Content

1                        Introduction	1
1.1                  The Project Life Cycle	2
1.1.1              From Inquiry to Warranty	2
1.1.1.1          Acquisition Phase	3
1.1.1.2          Bid Phase	4
1.1.1.3          Project Phase	6
1.1.1.4          Warranty Phase	6
1.1.2              The PMI Life Cycle	6
1.1.2.1          Project Initiation	7
1.1.2.2          Project Planning	8
1.1.2.3          Project Execution	8
1.1.2.4          Project Control	8
1.1.2.5          Project Closure	9
1.1.3              The EPC Cycle	10
1.1.3.1          Project Management	10
1.1.3.2          Engineering	11
1.1.3.3          Procurement	11
1.1.3.4          Construction and Commissioning	12
1.2                  Application of Project Management Standards	14
1.2.1              Project Management Standards	14
1.2.1.1          ISO 21500	14
1.2.1.2          IPMA®	15
1.2.1.3          BS 6079	15
1.2.1.4          PMI®	16
1.2.2              A translation into EPC’s language	17
1.2.2.1          Integration	17
1.2.2.2          Scope	18
1.2.2.3          Time	18
1.2.2.4          Cost	18
1.2.2.5          Quality	19
1.2.2.6          Human Resources	19
1.2.2.7          Communication and Stakeholder	19
1.2.2.8          Risk	19
1.2.2.9          Procurement	19
2                        Project Management	20
2.1                  The Project Plan	20
2.1.1              Project Documentation Hierarchy	20
2.1.1.1          Project and Quality Plan – ISO 10006 and 10005	20
2.1.1.2          Content of the project plan	21
2.1.1.3          External and Internal Procedures	23
2.1.1.4          Project Planning Documents	23
2.1.2              Manual of Procedures	24
2.1.2.1          Project Manual	24
2.1.2.2          Design Manual	25
2.1.2.3          Site Manual	25
2.2                  The Project Organization	26
2.2.1              Hierarchies of a Project Organization	26
2.2.1.1          External organization	26
2.2.1.2          Internal organization	27
2.2.1.3          Interface to executive management	28
2.2.1.4          A special case: project joint ventures	28
2.2.2              Roles and Responsibilities	30
2.2.2.1          Project Director	30
2.2.2.2          Site Manager	31
2.2.2.3          Project Management Functions	31
2.2.2.4          Support Functions	32
2.2.3              Integration Management	33
2.2.3.1          Definition of interfaces – scope sharing	33
2.2.3.2          Interfaces management inside and out of project boundaries	34
2.2.3.3          Reporting and decision making	34
2.2.3.4          Delegating responsibilities versus centralizing functions	35
2.2.3.5          Interface with the Home Organization	35
2.2.4              Human Resources	36
2.2.4.1          Staffing and Training	36
2.2.4.2          Human Resources Policies	37
2.2.5              Project Infrastructure	38
2.3                  Project Structures	39
2.3.1              Work Breakdown Structures	39
2.3.1.1          WBS and Work-Package Definition	40
2.3.1.2          Work Assignment Process	41
2.3.2              Plant Breakdown Structures	42
2.3.3              Material Breakdown Structures	43
2.3.4              Other Structures	43
2.4                  Communication Management	44
2.4.1              Hierarchies of Communication	44
2.4.2              Communication Plan	45
2.4.2.1          Correspondence	45
2.4.2.2          Meetings	46
2.4.2.3          Action Items Tracking	46
2.4.3              Crisis Management	47
2.4.4              Lessons Learned Process	48
2.5                  Contract Management	50
2.5.1              Contracting: The Bid Phase	51
2.5.1.1          Bid and Contract Preparation	51
2.5.1.2          Bid and Contract Review	52
2.5.1.3          Assumptions, Clarifications, Exclusions	54
2.5.1.4          Legal and Commercial Aspects	54
2.5.2              Contract Management Set-up	56
2.5.2.1          Contract Management Organization	57
2.5.2.2          Contract Management Procedures	58
2.5.2.3          Contract Management Reviews and Training	60
2.5.3              Preventive and Active Claim Management	60
2.5.3.1          Claim Management Strategy	61
2.5.3.2          Scope and Cost Change Control	62
2.5.3.3          Schedule Change Control	64
2.5.3.4          Active Claims	64
2.5.3.5          Defensive Claims	66
2.6                  Time & Resources Management	67
2.6.1              Scheduling Organization and Procedures	67
2.6.2              Schedule Development	68
2.6.2.1          Tools, Database Structures, Access Rights	71
2.6.2.2          Schedule Hierarchy	73
2.6.2.3          Schedule Structures and Filtering Criteria	73
2.6.2.4          EPC Sequencing	74
2.6.2.5          Interfaces with other Systems	75
2.6.3              Schedule Control	76
2.6.3.1          Baseline Schedule and Schedule Change Control	77
2.6.3.2          Schedule Update and Corrective Action	78
2.6.3.3          Progress Reports, Graphics and KPI’s	79
2.6.4              Resource Planning	81
2.6.4.1          Skills and Organization	81
2.6.4.2          Quantitative and Qualitative Personnel Planning	82
2.6.4.3          Man Load Graphics	82
2.6.4.4          Resource Loaded Schedule	82
2.6.4.5          Other Resources	83
2.7                  Cost Management	84
2.7.1              Commercial Organization and Procedures	84
2.7.2              Cost Planning	84
2.7.2.1          Bid Phase Cost Estimation	85
2.7.2.2          Order Income Calculation	85
2.7.2.3          Payment Schedule and Cash-Flow Planning	86
2.7.3              Cost Control	87
2.7.3.1          Tracking of Actual Costs and Hours	87
2.7.3.2          Reporting Planned versus Actual Costs	88
2.7.3.3          Reporting POC, Earned Value	90
2.7.3.4          Invoicing	93
2.7.4              Business Administration	93
2.7.4.1          Finance: Loans, Interests, Hedging of foreign Currencies	93
2.7.4.2          Taxes, Customs, Fees	94
2.7.4.3          Bonds and Guarantees	94
2.7.4.4          Insurances	95
2.7.4.5          Legal compliance	96
2.8                  Risk Management	97
2.8.1              Risk Management Organization and Procedures	97
2.8.2              Risk Identification and Qualification	98
2.8.3              Risk Mitigation and Action Tracking	101
2.9                  QHSE Management	103
2.9.1              Quality Management	103
2.9.1.1          Quality Plan	104
2.9.1.2          Supplier Qualification	105
2.9.1.3          Inspections, Assessments, Audits	106
2.9.1.4          Non Conformance Control	108
2.9.2              Environment, Health and Safety	108
2.10             Progress Reporting	113
2.10.1          Internal Reporting	113
2.10.1.1       Detailed Reporting	114
2.10.1.2       Project Management Reporting	117
2.10.1.3       Executive Reporting	120
2.10.2          External Reporting	121
2.10.3          The Reporting Cycle	122
2.10.3.1       A Monthly Reporting Time-Scale	122
2.10.3.2       Project Status Meetings	123
2.11             Document Management	124
2.11.1          Documentation Planning	124
2.11.1.1       Standard List of Technical Documents	124
2.11.1.2       Interface to Time Schedule	126
2.11.2          Documents Generation	127
2.11.2.1       Codification, Classification, Templates	127
2.11.2.2       Internal Workflows	127
2.11.2.3       Confidentiality	128
2.11.2.4       Archiving Requirements	128
2.11.2.5       Automatic Generation from Engineering Tools	128
2.11.2.6       Handling of Supplier Documents	129
2.11.3          Documents Workflow Control	129
2.11.3.1       Transmittal and Client Acceptance	130
2.11.3.2       Documents Tracking	131
2.11.4          Configuration Management for Documents	131
2.11.4.1       Lifecycle and Revision Control	132
2.11.4.2       Rendition Management	132
2.11.4.3       Composition of Virtual Documents	133
2.12             Information Management	134
2.12.1          Project specific IT-Architecture	134
2.12.1.1       Project Management Tools	135
2.12.1.2       Design Integration Tools	136
2.12.1.3       Engineering Tools	137
2.12.2          Communication Platforms	137
2.12.2.1       Project Drives	137
2.12.2.2       Web-Portals, Sec ure Extranet Services	138
2.12.3          Data Security	139
3                        Engineering	140
3.1                  Engineering Process & Procedures	140
3.1.1              The Engineering Disciplines	141
3.1.1.1          Systems Engineering	141
3.1.1.2          Mechanical Engineering	144
3.1.1.3          Plant Layout and Civil Engineering	144
3.1.1.4          Electrical, Instrumentation and Controls, HVAC	146
3.1.2              Engineering IT	148
3.1.2.1          P&ID’s and Engineering Database	149
3.1.2.2          3D Plant Layout	149
3.1.3              Improving Engineering Efficiency	150
3.1.3.1          Modularization and Engineering Re-Use	150
3.1.3.2          Cost Engineering	151
3.2                  Technical Configuration Management	153
3.2.1              Configuration Management Plan	153
3.2.1.1          ISO 10007 Requirements	153
3.2.1.2          Definition of Configuration Management in EPC Projects	154
3.2.2              Technical Change Management	155
3.2.2.1          Design Reviews and Design Freezes	156
3.2.2.2          Technical Change Notices	157
3.2.2.3          Data Status Tracking, Data Revisioning	157
3.2.3              Data Exchange/ Data Life Cycle	158
3.2.3.1          Data Lifecycle Requirements for O&M	158
3.2.3.2          Data Handover to Owner/ Operator	159
3.2.3.3          Standardization of Data Exchange	160
3.3                  Licensing Management	161
3.3.1              Requirements Management	161
3.3.1.1          Codes, Standards, Regulations	161
3.3.1.2          Requirements Management Process	162
3.3.2              Licensing Plan	163
3.3.2.1          Construction License	164
3.3.2.2          Operation License	164
4                        Procurement	166
4.1                  Procurement Process & Procedures	166
4.2                  Material Take-Off	168
4.2.1              Material Catalogue	168
4.2.2              Generation of BoM	169
4.3                  Procurement Planning	170
4.3.1              Solicitation	170
4.3.2              Supplier Selection	171
4.3.3              Supplier Contracts	173
4.4                  Procurement Control	174
4.4.1              Purchase Order Tracking	174
4.4.2              Manufacturing and Inspections	175
4.4.3              Transportation and Export	176
4.5                  Stocks	178
4.5.1              Material Reception on Site	178
4.5.2              Site Warehouse Management	178
4.5.3              Interface to Financial Asset Management	179
5                        Construction and Commissioning	180
5.1                  Site Management Organization and Procedures	180
5.1.1              Site Organization	180
5.1.2              Site Procedures & Instructions	181
5.1.3              Aspects of International Construction Sites	184
5.1.3.1          Legal status and registration obligations	184
5.1.3.2          Taxes	185
5.1.3.3          Human Resources	186
5.2                  Construction Planning	188
5.2.1              Site Infrastructure and Logistics	188
5.2.1.1          Site layout and permanent facilities	189
5.2.1.2          Site infrastructure and temporary facilities	189
5.2.1.3          Scaffolding and weather protection	190
5.2.1.4          Horizontal and vertical transports	191
5.2.2              Construction processes	192
5.2.2.1          Civil construction	192
5.2.2.2          Mechanical erection	193
5.2.2.3          Electrical and I&C installations	196
5.3                  Construction Execution and Control	197
5.3.1              Site Coordination and Interface Management	197
5.3.1.1          Word Order System	197
5.3.1.2          Subcontractor Management	198
5.3.1.3          Field Engineering	198
5.3.2              Inspection and Supervision	199
5.3.2.1          Inspection Planning and Interface to Engineering	199
5.3.2.2          Organization and Coordination of Inspections	200
5.3.2.3          NDE and Baseline ISI	201
5.4                  Commissioning	202
5.4.1              Mechanical Completion Management	202
5.4.2              Commissioning Program	204
5.4.2.1          Commissioning documentation	204
5.4.2.2          Commissioning process	205
5.4.3              Handover to Owner/ Operator	205