phases of the project- engineering, procurement, construction and commissioning, to support the MC execution.
The systematic MC execution is to manage work tasks through a common purpose as a strategy for quality systems. It can also promote an integrated operations planning mentality while optimising construction costs and safeguarding technical integrity.
This MC development system can be focus both the owner as well as the contractor to have a common objective and not just be limited to their respective scope of work.
PROJECT DATA GATHERING AND ANALYSIS
Analysis of Data – Cost, Benefit and Risk
Figure 5 illustrates how“ passing the parcel” significantly affects the cost exposure, benefits and risks if the owner or contractor does not have a systematic MC execution handover plan.
The sample case study analyses the impact of MC delays in terms of capital cost in a Typical Project. This study reveals that failure to achieve MC milestones impacts the project capital cost resulting in cost and time overruns, as well as the next phase’ s unit strategy, operations and
Cost Cost Overruns
Time Overruns due to MC delays
Estimated Capital Cost
Operating Cost Overruns
Estimated Operating Cost
Construction Phase
Year 1 Year 2 Year 3
Operation and Maintenance Phase
Time
Figure 5: Passing The Parcel: Cost Exposure( The Q-Team)
Project Milestones
Planned |
Actual |
Time Delays |
Est. Capital |
|
|
|
Cost( RM) |
Actual Cost Incurred( RM)
MC |
Sept. 2000 |
Mar. 2001 |
6 mths |
60 M |
62 M |
2 M |
IA |
Nov. 2000 |
Nov. 2001 |
12 mths |
- |
66 M |
4 M |
FA |
Nov. 2001 |
Nov. 2002 |
12 mths |
- |
68 M |
2 M |
Total |
|
|
30 mths |
- |
- |
8 M |
Table 1: Sample Case Study: Typical Project
Cost Overruns( RM)
59