Investigation of change order management : a case study of oil & gas projects | |
| Author | Le Dang Thuc |
| Call Number | AIT Thesis no.CM-10-14 |
| Subject(s) | Oil industries--Management Gas industry--Management Contractors |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Construction, Engineering and Infrastructure Management |
| Publisher | Asian Institute of Technology |
| Abstract | Oil and gas projects are very complex with huge budget therefore they are easy to raise change during execution of project. A lot of factors affect the project during execution of the project. Many problems could happen unforeseeably to the upcoming part of the project. Engineering Procurement Construction (EPC) process is complex and related to a large variety of variables therefore occurrence of changes in the scope of work is almost inevitable. Many factors such as financing, definition of work and regulatory matters also insert a certain degree of uncertainty into the project. The management of the change is very significant to prevent the impact of change order. Management system and identification cause of change should be play important role. The finding out what is repetitive causes will help Project team has a focal point to manage change order. The causes of change are classified into 7 types which are based on the various parameters such as specification, scope of work, contract, schedule, etc. All of these changes are defined and analyzed. In order to know how they administer in term of time and cost impact, this research has been assessed the 5 case studies and analysis is based on the cost estimate system, cost control, planning. Control research refers to the change order management system as per historical data of projects to identify the cause and the impact of change order. After studying and analyzing five different case studies, it has been found that the repetitive cause of change orders are alteration to scope of work. This happens due to the poor project management systems as estimation system, change decision, change basis of design, location, lack of estimation of scope of work and change order procedures. Change order in oil and gas sector require leaders who can balance budgets and launch schedules and stay on task, because if a project is deemed too costly or late, it can delay the whole mission for months. Cost impact in construction phase is very high; therefore it is needed to pay attention during this period. To reduce change order, the scope of work should be clear. Cost estimates system use contingency in estimating a budget to cover rick, labor, project management system use responsibility break down, select expert vendor to supply material Time Impact in design phase is highest because of the following lack of communication, many deviations in design, change location and change design basis. It is necessary to establish a change order procedure system to ensure effective project execution. A change management system will help a company to be ready to cope with changes and support smooth execution of projects. |
| Year | 2010 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Construction Engineering and Infrastructure Management (CM) |
| Chairperson(s) | Hadikusumo, B. Harimurti W.; |
| Examination Committee(s) | Chotchai Charoenngam;Chiu, Gregory L. F.; |
| Scholarship Donor(s) | PetroVietnam; |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 2010 |