A Project Execution Strategy (PES) should be prepared for every project, including
studies, as a useful road-map outlining the execution of the project. Normally the
project manager will determine the major areas and key elements of the PES, and senior
management then approving the Project Execution Strategy.
The Project Execution Strategy (PES) is:
- a specific, required deliverable at project initiation
- a project-specific strategy, not a detailed plan;
- the first step in the PMC-Client team's project planning and team building sequence;
- a planning tool which will help the project team define all significant project
requirements, objectives and obstacles, and identify the ways to address them;
- designed to specifically identify and obtain mutual team understanding of the client's
requirements, including the client needs, expectations and strategies for the project;
- prepared by the project team's leaders with support from key project team members
and input or participation from the client as appropriate.
The PES is designed to support development of commissioning and construction-driven
plans for the project's execution. When the project does not include construction,
the PES supports development of deliverables-driven plans. Preparation of the PES
should be a part of the project team building activities.
2. PES Preparation
The PES is normally developed by the project team's leaders, including client representatives.
The recommended approach is participatory (i.e. workshop) sessions, with attendees
preparing draft materials in advance and maybe facilitated by the Project Quality
Manager or others from Quality Management.
3. PES Deliverables
The principal deliverable from the PES process is a set of "bullet" briefing slides
used to present the strategy to Operations Management and the Executive Sponsor,
the client's management (if desired), and the project team. The PES is divided into
the following 13 sections:
1. Project Summary
2. Driving Forces and Success Criteria
4. Location and Layout
5. Contract Synopsis
7. Project Funding and Economics
9. Engineering Procurement, Construction and Plant Services Strategies
10. Critical Issues/ Challenges
11. Risk Management
12. Follow-Up Actions
13. Glossary of Terms
Answering the applicable questions listed below the respective sections of the PES
will be developed. These questions are designed to stimulate thought that will aid
in developing the PES. Please note that the order of the PES in general, and the
Engineering, Procurement, Construction, and Plant Services Strategies section in
particular, is purposeful and meant to focus the Project Team in developing a deliverable
based execution strategy.
3.1. Project Summary
- Project TIC: million US dollars
- Financing: financed by
3.2. Driving Forces and Success Criteria
- What driving forces are causing the owner to undertake this project?
- What is the economic justification for this project?
- What business goals may impact the project? How does the project impact the business
- Who are the stakeholders in the customer-supplier chain? What is the desired end
result in each step?
- What corporate strategic goals impact this project?
- What other internal or external forces may impact this project?
- What are the contracting strategies is the owner employing?
- Are there any special conditions being used in these contracts?
- What business/marketing objectives must be met?
- Are there any partnering relationships that will impact the project?
- How do marketing goals affect the project?
- What are the primary production objectives that must be achieved?
- What are the primary project execution objectives? What are the priorities?
- What is upstream and downstream from the new facilities?
- What operating objectives must be achieved?
- What is the operating philosophy and requirements with regard to:
- Overall Plant and Unit capabilities
- Control rooms and systems
- Spare equipment
- Health, Safety and Environmental
- Labor relations
- Use and development of local resources
- Government/ regulatory agencies
- Public relations/ community relations
- What is the mission/vision of the Owner / Project Management Team (PMT)?
- Quality assurance and rework
- Governing laws and regulations
- Investment and risk minimization
- Project expenditures and timing
- Process technologies and facilities design
- What major elements comprise the scope of the facilities?
- What is the functional scope of the planned facilities and what will it do?
- What additional work outside the project scope is required? Who will perform this
- Are there shutdowns and turnarounds planned during the execution of this project
that could impact the work?
- Who is the owner of the process technology for all or part of the plant? Is an
outside process licensor involved?
- What is the overall processing scheme? What facilities exist and what are new?
- What items represent pre-investment for future plans?
- What Standards and Specifications govern?
- What permits are required? When? Who is responsible for them?
- What is the planned system start up sequence?
- What are the handover requirements, who receives and accepts them?
3.4. Location and Layout
- Where are the new facilities to be located? Why located there?
- How are the existing facilities laid out? How are they accessible?
- What "security issues" exist at this location?
- What major site-related and underground uncertainties exist?
- Are there special or seasonal conditions to be noted because of site location?
- What existing documentation is available for project access? (Where? How?) Are
existing documents up to date?
- What changes could occur to the Physical, Functional, or Technical scope of the
- Where are the temporary facilities and construction laydown areas?
- Where will the Project Management team be located? Why?
- Where are the Home Offices of the major Contractors located?
- What effect will the new facility have on the local community?
- What milestones and dates are critical to business objectives? Why?
- On what assumptions are the schedule and the milestones based?
- What more detailed schedules will be prepared on the project? When?
- How are the approval milestones and approval duration's keyed into the major project
- What schedule milestones are critical to operations? Why?
- Is the project being executed in phases? Explain.
- When are planned turnarounds and shutdowns scheduled? What is their duration?
- What Plant Services work is included in the project budget? What dollar value?
- What are the critical equipment lead times?
- What other events/dates are critical to successful execution?
3.7. Project Funding and Economics
- What is the estimated total installed cost of the facilities?
- On what assumptions is the project TIC cost estimate based?
- What are the economic sensitivities?
- What are the milestones and dates in the funding authorization process?
- What cost is not included in the project budget? Who funds them?
- What decisions need authorization by the Owner's Business Management?
- What information and reports does the Owner's Business Management require?
- How is the TIC estimate broken down into contract budgets?
- On what assumptions is this breakdown based? What is excluded?
- What tax related financial strategies may impact the project plans?
- What is the contingency? How is it defined?
- What more detailed cost estimates will be prepared? Accuracy? When?
- Who are the key decision-makers in the Division organization? What are their reporting
- What do they expect Operations Management to do regarding the project?
- What do they expect of the Project Management team?
- What major tasks does the Owner have primary accountability for?
- What Owner teams/organizations will participate in the project?
- What are their roles with regard to executing the project?
- How will the project demands on these individuals be reconciled with other demands
outside the project?
- How will the responsibilities for executing the project be allocated between the
Owner and the Contractor(s)? (E.g. matrix).
- Who are the key players in the operations organization? What are their reporting
- What are their roles with regard to executing the project?
- What do operations expect the Project Management team to do?
- Who are the key players on the owner's project management team? What are their
- What are their roles and responsibilities?
- How are the responsibilities of the team allocated?
- Who are the owner's key off-project specialists who must be consulted and/or whose
approval must be obtained? What are their responsibilities?
- What expectations do the owner's PMT have for PMC?
- Who are the key players on PMC's Project Management Team?
- Who are the key players on any other contractors involved in execution of the project?
3.9. Engineering, Procurement, Construction, and Commissioning and Start-Up Services
This section is the heart of the PES. It is a systematic review of each phase of
the project. This review is done in reverse chronological order. For each project
phase, one or more "bullet" briefing slides will be prepared outlining the strategy.
- What are the major process units and interconnecting facilities?
- How will the Owner subdivide the project into contracts? What type of contracts?
(e.g. Lump Sum, Cost Reimbursable)
- What is Scope of Work in each phase of work that each contractor is responsible
for executing? What type of contract? (e.g. Lump Sum or Cost reimbursable)
- What are the major interfaces among the Client, Contractors and key Vendors in
each project phase?
- What are feed and product rates before and after project completion?
- What commercially unproven technologies are to be used?
- What design philosophies need to be recognized in the design of the facilities?
(e.g. plant class, life, standards, sparing, etc.)
- What are the critical and/or long lead equipment items? Why?
- What is the hierarchy of documents that define project requirements?
- What external issues will impact the execution of the project?
- What are the execution strategy, Split of Work and major directives (approaches)
- Pre-Commissioning, Commissioning and start up
- Construction, testing and system turnover
- Process Design
- What is the hand-off point(s) between the team and operations?
- What is the Project Management strategy with regard to:
- Project planning?
- Cost estimating?
- Cost and Schedule control?
- Change Management?
- Quality Management?
- Progress monitoring/reporting?
- What are the major authorizations/reviews the Owner's Representatives require?
- What information and reports from Contractors are required by the PMT?
- What documentation requires review by local authorities?
3.10. Critical Issues/ Challenges
- What does Business Management see as the critical success factors for the project?
- What major obstacles or concerns does the Owner's Business Management envision?
- What does Operations see as the critical success factors for the project? Why?
- What obstacles and concerns are seen by Operations?
- Safety (HSE) targets?
- What critical success factors has the Joint Owner/ PMT/ PMC identified? Why are
- What obstacles and concerns does the Owner/ PMT/ PMC see?
3.11. Risk Management
- What are the significant risks identified and assessed in the proposal/award phase
and what strategies were agreed upon to control them?
- Are there other risks not previously identified? If so, what are the negative potentials
and what are the strategies to control them?
- What is the plan to ensure risks will be identified and managed on a continuous
basis through all phases of the project?