Slide 5 Flashcards
How many Gates are there for a project life cycle?
Usually 5 gates
In the 10 step Project Process, what step does the PEEP for budget Approval come in?
Step 3 is where the budget approval occurs. The budget is develped by PEEP
Describe Gate 1 Deliverables
oResponsibility/Accountability: BD (Business Development),input from ENG & Ops
o High level scop, cost, schedule (WAG=Wild Ass Guess)
o Then you sit down with gate review team with managers and discuss the above
Describe Gate 2 Deliverable
o Responsibility/Accountability: BD (Business Development),input from ENG & Ops
o Project Development memorandum (PDM)
o Scopting studies, narrowing options
o Now we can recommend options which are +/- 50% of actual cost/schedule
Describe Gate 3 Deliverable
o Hand off from BD to ENG
o Responsibility/Accountability: Eng, input from construction, BD & Ops
o Design Basis Memorandum (DBM)
o IFD packages (name given to a set of drawings that are deliverables at a certain stage)
o Class V cost & schedule (+/-30%)… as the project progresses, we get a more narrow scope
Describe Gate 4 Deliverable
o Responsibility/Accountability: Eng, input from BD & Ops
o Detailed Engineering & IFC (issue for construction, v detailed)
o Procure long lead items (Procure means to obtain
o Class III cost and schedule (+/-15%) (we are getting very close to knowing our estimates of actual costs/schedule)
o In Gate 3, would ask for funding for long lead items. You only procure long lead items to hold schedule
o By this point, it is a key decision in the whole project; whether we start construction or not. Most money is spent on construction (engineering is cheap compared to construction)
Describe Gate 5 Deliverable
o Hand-off from Eng to Construction
o Responsibility/Accountability: Construction, input from Eng, BD & Ops
o Construction execution (PFC)
o Commissioning & start up review (Plans in place?)
What happens after all gates have been past? Describe the deliverables
You have Post Gate 5 Deliverables.
o Hand off from Construction to Operations (Ops)
o Responsibility/Accountability: Ops, support from Eng, cons
o Commission and start up
o Important for ‘as-built drawings’, because IFC’s may now be inaccurate. As built allows you to have real time optimization
o Close our project
What is a Reimbursable Contract
Reimbursable contract – basically an hourly rate. Also known as ‘fee for service. Reimbursable will say ‘here is what we think our hours will be, but here is our hourly cost’. Better for yourself but clients wont like not knowing what they will have to pay you
What is a Fixed Price Contract
Lump sum’ price on what its going to take to complete that job. If services company goes over budget, they have to deal with it more risky but clients will like you better cause they know what they are paying for
Name a 3 things that can be entered into PEEP
Labour
Opex and Capex
Schedule
Location
