• The latent causes of rework in floating production storage and offloading projects

      Love, P.E.D.; Edwards, D.J.; Irani, Zahir; Forcada, N. (2014)
      There is growing demand for cost effective and reliable floating production systems to maximize marginal and new deepwater fields worldwide. Floating Production Storage and Offloading (FPSO) vessels are considered to be the most economical and viable options to meet this demand. Yet, FPSO projects are prone to significant cost and schedule growth. On average, FPSOs have been reported to experience a 20% cost growth and are delayed by six months. Overruns and delays represent uncertainties for owners, contractors and financial institutions. In-depth interviews with twenty-three practitioners about their experiences with FPSO projects revealed that rework arising from design and construction errors were major contributors to cost and schedule growth. Key latent conditions contributing to rework are classified according to people, organization and project. Using retrospective sensemaking an examination of the determinant histories in a new build and conversion FPSO that experienced rework was undertaken. The sharing of experience(s) is deemed pivotal for reducing rework in future projects, particularly through the use of communities of practice that are able to stimulate situated learning to take place. A reduction in rework will not only reduce cost and schedule growth, improve operational performance and augment safety.
    • Making Sense of Rework Causation in Offshore Hydrocarbon projects

      Love, P.E.D.; Ackerman, F.; Smith, J.; Irani, Zahir; Edwards, D.J. (2016)
      Retrospective sensemaking is used to determine how and why rework in offshore hydrocarbon projects occurred. Staff from organizations operating at the blunt end (e.g., clients/design engineers providing finance and information) and those at the sharp end (e.g., contractors at the “coalface”) of a project's supply chain were interviewed to make sense of the rework that occurred. The analysis identified the need for managers to de-emphasize an environment that prioritizes production over other considerations and instead systematically examine mechanisms and factors that shape people's performance. Limitations of the research and the implications for managerial practice are also identified.
    • Off the rails: the cost performance of infrastructure rail projects

      Love, P.E.D.; Zhou, J.; Edwards, D.J.; Irani, Zahir; Sing, C-P. (2017-05)
      Governments in Australia place great emphasis on the development and expansion of their rail networks to improve productivity and service the increasing needs and demands from businesses and commuters. A case study approach is used to analyze the cost performance of 16 rail projects constructed by a contractor between 2011 and 2014, which ranged from AU$3.4 to AU$353 million. Findings indicate that scope changes during construction were the key contributors that lead to the amendment of each project’s original contractual value. As a result, there is a need for public and private sector asset owners to establish a cost contingency using a probabilistic rather than a deterministic approach to accommodate the potential for scope changes during construction. To improve cost certainty during the construction of rail projects, it is suggested that use of collaborative forms of procurement juxtaposed with the use of Building Information Modelling and Systems Information Modelling are implemented. The utilization of such technological and process innovations can provide public and private sector asset owners charged with delivering and maintaining their rail networks with confidence projects can be delivered within budget and are resilient to unexpected events and adaptable to changing needs, uses or capacities.