Challenges and Mitigation in Achieving Successful Project Handover
Abstract This paper will describe the common challenges faced by both Project Management Team (PMT) and Asset Owner when projects come to the tail end and due for handover. It highlights the impact of improper handover of projects to the company as a whole and provides some proposals to address the common project handover issues. This paper will cover mainly on project handovers for upstream projects especially related to offshore facilities. This paper is written based on sample of projects done at offshore Malaysia. It highlights the common handover issues such as PMT not able to handover timely to the Asset Owner although the facilities are running, and production had been achieved. The longer it takes to handover, the more monetary value leakage will be wasted as a result of no equipment preventive maintenance, warranty of equipment could expire or void, and paying higher construction insurance coverage. This can be prevented by a proper and early planning in managing handover, inclusion of segmented provisional acceptance criteria in the contract as well as having frequent engagement between PMT and Asset Owner prior to stages of handover during project execution. Understanding of each stakeholders' expectations is also one of the key success factors. This paper will conclude that there are many common handover issues when it comes to project handover. Most of the issues are the results of misunderstanding of each stakeholder's expectation, poor early handover planning and unclear scope of acceptance in the contract. In most cases the impact will lead to unrealized monetary value leakage. Early handover planning, clear scope covered in the contract, good coordination between PMT and Asset Owner, good teamwork and mindset, blending with some interpersonal skills in managing conflicts are among the key success factors. The key highlights in this paper will help PMT and Asset Owner in better managing the project handover. This will improve project delivery to meet target schedule within scope and budget. This will eventually safeguard overall company investment and avoid any risk on uncertainty of care and custody transfer at the end of a project life cycle.