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Case Study 1 - Effective and Efficient Communication
Introduction:
BTC Pipeline Company (BTC) carries oil from the Azeri-Chirag-Deepwater Gunashli
(ACG) field and condensate from Shah Deniz across Azerbaijan, Georgia and turkey. It
links Sangachal terminal on the shores of the CaspianSea to Ceyhan marine terminal on
the Turkish Mediterranean coast. On November 2012 BTC awarded a contract to
VERWATER EMEA BV-Turkey Branch for EPCC-Turnkey delivery of Oily Water Slop and
Bilge Water Reception and Treatment Facility at Ceyhan Marine Terminal (CMT) –
Adana, namely BTC MARPOL Facilities and Jetty Foam Line Replacement Project. The
contract value was around US$40 million.
I have worked there as a project control engineer. I established and maintained cost
control system and reported the progress of the project during detailed engineering and
construction phases of the project. I prepared daily, weekly and monthly progress reports
and issued them to the stakeholders.
The approach:
 I established cost centers and cost control codes for the work breakdowns.
According to our procedure, the document controller, before sending the
hardcopies to accounting department, was sending me every invoice coming to
our company and I was assigning cost code to those invoices and forwarding them
to project control manager. After project control manager’s approval, he was
forwarding the invoices to contracting department and after contracting
department’s approval the invoices were being sent to accounting department for
recording and payment. At the end of every month, I was taking accounting data
export from their accounting software, in pivot table, and updating the actual costs,
project budget and forecasted expected costs. Then, I was providing monthly cost
control reports to Contractor’s headquarters in Netherlands.
 I worked under the general direction of project control manager during this project.
There was always pressure on me every evening when I submit the stakeholders
the daily report. Gathering data from the subcontractors and even from our
personnel (such as our Design team or our QA/QC team) was not an easy task.
Most of the subcontractors unfortunately did not have a planning engineer that
could provide me timely and accurate data every day.
 Project involved many stakeholders, other than the Employer and Contractor(s),
such as the Operator, Contractor’s HQ, Ministry of Environment, Municipality and
Contractor Auditors. These different stakeholders had different information and
reporting requirements.
 Original duration of the project was 20 months; 3 months extension of time was
granted due to Variation Orders, Employer risk events and neutral risk events.
The Results:
 I have recorded, compiled and reported the progress and the budget of the project
to different stakeholders according to their different requirements, interest and
power.
 The competencies I developed and practiced during this project are
communication, data gathering, data management, planning, team working, client
care, and contract practice.
Lessons Learned:
 I practiced project management and observed construction management at site as
per international standards. I experienced the initiating, planning, executing,
monitoring & controlling, and closing phases of the project. I also experienced how
important and challenging stakeholder management and communication
management is during execution.
 I faced many hurdles such as communication problems, team working / team
management issues and insufficiency of competent resources for progress
reporting especially at the subcontractor side.
 If I’ll work on any other project like that ever again I would draft the subcontracts to
include clauses to ensure proper daily, weekly and monthly reporting and oblige
the subcontractors to have enough resources for planning, monitoring and
reporting of their activities.
 I would also establish an automatic system such as finger print detection system
to the site entrance so that entry and exit to the work site would be controlled and
recorded easily and accurately. It was time consuming for us to prepare and control
these personnel reports every day.
 Effective communication causes productivity to increase, errors to decrease and
operations to run smoother, and whenever communication is diminished or
hampered, both the entire organization and the project suffer.
Figure 1 – Invoicing Procedure Flowchart
Figure 2 – Project Budget Follow up as of 31 December 2014
Figure 3 – A snapshot from Cost Breakdown Structure with Cost Codes
P Procurement
P1 Procurement Management Services
P11 Overseas / Inland Transportation and Custom Duties
P2 Major Equipment
P21 Storage Tanks and Vessels
P211 Steel Plates
P2111U 4000 m3 Storage Tanks
P2112U 125-200 m3 Storage Tanks incl. Water Tank
P2113U 25-80 m3 Vessels Supply and Manufacturing
P2114U 2-25 m3 Drums
P212 Tank Internal Floating Equipments and Other Internals
P2121 Internal Floating Roofs
P2122 Floating Suction
P2123 Heating Coils
P2124 Diffuser Pipes
P2125 Other Internals
P213 Tank Accessories - included above
P2131 Tank Ladders, Stairs
P2132 Platform
P2133 Handrails
P214 Waste Water HDPE Tanks 20m3
P22 Process Units and Other Major Process Equipment
P221 Mechanical Separation Unit
P222 Chemical Treatment Package
P2221 Dissolved Air Floatation (DAF)
P2225 CPI
P2222 Chemical Dosing Packages
P2223 Cartridge Filter and Polishing Filter Units,Catridge
P2224 Reserved
P222 Dewatering System
Figure 4 – A Snapshot from Daily Progress Report, Tracking Sheet
Previous Daily Cumulative
1 Excavation of Storage Tanks Area m2 12219 12219 12219 0 12219 100.0%
2 Basecourse Backfilling m3 4684 5300 5300 0 5300 100.0%
Project Road Backfilling 100.00%
1 Backfilling-Project Road Storage Tank Section (121 m) 14.04% m3 1209 1119.2 1119 0 1119 100.0%
2 Backfilling-Project Road-Process Area Section(170 m) 85.96% m3 4400 11562.7 11563 0 11563 100.0%
FF System Concrete Works (Manifold,piperack, pipe support, foam proportioning unit) 91.88%
1 Excavation 4% m3 47 47 47 0 47 100.0% 4
2 Compaction 3% m2 232.52 232.52 232.52 0 232.52 100.0% 21
3 Lean Concreting 2% m3 62.21 62.21 62.21 0 62.21 100.0%
4 Paving 3% m2 48.325 48.325 48.325 0 48.325 100.0% 48
5 Base Foundation Formwork 9% m2 89.083 69.268 69.268 0 69.268 100.0% 9.2
6 Base Foundation Rebar Installation 9% kg 4860.46 4860.46 4860.46 0 4860.46 100.0% 282
7 Base Concrete Casting 5% m3 54.062 54.062 54.062 0 54.062 100.0% 2.84
8 Pedestal Formwork 18% m2 66.22 66.22 66.22 0 66.22 100.0% 4.62
9 Pedestal Rebar Installation 18% kg 902.12 902.12 902.12 0 902.12 100.0% 72.1
10 Pedestal Concrete Casting 9% m3 9.37 9.37 9.37 0 9.37 100.0% 1.01
11 Erection of Precast Pipe Support 10% ea 27 35 22 0 22 62.9%
12 Backfilling 3% m3 225.6 225.6 225.6 0 225.6 100.0% 50 73.6
13 Bitumen Coating 3% m2 70.46 70.46 61 0 61 86.6%
14 Grouting 4% ea 74 74 0 0 0 0.0%
16" Pipe Prefabrication For On-Shore Piping 99.7%
1 Job Preparation 5% Lm 588 588 588 0 588 100.0%
2 Sand Blasting & Painting 55% Lm 588 588 588 0 588 100.0%
3 Shipment to site 20% Lm 588 588 588 0 588 100.0%
4 Preassembly of 16" CS Pipes on Shore-Pad Preparation & Welding 7% Lm 588 588 588 0 588 100.0%
5 Preassembly of 16" CS Pipes on Shore-Welding 13% ea 91 91 89 0 89 97.8%
CIVILWORKSCIVILWORKSMechanicalWorks
13-Jun
12-Jun
FORECAST
QTY
PROGRESS %
Comp.
Discipl.
W.
No's WORK DESCRIPTION
%
WEIGTH UNIT
PLANNED
QTY
MARPOL FACILITIES / ON-SHORE WORKS
EARLY ENABLING WORKS/BRIDGE OVER HV CABLE

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Case study 1 effective and efficient communication

  • 1. Case Study 1 - Effective and Efficient Communication Introduction: BTC Pipeline Company (BTC) carries oil from the Azeri-Chirag-Deepwater Gunashli (ACG) field and condensate from Shah Deniz across Azerbaijan, Georgia and turkey. It links Sangachal terminal on the shores of the CaspianSea to Ceyhan marine terminal on the Turkish Mediterranean coast. On November 2012 BTC awarded a contract to VERWATER EMEA BV-Turkey Branch for EPCC-Turnkey delivery of Oily Water Slop and Bilge Water Reception and Treatment Facility at Ceyhan Marine Terminal (CMT) – Adana, namely BTC MARPOL Facilities and Jetty Foam Line Replacement Project. The contract value was around US$40 million. I have worked there as a project control engineer. I established and maintained cost control system and reported the progress of the project during detailed engineering and construction phases of the project. I prepared daily, weekly and monthly progress reports and issued them to the stakeholders. The approach:  I established cost centers and cost control codes for the work breakdowns. According to our procedure, the document controller, before sending the
  • 2. hardcopies to accounting department, was sending me every invoice coming to our company and I was assigning cost code to those invoices and forwarding them to project control manager. After project control manager’s approval, he was forwarding the invoices to contracting department and after contracting department’s approval the invoices were being sent to accounting department for recording and payment. At the end of every month, I was taking accounting data export from their accounting software, in pivot table, and updating the actual costs, project budget and forecasted expected costs. Then, I was providing monthly cost control reports to Contractor’s headquarters in Netherlands.  I worked under the general direction of project control manager during this project. There was always pressure on me every evening when I submit the stakeholders the daily report. Gathering data from the subcontractors and even from our personnel (such as our Design team or our QA/QC team) was not an easy task. Most of the subcontractors unfortunately did not have a planning engineer that could provide me timely and accurate data every day.  Project involved many stakeholders, other than the Employer and Contractor(s), such as the Operator, Contractor’s HQ, Ministry of Environment, Municipality and Contractor Auditors. These different stakeholders had different information and reporting requirements.  Original duration of the project was 20 months; 3 months extension of time was granted due to Variation Orders, Employer risk events and neutral risk events. The Results:  I have recorded, compiled and reported the progress and the budget of the project to different stakeholders according to their different requirements, interest and power.  The competencies I developed and practiced during this project are communication, data gathering, data management, planning, team working, client care, and contract practice.
  • 3. Lessons Learned:  I practiced project management and observed construction management at site as per international standards. I experienced the initiating, planning, executing, monitoring & controlling, and closing phases of the project. I also experienced how important and challenging stakeholder management and communication management is during execution.  I faced many hurdles such as communication problems, team working / team management issues and insufficiency of competent resources for progress reporting especially at the subcontractor side.  If I’ll work on any other project like that ever again I would draft the subcontracts to include clauses to ensure proper daily, weekly and monthly reporting and oblige the subcontractors to have enough resources for planning, monitoring and reporting of their activities.  I would also establish an automatic system such as finger print detection system to the site entrance so that entry and exit to the work site would be controlled and recorded easily and accurately. It was time consuming for us to prepare and control these personnel reports every day.  Effective communication causes productivity to increase, errors to decrease and operations to run smoother, and whenever communication is diminished or hampered, both the entire organization and the project suffer.
  • 4. Figure 1 – Invoicing Procedure Flowchart
  • 5. Figure 2 – Project Budget Follow up as of 31 December 2014
  • 6. Figure 3 – A snapshot from Cost Breakdown Structure with Cost Codes P Procurement P1 Procurement Management Services P11 Overseas / Inland Transportation and Custom Duties P2 Major Equipment P21 Storage Tanks and Vessels P211 Steel Plates P2111U 4000 m3 Storage Tanks P2112U 125-200 m3 Storage Tanks incl. Water Tank P2113U 25-80 m3 Vessels Supply and Manufacturing P2114U 2-25 m3 Drums P212 Tank Internal Floating Equipments and Other Internals P2121 Internal Floating Roofs P2122 Floating Suction P2123 Heating Coils P2124 Diffuser Pipes P2125 Other Internals P213 Tank Accessories - included above P2131 Tank Ladders, Stairs P2132 Platform P2133 Handrails P214 Waste Water HDPE Tanks 20m3 P22 Process Units and Other Major Process Equipment P221 Mechanical Separation Unit P222 Chemical Treatment Package P2221 Dissolved Air Floatation (DAF) P2225 CPI P2222 Chemical Dosing Packages P2223 Cartridge Filter and Polishing Filter Units,Catridge P2224 Reserved P222 Dewatering System
  • 7. Figure 4 – A Snapshot from Daily Progress Report, Tracking Sheet Previous Daily Cumulative 1 Excavation of Storage Tanks Area m2 12219 12219 12219 0 12219 100.0% 2 Basecourse Backfilling m3 4684 5300 5300 0 5300 100.0% Project Road Backfilling 100.00% 1 Backfilling-Project Road Storage Tank Section (121 m) 14.04% m3 1209 1119.2 1119 0 1119 100.0% 2 Backfilling-Project Road-Process Area Section(170 m) 85.96% m3 4400 11562.7 11563 0 11563 100.0% FF System Concrete Works (Manifold,piperack, pipe support, foam proportioning unit) 91.88% 1 Excavation 4% m3 47 47 47 0 47 100.0% 4 2 Compaction 3% m2 232.52 232.52 232.52 0 232.52 100.0% 21 3 Lean Concreting 2% m3 62.21 62.21 62.21 0 62.21 100.0% 4 Paving 3% m2 48.325 48.325 48.325 0 48.325 100.0% 48 5 Base Foundation Formwork 9% m2 89.083 69.268 69.268 0 69.268 100.0% 9.2 6 Base Foundation Rebar Installation 9% kg 4860.46 4860.46 4860.46 0 4860.46 100.0% 282 7 Base Concrete Casting 5% m3 54.062 54.062 54.062 0 54.062 100.0% 2.84 8 Pedestal Formwork 18% m2 66.22 66.22 66.22 0 66.22 100.0% 4.62 9 Pedestal Rebar Installation 18% kg 902.12 902.12 902.12 0 902.12 100.0% 72.1 10 Pedestal Concrete Casting 9% m3 9.37 9.37 9.37 0 9.37 100.0% 1.01 11 Erection of Precast Pipe Support 10% ea 27 35 22 0 22 62.9% 12 Backfilling 3% m3 225.6 225.6 225.6 0 225.6 100.0% 50 73.6 13 Bitumen Coating 3% m2 70.46 70.46 61 0 61 86.6% 14 Grouting 4% ea 74 74 0 0 0 0.0% 16" Pipe Prefabrication For On-Shore Piping 99.7% 1 Job Preparation 5% Lm 588 588 588 0 588 100.0% 2 Sand Blasting & Painting 55% Lm 588 588 588 0 588 100.0% 3 Shipment to site 20% Lm 588 588 588 0 588 100.0% 4 Preassembly of 16" CS Pipes on Shore-Pad Preparation & Welding 7% Lm 588 588 588 0 588 100.0% 5 Preassembly of 16" CS Pipes on Shore-Welding 13% ea 91 91 89 0 89 97.8% CIVILWORKSCIVILWORKSMechanicalWorks 13-Jun 12-Jun FORECAST QTY PROGRESS % Comp. Discipl. W. No's WORK DESCRIPTION % WEIGTH UNIT PLANNED QTY MARPOL FACILITIES / ON-SHORE WORKS EARLY ENABLING WORKS/BRIDGE OVER HV CABLE