Overcoming Challenges in the Procurement of Construction Materials for the Oil and Gas Industry
DOI:
https://doi.org/10.53819/81018102t5340Abstract
The procurement expediting process in the oil and gas industry plays a critical role in project success, directly impacting project timelines, costs, and overall efficiency. This study provided an overview of the challenges encountered during the material expediting process under procurement for Engineering, Procurement, and Construction (EPC) projects in the petroleum and gas sector in the Middle East. The research focused on the difficulties associated with coordination between the vendor, client/consultant, and contractor in arranging approvals for drawings, documents, and technical specifications prior to manufacturing. While previous studies have primarily focused on procurement delays, the objective of this research was to survey the challenges faced by expeditors and prioritize the factors leading to construction delays from their perspective. The study employed the Relative Importance Index (RII) method and Delphi study to provide insights into the challenges faced by expeditors. Hypotheses are formulated based on available data and additional data collected through interviews with existing expeditors in the job market, which are then validated at the end of the research. The findings reveal that unreliable vendors, bureaucratic document approval procedures, and poor vendor selection judgment are the most significant factors contributing to delays in the expediting process. The Delphi study, involving experts and a panel of 30 professionals, further validates that the bureaucratic approval process is a major cause of delays in material procurement. The study recommends that organizations should adopt a proactive approach to address these challenges. This includes involving expeditors in the early stages of the project, implementing specific timelines within purchase orders, investing in advanced technological infrastructure, and fostering a culture of collaboration and communication among all stakeholders. By implementing these recommendations, organizations can significantly improve the efficiency of the expediting process, reduce delays, and enhance overall project performance in the competitive petroleum and gas sector in the Middle East region.
Keywords: Overcoming Challenges, Procurement, Construction Materials, Oil and Gas Industry
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