How to Ace Your Oil and Gas EPC Project Closeout
Dear Oil and Gas Professionals,
If you are an oil and gas project manager, you know that closing out an EPC (Engineering, Procurement, and Construction) project is not just a matter of completing the work, but also of satisfying the client and securing your reputation. In this newsletter, I will share with you some best practices and tips for closing out an oil and gas EPC project successfully and efficiently.
What is Project Closeout?
Project closeout is the process of:
- Verifying that the project has met all the contractual requirements
- Resolving any outstanding issues
- Delivering all the project deliverables and documentation
- Releasing all the project resources
- Obtaining the client’s acceptance and feedback
- Conducting a lessons learned session
- Celebrating the project success
Project closeout is not a onetime event, but a series of activities that should start early in the project life cycle and continue until the project is formally closed. The project closeout process can be divided into four main phases: pre-construction, construction, commissioning, and post-commissioning.
Pre-Construction Phase
The preconstruction phase is the time to:
- Establish the contract requirements for closeout, such as the scope, schedule, quality, and deliverables
- Communicate these requirements to the project team and the client, and ensure that they are aligned and agreed upon
- Plan and prepare for the closeout activities, such as the job start up meeting, the contractors’ logs, the QA/QC plan, the punch list management, the as-built drawings, the O&M manuals, the warranties and guarantees, the training and handover, and the final payment and retention release
Construction Phase
The construction phase is the time to:
- Execute the closeout activities according to the plan, and monitor and control the project performance and quality
- Track the progress and status of the project deliverables and documentation, and ensure that they are completed on time and meet the client’s expectations
- Coordinate and supervise the contractors and subcontractors, and verify that they comply with the contract terms and conditions, the HSE standards, and the QA/QC plan
- Identify and resolve any issues, risks, changes, or disputes that may arise during the project execution, and document them accordingly
- Maintain a regular and transparent communication with the client and the project stakeholders, and report any deviations or problems that may affect the project scope, schedule, budget, or quality
- Seek the client’s feedback and approval for any major project decisions or deliverables
Commissioning Phase
The commissioning phase is the time to:
- Test and verify that the project works as intended, and meets the functional and performance requirements
- Coordinate and oversee the commissioning activities, such as the pre-commissioning, the startup, the performance testing, the acceptance testing, and the defect rectification
- Ensure that the commissioning results and records are documented and reported to the client and the project stakeholders
- Obtain the client’s formal acceptance and signoff for the project, and transfer the ownership and operation of the project to the client
- Review the contract documents and confirm that all the contractual obligations and deliverables have been fulfilled, and that there are no outstanding issues or claims
- Provide the client with all the necessary project documentation and information, such as the as-built drawings, the O&M manuals, the warranties and guarantees, the training and handover certificates, and the final invoice and payment receipt
Post-Commissioning Phase
The post-commissioning phase is the time to:
- Release and demobilize all the project resources, such as the human resources, the equipment, the materials, and the facilities
- Archive and store all the project records and documents, and update the project database and portfolio
- Conduct a lessons learned session and a project review, and identify the project successes, failures, best practices, and improvement areas
- Document and share the lessons learned and the project review results with the project team, the client, and the project stakeholders
- Recognize and reward the project team and the project contributors, and celebrate the project completion and achievements
Image By #GeorgeNWOGU
Conclusion:
Properly managing project closeout is crucial for project success. Follow the shared tips to ensure a professional and efficient oil and gas EPC project closure, leaving a positive impression on clients and stakeholders. Any questions or comments are welcome — thank you for reading!
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Best regards,
Engr. George (Chìsom) ÑWÒGU (MBA, PMP®️)
Motto: Humanity First, then Smart and Green. 🚀
My name is George Nwogu, a Senior Project Manager and Global Trainer from Nigeria. I’m the Founder of Bizville Project Management Limited
Services from Bizville Project Management are:
- EPC, HSE, PMT & MGT Manpower Development and Training
- Strategic PMO Solutions
- Project Handling and Contract
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