Typical Problems Leading to Delays in Oil and Gas Projects

This technical report outlines common issues that contribute to delays, cost overruns, and claims in process plant and offshore oil and gas projects. It identifies thirteen typical problems, starting with insufficiently defined Front End Engineering Design (FEED) which can lead to change orders and increased costs. Other issues include inadequate design basis for production rates, inaccurate contractor cost estimates, and ambiguity in contract documents. The report details how these problems can result in disputes and delays, particularly when there is insufficient management of contractor interfaces and inexperienced personnel on the owner's side. It also discusses the implications of multiple change orders and inadequate baseline schedule development. The document presents recommendations aimed at minimizing these issues, such as conducting thorough reviews of bid packages and ensuring clear communication of design requirements. Overall, the report serves as a guide for owners and contractors to navigate the complexities of large-scale engineering projects.