PMC Role- Post Procurement Phase

There is a lot of confusion I see regarding the role of the Project Management Consultant (PMC) when the project reaches a developmental stage in an EPC Contract execution, where basic engineering and design is frozen and it has entered a procurement phase. This means, we have agreed on all design, philosophies, datasheets, specifications, procedures and packages, even the packaging of items to be bought by the way of material requisitions etc; and now we firmly move into receiving bids, evaluation and onto buying phase. Here is where I observe many PMC engineers find themselves over-stretching themselves, over-examination of all documents with a microscope, diligently over-arching themselves to cross every ‘T’ and dot every “I” of the received vendor documents also. This is not only unnecessary but leads to more confusion and does more bad than good in the longer run, adds unnecessary delays in review cycles- three way discussions and endless meetings to nitpick minor disagreements which have little or no bearing on basic functional design and again, cause delays- PMC Engineers need to understand something here- Their scope of responsibilities- in procurement phase- do not require PMC to over-indulge themselves in “approvals” of every single Vendor document. To explain this, I shall take the help of the picture I posted inside my last article called “3 foundational Pillars of PMC” below:

Following things are to be borne in mind when PMC Engineer reaches the Procurement phase of the EPC execution (refer the diagram):

1.???If you see the brown box- it tells you of EPC contractor’s responsibility- which means ALL Vendor documentation, is part of Contractors approval and responsibility and not directly to Company or PMC role as supervisors of the project.

2.???PMC scope here can “add value” in their comments and remarks on Vendor documentation, ensure that Vendor also falls in line with Compliance, Cost and Schedule parameters- but the prime responsibility of checking, reviewing, approving etc becomes EPC Contractors ONLY- Not to PMC or Company.

3.???Procurement Phase is critical, since a lot of design which has already been Approved and sanctioned for purchase- is in compliance and schedule, so far as PMC role needs to enforce.

4.???As in the real world- Vendors will always want to cut corners for financial benefit- so this is one area where PMC focus; along with Contractors- should be brought forward- and keeping good regulation within Compliance.

5.???Managing schedule risk factors also becomes a key role here- since manufacturing and delivery delays in a post-COVID world with international supply chains are a norm.

Other than the above, there isn’t much micro-examination needed nor necessary on part of PMC- 95% of all Vendor documentation during this phase, which is provided to Company, should not even be in the “Approval” need from PMC, but rather “For Information Only” category- simply because- at this stage and onwards- the EPC Contractor is the Client and Vendors and/or subcontractors are their vendors- the role has shifted- Now your Contractor is the Purchasing Client to his Vendors and beyond. It isn’t your job to micromanage. Keep your eye on the larger project picture and you should be just fine.