Hydrocarbon Processing - November 2022 - 38

Plant Design, Engineering, Construction and Commissioning
weights with fewer pieces reduce fabrication
time and field labor. For piping inasset
in times of a VUCA environment.
For petrochemical and oil and gas faciliRising
material costs, supply chain interruptions, labor
shortages and political, economic and regulatory uncertainty
are just a few of the factors impacting capital projects.
stallations that are typically welded with
random ends to accommodate flexibility
in the field, they are now maximized for
shop fabrication with exact fit bolt-ups to
reduce field installation time (FIG. 3).
Contractors and subcontractors often
provide the most direct connection to
suppliers and can alert the team if delays
or fabrication difficulties are imminent.
They may have longstanding, trusted relationships
with suppliers, enabling them
to secure holds on prices or other benefits
that would otherwise be unobtainable.
Their knowledge can add value when sequencing
project activities-a particular
ties, inefficiencies can occur when procuring
and coordinating shipment and storage
of key components, including tanks,
pipes and vessels. ECI facilitates contractor-engineer
communications that break
the typical long and circular shop drawing
cycles and replace them with joint working
reviews with the fabricator, shortening
the time to fabrication to take advantage
of securing shop time earlier and with
cost certainty. Onboarding sophisticated
contractors or specialized subcontractors
to support a project team using sophisticated
pre- or macro-planning measures
such as building information modeling
can not only optimize project sequencing
to reduce bottlenecks, but can maximize
transport loads to reduce costs and the
possibility of material interruptions in the
field. A related concern that has cropped
up during pandemic-related supply chain
disruptions is client-led procurement that
does not dovetail well with the overall
FIG. 3. Integrity projects often involve bringing
once underground process lines above ground.
Early planning with the contractor enables
the planning, modularization and permitting
to work in urban spaces safely and efficiently
while managing costs and schedule.
project schedule. Having a coordinated
preconstruction team, in which a responsibility
or accountability for procurement
is streamlined, is crucial (FIG. 4).
Costs associated with bringing contractors
on as consultants early in project
planning are typically offset by the advantages
of ECI. This is especially true under
VUCA circumstances. Getting involved
early gives subcontracting companies
confidence in their approach to the project,
resulting in lower contingencies and
more competitive pricing. Faster permitting,
better regulatory compliance and
fewer change orders-by orders of magnitude-are
also associated with ECI.
Contractual language that clarifies how
the risk of price escalation will be shared
is another factor that gives all stakeholders
confidence-additionally, it can improve
bid numbers by reducing uncertainty.
FIG. 4. Reducing impacts to an operating
facility is paramount to company returns.
Initiating discussions early between the
unit operators and contractor provides an
opportunity to create a schedule flexible
to the needs of all stakeholders.
38 NOVEMBER 2022 | HydrocarbonProcessing.com
Getting the team on board. The construction
industry continues to struggle
with the level of competitiveness that has
been built into contracts and project delivery
methods for so long. In a VUCA
world, adversarial relationships cause
greater inefficiencies than ever: teams
need to move from an attitude
of seeing " problems " and " solutions "
to one that considers " issues "
and " accommodations. "
Problems are handled in reactive
ways, whereas what is needed on
today's jobsite is proactive analysis
and planning. In part, this is a matter of
timing and of formalizing processes. Soft
skills and a collaborative attitude on the
part of individual team members make a
big difference. At all levels of each organization
involved, team members must
have a sense of shared interest in project
outcomes. They need to fully understand
their roles and responsibilities, including
how their tasks relate to overall project
goals. When conducting training programs-or
individual mentorships-it is
important to convey appreciation for the
viewpoint of all stakeholders involved.
Trainers and mentors should provide
members of their project team with overt
permission to consider different perspectives.
Doing so will ensure that, as a project
progresses, adversarial or defensive
positioning can give way to understanding
and accommodation.
The key to leading capital projects in
a VUCA world can be summed up as a
mindset. Problems generally arise from
poor or late planning. Having ample time
to deal with problems-whether the delivery
of materials, a workforce shortage,
slowdowns attributable to the regulatory
process or any other common contemporary
issue-puts decision-makers at ease
and improves their problem-solving abilities.
Having ample time can feel like a luxury,
but to accomplish on-time, on-budget
projects, it is increasingly necessary and
something that can be achieved if the planning
is a collaboration vs. a hand-off.
SHAWN ANDERTON directs and
oversees Graycor power, industrial
and gas infrastructure work within
the U.S. She has more 25 yr of
experience in project controls,
estimating, project management and
operations in the process, power and gas infrastructure
markets. Anderton earned a BS degree in mechanical
engineering from Kansas State University.
BRIAN GALLAGHER has more than
30 yr of experience leading strategic
planning, organizational development,
marketing and sales efforts for
design and construction firms. He has
authored three books and was named
a Top 20 Construction Influencer by Procore.
https://www.HydrocarbonProcessing.com
Hydrocarbon Processing - November 2022

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