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(OWN-1549) Remote Site Camp Costs Optimization for Mega Oil/Gas Projects

Primary Author: Yuhong (Tony) Wu, CCP
Co-Author(s): Ming Lu
Audience Focus: Intermediate
Application Type: Practice
Venue: 2014 AACE International Annual Meeting, New Orleans, LA

Abstract: More and more mega Oil/Gas projects are constructed in remote areas with associated lengthy construction durations, and Owner Companies generally need to provide site camp services for construction contractors and vendors throughout the construction period. Camp cost is very significant in construction indirect cost as well as in Owner Company’s total project cost (TPC) estimate for a mega project. This paper presents an integrated approach to minimize the overall camp cost from Owner Company’s perspective, by means of performing overall project schedule resource leveling/smoothing to decrease manpower loading peaks, adopting hoteling strategy with consideration of proper work shifts in project/construction execution plan to enhance camp utilization, as well as conducting scenario analysis and optimization of owner owned camp operation cost and third party camp rental cost. The case study on a mega oil and gas project by utilizing this integrated approach also shows a very promising result on camp cost savings.