Achieving Successful Startup Through Alternative Commissioning Contracting Models
Authors: Deegan Ashley , Armstrong Stephen 
Published: November 2020

Oil and gas projects often experience delays in startup due to an ineffective transition from construction to commissioning and startup activities. Traditionally, engineering, construction and procurement (EPC) contractors are responsible for a project from detailed engineering through commissioning and startup of the facility.

This paper will compare how engaging a dedicated completions and commissioning team early and independently from the EPC contractor can impact a project's risks, cost, predictability, and successful startup.

The authors examined the lessons learned from an engineering and construction company with specialized completions and commissioning capabilities when contracted to join traditional EPC projects after those projects reached a state of distress—often due to schedule overruns. The lessons learned consistently demonstrated that the EPC contractor had not properly considered the commissioning and startup sequence, tasks, and requirements during the detailed engineering and construction phase of the project, thus losing the opportunity to mitigate risks associated with these activities. A key contributor to the risks was the lack of commissioning and startup experience amongst the EPC engineering and construction personnel, given the unique nature of the facilities, licensor, and vendor technologies.

The budget and schedule are often overrun at the final stage of the project, resulting in a confrontational relationship between EPC contractor and client. To avoid this dynamic, an end user could consider engaging a commissioning and startup specialist contractor under the leadership of the client-appointed Commissioning Manager. Utilizing alternative procurement models for such a contract include Day rates for competent and skilled personnel who join with end user to form integrated teamsDay rates for competent and skilled personnel in addition to a fixed fee based on agreed performance metrics and set management/running costs

Appointing a dedicated commissioning and startup contractor early in the life cycle of a project ensures there is a focus on the primary goal of a successful startup of the project.

Early engagement facilitates Early trust building with construction counterpartsIdentification of 3D-model design improvements to aid commissioning through modifications in construction and fabrication phase to maximize schedule and budget savingsIdentification and sharing of commissioning subsystem boundaries, being part of design reviews with construction to align system sequence prioritiesIdentification of temporary systems to allow for early order of commissioning consumables, mitigating schedule impactRunning of what-if scenarios for the commissioning and startup phase

A growing trend is to combine a training program with the commissioning and startup contract. This ensures the end user workforces are trained and introduced to the new facility through integration with the commissioning team for orientation and through practical work experience on the new assets/units. This increases the chances for continued success during steady state operations, as the operations team will have been actively involved at site during the commissioning and startup phase.