Industry Perceptions of Lump Sum Contracting is Alberta Oil and Gas Projects
Date
2014-10-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Alberta oil and gas mega projects are experiencing cost overruns of up to 100 percent. Large cost overruns have created an interest in shifting to lump sum contracting. The objective of this study is to investigate the possibility of using lump sum contracting to replace the cost reimbursable contracting currently used on oil and gas projects in Alberta, through identifying industry perceptions of, and the risks associated with this contract shift. Two extensive surveys were conducted with experienced industry professionals. Collected data was statistically analyzed to form a set of conclusions and recommendations. The study provides an understanding of current contracting trends in the Alberta oil and gas industry, and found that there is interest in using lump sum contracts. The perceived risks to lump sum project performance, and proposed mitigations were identified. The study also identified areas where the perceptions of Operating, Engineering, and Construction companies were not aligned and determined that industry practitioners believe that, locally, there is a lack of experience and competency around the management of lump sum projects.
Description
Keywords
Engineering--Civil
Citation
O'Toole, J. (2014). Industry Perceptions of Lump Sum Contracting is Alberta Oil and Gas Projects (Master's thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca. doi:10.11575/PRISM/26509