Effectiveness of Engineering, Procurement and Construction (EPC) Major Projects in Abu Dhabi’s Oil And Gas Industry: End-User’s Perspective

Even though project management discipline is gearing towards the improvement of project effectiveness, traditional project management is responding slowly due to either false preconceptions or ineffective communication among project parties. A research study is needed to contribute to knowledge and practice on the effectiveness of Engineering, Procurement and Construction (EPC) contracting strategy and consequently increase the chance of achieving product success at the site level. The objective of the research presented herein is to assess the effectiveness of EPC contracting strategy in meeting product objectives, from the end user’s perspective. Required data are collected using an online survey questionnaire targeting end-users working in six major oil and gas projects in Abu Dhabi. The questionnaire data are analyses using the structural equation modeling (SEM) statistical technique. Research findings reveal statistical significant correlations between the “effectiveness” concept and its respective factors. Being the first known research evaluating the influence of both “end-user’s engagement” and “alignment of objectives” criteria on project effectiveness, it provides several contributions to literature and practice. These contributions are particularly illustrated as 1) the development of a conceptual measurement model for the “effectiveness” phenomenal concept, which could be applicable to researchers interested in examining such concept,( 2) the identification of possible factors shaping the conceptual domain of “end-user’s engagement” and “alignment of objectives” criteria in the oil and gas industry, (3) the operationalization of the conceptual measurement model based on measurement instruments verified by both literature and industry experts, and (4) the assessment of the strengths of influence of the causal factors on the effectiveness of EPC as well as the statistical significance of these relationships. The present research raises the awareness of oil and gas industry practitioners towards the influencing factors of “effectiveness”, “engagement” and “alignment” concepts. The generated SEM model thus serves as a motivation tool for acknowledging the end-users participation in various project phases and maintaining a proper alignment between project objectives and product objectives for the purpose of improving the project effectiveness