Development and Implementation of a Standard WBS for Offshore Construction
Authors: Voivedich Ben E. , White Rolland E. , Aghili Hafez K. 
Published: October 2008

On large diversified projects, it can be very difficult to get the various project stakeholders (i.e. departments, regional offices, owner representatives, engineering firms, contractors, and vendors) to use a "common language" to discuss project deliverables. As one of the first steps in implementing a common project language for a major worldwide offshore contractor, the authors facilitated and lead a corporate committee that developed and implemented a common Work Breakdown Structure (WBS) for all engineering, fabrication, and marine work performed at company facilities located around the world. The standard WBS has become the unifying element that ties the company operations, accounting, scheduling, and material management systems into a single project management system. Major benefits realized include reduced project management costs, tying together of cost and schedule management, and the ability to roll up cost and schedule performance for reporting purposes while retaining the capability to "drill down" to lower levels to determine the root source of project variances.

Introduction

As the quest for oil and gas drives the industry into deeper and deeper waters, the complexity and risks associated with offshore projects has increased dramatically over the last twenty years. In the late 1970's, a thousand-foot jacket and accompanying decks were considered the frontier of offshore development; today delivery systems for acreage in 10,000 feet of water are being developed that require new floating, subsea, riser, platform, and market delivery systems. To deliver these types of projects, a contractor must be able to assemble and coordinate a team for engineering, fabrication, and marine scopes of work. In addition, major specialty contractors, engineering consulting firms, and key vendors must be integrated seamlessly into a cohesive whole that is focused on delivering quality project deliverables at a competitive cost. Other key project stakeholders including owner representatives and regulating agencies must also be integrated into the team so that the finished project meets the needs of its owners and satisfies government regulations.

Given the technical complexity of the project scopes and the communication challenges presented by such a diverse array of project participants, the contractor's project management group is faced with the dilemma of how to describe the project in terms that everyone from the corporate shareholder to the field worker can comprehend. The project management group must also develop budgets, report progress, and track actual costs for the described elements of the project. As Figure 1 (by Resource), Figure 2 (by System), Figure 3 (Traditional Accounting Breakdown), and Figure 4 (WBS) demonstrate, there are several ways of describing the project scope. In companies with regional offices, some offices may choose to report using Figure 3 while other offices may use Figure 4 to describe their portions of the same project. Which is the "best way" or the best practice for the contractor to identify and report on project scope?