Ingenieur Vol.72 ingenieur October 2017-FA3 | Page 62

INGENIEUR maintenance. The approximate cost overruns considered from the Engineering, Procurement, and Construction Management (EPCM) services and the MC delays contributed RM2 million in six months for the recovery stage, and the total overall cost incurred up until Final Acceptance was RM 8 million in two and a half years. Survey Questionnaires Analysis The survey responses were compiled and observations and an initial development analysis were made:- • Respondents/Participants: Engineering, Procurement, Contract, Construction, and Commissioning, • All respondents agreed that MC is important to the Oil and Gas Industry, • All respondents agreed that MC is an important component in the Oil and Gas Industry, • All respondents agreed that MC is part of the handover process from Construction to Commissioning, • All respondents agreed that MC is part of Plant Safety before introducing hydrocarbons, • All respondents agreed that MC is part of Construction Verification of quality systems, • All respondents agreed that MC is part of Project Milestone Payment to Consultants and Contractors, • All respondents agreed that MC is part of Project Planning for systematic handover, • All respondents agreed that MC is part of Construction Procedures, and • All respondents agreed that MC is part of standardisation and consistency in project execution for upstream and downstream activities. Further analysis of the survey questionnaire showed: • Respondents were not unanimous on MC after the Pre-Commissioning Phase. The pre-commissioning deliberation is the final stage of construction completion, wherein the plant facilities are mechanically completed as per design. The pre-commissioning inspection and testing are carried out during this phase of the project. The advantages of involving the construction team during this stage include the workforce and equipment being readily available, 6 60 VOL 2017 VOL 72 55 OCTOBER-DECEMBER JUNE 2013 and it also minimises the schedule and cost of pre-commissioning instead of mobilizing a new team and equipment. It is recommended that the pre-commissioning phase be done before MC and the sequence of activities can be illustrated as follows: 1. Construction Completion, 2. Pre-Commissioning • System Mechanical Completion (SMC) • Partial Mechanical Completion (PMC) • Reinstatement, 3. Mechanical Completion (MC), 4. Commissioning, 5. Start-up, and 6. Handover. Potential Problems Construction and Commissioning Phases Analysis The Mechanical Completion Sequence (Figure 6) indicates how the conceptual and planning timeline versus the actual MC execution during construction and commissioning phases vary. It recognised that MC standardization and systematic execution should be in place before any construction completion handover can be released for commissioning. The interfacing construction and commissioning roles in the MC system should be well organised as a transitional handing over process to avoid any misleading start-ups and operations. The danger of no proper handing over between construction and commissioning is that it could create problems in the overall project milestones, especially in a critical area such as safety which could even result in an explosion in a newly constructed plant. During these overlapping phases, the plant owner will impose the Permit To Work (PTW) system on the outstanding punch list works before the plant can be accepted under Initial or Provisional Acceptance. Underlying Cause of Problem SWOT Analysis: This MC SWOT Analysis (Table 2) indicates the underlying weaknesses that could occur in an MC system execution in a major oil and gas project leading towards Facility Management Handover both in upstream and downstream activities.