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EPC Project Management

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Abstract: 

Engineer, Procure, Construct (EPC) contracts are the Owner’s contract of choice when building complex facilities. If you are starting out as a project manager / project engineer on an EPC contract that has been set up by others, you struggle as you are just not sure that what you are doing is correct and what information you should be looking for. You know some stuff about the project management of EPC contracts, but you are not confident about your knowledge.

This workshop is all about building your self-confidence in the project management of EPC contracts. Sure, you can read books, take on-line courses, and build up your knowledge, but most people need to be with real people. You need to understand not only your own strengths and weaknesses but to see the strengths and weaknesses of others as well. You need to realize that you are not alone. In this live workshop, you will lean things you could not have learned at home.

Using lecture, case studies, exercises and discussions the workshop starts out by looking at the project from the Owner’s point of view and then from the EPC Contractor’s (EPCC) team member’s point of view. We look at the early stages of project development, project delivery systems, Request For Proposals, and what the Owner goes through to choose the EPC contractor. For the EPCC, we look at the WBS to develop the work packages, safety and quality requirements, management of the engineering effort, cost control, Earned Value Analysis (EVA), project reporting, procurement, tendering, construction management, contract administration, training, commissioning and start up and finally closing out of the contracts. The workshop looks at what is needed in the EPC contract for project success. There are responsibility / supply issues that have to be addressed in the EPC contract. If not addressed in the EPC contract, the project manager has to be proactive and get decisions made otherwise project failure is a possibility.

LEARNING OBJECTIVES

At the end of this self-paced online course, participants will be able to:

  • understand why Owner’s choose EPC, Project Delivery Systems, and EPC Contractor evaluation.
  • maintain project control through an understanding of the critical project relationship of scope, schedule, budget, and resource.
  • build a work breakdown structure for project planning and scoping purposes.
  • quickly develop your project scope for more complete estimates and better cost control.
  • evaluate your project risk issues and how risk affects your project costs.
  • analyze your project status using earned value analysis, which is the preferred method of project progress monitoring.
  • apply the concepts learned to manage changes to the project scope, schedule, budget, and resources.
  • provide project leadership by knowing the Owner’s responsibilities and the EPCC’s responsibilities and using your newly acquired knowledge, determine the best course of action for the project.
  • be proactive in commissioning by integrating the Owner’s responsibilities with the EPCC’s. control your project by understanding and acquiring the information needed for performance monitoring.
  • improve your confidence and leadership buy using this base of knowledge to build on.
  • pass the Project Management Association of Canada's (PMAC) Certificate in EPC Project Management.

 

WHO SHOULD ATTEND

The material will be of interest to both the Owner and EPCC project managers and other project personnel. Specifically, project managers new to project management, project engineers, technical people who have been promoted to project management, those looking for direction on their EPC projects, and others who have to manage the day to day project activities.

PREREQUISITE

There is no prerequisite for this course. It functions as a stand-alone course.

MATERIALS

Participants will receive a course binder containing copies of presentation slides, case studies, and handouts. In addition, they will receive a copy of the textbook Plant Project Engineering Guidebook for Mechanical and Civil Engineers and a copy of the CD-ROM EPC Project Management Templates and Tools.

WHAT YOU WILL LEARN

Project Delivery Systems
At the end of this session, the participant will be able to:
  • identify the various types of project delivery systems available to them, including joint ventures, EPC contract structures, and fast tracking projects.

    Describe typical joint venture arrangements.

 

Why Owners Choose EPC
At the end of this session, the participant will be able to:

  • describe the characteristics of EPC contracts, the different types of EPC contracts used, the disadvantages of the EPC contract,
  • Utilize the items considered for a successful EPC process.

 

Typical EPC Contract Steps
At the end of this session, the participant will be able to:

  • describe the steps in the EPC process and Owner’s responsibilities.

 

EPC Contractor Evaluation
At the end of this session, the participant will be able to:

  • Use evaluation guidelines to determine if an EPC contract is desirable
  • Describe EPC risk, EPC funding, risk allocation matrix, force majeure
  • Develop criteria for choosing the EPC contractor
  • Write the Request For Proposal
  • Participate in EPC contractor selection.

 

Case Study: Parametric Estimating
This will give the learners an in-site into how the Owner uses location factors to estimate the project for various locations to see which location is the best. Safety Management
At the end of this session, the participant will be able to:

  • understand why safety is important and the cost of safety
  • Identify hazards using tips for identifying hazards.
  • Use the Hierarchy of Controls to control hazards
  • Carry out due diligence
  • Provide input to safety programs, health and safety policies, and the writing safety standards and procedures.

 

Case Study: Construction Safety
This will give the learners a real life safety situation where they will have to decide the best course of action. Project Controls & Scheduling
At the end of this session, the participant will be able to:

  • Outline the purpose of a budget,
  • Describe what the budget inputs are,
  • Understand contingency
  • Define the purpose of project controls
  • Use the project control checklist
  • Incorporate control system tips
  • Develop critical path schedules

 

Exercise: Examples of Risk
This is an exercise for the learners to list the risks that they see on their projects and compare it to the instructors list. The output from this exercise is used in a later case study.

Exercise: Critical Path Scheduling
This is a simple exercise in the development of a Critical Path schedule.

Quality Management
At the end of this session the learner will be able to:

  • Describe quality assurance mean
  • Describe quality control
  • Understand the importance of quality planning.

 

Resource Planning
At the end of this session the learner will be able to:

  • Understand what resource planning is
  • Address items that can affect the resource plan
  • Use the resource allocation rules
  • Understand resources plans importance
  • Use the resource planning steps

 

Project Communication
At the end of this session the learner will be able to:

  • Develop a communication plan,
  • Know the purpose of reports,
  • Know what to include in reports, project evaluation, reporting challenges, and report contents.

 

Project Guidelines
These are guidelines that are common to all projects. Also explained is the importance of the project scope/schedule/budget/resources relationship.

Decision Making
At the end of this session the learner will be able to:

  • Use the basics of decision making,
  • Describe the six types of feasibility,
  • Define what is a problem,
  • Use the Systematic problem solving method,
  • Manage group problem solving and decision making.

 

Exercise: Thought Problem
Learners, in a group setting, determine problems that project managers typically face during a project.  

Case Study: Working in Groups
The learners, working in groups, are to develop do’s and don’ts of working in groups.

Project Planning and the Work Breakdown Structure (WBS)
At the end of this session the learner will be able to:

  • Understand the importance of project planning and the WBS,
  • Learn the benefits of the WBS
  • Make a WBS,
  • Construct an interactive Gantt chart session.

 

Exercise: WBS
Learners, in groups, are to develop a WBS for an actual project.

Scope Issues
At the end of this session the learner will be able to:

  • Describe the purpose of project scope
  • Explain the importance of a baseline scope and how it relates to cost control
  • Use a checklist to develop a more complete project scope.

 

Developing Scope
The purpose of this exercise is to practice using a checklist to develop project scope.

Project Stakeholders
At the end of this session the learner will be able to:

  • Identify potentially relevant stakeholders.
  • Evaluate relevant stakeholders in terms of dependency, risk, and control.
  • Determine which stakeholders need special attention from management.
  • Proactively manage key stakeholders by trying to decrease the project’s dependency on them.

 

Risk Analysis
At the end of this session the learner will be able to:

  • Identify potentially relevant risk issues.
  • Evaluate relevant risk issues in terms of control.
  • Determine which risk issues need special attention from management.
  • Identify and proactively manage key risk issues .
  • Describe a cost Risk Analysis

 

Case Study: Risk
This case study will give the Learners the opportunity to use brainstorming to do a risk analysis of a real project and get a feel for how risk can affect their project costs. They can use the list from Module 6 to analyze the problem.

Estimating
At the end of this session the learner will be able to:

  • Understand what estimating is.
  • Be able to recognize project hidden contracts.
  • Be able to define the different methods of estimating
  • Know what engineering deliverables are required for different estimate accuracies.
  • Learn how to control currency fluctuations in their projects.
  • Know what escalation and contingency are.
  • Understand freight and how it can affect the project success.  

 

Case Study: Escalation
This case study will give the Learners the opportunity to work a real life escalation situation that project managers have to address

Discussion: Freight
A hidden contract that can affect the project cost.

Cost Control & Earned Value Analysis (EVA)
At the end of this session the learner will be able to:

  • Identify the key elements of a project that must be controlled.
  • Interpret information that results from an earned value analysis.
  • Describe why it is important to implement scope control for a project.
  • Explain what is project cost control and its components
  • Understand earned value reporting and methodology
  • Learn the importance of approval limits.
  • Learn how to do project forecasting
  • Use for the Pareto Rule for defining cost control problems.

 

Exercise: Earned Value Analysis (EVA)
The purpose of this activity, using simple cases, is to show how the EVA numbers are developed and give a visual representation of what the numbers mean when plotted on an S-curve.

Case Study: The Case of the Unidentified Risks
The purpose of this case study is discuss how to resolve project control issues for a project that did not have any project management controls with unidentified risks. Highlights the need to follow project management procedures for proper cost control.

Engineering Management
At the end of this session the learner will be able to:

  • Identify how scope is developed and what describes scope.
  • Know what documents describe scope.
  • Know that scope change is inevitable
  • Recognize the two types of scope changes.
  • Learn the criteria for an effective change management process.

 

Exercise/Discussion: Why do Projects Fail?

Procurement
At the end of this session the learner will be able to:

  • Understand how risk affects pricing
  • Characterize the differences in procurement methods recommended for procuring (a) works, (b) services, and (c) goods.  

 

Case Study: Building Contracts
The purpose of this activity to give the learners practice in the decisions to be made for, and in the analysis of, procurement planning.  

Types of Contracts
At the end of this session the learner will be able to:

  • Understand the different types of contracts they need to handle.
  • Develop criteria to be used to determine when to use a contract and when to use a purchase order.
  • Be able to define the different types of contracts typically used and know what their pros and cons are.

 

Case Study: PO vs. Contract
The purpose of this exercise is for the team to develop guidelines for use in determining when to use a purchase order and when to use a contract.  

Request for Proposal (RFP)
At the end of this session the learner will be able to:

  • Describe the difference between a Request For Quotation (RFQ) and a Request For Proposal (RFP)
  • Explain the typical ways of procuring goods and why bids are required
  • List the contents of a RFP
  • Develop and use a Plant Conditions and Standard Component List
  • Develop and use a Vendor Document Requirements
  • Explain the importance of the Vendor Information Requirements document  

 

The Bidding Process
At the end of this session the learner will be able to:

  • Describe the bid evaluation process and characterize the major activities and issues.
  • Use the bid evaluation checklist
  • Describe the problems that arise from deficiencies in bids and challenges to selection and how these problems may be addressed.

 

Case Study: Handling Bid Questions
The purpose of this activity is to discuss some of the complications that may arise during the bidding period and to debate how they can, or should, be handled by the owner.

POs and Contracts
At the end of this session the learner will be able to:

  • Describe the purpose of the pre-award meeting
  • Lead a pre-award meeting to get the required results.
  • Write a purchase order that meets the needs of the team and other associated personnel.
  • Revise the purchase order so the total cost is always known.

 

Case Study: Choice of Contracts
The purpose of this activity is define the appropriate method of contracting for a variety of scenarios.

Construction Management
At the end of this session the learner will be able to:

  • Define Construction Management
  • Understand the role of and the importance of the construction manager to the project
  • Describe the construction managers tasks
  • Define the duties if a general or prime contractor as it relates to site safety.
  • Define due diligence and how it applies to their projects.
  • Understand the construction managers role in contract signing
  • Carry out the construction managers duties.

 

Exercise: Prime Contractor
The purpose of this exercise is to let the learners determine from the Occupational Health & Safety Regulations the first aid requirements on the job site. This is an important aspect of site safety and if not properly understood can lead to trouble with the authorities.

Tender Document
At the end of this session the learner will be able to:

  • Develop a tender document using the correct wording and information.
  • Understand all aspects of a tender document
  • Learn a method of handling claims
  • Avoid common mistakes when preparing and interpreting the tender document.
  • Understand the components of the tender document and why they are important to project.

 

Exercise: Evaluating Unit Prices
The purpose of this exercise is to show the learner a method of evaluating unit price contracts or lump sum contracts with unit prices.

Exercise: Premium Portion of Overtime
The purpose of this exercise is to explain how the overtime cost should be developed and why it is done this way.

Case Study: Sludge Pond
The purpose of this exercise is to develop a discussion on answering questions during the bidding period and addendum's.

Special Conditions for Site Contractors
At the end of this session the learner will be able to:

  • Know why the document is required.
  • Develop and use the Special Conditions For Site Contractors document

 

Contract Administration
At the end of this session the learner will be able to:

  • Define contract administration.
  • Describe the duties if a contract administrator.
  • Understand the difference between and when to use a field work order, change order, and back charge.
  • Relate the field work orders and change orders to the overall project scope, schedule, budget, resources, relationship.
  • Direct construction inspection
  • Lead construction meetings with the suggested agenda
  • Know what should go into a daily diary.
  • Handle project correspondence to their best advantage.
  • Develop and complete a deficiency or punch list
  • Manage equipment checkout using the checklists provided.

 

Case Study: Dealing with Claims
The goal is to provide practice in managing contracts in a situation to which the learners should be able to relate. The activity will help in analyzing real-life situations that may arise when implementing projects.

Commissioning Procedures
At the end of this session the learner will be able to:

  • Develop a commissioning procedure to get the project from construction, to start-up, to operations.
  • Set the project up into systems to enable start-up.
  • Define and understand the difference between commissioning and start-up.
  • Develop a turnover sequence chart so the project team understands exactly what makes up the different phases of construction, commissioning, and start-up.
  • Determine what information is required in their turnover packages.
  • Develop a System Turnover Method

 

Training
At the end of this session the learner will be able to:

  • Understand the different training methods, sessions, trainers and problems associated with each.
  • Develop a letter of expectations for their trainers.

 

Commissioning and Startup
At the end of this session the learner will be able to:

  • Define commissioning, startup and mechanical completion
  • Describe the requirements of commissioning and startup.
  • Understand how feedstock and off take affect the commissioning and startup.
  • Determine the responsibility split on various commissioning tasks/issue between the Owner and the EPC contractor.
  • Identify issues with testing
  • Understand the importance of spares being on site prior to startup.
  • Develop a commissioning / startup organization chart.

 

Completion
At the end of this session the learner will be able to:

  • Define the two points that constitute contract completion.
  • Follow the proper steps required to complete their contracts.
  • Project Close-Out

 

Wrap Up
This session will consist of:

  • Course wrap up
  • Completing evaluation forms

 

Exam
Students will complete the Certified EPC Project Manager exam.

course info

Course ID: 1604
Course Level: Beginner
Duration: 4 or 5 days

upcoming sessions

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Gold Seal Certified

EPC Project Management
5 Credits

 

The National Gold Seal Committee has approved this course for Gold Seal accreditation. The National Gold Seal Committee has commended Procept Associates Ltd. for recognizing the need for defining and providing quality construction management training.

Certificate #15-12-250

PMI PDUs

PMI Talent TriangleThis course comes in both 4-day and 5-day versions. The following table provides the breakdown of the professional development units (PDUs) for the 5-day version of this course aligned with the PMI Talent TriangleTM.

  Tech. Ldrshp. Strat. & Bus.
PMP 32 1 2
PgMP 32 1 2
PfMP 0 1 2
PMI-ACP 0 1 2
PMI-SP 3 1 2
PMI-RMP 3 1 2
PMI-PBA 0 1 2

 
The three columns in the above table are Technical Project Management, Leadership, and Strategic & Business Management.

Other Credits

Other professional (re)certification credits are available, including:

  • Certified Business Analyst Professionals (CBAPs) earn 35CDUs (Category 2B)
  • Certified Software Quality Engineers (CSQEs) earn 5 RUs
  • CIPS Information Systems Professionals (ISPs) earn 35 Learning Credits
  • CIPS Information Technology Certified Professional (ITCPs) earn 35 Learning Credits