Owner Integration in Project Development
Learn how project teams integrate with owners to optimize return on investment in Project Development
Contributed by Mickey Reeves
Welcome to our series on Owner Integration in Capital Projects, where we explore what Owner Integration means for different project phases and efforts. To learn more read our first post in the series.
When a project team is effectively integrated, a stranger could walk into any project meeting and be unable to distinguish the owner team from the project team. All participants are working with the sole purpose of executing a successful project and meeting the project’s goals and objectives. Owner integration means incorporating the owner’s culture, project goals and processes into the project team’s daily consideration.
When a project team is effectively integrated, a stranger could walk into any project meeting and be unable to distinguish the owner team from the project team.
A primary function of IAG’s Project Development team is to assist the owner in defining the scope of a project during the early FEL 0, 1, and 2 phases. It is during these phases that process flow diagrams, heat and material balances, plot plans, and sized equipment lists are developed and hopefully frozen. These documents set the project scope for the remaining project, and without close owner integration, alignment, and agreement on these four documents, the project will be suspect to late change and project and schedule overruns.
Let’s look at a renewable diesel project. While most of us know the regulatory and economic drivers behind renewable diesel, many early phase project scope questions can only be answered through close project team integration. For example, understanding feedstocks sourcing will define truck and rail logistics and any feed pretreatment requirements. Other important decisions include: feed pretreatment and technology options, whether the project is grassroots stand-alone, co-located in an existing facility, or co-processing with fossil oils (this will set the OSBL requirements). The questions that need to be answered during the project development phase can’t be answered in a vacuum. IAG experts have worked through these complex decisions and can help asset owners make the right choices to optimize their return on capital.
Effective project integration gets answers to these questions, supplements the owner’s team expertise with subject matter experts, and makes sure everyone is talking – the engineers, the operators, the maintenance group, and the executive team.
The questions that need to be answered during the project development phase can’t be answered in a vacuum.
A well-known industry CEO once said to a group of his executives, “We aren’t smart enough to make new mistakes, we just make the same old ones over and over again.” At IAG, we have the expertise to help companies avoid both the old mistakes and the new ones.