The story:
When visiting a project site, it was discovered that a compressor house was completely filled with scaffolding. When asked why it was necessary for the scaffolding, it was explained that the cladding panels needed to be insulated.
The impact:
Upon investigation, it was determined that in an effort to reduce costs by $100,000, Procurement did not purchase pre-insulated panels. The cost to insulate the panels separately totaled $1,000,000 and added 3 months to the schedule.
Root cause:
The Procurement Team made a decision based on a limited understanding of the process and cost of installation.
Lesson learned:
Early input from Construction would have found this issue during the 30% constructability review. The Engineering Work Package would then specify the need for insulated panels to eliminate the chance for this issue to arise during procurement.
Building from experience:
Team Builder Solution utilizes Advanced Work Packaging Best Practice to ensure Interactive Project Planning sessions early in the project provide visibility and accountability for the whole Project Team.