Objective 05: Organization of the Project

Question 1

What must the Construction Company building the Plant decide on vis-a-vis the workload?

Answer 1

How much work it should do in-house and how much to contract to other firms.

Question 2

What determines how a plant construction project is organized?

Answer 2

1. Scale of the Plant

2. Requirements of the Owner

Question 3

What are some different approaches used for design and construction?

Answer 3

1. Reimbursable Engineering Procurement Construction (EPC)
2. Design-Build
3. Lump Sum EPC

Question 4

Reimbursable Engineering Procurement Construction (EPC)

Answer 4

With basic engineering 10% complete, an engineering company is selected to do the detailed engineering, procurement, and construction

Question 5

How is the engineering company paid according to the Reimbursable Engineering Procurement Construction arrangement?

Answer 5

The actual cost plus a fee for each project phase.

Question 6

What is a disadvantage of using the Reimbursable Engineering Procurement Construction arrangment?

Answer 6

The total cost for the project is not known until all phases of the project are complete.

Question 7

Design-Build arrangement

Answer 7

With the basic design engineering about 20% complete, the owner selects a company to complete the detailed design, order the equipment, and construct the plant.

Question 8

How is the construction company paid according to the Design-Build arrangement?

Answer 8

The entire project is based on a final, lump sum payment

Question 9

What is an advantage of the Design-Build Arrangement?

Answer 9

Risk for the owner is reduced since prince is fixed upfront.

Question 10

When is the final payment often made for the Design-Build arrangement?

Answer 10

After completion of the performance run of the plant

Question 11

Lump Sum Engineering Procurement Construction

Answer 11

When basic engineering is about 20% or more complete, the owner selects a company to do the design engineering. After the design engineering is complete and with the scope well defined upfront for accurate cost estimation, each phase is put out for bids on a lump sum basis and a contractor is selected for each phase of the project.

Question 12

Who are at the top of a typical Organizational Chart for a Construction Project?

Answer 12

1. Plant Owner
2. Resident Management, i.e. plant manager
3. Quality Control

Question 13

How are larger groups of staff at a construction site divided?

Answer 13

1. Engineering
2. Construction, from supervision to safety personnel
3. Services, e.g. purchasing, accounting, and document control