminary planning, keeping the Project Manager informed about issues and progress, and making recommendations to the Project Manager where issues and needs identified may impact on planning by other disciplines
¾
Documenting the outcome of the preliminary planning in a Construction Management Plan (CMP) outline.
The CMP is updated progressively as project planning progresses and throughout the Life Cycle of the project. It is a component of the Project Execution Plan (PEP). The Project Manager needs to ensure that this preliminary Planning is being done. This is the case even for small projects and engineering projects where there is a need by a Customer to have some form of construction activity to take place even by others.
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Detailed Construction Planning The purpose of detailed construction planning is to provide a basis and guidelines for construction in the form of a Construction Management Plan (CMP). Refer to Construction Management Plan Task Sheet, FCP-9001. The CMP is developed by the Construction Manager. It is initially developed — as a formalized and detailed plan — during the Define phase and is a key deliverable at the gate prior to Execution. The CMP is further refined in the Execute phase (also sometimes referred to as the Approved for Construction (AFC) stage) to reflect detailed design completion. Figure 3 Construction Management Plan Draft CMP
DEFINE
Review CMP
Customer approval
Revise at Approved for Construction (AFC) stage
EXECUTE
Issue to project team
The CMP development typically addresses the following elements:
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Incorporating constructability reviews and construction lessons learnt into design
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Ensuring the design strategy address opportunities for standardization, modularization and pre-assembly
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Detailing scope, work packages, schedule, budget estimate and resourcing – required as part of the overall project plan
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Identifying Contracting Strategies
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Construction Method statements (principles) which will be developed and expanded to form a Workpack content
¾
Defining construction organization structure and responsibilities
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Identifying interfaces with other functional groups (engineering, procurement, local community, operations etc.) both during design and construction
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Identifying Customer approval requirements
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Construction procedures / methods
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Ensuring appropriate controls are in place to manage safety, environment, quality, cost, schedule, community relations and documentation
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Site layout including temporary facilities, materials storage / laydown areas, parking etc.
As Project Manager you are responsible for:
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Ensuring that the CMP is being prepared in accordance with the overall project requirements
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Reviewing and approving the CMP
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Issuing the CMP to the Customer.
The goal is to issue the first draft of the CMP to the Customer within 45 days of contract award, unless another timeframe is specified in the contract.
Site Establishment and Logistics Before construction can begin it is necessary to set up site facilities and services. This is sometimes overlooked or given a low priority when bidding or setting up a project. However, the execution team cannot be mobilized to the site until the site is established and the logistics of supplying labor, equipment and materials have been put in place. Attention is needed to ensure that Legalities and Customer requirements are addressed and agreed regarding who controls the site with respect to permits, access and security, etc. The Construction Manager is responsible for ensuring the site is established and all utilities and services required are in place. Site establishment includes considering:
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Reviewing the Construction Management Plan (CMP)
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Determining responsibilities at the site—Customer and other stakeholders
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Reviewing Mobilization Plan and considering the support services requirements for mobilization
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Reviewing the Contracts Plan and confirming the contracts strategy
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Reviewing the Project Insurances and confirming they are current.
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Determining the project layout for all temporary facilities
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Obtaining necessary licenses and permits
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Consideration of required temporary facilities
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Establishing utilities for and at the site, including Information and Communications Technology (ICT) requirements
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Establishing facilities at the site—for example, transport and storage, accommodation, sanitary arrangements, fire and other hazard protection
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Developing site administration procedures
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Developing a HSE plan for the site which includes: • • • • • •
Access to the site Site security Safety and training On-site accommodation and facilities Vehicle movement and access Trash and recycling facilities
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Setting up the site offices and services
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Developing a plan to resolve site-related issues
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Developing site security procedure.
The requirements for site establishment are set out in the Site Establishment Procedure, FCP-0005.
Review Questions Q8
Name five key deliverables that the schedule gives to the project team. __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Q9
What must the Construction Team ensure exists before construction commences? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
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___________________________________________________________________________
Q10
What things determine construction methodology and what are the differences in associated risks?
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
Q11
Name three typical elements that make up the Construction Management Plan (CMP).
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
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CONSTRUCTABILITY AND COMMISSIONABILITY Construction and Completions Teams Input into Execution Planning and Design The Construction and Completions teams input into execution planning and design is required early in a project’s development and needs to be continued through to execution (from feasibility, through concept selection, FEED and detailed design). This input is necessary to determine constructability, commissionability, maintainability, operability and the project’s schedule. Constructability and Commissionability addresses key questions about a project and links them across disciplines and will address WorleyParsons’ commitment to maintaining health, safety and environment. Constructability and Commissionability addresses the following questions:
¾
Can it be constructed and how best to do it efficiently? • Contracting strategies • Design and project schedules • Sequencing • Technical issues, including design tolerances and standardization • Field data • Existing facilities and operations • Mobilizations • Equipment requirements and suitability for construction • Construction technology and techniques • Tie-in requirements and timing • Transport requirements • Completions techniques
¾
Can it be maintained?
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Can it be operated?
The purpose is to ensure that construction-related items are considered from Feasibility through to Concept Selection, FEED and detailed design phases of the project. The constructability assessment is governed by the Constructability Input Procedure, FCP0003. Commissionability considerations are outlined in Commissionability Task Sheet (Doc No WIP) Construction shall ensure that the BOD covers all potential construction cases; these will include Fabrication Location, transportation and installation techniques. As Project Manager, you are responsible for: Rev 0 04/03/2008
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Ensuring constructability and commissionability input is being achieved early enough in the project life cycle
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Facilitating the resolution of conflicts between the Engineering, Procurement, Construction and Completions schedules. The resolution need to be based on robust logic and sequencing of the required work. Continued concerns in meeting project target dates must be communicated to the Customer.
Constructability Reviews Preliminary constructability and commissionability reviews can be conducted during the tender or feasibility stages. More detailed and thorough reviews are conducted during detailed design. Reviews are often conducted at the 10-20% and the 50-60% complete stage. There are logistic and process benefits in conducting the early constructability and commissionability reviews simultaneously. Participants in any constructability and/or commissionability review should consist of the:
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Project Manager
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Project Engineer
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Construction Manager
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Completions Manager
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Lead Design Engineers
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Safety Manager
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Quality Manager
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Procurement/Contract Manager
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Operations representatives (as required)
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Customer (as required)
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Construction Contractors
Note:
Brownfield constructability and or commissionability reviews, inclusive of additional planning, are key activities where access and congestion issues are more appropriately addressed and planned for. These activities are more critical for Brownfield than for Greenfield Projects and therefore should be carried out on a more frequent basis.
As a minimum, constructability reviews include:
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Safety, including safety in design
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Interface with operations and other contracts
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Tie-ins (Brownfield projects)
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Ability to pre-assemble as much as possible off site or on the ground prior to erection
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Installation access
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Transportability
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Ease of construction
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Standardization
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Ease of Commissioning
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Cost effectiveness
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Fabrication, Installation and Completions methodologies to reduce schedule
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A check that design cases cover ‘Construction Phases’ as appropriate and not just operating conditions.
Constructability should be conducted using the Constructability Guideline, FCP-0056. The outputs of the constructability reviews are:
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Inputs into all plans including BOD, which is part of the Project Execution Plan, including appropriate input into the project schedule.
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Specific constructability checklists across functions, scope and disciplines. These checklists are formal project documents and meet all the document control requirements. They must be approved by the project’s nominated Constructability (Construction) Coordinator and meet minimum requirements as set out in EMS and WPMP.
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Action list for changes to design and procurement
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Early planning for proper project activity sequencing, including Completions activities, i.e. Commissioning Stages 1, 2, 3 and 4.
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Identification of any unusual factors affecting the construction of the project that are solved during the development of the facility scope package. Issues include heavy lifts requiring special equipment, schedules, manpower shortages, critical shutdowns, and special plant requirements
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Identification of any unusual costs to the project that are not identified by normal estimating methods, including special cranes, equipment, or tools, additional personnel, winterization, dewatering, special safety requirements
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Identification of plans for staffing requirements, facilities, warehousing, documentation, information flow, quality, safety, cost, and schedule
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Identification of heavy lift / rigging plans requirements and the development of cost options for major and complex lifts.
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Opportunities for Modularization and Pre-assembly This is the methodology and processes which are considered to best target minimum on site construction hours and meeting the target commissioning schedule with the use of preassembly and modularization. At the outset of every project, we need to evaluate our Customer’s needs, the project’s size, the installation site, and other factors to identify the most appropriate construction option. Most large projects allow for some modular construction, and a combination of modular and ‘stick-built’ erection may be called for in many cases. Note:
Stick-built construction refers to the building method where the entire project is built at the job site piece by piece. Stick built construction builds outside on the ground in all types of weather and has to work with material purchased for the construction activities
Pre-assembly Pre-assembly is the manufacture and assembly of a complex unit comprising several components prior to the unit’s installation on-site. The key concept is that of combining several high intrinsic-value components into a finished ‘skid’ so that when delivered to site, only positioning and connection to services is required before putting into service. Some prefabricated elements may be combined into preassembled skids. Note:
Where a number of pieces of equipment are assembled onto a common steel frame, this is known as a ‘skid’ and is shipped as a complete built up unit. For example a skid could comprise of a pump, a motor, a lube oil system etc where all of the components are connected, pre-wired and piped.
Modularization Modularization enables a package of equipment, piping and the associated instrumentation and electrics to be pre-installed into a box structure, which can then be transported to site. Modularization is a technique which involves and affects all phases of design, procurement and construction / erection. Modularization should be seriously considered for all projects although the decision to use modular techniques is primarily aimed at removing work from the operating site and is the obvious choice for off-shore projects. It also impacts on ongoing maintenance and operation.
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Methodology - modularization is a technique which involves and affects all phases of design, procurement and construction / erection.
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Early definition - process plant may be segregated into packages that can fit within the defined module size.
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Module grade levels - plant grade level is to be maintained giving good and unrestricted access in and out of the plant when operating.
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Module configuration - defines the module use, for example process, pipe rack, pump skids, dressed equipment or manufacturer’s package.
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Module sizing - the setting of a size that will be maximised with the upper limits of possibility having been defined.
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Module contents – defines the equipment that will dictate the overall size and layout of a module.
To fully support modularization, detailed engineering and design should be aligned to the Modularization strategy i.e. 3D model boundaries should be aligned to the modularization battery limits. This will assist with IFC deliverables and material MTO’s by module in later detailed design. It is essential Construction and Engineering agrees these boundaries prior to the start of 3D modeling and should be driven by the Construction Manager. The Modularization approach needs to be determined early as it will influence the way in which Engineering and Procurement will execute their work.
Benefits of Modularization Modular construction offers a number of advantages over conventional ‘stick built’ construction:
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The bulk of the fabrication and assembly are performed at external facilities, which allows work to be performed under controlled working conditions
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By reducing fieldwork, modularization minimizes the project’s impact on the Customer site; a significant advantage when the installation site is an operating plant
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Modular construction minimizes lay-down space, an important benefit when the field site is small or congested, and reduced delays due to adverse weather
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Foundation requirements are often simplified with the use of modules
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Modular construction results in fewer fitting errors and re-works by pre-fitting components prior to shipment
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Requirements for highly skilled labor on-site are minimal, an advantage in areas where skilled labor is either costly or unavailable
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Procurement is often simplified, especially when the installation site is located in an area where raw materials and equipment are expensive or difficult to obtain
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Modular construction can shorten schedules by allowing for concurrent processes, such as fabrication, permitting and logistical arrangements.
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Modular construction allows the work to be completed in a lower cost environment, perhaps overseas
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A modular construction presents an opportunity to test and partly commission some components and / or sub-system early.
Review Questions Q12
At what phases of a project process are constructability reviews conducted?
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
Q13
At what typical percentage completions should constructability formally be conducted during the detailed design phase?
___________________________________________________________________________ ___________________________________________________________________________
Q14
Does the frequency rate for constructability reviews differ between Greenfield and Brownfield projects and for what reasons?
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
Q15
Who in your opinion would be best suited to participate in constructability reviews?
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
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Q16
What advantages are there in either Modularization or Pre-assembly as a more suitable method of construction?
__________________________________________________________________________ __________________________________________________________________________
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Activity 1—Group Discussion Provide at least five examples that indicate the benefits that constructability gives to a project and what they would mean for a project’s schedule and costs.
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SITE ORGANIZATION AND RESOURCE MANAGEMENT Site Organization The key roles and reporting lines for the project should be set out in organization charts. The required detail in the charts will depend on the:
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Size and complexity of the job
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Construction, Completions and contracting strategies adopted for the project
This generates the disciplines and numbers of personnel needed for the project. Figure 4 shows a typical project organization chart. Figure 5 shows a typical Construction site organization chart. Figure 6 shows a typical Completions site organization chart. The Construction Organization must be structured to provide the best supervision and control of site activities. The construction site needs to be staffed with personnel suitably experienced in the management of Construction Contracts and the on-site activities. The construction organization and staffing arrangements must be documented in a Construction Staffing Plan, which is updated periodically.
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Figure 4 Typical Home Office Organization Chart
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Figure 5 Typical Construction Site Organization Chart
Project Manager
Project Quality Manager
Construction Manager Site Services *
Materials Management * Materials Controller Warehouse Field Purchasing
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Construction Management Superintendents Supervisors ― Civil ― Structural ― Mechanical ― Piping ― Electrical ― Instrumentation ― Welding ― Scaffolding ― Rigging
HSE Manager * Safety Advisors Training Security Environment Community
Construction Engineering * Resident Engineer Field Engineers Document Control
Construction Inspection * Inspectors ― Civil ― Structural ― Mechanical ― Electrical ― Instrumentation ― Welding ― Piping
Office Services Human resources Industrial Relations Accounting
Contract Administration *
Project Controls *
Contracts Administrator Contracts Engineers
Cost Eng Planning Eng Estimating Eng Reports Eng
* Functionally reporting to relevant Home Office Manager
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Figure 6 Typical Completions Organization Chart
WorleyParsons Project Manager
Handover/ Turnover Coordinator
Site Administration
Operations Representative
Commissioning Superintendent
Senior Commissioning Discipline Technicians
Commissioning Engineer
Completions Manager
Permit To Work Coordinator
Completions CMT Coordinator
Punchlist Coordinator
Commissioning Planner
-Electrical -Instrument -Process -Mechanical
Commissioning Discipline Technicians -Electrical -Instrument -Process -Mechanical
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Resource Management Construction Staffing Plan The Project Manager and the Construction Manager develop a proposed construction organization and resource plan for the Project, involving Human Resources (HR) in this process. A preliminary Construction Management Manpower Plan shall be generated in FEED to form the basis of Construction Management Labor estimates. This shall be aligned with the Site Organization Chart and shall be updated at regular intervals through detailed engineering. At an early stage of the project establishment, HR, Project Management and Construction Management will review the project requirements and establish a HR plan to adequately staff the project, location policies, per diems and personnel availabilities.
Obtaining Suitably Experienced Staff, Subcontractors Construction provides an input to the Project Manager and the Proposal Manager on proposed contracting strategies for the Construction phase for opportunity submission. Proposed strategies should be supported by Contractor capabilities and capacity. Strategies should be justified with preliminary analysis and evaluation of potential Contractor capabilities, capacity and strengths, for example — constructability, Safety, modularisation solutions and logistics.
Demobilization Construction will prepare a demobilization plan typically finalized as 60% of construction for site, covering the following items as a minimum:
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Personnel
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Vacating the various areas, clean up and restoration of site to its original state
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Disposal of excess construction materials, or removal to Customer operations storage area if applicable
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Vacating and removing temporary construction facilities
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Settlement of all local supplier and subcontract accounts
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Closure of office supply accounts
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Archiving of any site-based hard or soft files.
However, the demobilization of some key construction personnel and facilities are dependent on the requirements of the Customer and the Completions Team. The removal of the facilities and final demobilization will then be conducted by the Completions Manager utilizing the 60% commissioning completed scenario.
Review Questions Q17
What are the factors that determine the make-up of a construction management team or a completions team?
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
Q18
Who is responsible for developing the proposed construction organization, and which group then proceeds to resource?
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
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COMMUNICATION AND TEAM WORK Project Culture, Trust and Team Work As Project Manager, you must nurture mutual trust that helps to create successful construction relationships and develop a positive project culture. You need to be aware that the task of keeping everyone working together harmoniously on a project, without unnecessary delay or damaging others, is a complex task requiring high levels of coordination, cooperation, communication and compromise. Where there is a positive project culture, trust and team work, the result will be a successful project and rewarding experience for the Project Manager and his team.
Home Office and Site Office Communication and Teamwork The interface between the Home Office and the Site Office is critical. Some of the keys to success in this area are:
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Ensure the Construction and Completions Manager is included in all key project meetings
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Project meetings to be held on site at regular intervals during the Construction and Completions phases
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Have engineering spend time on the construction site and be located on site to conduct follow on engineering
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Have a well-defined and adequately resourced Field Engineering group to manage on-site engineering queries linking back to the Home Office
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Construction and Completions to be included in project team building sessions.
Contractor Communication and Team Work Team relationships are built around striving for a quality project, including the on-time, onbudget successful completion to the Customer’s satisfaction. Clear, efficient and effective communication must be nurtured through the project, starting with the initial contract discussions and team work discussions through to close-out, for example by using minutes for project meetings.
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Contractors are involved in the development and implementation of the Company HSE Management System through:
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Regular Contractor HSE Meetings
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Attendance of Company personnel at Contractor toolbox meetings
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Training and induction of Contractor personnel.
The Project and Construction Managers should encourage the Contractors to be part of the Project Team as effective communication between all parties is an essential element to ensure efficient and safe coordination of site work and decision making.
Coordination Your role as Project Manager is to provide support and guidance to the Construction Management Team during the construction and completion phases of a project. As part of this, you as Project Manager need to ensure that regular on-the-job meetings are held, at least on a monthly basis, such that that there is effective coordination between the Construction Management Team representatives and on-site Construction Contractors’ representatives. Minutes of meetings need to be prepared and distributed. The Construction Management Team and Construction Contractors must organize their work according to the schedule and to ensure effective coordination. The Construction Management Team monitors and coordinates the work of all parties to ensure compliance with the project schedule. The Project Manager and the Construction Manager shall jointly establish a comprehensive Site Logistics plan to support all phases of the project. You as the Project Manager must monitor and expedite the processing of shop drawings, samples and other submittals for approval. This procedure is especially important when Change Orders are involved. When damage or loss occurs, the Construction Manager should report immediately to the injured party, appropriate insurance carriers, and WorleyParsons senior management; and corrected promptly.
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Cooperation As Project Manager you should encourage cooperation on the project in order to develop a positive project culture. This takes time and energy. For example, ways of fostering cooperation include:
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Settling money issues promptly
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Submission of progress and final payment applications using the contract’s established procedure
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Ensuring good communications between the Construction Contractor and the Engineer being facilitated through WorleyParsons
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Nurturing relationships being conducted between Construction Management Team and Construction Contractors’ authorized representatives.
Review Questions Q19
What are the essential elements of Home and Site office communication?
__________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Q20
Describe the cooperation that you as Project Manager should give to the construction management team.
__________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
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ISSUE RESOLUTION The construction industry has become known as one of the most adversarial and prone to problems, with claims and disputes on construction projects frequently the rule rather than the exception. Cost overruns and schedule delays can be the subject of expensive and protracted claims and litigation, and may pose serious risks for all parties to a construction project; and are actively pursued by Customers, Contractors and Engineers alike. Litigation is simply too time consuming, costly and acrimonious for construction industry participants and is to be avoided if at all possible. Note:
Effective consultation and communication between all parties must be an essential element to ensure efficient and safe coordination of construction work.
If we work on the basis that the successful resolution of a dispute — without recourse to arbitration, adjudication or litigation and without damaging inter company relationships — is the most satisfactory and commercially sensible course to adopt wherever possible; then that is the method we have to employ.
Problem Issues arise on every construction project. Frequently they are ‘saved-up’ for resolution at some unspecified later time. This almost always has a detrimental effect on the relationship among the construction participants and consequently, on the progress and quality of the work.
Action Project Managers should set up a real-time dispute resolution program at the beginning of the project. Each project participant (Customer, engineer, construction contractor and subcontractors) should be required to follow the program for any issue that is not resolved promptly during the normal progress of work. The program should include a mechanism whereby senior executives, who are not involved with the day-to-day construction, are brought in to review the issue and negotiate a resolution based on a business and practical basis.
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QUALITY MANAGEMENT For an overall picture of quality management, refer to Module 7 Managing Project Quality
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