Streamlining Project Cost Controls in Nigerian Oil and Gas EPC Projects
Dear BIVILLEPM Community,
In reflecting on my journey through project management, I’ve come to a realization that I believe is worth sharing. Back in 2015, my focus on PMI’s PMBOK led me to closely observe colleagues referred to as Project Cost Controllers. However, it became apparent that they didn’t quite fit the mold of what PMBOK defined as “Project Cost Controllers”; rather, they were fulfilling the role of “Project Cost Accountants” within the context of EPC (Engineering, Procurement, and Construction).
This discovery marked the beginning of my struggles with PMI’s PMBOK. Not only did I find glaring omissions like the absence of a Project Cashflow Report, a crucial deliverable in the realm of Project Cost Controllers, but also the lack of frameworks for Project Planners’ Progress Measurement.
Despite my extensive reading and teaching experience with PMBOK’s PMP over the course of five years by 2015, I realized that my expertise was not as comprehensive as I had presumed. While pursuing an MBA proved beneficial, it underscored the fact that the Project Management role within the Nigerian Oil and Energy EPC sector diverged significantly from the PMI’s Project Manager Role.
Had it not been for my proficiency in Oracle Primavera and Excel, coupled with my PMI’s PMP certification, I might have found myself unemployed. However, my approach was deemed too theoretical, leading to shutdowns. Even as methodologies like Agile gained traction, traditional project management skills remained indispensable, underscoring the importance of practical application.
In the Nigerian context, it’s evident that Project Planners and Cost Controllers truly embody the essence of Project Manager even more that those with “Project Manager” Roles. Other roles may be engaged in political maneuvering or focused on core engineering tasks, and there’s no disparagement in that. “Chief, you are a good Engineer, you understand all the codes (API, ASME, BS etc.) but not this type that we are (Ours are AACEI, GPC and PMI etc.), PMI being the last and generic type.”
The question arises: why do we use terms like ‘Cost Engineering’ or ‘Cost Controllers’ instead of ‘Cost Accounting’ in project management? For me, organizations like AACE International and GPC provided the answer. As a Planner-Cost Engineer in company XYZ, my responsibilities include analyzing accounting records and devising cost-saving methods, tasks seldom covered in conventional PMI courses.
Image By #GeorgeNWOGU
In essence, my journey has highlighted the need for a more nuanced understanding of project management roles, especially within specific industries and geographical contexts. It’s through such reflections that we can truly evolve and adapt our practices to meet the demands of the ever-changing project landscape.
#OilAndGas #EPC #ProjectManagement #CostEngineering #CostControls #RiskManagement #NigeriaOilGas #EfficiencyImprovement #GeorgeNWOGU #BIZVILLEPM 🌐🚀
Best regards,
Engr. George (Chìsom) ÑWÒGU (MBA, PMP®️)
Motto: Humanity First, then Smart and Green. 🚀
My name is George Nwogu, a Senior Project & Planning Manager, COO and Global Trainer from Nigeria. I’m the Founder of Bizville Project Management Limited
Services from Bizville Project Management are:
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