Commissioning Strategy Debate

The Great Commissioning Strategy Debate ANALYSIS AND REPORT ON THE LINKEDIN DEBATE JULY 2018

THE DEBATE

The debate sought to determine professional opinion regarding the optimum Commissioning Strategy for future Major Capex Projects.

INTRODUCTION

The following report presents the outcome of the debate on Commissioning Strategy for major projects. It contains the following sections:

- Debate Statistics - Major Points - Summary of the debate

DEBATE STATS

Views – 20,000 Likes - 90 Comments – 54 Number of commenters that presented clear opinion - 33 In-favor ◦ Self-Perform - 6% ◦ EPC - 9% ◦ Integrated Team - 76% ◦ Outsourcing - 9%

MAJOR POINTS

q Commissioning Strategy’s selection is a tradeoff between risk and cost: q Integrated Team is a preferred strategy, q Early engagement is necessary, q A deciding level for strategy selection is the level of expertise required for commissioning, q Competency level of in-house Commissioning Team, q Outsourcing saves cost, q Performance control and measurement should be Self-Performed.

SUMMARY The debate pointed out Integrated Team as the preferred strategy for major projects. The opinion on level of integration differs among participants. Some preferred integration of a Self-Performing Team with an EPC, while others supported integration of a Self-Performing Team with Outsourcing. However, every comment pointed out that strategy selection for Major Commissioning Projects is a tradeoff between risk and cost. Selection of Integrated Team reduces the risk and outsourcing reduces the cost. The debate also pointed out that deciding factors in selection of a

Commissioning Strategy for major projects are: 1) Level of expertise required for the project

2) Level of competency of In-House Team – Low competency level of In-House Team favors Outsourcing as preferred strategy, high competency level prefers Self-Perform and moderate level of competency favors Integrated Team with EPC.

3) Early engagement : All participants directly or indirectly agreed that early engagement of commissioning team(s) (Integrated, Outsourced, EPC etc.) is necessary for successful completion of the project. Active participation of Commissioning in Project Management and Planning ensures identification of risk early in project enabling the team to formulate strategies for risk mitigation and containment. 4) Performance Management & Control : Majority pointed out that irrespective of the strategy chosen, Performance Management and Control should be performed in-house (Self-Perform).

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