Evaluating Value Improving Practices for large scale projects

As large scale engineering and construction projects in the oil and gas industry experience cost overruns and schedule delays, professionals search for techniques to improve performance. One technique is the application of Value Improving Practices (VIPs) and Best Practices (BPs) during the project life cycle. This research study examines this technique.

One purpose of the research study is to examine the use and impact of these practices on project performance in three industries namely, oil and gas, infrastructure and commercial. The goal is to determine if the application of this technique on large scale projects can provide professionals the opportunity to improve project performance.

Since there is limited knowledge available on these practices and no baseline of current use, this research study is being classified as exploratory to better understand the subject area and to determine criteria and limitations for future studies. The goal is to identify a method of study and a set of parameters that researchers should consider including in future investigations into this subject area.

Objective (quantitative) and subjective (qualitative) information was collected from industry professionals using a survey questionnaire and personal interviews. A set of conclusions and recommendations, based on the analysis and interpretation of the information collected, was presented to senior industry professionals who validated the results.

The awareness and use of VIPs and BPs varies greatly among the professionals in the industry sectors investigated. Quantitative impact is difficult to measure. Qualitative impact has become the preferred method of assessing the value of these practices. Future studies should examine how the characteristics of the professional, the project, the industry sector and the social, political and economic environments in which they operate may influence the awareness and use of these practices and the impact they may have on project performance.