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(OWN-3494) (Presentation Only) Owner Project Management Challenges that Affect Cost and Schedule Outcomes

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Venue: 2020 AACE International Conference & Expo

Abstract: It's no secret that project outcomes of large to mega scale projects in the process industry are less than stellar. Numerous papers/presentations have outlined the effects these project 'blowouts' have on owner business results. This paper will provide hands-on feedback from owner organizations across the process industry on these Business and Project Management challenges. These issues address aspects of project work such as Owner's inability to lock down capacity, variability and feedstock requirements early in the asset development process typically resulting in late project changes. The paper will also address poor scope definition and scope freeze at project sanction which causes cost/schedule fluctuations between sanction and project end results. Other owner issues include poor contracting strategy selection, ineffectual change management, inadequate project controls, misaligned operations and maintenance expectations, etc. Contractor productivity and performance issues will also be discussed. Results of a recent owner study conducted by Pathfinder will be shared that address these issues. Metrics will be provided by the Construction Industry Institute regarding effective application of industry best practices. The session will correlate these issues back to Cost Engineering and Project Control practices and provide proven solutions to address pitfalls and support owner business opportunities with effective/efficient project delivery.