Control: 0.D.7 IPA Prospective Project Evaluation Completed
| Title |
Description |
Context |
Through benchmarking the project verifies its credible, competitive and realistic cost and schedule targets with relevant completed (industry) projects. This increases confidence that we are "selecting the right project" and will "do the project right". Benchmarking also supports projects to understand their readiness to proceed by evaluating the maturity of all the project inputs, constraints, tasks and plans against an industry data set. It provides feedback to the business as a preparation to a Final Investment Decision. |
Activity |
Perform External benchmarking (“Prospective”) by the service provider IPA prior to DG4 in order to assess front end loading versus “best practical” FEL score, and cost and schedule competitiveness.(2)(1) |
Purpose |
To provide feedback on the project’s level of project planning and team development at the end of Define and its readiness to proceed into Execute. To assess whether the project’s estimated cost, schedule and production forecast expectations are credible, realistic and competitive. To obtain recommendations for reducing risk and improving performance. |
Requirements from other Standards |
None
|
Evidence recorded in |
Project Execution Plan |
Accountability for meeting Control Intent |
Project Manager |
Phase |
Define |
(1) For capital projects in Upstream and Integrated Gas with an anticipated headline size exceeding US$ 100 million (Shell share), for capital projects in Downstream exceeding US$ 20 million (Shell share) or for capital projects which involve unusual risk.
(2) Where IPA cannot benchmark a significant part of the scope, the Capital Projects Benchmarking team should be contacted to confirm IPA’s gap, decide whether to pursue partial benchmarking and work with IPA to close the gap. If required, the best possible alternative should be selected e.g. another external provider in addition to internal benchmarking.