Control: 4.D.13 Risked Level 3 Schedule and Type 3 CAPEX Cost Estimate
| Title | Description |
Context |
Unrealistic schedule and estimate at Final Investment Decision (FID) can result in unachievable plans or introduce errors in an attempt to shorten the schedule. Insufficient and/or incorrect detailed execution planning between key phases leads to inaccurate and unrealistic schedules and/or unforeseen delays in execution. Scope creep due to the impact of unidentified risks or mismanagement of identified risks leads to cost overruns. |
Activity |
Develop a schedule and cost estimate range based on all risks and uncertainties and integrating all aspects of the scope of work and the execution strategy. The estimated range should be communicated and aligned with stakeholder requirements. |
Purpose |
To ensure that business decisions are taken on a realistic range of outcomes, and to avoid value eroding schedule and cost driven behaviours. This protects Shell’s reputation with stakeholders and preserves business case value. |
Requirements from other Standards |
Cost/Schedule Risk Analysis’s CSRAs are required for projects with >$100 million Capex. |
Evidence recorded in |
Project Execution Plan |
Accountability for meeting Control Intent |
Project Manager |
Phase |
Define |