Importance of Project Execution Plan - PEP
Did you know that the Project Execution Plan – PEP is a key document which determines the success of Project Controls processes
It is a key input for the Project Schedule. And yet very often the project team struggles to obtain the approval of the PEP from the client or the internal management due to lack of knowledge and understanding about the importance of the PEP.
If the PEP is not capturing clearly how the project will be managed to meet project’s requirements, then it reflects the teams’ inability to demonstrate how they will execute the project.
Some of the Reasons for this issue are listed below
The approvals of other key submittals such as Project Schedule and Planning package could be impacted due to the PEP and delay invoice payments.
Let us understand a little bit about the PEP
Project Execution Plan is a governing and planning document that defines objectives, plans and requirements for optimum project execution.
It is a master reference guide that promotes common understanding and alignment of all project participants.
In one comprehensive document, the PEP relates the approved project scope with contracting and materials plans, cost information, summary schedules, Project Risk Management, Responsibilities, and Resource requirements.
It provides guidance to contractors to prepare more detailed tactical planning and execution tools as the project progresses.
Reputed owner companies in GCC such as Aramco, PDO, QE have established Standards and procedures for Project Execution Plan which provides guidelines for contractors.
The PEP is generally prepared in alignment with project phases
The detailing could also depend on the value of the projects.
Initial PEP
The Initial PEP generally cover the following
Preliminary PEP
The Preliminary PEP is prepared during the Pre-Project phase, consists of the following.
Detailed PEP
The Detailed PEP is prepared after the completion of FEED and updated during the Tendering. It usually includes the inputs from Bidders also.
The Detailed PEP is updated according to change management procedure if there are changes in scope, contracting plan etc.
It includes the following sections
1) Project Synopsis
a.???Project Benefit
b.???Project Category (Compliance, Increase in production etc)
c.???Brief Project Scope and Basis of Design
d.???Project Location
e.???Key Interface points, Tie-ins etc
2) Project Schedule
a.???Key Milestones and Inputs
b.???Project Decision Gates
c.???Mobilisation dates
d.???Long Lead Items
e.???Basis of Schedule
f.????Progress Measurement methodology
3) Key persons and Organisation chart
a.???List of key persons with contact details
b.???RACI matrix
c.???List of Interface agencies and contractors
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d.???Key Roles and Responsibilities
e.???Staffing Plan
4) Contracting Plan
a.???List and types of contracts
b.???List of Open Bid / Single source / Sole source contracts
c.???TBA and CBA methodology
5) Procurement Plan
a.????Long Lead, Specialty & Bulk
b.????List of Free issue materials
c.????Oversize equipment handling
d.????Spares – Commissioning, Operation, Capital
e.????Logistics plan
f.?????Quality and Inspection Methodology
g.????Storage, preservation and handling
6) Project Cost
a.????Capital Budget planning
b.????Cost Estimation
c.????Funding requirements
d.????Cost Control
e.????Management Reporting
7) Project Safety Program
a.????HAZID and HAZOP studies
b.????HSE plan and methodology
c.????Safety Objectives
d.????Monitoring and Reporting of HSE
8) Engineering Execution Plan
a.????Engineering Deliverables
b.????Model Review Methodology
c.????Document Management plan
d.????Engineering change Management
e.????Progress Measurement
What were your experiences, challenges and learning during the PEP preparation and approval?
How important is the PEP for PC professionals in your view.
Do share your thoughts.....
Write to me if you would like to know more about the Project Execution Planning Process.
#projectcontrols #projectexecutionplan #projectmanagement
EX - DGM l COMMERCIAL I PROCUREMENT I SUBCONTRACTS I ESTIMATION I PROPOSALS & TENDERING I OPERATIONS I SHIPYARD(28+ YEARS EXPERIENCE)
1 个月Insightful article. Little more to be added are Quality Assurance and Quality Control Plan Responsibility Matrix, Payment Schedule to Vendors and Service providers, and Invoicing to Client plan.
Using data-driven analysis to provide project insights
1 个月Exactly. Unfortunately, project teams tend to think that PEPs with Project Implementation Plans (PIPs) are one and the same. They are not (although the PEP is a subset of the PIP). And the sad fact is that PEPs and PIPs end up being poorly defined and prepared. Project teams should understand that the PIP is tbe blueprint for the project while the PEP is like the construction manual.
Sr. Project Controller at L&T Knowledge City || Ex - Reliance Industries limited || Project Controls | EPC | PMC | Oil & Gas | Project Planning, Scheduling, Monitoring-Control and MIS
1 个月Thanks for sharing ...!
Project Documentation Engineer, Project Engineer, Static Design Engineer, B.E. in Mechanical
1 个月Very informative article, will wait for more such details