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(OWN-1541) Can “Project Management Contractors (PCM)” Fill Owners’ Cost Engineering Needs for Major Capital Projects?

Primary Author: Mr. Stephen L. Cabano and Mr. Paul G. Williams

Audience Focus: Intermediate
Application Type: Application
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA

Abstract: As Capital projects in the Chemical Process Industry become larger and more complex, many “right-sized” Owner organizations find themselves resource-limited in all facets of managing these projects. The Cost Engineering function is no different. One option that Owners have adopted is the application of a Project Management Contractor (PMC), who works on behalf of the Owner overseeing all project activities. Many questions arise, however - Are these effective? Can a traditional engineering contractor provide the unbiased and Owner-oriented support the Owner requires? Are the engineering and construction execution contractors willing to work under such an arrangement? This paper will define this PMC approach and provide guidelines for an effective Cost Engineering environment on major projects applying the PMC support strategy. The paper will also address effective techniques for defining the PMC scope and selecting the optimum PMC. Worldwide lessons learned will be shared and discussed.