1. What are, in your opinion, the main barriers in the execution of an EPC project?
"Without hesitation, the main barrier is proper front end development that includes scope definition. By front end development, I mean business and engineering alignment. The business strategy and objective must be clear in order to pick the right project to fulfill the objective. Rarely is this development work done. The next major barrier is related to the first in that projects often do not maintain the discipline to follow good project execution practice including contracting and contract administration. An emerging barrier is the lack of truly qualified professionals to fill the various roles on a major capital project."
2. You have 30 years’ experience in engineering and construction in a variety of roles across federal, state and private sectors. What are the biggest differences between them regarding managing capital projects?
"The primary difference between public and private capital projects is that the scope for public projects is fully defined in advance of funding authorizations and tendering the project whether it be for design or construction. Owners for private sector projects tend to authorize projects prior to them being fully planned. Public projects are evaluated on a cost-benefit basis, whereas private projects are evaluated on return of investment, strategic positioning, market share, or other aspects. Bottom line for private projects is revenue generation."
3. Managing different types of contracts can also be challenging. What are the best guidelines to follow for optimum risk allocation?
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