Project Management Services under Contract
Because major construction projects are exceptional, one-time or
at least infrequent undertakings for most organizations, it is usually
impractical to maintain an experienced project manager and the necessary
support personnel on the owner's staff. The use of specialized outside
services as a temporary extension of the owner's management structure
for the duration of the project is much more practical. Outside
services are more flexible, usually have access to varied resources,
and cost little in comparison to the total project commitment throughout
its life.
Such a project management service can assume complete responsibility
for the management of a project and for meeting project objectives.
A competent project manager, who would be directly responsible for
the complete management of the project as defined by the client,
would be assigned together with all required staff and services
not otherwise available from the client. A typical project organization
chart is shown in Figure 4.
Figure 4. Senior Appointments for an Engineer,
Procure, Construct (EPC) Organization
This service should commence with the critical first steps of developing
the requirements of the concept into a scope of work and be completed
with the managing and start-up of the constructed facilities. It
should be initiated by a project task force comprising senior representatives
from the client and from the home office of the project management
service. This task force would establish project organization and
policies. It could continue to meet at intervals to confirm commitments
and continuously review the status of the project at the executive
level, until performance is completed.
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