ABSTRACT
The construction phase of a project is the time when most of the project budget is expended. Management of the construction of an oil and gas project requires significant resources to organise labour, materials, equipment and subcontractors, to maintain appropriate records of progress and cost, to manage the interfaces with other contractors, and to prepare the reports and other documents required by the Contract. Changes are virtually inevitable in any oil and gas project, and control and management of the time and cost consequences of changes is an important element in successful construction management. Appropriate procedures include the preparation of contemporaneous records of the cost of labour, materials, equipment and subcontractors. Maintaining an up-to-date programme is important for planning future activities, and as a contract management tool to demonstrate the impact of delaying events and to provide the evidence necessary for a successful extension of time claim. Chapter 12 details a number of these important issues during construction, including the change order procedure, organisation for and control of construction, the impact of inadequate engineering and record-keeping, valuation of variations, and the evidence needed for a dispute on the impact of changes. It includes a number of case studies.
