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An Effective Analysis and Management of Technical Risk to Turn-key based Plant Construction Contracts using Systems Engineering
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 Title & Authors
An Effective Analysis and Management of Technical Risk to Turn-key based Plant Construction Contracts using Systems Engineering
Hong, Dae Geun; Byun, Hee Chul; Suh, Suk-Hwan;
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 Abstract
In the bidding stage of turn-key based plant construction contracts, owners provide design and performance basis for contractors instead of giving design drawing. To win the bid for a plant construction, the contractors should be obliged to satisfy and ensure owners'requirements such as design and performance basis in a plant construction project, In other words, owners imposes technical risk of the design to the contractors by specifying responsibility for the analysis and verification of the plant construction. Thus, it is very important that contracters make accurate and realistic basic design plan in a short period of time. To deal with such a situation, we propose a systems engineering approach for the analysis and management of the technical risk. Specifically, we first: 1) Analyzes technical risk related with the plant design information for the bidders, followed by 2) Developing stakeholder requirements for the basic engineering design, and 3) System requirements for dealing with technical risk. Also, in this paper, we proposed converting method from MOE(Measure of Effectiveness) to MOP(Measure of Performance) in the risk analysis. To show the effectiveness of the proposed method, we carried out a case study.
 Keywords
EPC;Turn-key based contract;Technical risk analysis;Systems Engineering;Contract process;
 Language
Korean
 Cited by
 References
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