W4_Stephon_SELECTION OF CONTRACTING STRATEGY FOR OUTSTANDING OFFSHORE WORKS.

1              Problem or Opportunity Statement

The offshore works stage of an oily water treatment module installation project comprises a scaffolding scope, electrical hookups scope, Heavy lift scope, sand a piping hook-up & structural works scope. A decision has to be made on the contracting strategy to be used for these activities.      

                             

2                   Development of Feasible Alternatives

The feasible alternatives to be selected from include are

·         Using a single EPCI contractor,

·         Using a special contractor for the Heavy lift (200 tonnes offshore lifting) and another EPCI contractor for all the other scopes

·         Using separate and specialized EPCI contractors for each scope of the work.

 

A non compensatory decision model (lexicography) is to be used as we intend to work on the attributes in their various dimensions. The table below summarizes the options and the attributes as well as their ratings.

  

Alternatives     Attributes	Using a single EPCI contractor	Using a special contractor for the Heavy lift	Using Separate and Specialized EPCI Contractors for Each Scope of the Work
Multiple organizational interfaces (SITE SIMOPS)	1	3	10
Specialization/Quality	Fair	Good	Excellent
Management Demands(cost, time, locations)	Low	medium	High
Cost (Contracting)	11.62	11.34	12.6
Personnel-On-Board Limitations	48	56	58

 

                    

3          Development of the Outcomes for Each Alternative

In order to obtain a ranking of importance for all attributes, we would compare each pair as follows:

                     Quality > Multiple interfaces

                     Management > Multiple interfaces

                     Cost > Multiple interfaces

                     POB > Multiple interfaces

                     Quality > Management

                     Quality >Cost

                     Quality > POB

                     Cost > Management

                     POB > Management

                     Cost >POB

                    

4          Selection of the Acceptable Criteria

Considering the chosen model for this decision making process, the attribute that falls most on the left side of the comparisons takes the highest consideration for determining the chosen alternative. Where there is a tie, the next attribute is considered and so on until a decision is made.

                    

 

 

5                   Analysis and Comparison of the Alternatives

Based on the analysis/comparisons made in step 3 above and our selection criteria in step 4, we would rank our attributes for decision making as follows
Quality > Cost > POB > Management> Multiple interfaces

                    

6                   Selection of the Preferred Alternative

Considering  the resultant ranking in step 5 above, our strategy of choice would be “Using Separate and Specialized EPCI Contractors for Each Scope of the Work” due to the fact that the quality of deliverables is most important to us and this choice results in the highest level of quality of the three strategies.

                    

7                   Performance Monitoring and Post-Evaluation of Results

A phased approach will be used for all outstanding scope starting from engineering & methodology  documentations,  submissions, reviews and approvals which would be vetted for quality before the next phases (procurements and workshop prefabrication where applicable) commence. These phases will also be signed off with material inspections and acceptances, NDTs for welds etc before the final phase of site installations can commence.

 

                References:

i.     Sullivan, W. G., Wicks, E. M. & Koelling C. P. (2012).  Engineering Economy Fifteenth Edition. Chapter 14

ii.    Giammalvo, P.D. (2012). AACE Certification Preparation Course Module

iii. National Institute of Standards and Technology – U.S. Department of Commerce Technology Administration. (1995). Multiattribute Decision Analysis Method for Evaluating Buildings and Building Systems (Publication No. NISTIR 5663). Gaithersburg, Maryland 20899.