“PROJECT OWNERS (NOC’S) SHOULD INCREASINGLY ADOPT

LONG TERM PMC CONTRACTS OVER PMC CONTRACTS FOR INDIVIDUAL

PROJECTS”

2nd PMI-AGC Energy Forum: DMS Debates

Keser Akhtar AMEC

Tommy MarsAccenture

Dr. Mohammed Al-QahtaniKuwait Oil Company

Support long term PMC contracts

PMC

Project Management

Consultant

Program Management

Consultant

Long Term PMC (Program Management)

• Transfer Of Knowledge / Expertise from PMC to NOC.

• Building in house capabilities in terms of personnel development / procedures for NOC’s whilst working with PMC’s.

• Familiarization with NOC systems and procedures and can play an active role in further improvements.

• Recruitment and mobilization delays at the start of projects are overcome.

Long Term PMC (Program Management)

• Provide simultaneous management services to simultaneous projects which may be at a different stage…FEED, Contract Review etc.

• Understand strengths / weaknesses over time for multiple contractors.

• Knowledge of existing / on-going projects provides PMC with a better vision of NOC’s overall programme strategy.

• Work with NOC to advise / suggest changes (Technical / Commercial) to Contracts utilising lessons learnt from previous projects.

• Consistency of approach, management and reporting.

Time

Out

put

Long Term PMC Team will start here for every project

Short Term PMC Team will start here for every project

Forming

Norming

Storming

Performing

Reduced Productivity / EfficiencyIncreased Time / Cost to Project Life Cycle

Add Value from Day 1Increased Productivity / EfficiencyReduce Time / Cost to Project Life Cycle

PMC Team Life Cycle

Project

Vendors

Manufacturing

ProcurementsEngineering

Remote Teams

PMC Global Network

Flexibility in recruiting expertise and skilled manpower.

PMC Global Network

Attachments

On Job Training

Expose to New Working Environments

Work With Expertise

Knowledge Transfer

Time

Out

put

Why Long Term PMC Contracts?

Lessons learned and

continuous

improvement a

dding

continuous value to

NOC

Minimise project s

et up

times – Can add value

from day 1

Can maintain a stable

resource profile across

simulta

neous projects

maximising effic

iency

and productivity.

Short Term PMC (Project Management)

• Recruitment / Mobilization Delays / Costs at the start of every project.

• Focus on Project Delivery NO interest in Clients Strategic Goals / Objectives.

• No mechanism for sharing best practice / learning across live projects.

• Need to form relationship with Operational Teams • No consistent execution strategy with simultaneous

projects.• No familiarity with existing simultaneous projects.