Ingenieur Vol.72 ingenieur October 2017-FA3 | Page 61

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

Actual Cost Incurred ( RM )

Table 1 : Sample Case Study : Typical Project

Cost Overruns ( RM )

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