9/13/23, 9:06 AM Scope Definition Techniques in Capital Project Management

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SCOPE
SCOPE DEFINITION
DEFINITION
SCOPE DEFINITION
TECHNIQUES IN CAPITAL
TECHNIQUES
SCOPE IN CAPITAL
DEFINITION
TECHNIQUES IN CAPITAL
PROJECT
PROJECT MANAGEMENT
MANAGEMENT
TECHNIQUES IN CAPITAL
PROJECT MANAGEMENT
PROJECT MANAGEMENT
September 2, 2021 Front-end Planning Detail Engineering & Design

Project scope is a critical aspect of

capital project planning that
Share this article establishes all of a project's
deliverables and tasks, deadlines,
and costs. Project failures, often
caused by cost and schedule
overruns, are often caused by poor
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9/13/23, 9:06 AM Scope Definition Techniques in Capital Project Management
First & Last
or delayed scope definitions.
Developing a clear, well-defined, and
realistic scope greatly contributes to
project success. Company

Below, we detail the importance of

defining the project scope as early Email
and as robustly as possible as well
as scope definition techniques and
best practices to follow to minimize Phone
potential risks.

The Importance Project

of Early and Description

Strong Scope
Definition in SUBMIT
Capital Project
Management
Developing an early and strong
scope definition is critical for the
success of capital projects of all CATEGORIES
types and sizes. Poor scope
definition is often the result of Safety &
pressure to quickly begin project Quality
execution, lack of in-house design or Webinar
planning abilities, or financial Procurement
pressure to minimize planning costs.
Fabrication &
However, having a poor or delayed
Construction
scope definition can lead to
significant changes to the scope and Detail
increased change orders, which can Engineering &
result in large cost and schedule Design
overruns. Scope definition is Front-End
arguably the most important process Planning
in the capital project life cycle.
Press Release

Scope Definition
Techniques for
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9/13/23, 9:06 AM Scope Definition Techniques in Capital Project Management

Capital Projects
The sequence for project scope
definition and management typically
follows the structure detailed below:

1. Collect project requirements.

2. Define the project scope.
3. Verify the project scope with
the client.
4. Create a Work Breakdown
Structure (WBS).
5. Create a Project Execution Plan
(PEP).
6. Monitor and control the project
scope.

Collect Project
Requirements
Projects may be brought in with
various levels of scope definition.
While it is helpful for project owners
to come to a contractor with higher
degrees of scope definition,
contractors should be ready to meet
project owners where they’re at.
Using a methodical and systematic
approach can ensure that all
requirements are captured.

Early in this process, project owners

should communicate the driving
factors for their project to the
contractor, whether this is cost or
schedule, as this may change
staffing, cost, and schedule
requirements. During initial scoping
meetings, contractors should ask
project owners for pertinent
documentation, such as a written
scope of requirements including
identified deliverables and
equipment as well as red line

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9/13/23, 9:06 AM Scope Definition Techniques in Capital Project Management

marked-up documents, such as

piping and instrumentation drawings
and pictures from the field to
determine component placement. If
the level of scope definition is low
and such documentation is not
available from the project owners,
contractors will develop this
documentation.

All stakeholders should be involved

early on to help ensure alignment
from the beginning. After scoping
meetings, contractors should delve
deeper into how project
requirements translate into
actionable goals and expectations.

Define the Project

Scope
If project requirements are properly
determined, contractors should be
able to define the project scope,
outlining what will be delivered,
what will not be delivered, the
estimated budget for the project,
and the expected duration of the
project. It is critical to identify where
gaps are present in project
requirements, where information is
unclear, and to take action to ensure
the scope is fully defined and evident
to each party involved. The result
should be a project scope document,
or Statement of Work, that captures
all features, functions, and
requirements that project owners
and stakeholders expect from the
project, outlining the work that will
be completed during project
execution.

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9/13/23, 9:06 AM Scope Definition Techniques in Capital Project Management

Verify the Project Scope

with the Client
Many capital projects have strict
deadlines that are often key criteria
for project success. As such,
verifying the project scope with all
parties involved before and during
the life cycle of a project is critical.
This means each stakeholder and
project owner should review the
project scope in detail and formally
agree upon the scope and project
deliverables.

Create a Work
Breakdown Structure
(WBS)
Following scope definition,
contractors should create a WBS
which is the central organizational
hierarchy that syncs a project
schedule, cost, and performance
against a budget for all levels of a
WBS. An effective WBS should
include deliverable-oriented
groupings of project elements and
cover all project components. It
should contain the entirety of work
dictated by the scope to cover all
deliverables and work that must be
completed throughout the project.

Create a Project
Execution Plan (PEP)
Contractors should create a PEP to
highlight the critical path of a capital
project and lay out plans for project
execution. A PEP is a primary
document that outlines and
establishes a contractor’s plan to

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9/13/23, 9:06 AM Scope Definition Techniques in Capital Project Management

execute, monitor, and control a

project. PEPs should include an
overview of each of the components
within a project’s scope of work.
PEPs enable contractors to create
comprehensive reports for
measuring the progress of a project.

Monitor and Control the

Project Scope
After the scope has been clearly
defined and approved by everyone
involved, and a WBS and a PEP have
been created, the focus should be
placed on managing and controlling
the scope. This includes avoiding
scope creep when possible and
utilizing an established change
management work process when
changes do arise. Changes to project
scope can bring risk, increase costs,
and delay schedules. Thus, using
proven methods to identify,
communicate, and incorporate
changes is crucial.

Ensuring Strong
Scope Definition
to Drive Capital
Project Success
Proper scope definition is a key
factor that influences project
success and deserves special
attention. At H+M Industrial EPC, we
plan ahead to keep you ahead with
our proven project planning services.
We incorporate all of the above best
practices and scope definition

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techniques to drive project success

from the start.

To learn more about how H+M

Industrial EPC utilizes best
practices and proven scope
definition techniques to help
ensure strong scope definition,
contact us today.

CONTACT US

The H+M
Industrial
Team
For over three
decades, we
have provided
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capital project
management
services to
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Chemical
industries
through our
proven EPC
approach. We
are dedicated
to providing
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and efficiency
through all
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9/13/23, 9:06 AM Scope Definition Techniques in Capital Project Management

and
construction--
on budget and
on time.

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