27/7/2016

AACEInternationalMeetings/ConferencesAnnualMeeting2016AnnualMeetingTechnicalProgramAbstractsOWNERISSUES(OWN)
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(OWN2132)DeliveringMarketDrivenOilandGasProjectswithinInvestorExpectations
PrimaryAuthor:MsElenaRybinaPMSOFT,JSC.
CoAuthor(s):MrDmitriySkorobogatovPMSOFTMrSeanT.ReganCCPCEPLGMInternationalMsJulieKOwenCCPPSPLos Angeles
MetropolitanTransportationAuthority
Time/Location:SUN1:302:30/WillowCentre/West(MezzanineLevel)

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Investmentprojectsthesedaysareexecutedinafastchangingmarketdrivenenvironment,requiringinvestorstocontinuouslyimprove
techniques and tools of project management. Projects must transform from traditional project management concepts of delivering the
project on scope, within quality, ontime within budget. The new project delivery requirement adds another requirement to provide
maximumeconomicbenefitasaresultoftheinvestment.Thepresentationwillcovertheapproachestointegratingprocessesofproject
andinvestmentmanagementfromgoalsettingtomonitoring,postinvestmentcontrolandmotivatingparticipants.
Inparticularthispaperdiscussesthefollowingtopics:
Keymetricsofaninvestmentprojectfromaninvestorsperspective
FinancialmodelingofaprojectincorporatingtheresultsofCAPEXandOPEXestimation,scheduledata,productionparameters
Projectgoalsettingbasedontheresultsoffinancialmodeling
Linkingkeyprojectindicatorsandprojectteamsincentivescheme
Thedevelopmentofmanagerialdecisionsforoptimizingcostsandmaximizingeconomicbenefit.Complexchangemanagement
The outlined approaches allow creating a system for efficient management of investment projects through integrating goals of all the
stakeholders.
(OWN2140)EarlyWarningSignsofConstructionClaimsandDisputes
PrimaryAuthor:MrJamesGZackJrCFCCNavigantConsulting,Inc.
Time/Location:TUE3:454:45/WillowCentre/West(MezzanineLevel)
Itisaxiomaticthatclaimsanddisputesonprojectsdonotappearoutofnowhere.Experienceindicatesthatwhenadisputeoccurs,there
is a history of events, decisions, lack of decisions, etc. that can be traced back from a few weeks to several years. These are early
warningsignsofclaimsanddisputes.Typically,itiswhenclaimsarefiledattheendofaprojectthatattorneysandclaimsconsultants
review project documentation and interview the project team in order identify such early warnings. This paper lists numerous "early
warningsigns"ofdisputes.Thereislittleliteraturesettingforthadetailedlistofearlywarningsignsofclaimsanddisputes.Basedonthe
collective observations of numerous construction claims consultants the author collated these early warning signs into typical project
phases.Thepaperalsoidentifieswhichpartyshouldwatchforwhichearlywarningsignandwhatsortofclaimordisputemayarise.
(OWN2162)CostBenchmarkingofaJointVentureProject
PrimaryAuthor:MrJohnsonOlugbenlekeAwoyomiCCPNigerianNationalPetroleumCorporation
Time/Location:SUN4:305:30/WillowCentre/West(MezzanineLevel)CANCELLED
Capitalcostisakeydriverofinvestmentdecisionmakingmetrics.Withoutbenchmarkingorsimilarvalidation,thecostcanbebiasedor
haveotherqualityissuesthattheowneranditsventurepartnersmaynotbeawareof.ThispaperwillshareaNationalOilCompany's
(NOC) experience on how a Joint Venture project was implemented in Africa without cost benchmarking or empirically valid risk
quantification, the consequences of such negligence, and issues and challenges that confronted the project (catastrophic cost
overuns/scheduleslippage). Many NOCs like the one in this paper require project benchmarking as part of their internal processes for
continuous improvement of capital project efficiency/performance. The colossal waste of resources would have been reduced if the
projectcostandschedulewerebenchmarkedandriskshadbeenrealisticallyquantifiedearlyinprojectscopedevelopmentandpriorto
sanctioning. NOCs in particular need benchmarking as a tool to identify and address systemic issues in their capital project systems.
Finally,thepapersharesthelessonslearntforthebenefitofotherNOCsandtheindustryingeneral.
(OWN2163)ChallengesandStrategiesforEffectiveScopeManagementAcrossanEnterprise
PrimaryAuthor:MrSandeepSKurupTheWilliamsCompanies
CoAuthor(s):DrGaryRockSpencerPECCPDRMPPSPWilliamsCompaniesDrPeerapongAramvareekulEVPPSPWilliamsCompanies
Time/Location:MON5:006:00/WillowCentre/West(MezzanineLevel)
Foracompanythatoperatesandmaintainsassetsandhasrepeatableprojects,havingastandardizedWBSforitsprojectportfolioisan
efficient way of managing scope. With a standard WBS, the process of obtaining data consistency across the entire project lifecycle
starting from scope definition, estimation, execution through benchmarking becomes more streamlined. The integrity of data thus
obtainedisfarsuperiorandpreventsreinventingthewheeleverytimeanewprojectisinitiated.

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AACEInternationalMeetings/ConferencesAnnualMeeting2016AnnualMeetingTechnicalProgramAbstractsOWNERISSUES(OWN)

However,implementingaprocessforeffectivescopemanagementiscomplexandchallengingespeciallywhenitcomestobringingabout
a culture change within the organization. Different departments using their legacy processes, employee attitudes towards process
change, scalability needs depending on project size and the interplay between new and existing enterprise systems are some of the
challengesthatoneencountersduringitsimplementation.Thispaperisacasestudythatwilladdressthefollowing:
Elaborateontheabovementionedchallenges.
Discussindetailthestrategyforeffectivescopemanagement
Presentadataflowmodeltoensuredataintegritythroughtheprojectlifecycle.
(OWN2197)ChallengesinCampOptimizationforMegaProjects
PrimaryAuthor:MrHadiGhavamiATCOStructures&Logistics
CoAuthor(s):DrMingLuUniversityofAlberta
Time/Location:MON3:454:45/WillowCentre/West(MezzanineLevel)
Previousresearchrelatedtothecampcostonremotemegaprojectsisintendedtominimizetheownersoverallcampcostbyreducing
the workforce (manpower) loading peaks. Resource leveling and smoothing techniques using Oracle Primavera P6 are generally
applied.Innovative"hoteling"strategieshavealsobeenproposedtorotateworkforceshiftsandreducecamproomdemand.
Asanextension,thecurrentpaperdescribesindetailthecomponentsthatmake up a megaprojects workforce accommodation cost.
Experienced industry experts were interviewed their perspectives, recommendations and lessons learned provide the insight for the
presentstudy.
A case study of planning workforce accommodation is presented with the intent to reveal inadequacies in current practice. Finally, the
need for further research and improvement is identified. The findings can specifically lend decision support to Owner Companies in
achievingcosteffectivemanagementofworkforceaccommodationonremotemegaprojects.
(OWN2207)SAPIntegrationwithPrimaveraP6onaMassiveScale
PrimaryAuthor:MrJohnWallaceBlodgettPacificGas&ElectricCo
CoAuthor(s):MrChristopherMichaelDurantMsBarbaraSootkoosPwCMrJamesWolfPG&E
Time/Location:MON10:0011:00/WillowCentre/West(MezzanineLevel)
Utilitiesspendbillionsofdollarseachyearplanningandexecutingprojectstoupgradetheircapitalinfrastructure.Organizationsthatare
moreoperationfocusedratherthanprojectfocusedoftenhavealowerlevelofproject management maturity, which results in project
teams spending significant time on administrative tasks due to outdated systems and a lack of integration. This paper will discuss a
grassroots effort that was implemented at a utility company to establish a common Work Breakdown Structure (WBS), fully integrate
SAP and Oracle Primavera P6 using the SAP Project Systems module and SAP Plant Maintenance Order Operational Account
Assignment(OAA)functionality,andstandardizeenterprisereportingusingSAPBusinessObjects(BOBJ).Thescopeofthiseffortwas
massive: it impacted all major lines of business, including electric, gas, and power generation including over 5000 projects and 7000
people.Thispaperwilldiscussthebusinesscaseforchange,thetechnicalsolutionthatwasimplemented,thechangeeffortinvolved,and
theresultsachievedbythismassiveundertaking.
(OWN2209)StrategicIntegratedProjectPlanningandControlsfromanOwnersPerspective
PrimaryAuthor:DrPeerapongAramvareekulEVPPSPWilliamsCompanies
CoAuthor(s):MrRonnieDStephensWilliamsCompaniesMrAdamKWeaverWilliamsCompanies
Time/Location:MON2:003:00/WillowCentre/West(MezzanineLevel)
Most companies have systems and processes in place for Work Breakdown Structure, Estimating, and Scheduling. However, there is
always a struggle to standardize and incorporate these processes into an integrated system to allow for sound project management,
project controls, consistent monitoring, and reporting, to occur. The expectation (and challenge) is to use this data in a proactive or
predictivemannerversusthetraditionalreactivemode.Industryleadersintheseareasrequireawellbalancedstrategicintegrationthat
involvesanapproachfocusedonprocessimprovement,systemimplementation,organizationalstructure,andresourceempowerment.
As an owner company in the Oil and Gas industry, the detail of the journey to develop an enterprisewide system to support the
developmentanddeliveryof$30BillionUSDincapitalspendingisworthsharing.Thispaperwillspecificallyaddressthefollowing:
Thedevelopmentandintegrationofkeyprojectmanagementprocessestosupport$30billionincapitalgrowth
Thebalancebetweenprocessdefinition/improvementandthedeploymentofacostmanagementsystem
Theimpactoftotalcostmanagementtotheorganization'ssustainablegrowth
(OWN2210)AnOwnersApproachtoCostEstimatingandQuantitativeRiskAnalysis
PrimaryAuthor:MrJamesWolfPG&E
CoAuthor(s):MrJohnWallaceBlodgettPacificGas&ElectricCo
Time/Location:TUE8:009:00/WillowCentre/West(MezzanineLevel)
This paper will present an owners approach, from a major utility industry perspective, to applying cost estimating standards and
quantitativeriskanalysistomajorprojects.Intheareaofcostestimating,theauthorswillprovideamodelforusingAACEInternational
RecommendedPracticestodevelopenterprisestandardstoshepherdmajorprojectinvestmentsthroughthePlan,Do,Check,Actcycle.
In the area of quantitative risk analysis, the paper will explore a variety of approaches for owners to use stochastic modeling and
simulationtoperformintegratedcostandscheduleriskanalysis.Modelingexampleswillincludetheuseofhistoricalprojectdata,scope
quantification, and facilitated workshops to predict project outcomes throughout the project lifecycle. Business applications include
estimatevalidationandcontingencydeterminationformajorprojects.
(OWN2216)(PanelDiscussion)Roles/ResponsibilitiesofOwnerProjectManagersVersusProjectControlManagers
PrimaryAuthor:MrStephenL.CabanoPathfinderLLC
CoAuthor(s):MrHLanceStephensonCCPEnbridgePipelineInc.MrJohnWWalkerTesoro
Time/Location:TUE9:4510:45/WillowCentre/West(MezzanineLevel)
This owneroriented, openpanel discussion will address the owner project teams roles and responsibilities on a major oil/gas project.
What are the roles and deliverables of the project control manager (PCM)? What are the functions and responsibilities of the owner

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AACEInternationalMeetings/ConferencesAnnualMeeting2016AnnualMeetingTechnicalProgramAbstractsOWNERISSUES(OWN)

projectmanager(PM)?Wheredotheselinesbecomeblurred?Thepanelwillalsoaddresstheroleoftheownerasopposedtothatofthe
contactor.
Theformatofthispresentationwillconsistofapanelofownerprojectmanagers and project control managers fielding questions. The
panelwilladdressseveralissuesfromthepanelmoderatorandthenthetopicwillbeofferedtotheaudienceforadditionalquestions.At
least3maintopicswillbeaddressed:
WhatconstitutesahealthyrelationshipbetweenthePMandthePCM?
HowshouldthePCMdeliverbadnews?
WhatisexpectedofthecontractorPCMvs.thatoftheownerPCM?
(OWN2217)SuccessfulManagementofOwnersRisk:LessonsLearnedMakeaDifference
PrimaryAuthor:MrPaulGWilliamsPathfinder,LLC
CoAuthor(s):MrStephenL.CabanoPathfinderLLC
Time/Location:TUE2:003:00/WillowCentre/West(MezzanineLevel)
Overthepast10years,theindustryhasbeenenamoredwiththemechanicalanalysisofriskandtheapplicationofriskanalysistools.
Thesetoolshavebecomehelpfulinassessingthepotentialimpactthatriskswillhaveoncostandscheduleoutcomes.Althoughthese
tools have developed into useful analytical devises, the human element of identifying the risks, assessing the impacts of risks and
identifyingmitigationstrategiestominimizeoreliminatetheriskaltogether,isthemostvaluableaspectofriskmitigation.Thispaperwill
drawdatafrommorethan20independentprojectreviewsandidentifytrendstheindustryisexperiencingwithregardtorisksincluding
quality,productivity, execution capability, etc. Project teams need to be aware of these shortcomings and plan accordingly. Mitigation
approaches will inevitably impact cost, schedule and resource requirements of projects. The challenge is first to identify risks, then
addressthemtoassesstheimpacttheserisksandresultingmitigationstepshaveonprojectoutcomes.Thispaperwillprovidestrategies
toguideprojectteamsinrecognitionoftodayscommonrisktrends.
(OWN2225)OwnersRoleinConstructionProductivityandScheduleConstructability
PrimaryAuthor:MrAhmadEmamPETRONASE&P
Time/Location:CANCELLED
Theprojectowneristhefirstonepenalizedinthecaseoflatedeliveryduetoprojectdelays.Applyingeffectiveprojectmonitoringand
controlgivestheownermoreconfidenceintheprogressfiguresreportedbythecontractor.Theprojectownershouldnotwaituntilthe
projectis90%completedtoreceiveprogressfiguresontheremaining10%oftheprojectwhichmaytakeanother90%tobecompleted.
Severalcontracttermsandconditionsobligatethecontactortoreporttotheownerlaborandequipmentproductivityandconstruction
challenges and risks. This paper describes the basics of construction productivity and schedule constructability, the direct relationship
between the two, and the benefits, both project related and business related, of the owners team evaluating these two elements. In
addition, the paper provides several practical examples from the construction of industrial projects that demonstrate the How of
productivitymeasurementandscheduleconstructabilityreviewbyanownersprojectteam.
(OWN2253)TheTenBestWaystoPromoteaCollaborativeProjectEnvironment
PrimaryAuthor:MrGlenRPalmerCFCCPSPGRPalmerConsultingServices
CoAuthor(s):MrChristopherWCarsonFAACECEPDRMPPSPARCADIS
Time/Location:TUE11:0012:00/WillowCentre/West(MezzanineLevel)
Thispaperwilldiscussthetenbestapproachestopromoteacollaborativeenvironmentonacomplexprojectandthebenefitsofdoing
so.TheseapproacheswillbeexaminedusingLessonsLearnedfrombothaprojectmanagementandaclaimsperspective.
The authors of this paper have more than 75 years of experience in the engineering and construction industries. They have seen the
executionofmanysuccessfulandmanyunsuccessfulprojects.Thiscombinedexperiencehasshownbothauthorsthatthepromotionofa
collaborativeenvironmentorateamapproachtomanagingaprojectcangoalongwayintheavoidanceofletterwritingwars,disputes
andclaims,andprojectlosses.
The ten best approaches will be discussed in ascending order of importance, but the authors believe that all ten approaches are very
importanttothesuccessfulperformanceofprojectexecution.

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