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(RISK-1574) Managing Risks in Supplier Design Integration

Primary Author: Mr. Richard C. Plumery EVP

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

Abstract: In the lean Engineering, Design, Procurement and Construction project world, the current philosophy is for Engineering and Design Contractors to push more design work to Suppliers. This necessitates a greater reliance on the integration process of the Supplier design information for the completion of their design work. However, this integration process has proven to be problematic due to: multiple submittal iterations, sub-tier Supplier involvement, poor change control management, market conditions, shop space availability, and late/discrepant Supplier submittals. At best, these issues result in wasted time, money, and energy. At worst, these issues can derail an entire project. These risks grow exponentially on lean projects where time is of the essence and the disproportionate desire for greater value and less waste. Many projects treat such issues as un-actionable, since they appear to be outside of the Engineering and Design Contractor’s control. However, this paper will not only discuss these major issues and risks in greater detail, but also will offer proven strategies and methods that may be employed to mitigate or even eliminate those risks.