A a change, shall initiate a project Change

A project change
request (PCR) will arise in the event of any additions or alterations to the
agreed-upon deliverables for a project. Any event or action that may result in
change of scope, cost, and/or time baseline, should invoke the change process.
The change process is a formal, governed process that aims to provide
transparent governance, reliable audit trail, complete integration, and
comprehensive management of all changes.

3.1  The Change Process

At a high-level, the
Change Control process is as follows:

·        
Initiate and validate change.

·        
Assessment of Project Change Request Impact.

·        
Approve and Implement the Change.

·        
Closeout the Change.

 

3.1.1         Initiate and Validate Change

Initiate and Validate Change is
accomplished in three ways, as discussed below:

·        
Initiate Change Request

o    Any team member that recognizes a potential requirement for a
change, shall initiate a project Change Request. A change is initiated by
completing sections 1, 2, and 3 of the PCR. This provides basic project
information, and change request description and justification. The person that
initiates the Change Request is known as the Requestor. After completing
sections 1, 2, and 3, the Requestor forwards the project Change Request to the
Project Manager for consideration.

 

·        
Log the
Change

o   
The
project shall have a Change Request Register on SharePoint or similar. The
Project Change Request Register keeps a logical record of all changes requested
during the lifecycle of a project. The Register establishes the audit trail,
and provides numerous metadata fields, which can be aggregated to provide
important statistics and management reports regarding all change requests on
the project.

o   
Every
change shall be registered as a record (line) in the Change Register. As soon
as the PCR is started (by completing sections 1, 2, and 3), the requestor shall
upload the PCR document as an attachment to the relevant Change Request record
in the project Change register in its native (MS Word) format.

 

3.1.2        Assessment of Project Change Request
Impact

The PCR Assignee will ensure that a
validated change will be assessed for its impact on the Project, on the
following points:

·        
Scope – Contract Managers to
advise changes in scope, i.e. whether scope will be added or removed from
packages/Control Accounts.

·        
Risk – The Risk Management Specialist
will manage the process of identifying any risks associated with the PCR, and
the Qualitative and Quantitative analysis of identified risks.

·        
Cost – The Cost
Engineers/Controllers will assess cost impacts on WBS elements and Control
Accounts related to the PCR. The Cost Engineers/Controllers may obtain the
assistance of a Quantity Surveyor
or other specialist if required.

·        
Project Schedule – The
Scheduler will assess the time impact of the PCR on the Master Schedule in
terms of milestones, critical path, and float analysis.

·        
Engineering and Design will
review possible impacts of the PCR on design specifications, quality
specifications, scope requirements, and integration.

·        
Quality – The potential impact
of the PCR on the Quality Management Plan (inspections, witness points, hold
points) need to be considered.

·        
Project Integrated Resources –
the possible change in Scope, and Resource requirements of the affected/related
Control Account(s) need to be considered.

·        
Project Contracts – Depending
on the contract type, the FIDIC Engineer or the Project Manager (NEC) need to
be involved to provide guidance and details on contractual impacts and
requirements because of the PCR.

·        
Impact of not approving the Project Change Request.

 

It is up to the discretion of the PCR
Assignee to decide how to obtain change impact assessments from the various
disciplines – through a one-on-one process, or through change
workshops/meetings.

The relevant Lead/Manager of each
discipline above, will ensure that the impact of the requested change on the
discipline, will be comprehensively investigated and analyzed. The Lead/Manager
will provide the PCR assignee with the assessed impact of the change on the
discipline. The PCR Assignee is responsible for the consolidation of the
information from the various disciplines, and the updating of the PCR.

 

3.1.3        Approve and Implement the Change

Every Contract will also have a
contract specialist appointed to assist the Project Manager (Contract) with
legal contract administration. They are known as follows:

·        
For FIDIC Contracts – FIDIC
Engineer

·        
For NEC Contracts – Project
Manager

Once all the discipline
assessments of a requested change have been obtained, the PCR Assignee shall
present the change to the FIDIC Engineer, and Project Claims and Variations
Committee (in the case of a FIDIC contract), or the Project Manager (NEC), and
the Project Compensations Events Committee (in the case of an NEC contract).

The Committee will review the
change with all its data, and then make a recommendation. The Project Manager
will consider the change and the recommendations made by the Committee. The
Project Manager will then decide how to implement the change. An implementation
plan will be developed and executed. Data in all the relevant
disciplines/systems will be updated in accordance with the execution plan:
Scope, Schedule, Cost, Financial (e.g. SAP), Risk, Engineering, Quality,
Safety, Contracts, etc.

It is the responsibility of the
PCR Assignee to monitor and control the implementation of the change.

The following two change control
events are highlighted below.

·        
Project
Controls – Change Response

o   
The
Project Controls Manager prepares an official Project Controls response, an
incentive or disincentive notification to the Project Manager.

o   
Project
Controls shall ensure that the PCR implementation is integrated into the scope,
schedule, cost, and risk systems.

 

·        
The
Project Manager

o   
The
Project Manager ensures that the correct process is followed for FIDIC or the
NEC form of Contract:

§  FIDIC: Project Claims and Variation Committee
process.

§  NEC: Project Compensation Events Committee
process.

 

·        
Approves the implementation of
claims or variations, giving due consideration to the Committee’s
recommendations and advice of the FIDIC Engineer/Project Manager (NEC).

·        
Should the Project Manager (PM)
decide to decline the change, the Project Change Request is forwarded to the
relevant software for recording purposes.

 

3.1.4        Closeout the Change

After implementation of the change,
the PCR Assignee shall perform the following closeout steps to finalize the PCR
implementing checks and confirmations:

·        
Confirm that the Change
solution has been implemented successfully, i.e. meeting any specified
outcomes/requirements.

·        
Confirm that the required
changes were made to the Scope Statement, Integrated Work Breakdown Structure,
work packages and planning packages, IWBS Detailed Element Descriptions and
dictionaries. In most cases, one or more IWBS elements may be impacted and will
require updating, so this shall be verified.

o    Creating or removing of packages.

o    Moving scope from work packages, planning packages, and procurement
packages.

o    Adding scope to work packages, planning packages, and procurement
packages.

o    Removing scope of work packages, planning packages, and procurement
packages.

o    Updating the DED Register.

3.2  Change Process During the Design Process

Change during the design process can come
in one of three forms.

·        
The first form is: Decision

o    A decision can be made that has no impact on Scope, Time, or Cost,
and with no variance from Standards or Specifications. These decisions must be
logged in the contract decision register and approved by the design contract
manager, and the engineering manager.

 

·        
The second form is: Project Change

o    A change to contracted scope, time, or cost, or a change that will
impact construction or operating cost, must be logged through the change
request process.

 

·        
The last form of change is: Concession

o    A concession is permission granted by The Owner to the Design
Consultant for a change in design/specifications that does not have an impact
on time and cost, and does not affect technical performance. Concessions shall
pass through the change request process; there will be no ‘concession’ process
per se. The change process will allow a change to have a “concession” as opposed
to a change in the “scope” or “time” or “cost”.

§  A change request can be logged by any stakeholder, provided that the
formalized change process is followed.

§  Site instructions and concessions can only be issued by the contract
manager or site supervisors.

§  Approval required for change requests, site instructions and
concessions are governed by the Project Change Control procedure.

§  The Project Manager is finally accountable for the content of all
change requests, site instructions, and concessions.

§  The Project Controls Manager is accountable for the efficiency and
effectiveness of the processes.

3.3  Change Process During the Execution Phase

During the execution phase, change can
result from the possible causes below. These are merely some examples and not
the entire list of possible causes:

·        
Risk mitigation plans, that may
incur additional scope, cost, and/or time.

·        
Support services; additional or
extended support services may be required.

·        
Quality and technical
performance monitoring may reveal deviations from design specifications.

·        
Site inspections may reveal
non-compliance to designs or management plans, e.g. environmental management
plans, design omissions or flaws, unexpected environmental conditions, etc.

·        
Construction and package
integration; modification of the scope of packages may be required.

·        
Budget change: Changes to
estimates and budget allocations across WBS elements may be required.

·        
Risk Management:

o    That any risks that have been identified and managed in relation to
the PCR, have been recorded in the Risk register.

o    That relevant Risk descriptions, metadata, and statuses have been
correctly updated.

·        
Cost
Management:

o   
Budget
shifts across WBS work packages, planning packages, and procurement packages
along with corresponding scope.

o   
Requests
for contingency to fund changes to work packages, planning packages, and/or procurement packages
as per defined contingency scope.

o   
Return of
savings from budget or contract into contingency.

o   
Addition
of cost to a contract (budget must be available).

o   
Removal of
cost from a contract (can be returned to budget or contingency as a saving).

·        
Schedule:

o   
Creating
or removing of packages.

o   
Moving
scope from work packages, planning packages, and procurement packages.

o   
Adding
scope to work packages, planning packages, and procurement packages.

o   
Removing
work packages, planning packages, and procurement packages.

o   
Project
master schedule, or stakeholder schedules (shift of major milestones).

·        
Engineering
and design:

o   
New
drawings/specifications, and maintenance manuals.

o   
Red-lined
drawings/specifications, and maintenance manuals.

o   
New
revisions of marked-up drawings/specifications, and maintenance manuals.

o   
Signed-off
and Closed Engineering Technical Queries.

o   
Approved
and Closed Concessions.

 

·        
Quality:

o   
Changes to
standards and specifications – applicable across all contracts.

o   
Changes to
Quality Control Plans –
contract specific.

o   
Non-Conformance
Report (NCR).

·        
Project Integrated Resources:

o   
Updated
resource requirements and allocations in relevant Work Packages and Planning Packages.

 

·        
Project Contracts:

o   
Approved and signed-off Claims or Variation Orders
(FIDIC), or Compensation Events (NEC).

o   
Communication
with sourcing department via FIDIC Engineer or Project Manager (NEC) to update
commercial documentation.

·        
Systems:
Changes to project systems (replace any project system with a new alternative).

·        
Financial:

o   
Ensure
that the Financial Officers updated the Purchase Order and Task Order
information in the relevant software system (e.g. SAP).

o   
Ensure
that Control Account Information has been updated in accordance with the PCR
solution.

·        
Changes to
policy, processes, procedures, and templates and forms once approved (PPPTs).

·        
Relevant
Software:

o   
Ensure
that the software record is accurately updated with the final data of the PCR.