S

Project Management for: Engineering and Construction Figure 10-5. Work Breakdown Structure.

SUB AREA IV

SHUTDOWN CRITICAL PATH SCHEDULE MANHQURS LIST OF ACTIVITIES

1. ' Install blinds/blocks and "gas-free'' -unit . BR/GF

(55) 2. Initial align and grout pumps IA/PP

(400) 3. Install e lee t f ica 1 / ins t injmen t a t ion for vessels/pumps E&I/v-p

(45) 4. Install pipe supports (incl. grouting) . . P.S. (2S0) 5. Construct foundations (pipe supports and equipment) FDNS

(2000) 6. Install piping for towers (incl. hydro-test)TWR/PIPE

(75) 1. Vessel platforms, ladders and supports . . V/P-L-S

(250) 8. Scaffold towers SCAFF/T

(38) 10. Final align pumps FA/P

(10001 12. Install piping for vessels and pumps . . . V-P/P1PE

13. Stress relieve pump piping S-R/PIPE

(250) 14. Install towers platforms, ladders

(45) 15. Install vessels internals V/I

(100) 16. Install pump piping PP/PIPE

(70) 17. Remove packing/braces from towers and check trays ." TR/C.O-

(630) 19. Install eleetrical/instrumen tation for towers Es-I/T

21. Lag/lead start for towers E&I L.S.

5353 SUBTOTAL

668 FOR EARTHWORK, INSULATION, PAINTING AND UNDERGROUNDS

6021 TOTAL DIRECT MANH0ÖRS

NOTE: USE "HIGH i EARLY. CONCRETE FOR FOUNDATIONS

Figure 10-6. Shutdown Critical Path Schedule- Sub Area IV -Workshop Solution

DURATION CAIOTIATIONS

1 .FOUNDATIONS (1 CREM)

25H*5xlO

3 DAYS

VESSELS/PUMPS PIPING 1000

3. TOWERS PIPING (2 CREWS)

_ 2000 JSUn 2x6x10 = 8 DAYS

1.

FOUNDATION CREW

5

2.

PUMPS CREW

2

.3 .

VESSELS CREW

3

4 .

TOWERS CREW

2*5

5 .

VIP. PIPING CREW

6

6 .

TOWERS PIPING CREW

INITIAL

ALIGN

RELIEVE

fl1CM PIPING PUMPS /

Figure 10-7. Typical Project Cost Breakdown (Contractor ■ Total Scope Project).

GRASS ROOTS-LARGE %

ITEM

100%

ENGINEERING CDiD)----

-CONSTRUCTION DIRECT--

CONSTRUCTION INDIRECT -

SMALL REVAMP %

100%

DIRECT CONSTRUCTION LABOR HOURS

12------FOUNDATIONS/UNDERGROUNDS---8

7 - ----STRUCTURAL STEEL/BUILDINGS--5

Figure 10-8. Conceptual Estimate - Workshop Solution.

SMALL ONSHORE PLRNT ADDITION

SCOPE/BASIC DATA

° Addition of 6 Major Pieces of Equipment plus Services ° Plot Plan/Flow Sheet Drawings Provided " Only Piping/Equipment Installation Manhoura Given ° Factor Complete Cost From piping/Equipment Manhours Data Provided - "Typical Project Cost Breakdown" - "Engineering Costs/Curves"

APPROACH

Qevelrjj a "standard" percentage breaiqdcwn far oorisrrucrim later hcurs and Overall costs for SMALL REVAHPS, on the attached'Topical Project Cast BhtiMMoirtl*. nje attached 'Engineering Costa/Curves" shew that cmparad to a project, the engineering costs for a small project, as a percent of total cost, DOUBLES. Then factor up from the Jcnc^ti direct labor lours to:

a) TOTAL CCtCTFWeriW LABOR MAtmOUfe b) TOTAL CCttSmjCTlCN OOST c} TOTAL i'fOJBCr QOST

CONSTRUCTION M/H. ESTIMATE (tfciurs "factored" by 1,6 for operating plant)

H wy a) 2 Puips = 2<32jVli per puTp x 1.61 = 103)

b) 2 vessels = 2(3 fJ/H per ton x 10T) = 60 >assume = 12% c> 2 Tewqr-; = 2(3 /ti per ion x 75T) = 4§0j d) Piping (Fab 6 Erect) = 1500ft. x 2 /H per ft. = 3000-assuiK = 48%

e) Based on assumption of equipirant 6 piping at 60%of construction /Hs;

CONSTRUCTION H/H COST

TOTAL DIRTCT HCURS = 3613 = 6021 if/Hs.

Assunc labor rate of $22 per hour;

5. TOTAL PROJECT COST

.'Si.:»:'; aiieect labor = 17% of total project cost;

Figure 10-9. Portion of a Typical Fluids Processing Plant Flow Sheet.

Figure 10-9. Portion of a Typical Fluids Processing Plant Flow Sheet.

Figure 10-10. Detailed Quantity Takeoff.

Fruccaa Plant

1HSTKI.MENT CCWK/CT W3RKSIIOP

Instrumentation "Fluida ProcessInft Plant

PnefAflEDBV

PnefAflEDBV

gc> chip mm

QllMUTt

KMFIMALS

Ulll

1UI CD*TIACT

in xi

UMIT Mltf

UJOUhl

UMiT U H

'O 'l u h.

uq

AMOUNT

IMT ft«

AMOUNT

Stripper 15 G-V

Account ]5-50

Fa,i IM-LCV-fl Cratnl lilit,

2" - 600f Screved, Cea' £t e e 1

----

UitS Factory Haunted Pneumatic

Olaphrap» Actuator On Design

JD7SO"

"EC" Body uuh S-5, trim

1 £■

S133U

51330

i U i

( i-H >

_

$11 W/

iPoaitlonec And Ai r Bet Net Ril'd.)

Account 15-5?

Pi-3 15C-LC-?} Level Cant ml Lit .

Pneumatic , Side founted, F.iternal

-

Dlaplfl cement Tvpe, Fabr lea Led steel

CdRe* 5.5. Trim. Upper ind Lower

Sldi Connected. 1" - 300J Fljnsed

14" DLSplacer Len£Ch± Factory Mtd,

Controller u/Airaet Tllter Regulator

1 Eo

15BS

( 3.5 1

( 1.51

J0.50

12

_

Add for l/pper & Lever side Conn.

1 la

11(1

1 ID

_

_

11Ö

Total Account 15-57

-

_

( 3.5}

_

11

_

_

1 7 BT

Account 15-66

!"a ■9 Instrument Alt Su^lv^ Frola

Valve On lnstr. Air Header To

15-LC-91 (Leaa Filter-Regulator}

1 Ea

560.10

$68

(11.5 1

(11.51

¿U.M

_

_

Cg.lOAlr Signal Cnnn., Between

15G-LC-93 And 15G-LCV-93,

Capper Tubing, Bare.

1 Ea

21.1(1

22

( 4 1

( * 1

¡0.50

a:

104

Fk . 1 1 Add Tublni! SuuDorta

A1 lid In urn Channel 1" 'dlda

50 LP

0.66

33

' 0.041

f J 1

XJ.50

<u

74

Al. Horit. JO' El. 1"

2 13

<1.60

9

( 0.10)

( 0.11

3d.50

_

11

" Vert. JO" El. 1"

2 Ea

3-3C?: ?

( 0.10)

( 0.1)

a.sn

It

_

11

,r Conn. Plate Ash'^. 1" "

10 Es

I7E5

IS

t 0.05)

f 0.51

Ttrrstr

11

_

29

" O.K. llaneer 1"

6 U

14

( o.oi)

( 0.4)

20.bO

6 1

S.S. Puali Clemi>9 1" "

6 Fa

0.11

3

f 0,011

( p.11

20.50

2

total Account 1

1 Lot

_

5191

(18.91

5JWT

$581

Account , 2

2 300f fu'd Piping Abb 1 y For 15G-LC-93

1 Ea

75. A4

S75

r 3 i

( 1 1

30. M

S ¿2

Si 37

L'ARWV TOTALS FORUAKD

----------------1 J- 1 1 1 1 1 II!

Figure 10-11. Development of Estimate.

FTOJCCT INSTRUMENT LEVEL CONTROL LOOP

UnffltSHIlP SOLUTION

•aajKT

SHH-1 no

mFPiHlriHi J-A.0

_ _ Eli

f Jun.

MA. IN ACOCUW &

riar.in« J.A.B

Dill .

M A 1E nlAt S

IU1I

lui tommti |

8/FVM

UW1

5 AMQLJht

WFT u H

'"11. 11 M

full

9 HUliJHF

JHIT Pfi£E

jujouii 1 F

H.C. 11-50 CONTROL VALVE

1

-

_lajfl_

_?-8

20, SC

57

-

-

_13fl

?

15-57 LEVEL OCWTHOLLEK

1

-

lfi95

-

3.5

20.5C

72

-

-

1767

15-66 UlStfi. PILING

"3D FL.

"T95"

__

1S7T

M.M

36 9

_

__

SS3

15-67 PIPING ASS3-IBLY

I

-

7S

-

jrr

M.M

U

-

[T?

TOTAL niRBCT COSTS

-

(333H1

-

(28771

—f 5801

-

-

(38/4)

j

LNDIKEOT COSTS

total k/hb

( 29.2)

13.3^

376

376

?

iSne St^l ici-i l-O Piton ^(-3s4>rYj

3

1

MMIwisTra suocof TRACTS

da ti

t n t ti

RACTS --

_

(io i

--

13

SW.ES TAX I« WiTEHIAlS

(S VI

MATERL

■LI 32941

--

-- J

165

I

a

•]

! 4

trt/riwimcY

L—15 1)

AiWE

UB TOTAL

--

__

_

--

220

15

SL

n TOTAL

•6

PFTIFTT FDR ¡»/TRACTOR(S)

10 tj

ABOVE

UB TOT AL

--

__

463

'3

a

n TOTAL

?0B B

"J

PQiraf«AK."E i CCKPLCTICN DCND

rrtj

ABWE

UiJ TOTAL

--

51

?■

71

TT.

TAL iT/Hffrraj

.T1CN 6

D PRICE

S5139

; <

ir install/it ich takes place in

; 6

OPERATING F [M, ADJUST AS TOLU.

fii-

?

¡9

1, DIRLCT LABJH

'(sil) I

SSO

0.5

290

JO

\

M

J. INOIKECTS

376

0.3

113

113

JJ

—r \

sua to

AL

103

j :

) 4

3. CUNi"GY < PROFIT * BcttLi

•(¡or

ABOVE

.LB TOTAL

a.ii

65

: 1

---"I-—

!6

m nio l

RICE

SS607

i A

Figure 10-12. Contract Strategy.

PROJECT MANAGEMENT SOLUTION - CONTRACT STRATEGY

Client has limited/little experience Project (E.P.C.) required as soon as possible

HIRE CONSULTANT PROJECT MANAGEMENT (reimbursable) Develop contracting program Management engineering/procurement a) Fixed Fee/Reimbursable, plus b) Schedule Incentive/Milestone Program c) Develop L.s./Unit Price Construction Packages

CONSTRUCTION

a) Combination of Unit Price/L.S. Contracts b) Schedule Incentive/Milestone Program

MEETS SCHEDULE OBJECTIVE DISADVANTAGES

a) Some risk with consultant project management costs b) Cost risk with Engineering/Procurement c) Overall lack of control by owner/client

CGNirenunvE

CGNirenunvE

Project Management for Engineering and Construction Figure 10-13. Unit Price Contract -Analysis.

EQUIPMENT FOUNDATIONS (CURRENT REPORT OF PROGRESS)

NOTE: - ALL FOUNDATIONS ARE TO SAME SPECS.

ITEM

2. REINFORCING RODS (kg.) (Prefabricated)

ESTIMATED Qj^

Qs INSTALLED TO DATE

1220

I F Qs. TO DATE. AND ESTIMATED FDRMWORK Qs. ARE CORRECT.

WILL YOU SIGN THIS REPORT ?

WHAT I S YOUR COST ASSESSMENT OF THIS CONTRACT ?

1. THE WCFK IS WELL PLANNED AND EXECUTED

233 3

Figure 10-14. Unit Price Fd'n. Contract - Solution.

ANALYSIS

1. F0RMW0RK

2. REBAR

ESTIMRTED Qs. 3500 V

v76,000

% COMPLETE

2218

3. CONCRETE

1. F0RMW0RK

2. REBAR

ESTIMRTED Qs. 3500 V

v76,000

3. CONCRETE

COST FORECAST

3. CONCRETE " 2,218 {cu.m.) É $53 + 54 = 237,326 ORIGINAL CONTRACT VALUE

TOTAL $1,293.746

2. REBAR ° 60.000 (kg.) ® 53.17 - 190.200 3 CONCRETE ° 1.400 (cu.m.) ® 5107 = 149,800

$1,155,500

CONTINUED ON FIGURE 1015

Project Management for Engineering and Construction Figure 10-15. Solution.

UNIT PRICE FOUNDATION CONTRACT

4. POTENTIAL CLAIM

When the scope of work increases by over 10%. a "compensable delay" and/or an increase in the unit cost of the work, may result. I n some countries, the legal system provides for a re-negotiation of the price for scope increases over 10% and in most countries, it is "industry practise" -

i f not a legal requirement.

INCREASE I N CONTRACT VALUE

As the increase is over 10%. allow 10% of the increase for a potential claim.

- i14,000 Therefore. Final Prediction = 61.308.000

Personal Performance, Company Culture, and Project Leadership For the 1990's

General 298

Impact of Personal Performance 298 Major Effects of Project Cost 298 Personal Performance — Organizational Interface 299 How to Combine these Skills — The Best Way 300 How to Combine these Skills — An Alternative Way 300 Technical Competence Not Enough 301 Company Organizations for the 1990's 301 Downsizing 302 Core Workers 302 Managing the Core Workers 302 Contract Personnel 303 Managing Contract Personnel 303 Flexible Labor Force 303 Managing the Flexible Labor Force 303 The Three Groups — Conclusion 304 Removing Barriers to a Project's Success 304 The Matrix Interface Conflict (MIC) is the Most Significant Deterrent to Success 304 Matrix Theory 304 MICs Reality 305 Overcoming MICs 305 Typical Examples of MICs 306 The New Company Culture 308 Personal Leadership at All Levels 309 Employee Involvement in Company Policy 309 Benchmarking (Methods and Procedures) 309 Employee Empowerment 309 Management Inspection Process 310 The Manager as a Role Model 311 The New Culture —Summary 312

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