Masterclass Management of Projects. It s all about people but. The Contractor s Perspective

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1 Masterclass Management of Projects It s all about people but The Contractor s Perspective April 2012 WAB Masterclass April 2012 /1 Masterclass Project Management April 2012

2 Agenda Introduction to CB&I The contractor s perspective Stakeholders and their relationships Client -- contractor relationship The project team Secondary relationships Statement WAB Masterclass April 2012 /2 Masterclass Project Management April 2012

3 Introduction to CB&I WAB Masterclass April 2012 /3 Masterclass Project Management April 2012

4 CB&I s Portfolio of Services Lummus Technology Licensed technology Engineering / technical services Proprietary catalysts Specialty equipment 2011 Operating Income $355.2 Million Project Engineering and Construction Engineering Procurement Module fabrication Construction Commissioning Steel Plate Structures Engineering Supply Fabrication Erection Lummus Technology $96.4M 27% Project Engineering and Construction $91.6M 26% Steel Plate Structures $167.3M 47% WAB Masterclass April 2012 /4 Masterclass Project Management April 2012

5 It s all about people. The contractor s perspective: The relationship with any stakeholder in the project must be supported by either: A contract Procedures/systems Applicable laws Purchase order Construction subcontract Etc. But the project shall be executed to the spirit of these documents and not to the letter. WAB Masterclass April 2012 /5 Masterclass Project Management April 2012

6 It s all about people. Stakeholders and their relationships Client Permanent Organization Stakeholders Public Relations Press Industry Bodies etc. Finance Providers Off-takers Local Authorities Regulatory & Permitting Client Project Team Feedstock Suppliers Local Community Contractor Project Team Licensor(s) Suppliers Primary relationship Secondary relationship Subcontractor(s) 3 rd Party Engineering Specialists WAB Masterclass April 2012 /6 Masterclass Project Management April 2012

7 It s all about people. Client Permanent Organization Stakeholders Client -- Contractor relationship Client Project Team Governed by the contract but. Work is executed on the basis of trust on different levels in the organization of both client and contractor Contractor Project Team WAB Masterclass April 2012 /7 Masterclass Project Management April 2012

8 It s all about people The Project Team Project DIrector Project HSE QA/QC Project Services Project Controls Construction Project Engineering Process Procurement Commissioning Lead Project Estimator Project Engineers HSE Lead Engineer Electrical Lead Engineer Mechanical Lead Engineer Piping Lead Engineer Civil/Structural Lead Engineer Instrumentation Lead Engineer Area Process Lead Engineers WAB Masterclass April 2012 /8 Masterclass Project Management April 2012

9 It s all about people The Project Team Governed by: Project function descriptions Project execution plan Project systems and procedures But the project members shall act as a team and fill in the gaps for the success of the project WAB Masterclass April 2012 /9 Masterclass Project Management April 2012

10 It s all about people Teambuilding Coordinated Action Alignment (Common Understanding) Effective meeting structures Workshops for key phases, e.g.: Engineering Construction Commissioning Risk identification and management sessions Brainstorming sessions for problem solving Mutual Trust and Respect Examples: Behavior Standing for the project Commitment to goals Help culture Use of hidden talents Common Objectives Execution plan development Communication strategy Feedback to the team WAB Masterclass April 2012 /10 Masterclass Project Management April 2012

11 It s all about people Threats External culture Internal culture Characters Behavior Communication WAB Masterclass April 2012 /11 Masterclass Project Management April 2012

12 It s all about people Secondary relationships Secondary relationships must be managed with due diligence as these may become a threat to the project. Examples: Permits Financial institutions Local (labor) laws WAB Masterclass April 2012 /12 Masterclass Project Management April 2012

13 It s all about people Statement open for debate: If you do not trust any one of your stakeholders (an individual or entity) do not work with them. Samenwerken gaat alleen op bais van vertrouwen. WAB Masterclass April 2012 /13 Masterclass Project Management April 2012

14 Thank You!