Level: Intermediate
TCM Section(s)
4.1. Project Implementation
7.1. Project Scope and Execution Strategy Development
Venue: 2024 AACE International Conference & Expo
Abstract: In today's highly competitive global landscape, the success of multi-year capital projects depends on meticulous planning of contracting execution strategies. Owners who execute under an engineering, procurement, and construction management (EPCM) delivery method often integrate a contracting strategy that involves the construction contractor taking on a significant share of the risk burden.
However, if challenges arise during project execution and cause delays in the delivery of direct works, what is the best course of action? Clearly it is essential to adopt a robust change management process. By having project controllers and planners work closely with contract administrators and the entire project execution team, there is a higher degree of success if better forecasting, trend, and change management are practiced.
Alternatively, the project controls and contract administrators can work collaboratively, and advise the project execution team to recalibrate the effectiveness of the project delivery method and contracting strategy to align it with the project's critical schedule.
An integrated project delivery (IPD) framework can be selected in the planning phase or can be introduced later to realign a beleaguered project. This framework promotes collaborative synergy between the owner and EPCM. It involves continuous refinement of predictive models, meticulous risk evaluation, and a strategic overhaul of the contract model. This paper explores the constructive collaboration between various contracting strategies and adept forecasting techniques during project execution, leading to a dependable forecast of final cost and schedule.
TCM Section(s)
4.1. Project Implementation
7.1. Project Scope and Execution Strategy Development
Venue: 2024 AACE International Conference & Expo
Abstract: In today's highly competitive global landscape, the success of multi-year capital projects depends on meticulous planning of contracting execution strategies. Owners who execute under an engineering, procurement, and construction management (EPCM) delivery method often integrate a contracting strategy that involves the construction contractor taking on a significant share of the risk burden.
However, if challenges arise during project execution and cause delays in the delivery of direct works, what is the best course of action? Clearly it is essential to adopt a robust change management process. By having project controllers and planners work closely with contract administrators and the entire project execution team, there is a higher degree of success if better forecasting, trend, and change management are practiced.
Alternatively, the project controls and contract administrators can work collaboratively, and advise the project execution team to recalibrate the effectiveness of the project delivery method and contracting strategy to align it with the project's critical schedule.
An integrated project delivery (IPD) framework can be selected in the planning phase or can be introduced later to realign a beleaguered project. This framework promotes collaborative synergy between the owner and EPCM. It involves continuous refinement of predictive models, meticulous risk evaluation, and a strategic overhaul of the contract model. This paper explores the constructive collaboration between various contracting strategies and adept forecasting techniques during project execution, leading to a dependable forecast of final cost and schedule.