Megaprojects: Project Control as Strategic Director

Project Control needs to be a strategic support to the Project Director on Megaprojects. In this presentation, Project Value Delivery's founder Jeremie Averous explains what the different levels of project control capability are, and how this translates into actual project performance.
Reaching the strategic capability is a real enabler of megaprojects success!

1. © Project Value Delivery 2024
An group company
Megaprojects:
Project Control as the
Project’s Strategic Directorate
September 2024

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01Introduction - Reminder about the coverage of Project Control
023 levels of Project Control Maturity
03Key success factors for Project Control as the Strategic Directorate
04Case Study
05Onwards!...
Contents

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YourSpeaker
[email protected]

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Project Value Delivery:
WhoAre We?
•Large, Complex Projects across industries
•Global coverage and interventions
•Offices in Singapore and France
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01 –Introduction
Reminder about the
coverage of Project Control

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Project Control overview
Cost Control
Schedule
Project Risk
Contract
Management
Document
Control
Management
of Change
+ possibly
Interface Management

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Roleof Project Control
•Project Control brings together the disciplines of cost,
schedule, risk, (document control and contract) to
provide the Project Director with a consistent view of
the project (actual + forecast at completion).
•Cost model and schedule have to be properly
aligned
•
The Project Control Manager position is generally
formalised only on large enough projects (otherwise,
role done by Project Director)
•PCM needs to be involved in Management of
Change / Scope Management as well
Project
Control
Scope
Schedule Cost

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Megaprojects typical organization
Project Director
Project Control
manager
Package
Manager 1
HSE, Q
Package
Manager 2
Package
Manager 3
Engineering
Manager
Procurement
manager
Construction
manager
Commissioning
Manager

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02 -3 levels of Project
Control Maturity

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Strategic role of Project Control Manager
Skipper = PD
router /
strategist= PCM

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Strategist role of Project Control
•Project Control is often the only team member to take the long term view on the project
‒not in reactive mode but able to stay in responding mode
‒Has all the navigation data and context forecast data
•3 levels of strategic contribution
1
Capability to do on-demand scenario planning, forecast
2
Proactively raise and analyses weak signals, issues and process dysfunctions for improvement
3
Propose creative, not immediately obvious strategies to enhance project value

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Inconsistencies as early warning
for weak signals
•Any inconsistency between cost, schedule, risk is an
opportunity to identify a weak signal.
•It shows there is a deviation trend in some area, and
that it might:
‒Be the symptom of a deeper issue
‒Impact other areas (consequential impact)
•All deviations to the plan in cost or schedule should
be considered as potential weak signals and analysed.

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Watch for consequential effects!
•A Variance observed in cost or schedule might lead to other
Variances:
‒Late engineering leading to claims and delays from suppliers
‒Change of scope in engineering leading to substantial impacts
‒Late procurement leading to extra transportation costs (airfreight)
and standby on site
‒Late fabrication leading to construction standby
‒Etc
Project Control is in charge of identifying inconsistencies and
trends and analyse.
•Always seek the root cause and examine if no Consequential
Variances!

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03 -Key success factors
for Project Control as the
Strategic Directorate

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WhatProject Control isabout…
Before
After

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What’s this?
A Project Control Manager that has setup his project correctly

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This is a Project Control manager that forgot to setup his project
properly!

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Project start-up role of the Project Control
Manager
•At project start- up, the PCM must
concentrate on setting up the required
systems and processes to remove as
much as possible the burden of
information collection and
display/reporting during project
execution.
•Project Control’s first 3 to 6 months on a
project are possibly the most intense.

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Systems setup: invest early!

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04 –Case Study

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Case Study – Gumusut 1 subsea project
•Large subsea development in Malaysia offshore
Sabah
•First deepwater development in Malaysia (>1000m
water depth)
•Contractor : lump sum basis, value approx 1BUSD
for all piping and subsea installation, including
prefabrication onshore
•Contractor is ad- hoc JV between international
contractor and local contractor, no project control
infrastructure
•Project was delivered successfully (some delay for
final hook- up due to FPS late delivery by others
leading to substantial scenario change)

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Success factors for PCM
•Significant upfront investment in Project Control infrastructure
and systems, facilitated by slippage of project start date and vision
of management
 it is good to have 6-9 months minimum heads- up for a contractor with
no infrastructure for such projects to build the minimum
 approx. 700KUSD spent on systems + time of experienced personnel
(total less than 0.2% of project)
•
Strong investment in experienced project control personnel in all
disciplines until at least ~70% progress
•Strong accountability of package managers on their costs &
schedule, and relevant reporting to all managers responsible for
cost & schedule

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Example of actual strategic activities
•Scenario planning
‒Optimisation of cut-off between shallow water barge and deepwater ship for
export line (cost & risk)
‒Seasonal scenarios depending on availability of client provided materials,
including substantial additional season to hook-up pre- installed risers 1yr later
than expected due to late FPS
‒Contractor credit line was project-financed, hence cash flow scenario planning
was also essential
•
Management of unexpected situations: setup and management of
specific taskforce.
‒Example of a near sinking of a pipeline barge requiring cleanup and
requalification of pipes
•
Organisational development: PCM facilitated all organisational
workshops including phase changes for the project
•Contractual and variation order strategy

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05 – Onwards!...

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Conclusion –onwards!
•What is the maturity level of your project
control organisation? How can you reach
level 3 – strategist?
•Is your organisation ready for the necessary
investment and high ROI on megaprojects?
•How will this vision change the expected
profile of your Project Control Managers?
1
Capability to do on-demand scenario
planning, forecast
2
Proactively raise and analyses weak
signals, issues and process
dysfunctions for improvement
3
Propose creative, not immediately
obvious strategies to enhance project value

26. Thank You
www.projectvaluedelivery.com
Thank You
www.projectvaluedelivery.com
Thank You
www.projectvaluedelivery.com
© Project Value Delivery 2024
An group company