PLANT-BASED LARGE PROJECT ORGANIZATIONAL ALTERNATIVES

Mickey CollinsPathfinder, LLC

Outline

Introduction Background Organizational Alternatives Looking Forward Q/A

Introduction

Paul M. (Mickey) Collins

Senior Executive Associate with Pathfinder, LLC.  Has more than 30 years of management, project

management, planning, project controls, procurement and contracting experience in the manufacturing, fabrication, engineering and construction industries. 

Has held progressively responsible supervisory and managerial positions in the Process and Manufacturing Industry in both domestic and international project environments.

Earned B.S. in Civil Engineering, Minor in Structures and also completed Graduate Studies in Engineering all at Texas A&M University.

Background

Background

The North American process industry has evolved over the last 2 – 3 years

Larger projects are more prevalent now than in the past 15 to 20 years. 

Petrochemical companies are taking advantage of the abundant supply of less expensive natural gas; pipeline companies are having to move more product; receiving terminals are being converted to export terminals; etc. 

This is putting a strain on the already stretched owner capital project development and execution organizations. 

Background

Owners today are re-evaluating their existing organizational structures based on this influx in capital project activity. 

Should owners staff up, outsource more, rely on pieced-together project teams or hire Project Management Contractors? 

Organizational Alternatives

Organizational Alternatives

Design Options Build Your Own (Direct Hire) Outsource Pieced-Together Project Teams Project Management Contractors (PMC)

Challenges

Organizational Alternatives

Build Your Own Directly hire full team Owner’s Team provides all Owner functions Trained, and function as directed Takes time Must have sustained capital program

Organizational Alternatives

Outsource Let your execution contractors manage

themselves Many Owners believe this should be the

case No Owner oversight Less than desirable results

Organizational Alternatives

Pieced-Together Project Teams Pick the ‘Best of the Best’ Can work well Must have defined Work Practices Can developed relatively quickly Costly

Organizational Alternatives

Project Management Contractor (PMC) Acts on Owner behalf Mobilizes quickly Slightly more costly than direct hire Comes with own processes and tools Owner provides oversight and assurance Potential conflict with other contractors

Organizational Alternatives

Challenges Owner must recognize their roll in Project

Planning and Execution and be willing to fulfill this roll

This comes at a cost Hiring someone else to fulfill this roll cannot

be successful without Owner direction Be cautious of PMC but should be

considered

Looking Forward

Looking Forward

Projects will remain active for next 5+ years

Future Owner portfolio needs must be considered

Consider fiduciary responsibility Marketplace has a huge impact on this

evaluation Consider all business drivers Build your selected approach into your

Project Execution Plan

Q/A

Contact Information

Paul “Mickey” CollinsPathfinder, LLC

consulting@pathfinderinc.comwww.pathfinderinc.com

Corporate Office11 Allison DriveCherry Hill, NJ 08003P: (856) 424 – 7100F: (856) 424 – 6414

Gulf-Coast Office16225 Park Ten PlaceSuite 500Houston, TX 77084P: (281) 292 – 5655F: (281) 419 – 9977

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