An integrated model for auditing construction projects A integrated model for auditing construction projects A Case study of Oil and Gas projects in Iran By Ahmad Teymouri M.A.SC

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  • An integrated model for auditing construction projects

    A Case study of Oil and Gas projects in Iran

    By

    Ahmad Teymouri

    M.A.SC. Thesis

    Under the Supervision of Dr. Ahmad Jrade

    In Partial Fulfillments of the Requirements for the Degree of M.A.Sc in

    Civil Engineering

    Ottawa-Carleton Joint Institute of Engineering Faculty

    Department of Civil Engineering

    University of Ottawa

    Ottawa, Canada

    Ahmad Teymouri, Ottawa, Canada, 2015

  • ii

    ACKNOLEGMENT

    First, I am grateful of The Almighty God for providing me this opportunity and granting me the

    capability to proceed successfully.

    I would like to gratefully and sincerely thank my supervisor Dr. Ahmad Jrade for his supports,

    patience, and advice, and valuable technical comments during the entire work.

    Furthermore I would like to thank my mother and father who always encouraged me during my

    study period.

    I would like to give special thanks to my wife for her support, patience, and love that were

    undeniably the bedrock upon which the past fifteen years of my life have been built.

    I would like to thank the Department of Civil Engineering of University of Ottawa especially

    those members of the committee for their input, valuable discussions, and accessibility.

    Also, I like to thank the participants in my research, who have willingly shared their precious

    time, knowledge, and experience.

  • iii

    Abstract

    Nowadays, organizations implement projects for many purposes. Using the project as a strategic

    success factor for project-oriented companies is continuously increasing. However, most of the

    time, the results are not the same as planned. Some projects fail to achieve their objectives;

    others are canceled, whereas on some other cases, companies have to re-plan their strategy.

    Project-oriented companies know that maintaining an ideal and logical balance between the

    projects time, cost, and quality constraints can vastly guaranty project success. Therefore, they

    should switch from traditional project management to modern and advanced project management

    methodology, which improves project performance and efficiency over its life cycle. One of the

    most applicable tools used to assess and monitor project performance and thus finding the

    associated issues is Project Audit, which is a comprehensive and organized assessment of the

    effectiveness and efficiency of project performance, management, and compliance. In this

    research, an integrated project audit model is presented that incorporates a detailed design

    module, which shows the structure of the model, questionnaire module, and a scoring module.

    The model is developed as an integrated project audit application where the user is easily able to

    select, plan, implement, and report a project audit. The models output consists of two parts: 1) a

    comprehensive report that shows the project situation in five main project processes and nine

    project functions. This report presents the projects score in a specific function and its related

    process (i.e., planning cost or closing procurement); 2) useful analytical reports and graphs of the

    project performance. In this part, the model compares the projects planned and actual time and

    cost, calculates their variances, and forecasts the final cost and time based on the current

    performance. The model is validated by using an actual Oil and Gas project to test its workability

    and capabilities. Three groups will benefit from this model; 1) owners; 2) project managers and

  • iv

    project team; 3) general contractors and construction companies. The model helps project owners

    to identify problems early on and reduce project waste in terms of time, effort, material and

    costs. Moreover, it provides owners the opportunity to identify the project performance from the

    cost and time constraints. Also, after using this model, project managers and project team have a

    list of findings that need to be addressed to enhance the overall project performance. The various

    reports of the model not only provide detail information about project constraints (time, cost, and

    quality) but it also present valuable analysis related to other aspect of the project (i.e. risk, scope,

    and communication) which are very useful for the project team. Furthermore, the developed

    lessons learned from the project can be documented with this model, which is very useful for

    general contractors and construction companies in future projects.

  • v

    Table of Contents

    Contents

    Contents ACKNOLEGMENT ....................................................................................................................... ii Abstract .......................................................................................................................................... iii Table of Contents ............................................................................................................................ v List of Tables ............................................................................................................................... viii List of Figures ................................................................................................................................ ix Glossary ....................................................................................................................................... xiii Chapter One .................................................................................................................................... 1 Introduction ..................................................................................................................................... 1

    1.1. Background ........................................................................................................................................ 1

    1.2. Research Objectives ........................................................................................................................... 3

    1.3. Methodology ...................................................................................................................................... 4

    1.3.1. Literature Review ........................................................................................................................ 4

    1.3.2. Data Collection ........................................................................................................................... 5

    1.3.3. Analysing project audit and improvement models ...................................................................... 5

    1.3.4. Model development process ........................................................................................................ 5

    1.3.5. Model Validation ........................................................................................................................ 5

    1.4. Thesis Organization ........................................................................................................................... 6

    Chapter Two.................................................................................................................................... 7 Literature Review............................................................................................................................ 7

    2.1. Introduction ........................................................................................................................................ 7

    2.2. Fundamentals of the Project ............................................................................................................... 8

    2.2.1. Project Functions ...................................................................................................................... 10

    2.2.2. Project Team Organization Form .............................................................................................. 12

    2.3. Construction Project Life cycle ........................................................................................................ 13

    2.4. Project Audit .................................................................................................................................... 15

    2.5. Project Audit Success Factors .......................................................................................................... 18

    2.6. Project Maturity ............................................................................................................................... 19

    2.7. Project Audit and Improvement Models .......................................................................................... 20

  • vi

    2.7.1. Portfolio, Programme & Project Management Maturity Model (P3M3) .................................. 20

    2.7.2. Prince2 Maturity Model (P2MM) ............................................................................................. 23

    2.7.3. Capability Maturity Model Integrated (CMMI) ........................................................................ 24

    2.7.4. Kerzner Project Management Maturity Model (KPM3) ........................................................... 25

    2.7.5. Project Management Process Improvement .............................................................................. 26

    2.7.6. ISO 10006:2003 Standard for Project Management ................................................................. 27

    2.7.7. Roland Gar