EPC Project Performance: Efficiency and Improvement Practices

This report examines project performance and efficiency improvement practices within an Engineering, Procurement, and Construction (EPC) company in Saudi Arabia. It identifies causes of poor project performance, such as inconsistent communication, unrealistic expectations, inadequate risk management, lack of team cohesion, and the use of unproven tools. These issues lead to problems in meeting project requirements and objectives, hindering innovation, and impeding talent development, ultimately eroding project value. The report then details processes and practices for enhancing project performance, including standardized project planning, effective risk management, clear communication, task prioritization, and regular project status reporting. Furthermore, it elaborates on improvement strategies like using key performance indicators, providing training facilities, ensuring organizational alignment, regular project tracking, and proper project planning, all aimed at improving project outcomes and efficiency within the EPC company.

Running head: PROJECT MANAGEMENT
Project management: Project performance and efficiency improvement practices in EPC
company in Saudi Arabia
Name of the Student
Name of the University
Author’s Note

1
PROJECT MANAGEMENT
Table of Contents
1. Introduction..................................................................................................................................2
2. Reviewing the causes of poor project performance and how the value was mainly eroded
from the projects..............................................................................................................................2
3. Process and practices that helps in enhancing efficiency and for improving project
performance.....................................................................................................................................6
3.1 Processes and practices that helps in increasing the effectiveness of project performance. .6
3.2 Effectiveness of improvement practices in project................................................................8
4. Conclusion.................................................................................................................................10
Bibliography..................................................................................................................................11

2
PROJECT MANAGEMENT
1. Introduction
The paper mainly reflects on EPC which is one of the Saudi companies that is
specialized in carrying a number of electrotechnical, instrumentation, automation as well as
trading related works. The main aim of the paper is to analyze the effectiveness of project
performance as well as improvement-based practices that are adopted by the project managers of
EPC company. The paper discusses the causes of the poor project performance and how the
value of the company generally gets eroded. In addition to this, processes and practices that helps
in enhancing efficiency as well as improving performance of the project in EPC company are
elaborated.
2. Reviewing the causes of poor project performance and how the value was
mainly eroded from the projects
Electrical and power contracting Co. Ltd (EPC) is considered as a one of the dynamic as
well as rapidly growing organization that generally helps in providing proper comprehensive
design, fabrication, engineering, construction as well as procurement service. It is found that
EPC has generally lived up to its promise by successfully completing a lot of projects1. However,
recently, it is identified that EPC is facing a lot of challenges due to poor project performance
which is eroding the value of the company though the company is built on a strong foundation as
well as backed up by a number of qualified team members. The causes of poor project
performance in EPC company are mainly elaborated below:
1 Demirkesen SB Ozorhon, 'Impact Of Integration Management On Construction
Project Management Performance' (2017) 35 International Journal of Project
Management

3
PROJECT MANAGEMENT
Inconsistent communication: Effective communication with the team members is
considered to be crucial for avoiding confusion and for keeping the team members motivated.
Due to lack of communication within the EPC company, the project team members are unable to
develop proper environment of trust that further creates conflicts and further hampers the
performance of the project.
Unrealistic expectations: It is found that EPC Company generally sets an unrealistic
deadline as well as expectations that have generally dragged the projects down the drain2. It is
necessary to consider all the different factors as well as constraints which might affect the
projects negatively but to lack of involvement of team members, the constraints are not
determined properly.
Poor monitoring and risk management: Just assigning different roles to the project
team members is not considered enough and therefore it is necessary to monitor the progress of
the project constantly. In addition to this, improper risk management in the initial phases of the
project generally creates a number of challenges which negatively impact the performance of the
projects which are undertaken by the EPC company.
Lack of cohesion within team members: It is identified that lack of cohesion generally
occurs due to personality difference as well as due to conflict within the interests of the team
members3. This mainly occurs as the project manager does not take proper responsibility to
2 Focacci A, 'Managing Project Investments Irreversibility By Accounting
Relations' (2017) 35 International Journal of Project Management
3 Harwardt M, 'Servant Leadership And Its Effects On IT Project Success' [2020]
Journal of Project Management

4
PROJECT MANAGEMENT
properly unite the project team members for achieving the project goal quite successfully and
therefore the performance of the project generally gets affected.
Utilization of unpractised tools and techniques: A common illusion that is made by the
EPC company project managers is to use a number of unpractised tools as well as techniques at
the starting of the project which generally cause a number of issues during the lifecycle of the
project4. As a team, it is necessary to properly deal with the different learning curve of the new
tools and techniques along the different duties of the project.
It is found that due to poor project performance, a number of challenges will be faced by
the project managers of EPC company that is further eroding the value from the undertaken
projects. The reason behind the erosion of values from the projects due to lack of performance
are elaborated below:
Problems in meeting the project requirements: All the projects which are undertaken
by EPC company are mainly set by a number of core business related requirements which
generally combine to form what is generally required in the project. If the project does not
perform properly these core business related requirements of the project mainly remain
unsatisfied as well as unachieved which further can erode the value of the project which is
mainly undertaken by the project manager.
Failure in meeting project objectives: Project objectives are considered as the goal that
will mainly be utilized in order to determine the success of the project. If the projects which are
undertaken does not perform properly then the assumed time and budget of the projects increases
4 'Modeling Impact Of Project Management Performance With Among Roles Of
Project Risk Management And Organizational Culture On Project Success' [2019]
European Journal of Business and Management

5
PROJECT MANAGEMENT
which further creates a number of challenges including financial issues. If the company is unable
to handle the issues effectively then the project generally gets fail and the value for which the
project work is initiated generally gets erode.
Failure to innovate: Today in competitive marketplace, the project needs to be
implemented in such a way that it will innovate something crucial5. But poor performance of the
project generally undermines the project aim by successfully stealing the resources as well as
project focus which further erodes the value of the projects which are undertaken by the EPC
company in Saudi Arabia.
Failure to develop: Talent is mainly considered as more valuable as well as scarce as
compared to the capital and it is quite necessary to develop the people who are mainly associated
with the projects which are associated with the EPC Company6. However, improper performance
of the project further undercuts innovation and mainly undermines development of the staffs and
further erodes the value of the undertaken project.
3. Process and practices that helps in enhancing efficiency and for improving
project performance
3.1 Processes and practices that helps in increasing the effectiveness of project performance
The performance of the project can be improved with the help of a number of managerial
skills as well as technological tools. The processes as well as practices which are utilized by the
5 Harwardt M, 'Servant Leadership And Its Effects On IT Project Success' [2020]
Journal of Project Management
6 Gruden NA Stare, 'The Influence Of Behavioral Competencies On Project
Performance' (2018) 49 Project Management Journal

6
PROJECT MANAGEMENT
EPC company are generally helpful in increasing the significance of project performance are
mainly elaborated below:
Undertaking standardized planning of the project: It is found that undertaking careful
planning of the project before the initiation of the project generally helps in ensuring that the
project managers have accounted for every possible resource as well as factors which are
needed7. In addition to this, use of proper planning tools and techniques are helpful in saving the
time of the project manager and increases the likelihood of delivering the entire project on time
and thus helps in increasing the effectiveness of project performance.
Proper risk management: One of the simple ways that must be utilized by the project
managers of EPC company is to properly mitigate the risk that the project8. With the utilization
of proper technology, the leaders must properly determine the risks and mitigate then which not
only helps in increasing the effectiveness of project performance but also helps in increasing
project success.
Proper communication: The project clients generally need proper engagement as much
as the project team mainly undertakes.9 If the undertaken project is inherently slow then it is
quite necessary to communicate with the team members about the project progress, once a week.
7 Martinsuo MP Hoverfält, 'Change Program Management: Toward A Capability
For Managing Value-Oriented, Integrated Multi-Project Change In Its Context'
(2018) 36 International Journal of Project Management
8 Olawale YM Sun, 'Construction Project Control In The UK: Current Practice,
Existing Problems And Recommendations For Future Improvement' (2015) 33
International Journal of Project Management
9 Nalewaik A Mills, Project Performance Review (Taylor and Francis 2016)

7
PROJECT MANAGEMENT
It is found that the success of the project generally depends on effective communication and this
helps in maximizing the success of the project by minimizing the risk that is associated with the
project.
Prioritizing the task of the team members: The tasks that are undertaken by the project
team members of the EPC company while undertaking a project, it is necessary to prioritize the
project tasks as per their significance. It is quite important for the productivity of the team
members and for successfully executing the work by avoiding confusion. The improvement in
productivity reflects the effectiveness of project performance by practicing this particular
process.
Check project status reporting: The project managers must submit weekly progress
report of the project on a regular basis for showcasing that the undertaken project is on track and
it will get executed as per the assumed time10. This helps in providing a clear overview about the
progress of the project and thus helps in increasing the effectiveness of project performance.
3.2 Effectiveness of improvement practices in project
The improvement practices which can be utilized by EPC company while undertaking
different types of project are mainly elaborated below:
Using key performance indicators: Key performance indicators in the project mainly
comprises of a number of specific measurement tools in order to indicate how the entire project
team is achieving the goals of the project. It is found that elaboration of key performance
10 Sunindijo R, 'Project Manager Skills For Improving Project Performance' (2015)
16 International Journal of Business Performance Management

8
PROJECT MANAGEMENT
indicators helps in directing towards the benefits that the project generally seeks to deliver11.
Moreover, realistic as well as cost effective culture of the organization is quite necessary for the
proper project success and for successfully acting as an improvement practice which can create
positive impact on the performance of the project which is undertaken by the EPC company.
Providing training facilities: It is quite important to manage the training of the
employees with the help of proper performance management software which further allows one
to properly mapping the competency-based gaps, identifying the different areas of improvement
as well as allocating the right training programs. Moreover, proper emphasis on employee
training as well as development helps in encouraging the employees to perform properly so that
they can be able to achieve the objectives of the project quite effectively.
Organization’s alignment: It is necessary for the EPC Company to use organization
alignment tool for aligning different employees, teams as well as divisions with the key objective
of the project12. This generally act as one of the crucial assets for increasing the engagement of
the workforce which further helps in providing better decision-making procedure. The alignment
as well as the entire performance of the project generally gets improved which offer the chance
to grow new opportunities.
11 Omar MA Fayek, 'Organizational Competencies And Project Performance Tool
(OCPPT©): Evaluating Construction Project Competencies And Performance'
[2016] International Journal of Architecture, Engineering and Construction
12 Young T, Successful Project Management (Kogan Page 2016)

9
PROJECT MANAGEMENT
Regular tracking: Proper project tracking generally compares the project plan with the
initial plan that is created in advance for the project13. It is found that weekly tracking of project
activities is quite important as well as necessary for ensuring that the project is on track and the
project manager can keep proper focus on the activities which are executed and thus it will be
helpful in improving performance of the project.
Proper planning: Proper planning of the project is considered as one of the significant
roles that help in guiding the stakeholders, sponsors as well as teams through a number of project
phases14. It is identified that proper project planning is generally required for successfully
identifying the desired goal of the project by delivering the project on the assumed budget and
time. Thus, it is analyzed that proper planning of the project generally helps in improving project
performance.
4. Conclusion
It can be concluded from the entire paper that the problem of poor project performance
that the company EPC faces recently can be resolved by undertaking proper processes as well as
practices which are helpful in improving project performance. The paper elaborates factors that
contribute towards poor project performance and it also illustrates proper ways which are helpful
in improving project performance. It is analyzed that the performance of the project can be
improved with the help of a number of managerial skills as well as technological tool which are
13 Demirkesen SB Ozorhon, 'Impact Of Integration Management On Construction
Project Management Performance' (2017) 35 International Journal of Project
Management
14 Harwardt M, 'Servant Leadership And Its Effects On IT Project Success' [2020]
Journal of Project Management

10
PROJECT MANAGEMENT
discussed in this paper. In addition to this, the paper also elaborates different types of
improvement strategies including key performance indicators, tracking facility, planning facility
as well as proper training opportunity for keeping the projects on track and for avoiding issues of
poor performance.

11
PROJECT MANAGEMENT
Bibliography
A Guide To The Project Management Body Of Knowledge (PMBOK Guide)
Demirkesen SB Ozorhon, 'Impact Of Integration Management On Construction Project
Management Performance' (2017) 35 International Journal of Project Management
Focacci A, 'Managing Project Investments Irreversibility By Accounting Relations' (2017) 35
International Journal of Project Management
Gruden NA Stare, 'The Influence Of Behavioral Competencies On Project Performance' (2018)
49 Project Management Journal
Harwardt M, 'Servant Leadership And Its Effects On IT Project Success' [2020] Journal of
Project Management
Martinsuo MP Hoverfält, 'Change Program Management: Toward A Capability For Managing
Value-Oriented, Integrated Multi-Project Change In Its Context' (2018) 36 International Journal
of Project Management
'Modeling Impact Of Project Management Performance With Among Roles Of Project Risk
Management And Organizational Culture On Project Success' [2019] European Journal of
Business and Management
Nalewaik A Mills, Project Performance Review (Taylor and Francis 2016)
Olawale YM Sun, 'Construction Project Control In The UK: Current Practice, Existing Problems
And Recommendations For Future Improvement' (2015) 33 International Journal of Project
Management

12
PROJECT MANAGEMENT
Omar MA Fayek, 'Organizational Competencies And Project Performance Tool (OCPPT©):
Evaluating Construction Project Competencies And Performance' [2016] International Journal of
Architecture, Engineering and Construction
Sunindijo R, 'Project Manager Skills For Improving Project Performance' (2015) 16 International
Journal of Business Performance Management
Young T, Successful Project Management (Kogan Page 2016)