Defining Mitigation Strategies for Recurring EPC Contract Risks

Sadeghi, Benyamin; Mortaheb, Mohammad Mehdi; Kashani, Hamed

doi:10.1061/9780784479827.276

Cited by 6 publications

(7 citation statements)

References 15 publications

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“…Rui et al (2018) recommended a set of practices to reduce technical and nontechnical risks (local content, community, security and partnership) to develop oil and gas projects to help project planners, international companies, investors and policymakers. Sadeghi et al (2016) suggested effective risk management strategies to mitigate engineering, procurement and construction risks. Dey (2012) proposed an integrated analytical framework for refinery project risk management by combining multiple criteria decision-making techniques and decision tree analysis.…”

Section: Resultsmentioning

confidence: 99%

“…Dey (2012) proposed an integrated analytical framework for refinery project risk management by combining multiple criteria decision-making techniques and decision tree analysis. Sadeghi (2016) defined the risk mitigation strategies for each risk group identified through an extensive literature review. The effectiveness of each method was evaluated using the survey.…”

Section: Resultsmentioning

confidence: 99%

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A review on prospective risks and mitigation for oil and gas projects: implication for Indian CGD companies

Rawat

Gupta

Rao

2022

IJESM

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Purpose This study aims to focus on identifying the business risks that cause a delay in the oil and gas projects and suggest the way forward toward the better development of the city gas distribution (CGD) sector in India by suggesting the appropriate mitigation strategies. Design/methodology/approach The study is a systematic review of literature on risks causing a delay in oil and gas projects. Comprehensive literature was carried out following a seven-step model to develop an exhaustive list of risk classifications and factors, risk identification methods and strategies to mitigate the risks. Weighted average ranking method is used to identify the top ten risks affecting oil and gas projects. Findings This research identifies the top ten risks frequently impacting the oil and gas projects, which are project cost, improper project management, change in economic parameters, currency exchange rate, government regulations and laws, contractor and subcontractors issues, lack of skilled labor, delay in approvals, health and safety issues and force majeure. These risks are primarily responsible for cost overrun and project delay. Additionally, this study recommends the implementation of joint risk management to avoid CGD project delay. Originality/value The CGD industry is in the growing stage with many projects under construction. However, there is a lack of research to manage risks in the CGD project. This study contributes to the limited literature available on risk management in oil and gas projects. Additionally, it highlights the need for further research to explore the different risks factors affecting the CGD business and its operations and subsequently develop appropriate mitigation strategies.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

A review on prospective risks and mitigation for oil and gas projects: implication for Indian CGD companies

Rawat

Gupta

Rao

2022

IJESM

View full text Add to dashboard Cite

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“…Shen et al (2017) posited that sometimes adopting a partnering strategy to jointly mitigate the impacts of these claims can reduce conflicts more effectively. Additionally, considering price adjustment in the fixedprice contracts could be another option for addressing these claims (Sadeghi et al, 2016).…”

Section: Resultsmentioning

confidence: 99%

“…These circumstances can ultimately impose financial burdens on the contractor and prompt them to claim for extension of time or compensation of additional cost. Previous studies recommended strategies such as developing a contingency plan, conducting a comprehensive site investigation by the owner and including clauses for delays and additional payments in the contract due to inconsistencies between the feasibility study and real conditions (Sadeghi et al. , 2016), to tackle this cause of the claims.…”

Section: Resultsmentioning

confidence: 99%

Identification of critical paths leading to cost claims for underground metro projects: a system dynamics approach

Wang

Harsono

Shieh

et al. 2022

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PurposeInfrastructure projects play a vital role in the development of countries' economies. However, these projects, notably underground ones, are encountering growing claims as they are subject to many unknowns. Without having a clear insight into the causes of claims and their influence on one another, it is not possible to mitigate their adverse impacts on these projects' goals. To this aim, the main purpose of this study is to identify the critical paths leading to cost claims for underground metro projects.Design/methodology/approachFirst, causes of claims were identified through a literature review and then refined to 22 main causes according to the opinions of 148 Iranian experts. A qualitative system dynamics (SD) model was then provided to visualize how various causes interact with each other. The model was developed and validated by drawing on the expertise of industry-related experts, and the critical paths were finally recognized based on their frequency and severity indexes.FindingsThe findings revealed that each cause should be evaluated based on their connections with others as there are complex relations among the causes. It was also shown that the major claim paths among others were initiated due to ambiguous contract clauses, unforeseen physical conditions and land handover problems.Originality/valueThe findings of this study provide a better insight into how various causes of claims for underground metro projects are related to each other and can eventually assist project managers of different parties, even in other countries, to select proportional strategies to mitigate their adverse impacts.

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“…Rui (2018) recommended a set of practices to mitigate technical and non-technical risks (local content, community, security and partnership) for the development of oil and gas projects to help project planners, international companies, investors and policymakers. Sadeghi et al (2016) suggested effective risk management strategies to mitigate engineering, procurement and construction risks. Dey (2012) proposed an integrated analytical framework for refinery project risk management by combining multiple criteria decision-making techniques and decision tree analysis.…”

Section: Identification and Mitigation Of Operational And Financial Risk Factors For City Gas Distribution Projectsmentioning

confidence: 99%

Risk analysis and mitigation for the city gas distribution projects

Rawat

Gupta

Rao

2021

IJESM

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Purpose This study aims to identify the operational and financial risks associated with the city gas distribution project in India and suggest appropriate strategies to mitigate them. Design/methodology/approach This study aims to identify the operational and financial risks associated with the city gas distribution project in India and suggest appropriate strategies to mitigate them. The survey data is evaluated using factor analysis to understand the latent structure of the critical risk factors. Second, the author uses Situation, Actor and Process–Learning, Action and Performance framework to suggest the mitigation strategies for the identified operational and financial risk factors. Findings The research identified five critical risk factors and suggested 39 mitigation strategies to address operational and risk factors impacting CGD projects. The findings of this research will enable the CGD companies to formulate long-term strategies for their business and adopt proactive measures to mitigate the operational and financial risks causing delay and increasing project costs. This study also highlights the importance of government support in developing a conducive environment for CGD industry to thrive. Originality/value The CGD projects are critical for natural gas growth in India’s energy mix. The project delay leads to a rise in the total cost involved and increases the payback period for the CGD companies. To the best of authors’ knowledge, this research is first of its kind that identifies the critical operational and financial risks affecting CGD projects in India and suggests the mitigating strategies for them.

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Defining Mitigation Strategies for Recurring EPC Contract Risks

Cited by 6 publications

References 15 publications

A review on prospective risks and mitigation for oil and gas projects: implication for Indian CGD companies

A review on prospective risks and mitigation for oil and gas projects: implication for Indian CGD companies

Identification of critical paths leading to cost claims for underground metro projects: a system dynamics approach

Risk analysis and mitigation for the city gas distribution projects

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