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Contractual and Sub-contractual risks: Project Management Perspective
To establish a congruous contract management structure in Oil and Gas industry from a project management perspective
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The study conducted through this research attempts to explore and identify the significant contracting challenges faced by the upstream oil and gas industry. In order to examine the contracting structures that binds all the participating stakeholders in this industry, it is also important to identify and understand the various project risks involved before allocating them to the appropriate party. This research contributes to the body of knowledge in four ways. The first objective is to identify the various kinds of project risks that exist in upstream industry. The second is to demonstrate the need for several stakeholders with this industry such as project owners, project management consultancy firms, EPC contractors, sub-contractors and so forth. The third objective is to establish the importance of appropriate contracting structure to supplement the project management discipline to ensure project risks are mitigated. The final objective is to establish that applicable project risks are appropriately allocated to the stakeholders bounded by a suitable contracting structure.The study reveals that to accomplish the objectives of project management traditional factors
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