Project Risk Management
Naval Construction Risk Assessment
- Client
- Major Oil & Gas Operator
- Country
- France, Norway, Korea
- Year
- 2003-2004
- Industry
- Construction & Transportation
- Service
- Risk Management
Two of the main Korean shipyards shared the construction of the largest FPSO ever built. A kwantis partner carried out a detailed schedule and cost risk assessment of the work.
The challenge
One yard was building the topside modules, the other the hull and the integration of the modules. Shipbuilding and topsides integration of giant facilities for a deep offshore project involves several challenges:
- demanding interfaces between contractors
- fast-track construction
- technical complexity
- bottleneck management of dry-dock and offshore commissioning
Our approach
The work started from the project risk register, with interviews of project and contractor experts directly in the yards. A detailed probabilistic model was then built, integrating time and cost uncertainties.
The outcome
Integrating time and cost uncertainties uncovered the project criticalities. The model assessed the relative criticality of each work package, and was used to re-evaluate the investment contingencies and to develop an acceleration plan based on incentive and penalty schemes.
