Project Handover. Dr. JA Healy. Publisher JAHCon Physical Asset Management Pty. Ltd.
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1 If you would like additional information on the topic covered in this information sheet please contact JAHCon on the numbers shown on page 1 Project Handover Dr. JA Healy Publisher JAHCon Physical Asset Management Pty. Ltd. Copyright 2013 Dr. JA Healy
2 Contents Handover Considerations... 2 Introduction... 2 Generic Handover Requirements... 3 Deliverable scope... 3 Commissioning... 3 Documentation... 3 Statutory checks... 3 Outstanding safety issues... 3 Training... 4 Business solutions... 4 Maintenance plans... 4 Safety and other procedures... 4 Consumables and Spare parts... 4 Operational risk assessment... 4 Warranty and defect liability... 5 Copyright 2013 Dr. JA Healy Published by JAHCon Physical Asset Management Pty. Ltd. P.O. Box 766, Everton Park, Brisbane, Qld. Australia 4053 Ph: Web: jahcon@bigpond.com Copyright 2013 Dr. JA Healy Page 1
3 Handover Considerations Introduction Handover is an agreed milestone in the project life cycle at which the contractor agrees to have the Handover is an agreed milestone in deliverable asset or system in a state suitable for the the project life cycle at which the owner to accept it for future care, custody and control. contractor agrees to have the Handover of individual assets typically occur in stages deliverable asset or system in a state between the end of commissioning and the final suitable for the owner to accept it. completion of the project. Handover is a change management process and must be recognised as such and managed using Management of Change (MOC) procedures. Figure 1 shows the role of handover in the project plan. The key to timely handover is an effective and detailed project plan with clear statements of scope, quality etc. A successful handover depends upon a clear understanding on the part of the contractor as to what must be provided (scope, quality, configuration etc.) and on the part of the owner as to what can be expected. Failure to clearly set out what will be delivered at handover can cause conflict between the contractor and the owner as deliverables fail to match expectations. While the actual deliverables at handover will differ considerably between projects, and between different packages within a given project, the following section helps to identify some of the more generic deliverables common to many projects. Figure 1 The project life cycle showing the role of handover. Copyright 2013 Dr. JA Healy Page 2
4 Generic Handover Requirements While the number and types of steps undertaken during handover will vary between organisations and across different projects, there are common activities dictated by the laws of physics and good engineering practice. The following handover steps have been distilled from project plans used by multiple organisations and while necessarily generic in nature, do help to structure discussion around the handover activities. Deliverable scope The deliverable scope considers the actual deliverables required for a successful handover. This ensures that the items actually delivered by the contractor match the owners expectations as set out in the project contract deliverables documents. Failure to clearly agree the full extent of the project deliverables at the outset can lead to the owner refusing to accept the asset at handover, resulting in increased costs for both parties. Similarly, changes made to the design or extent of deliverables during the construct/install phase of the project either by the contractor (e.g. because he cannot obtain an item agreed in the scope and uses a substitute without the agreement of the owner) or by the owner (e.g. by asking for a change in scope, design etc.) can give rise to a mismatch between the contractors understanding of what is required and the owners expectations. Late changes to scope, timing etc. must not be allowed without the use of strict change management control procedures being followed and agreement and sign-off by both parties. Commissioning All commissioning activities must be completed (except for agreed punch-list items) to the satisfaction of the owner prior to handover. Any performance certificates called for by the project contract agreement must be signed prior to handover. Documentation All drawings, documents, manuals, instructions, Quality assurance certificates, permits, licenses, etc. must be provided in accordance with the project contract. Failure to obtain approval and registration of all items requiring registration can result in the owner operating an unlicensed plant ultimately leading to considerable costs and penalties for both parties. Statutory checks All necessary statutory checks and inspections must be carried out and signed off by the relevant authority prior to handover. Pressure vessel registration, crane certificates, environmental licences, fire system certificates etc. must be provided. Outstanding safety issues All outstanding safety issues identified in check lists, punch-lists, inspection reports etc. must be completed and closed out prior to handover. Minor items may remain unresolved until later by agreement between the parties. In the event that handover occurs before all outstanding minor items have been addressed an agreed plan of accountabilities, timing and scope must be in place before handover. Copyright 2013 Dr. JA Healy Page 3
5 Training Any and all training required to safely operate and maintain the assets being handed over must be provided to the owner s staff and nominated contractors prior to handover. Immediately following handover the owner s staff will be required to operate and maintain the assets and therefor their competence to do so must be established and documented. Business solutions All asset data and documentation required to support operation and maintenance of the assets following handover must be provided in a form suitable for uploading to the owners CMMS. This upload must be completed in time for the operators and maintainers to access this data on the first day following handover and they assuming responsibility for care, custody and control of the asset. The location and use of this asset data must be integrated into the operator and maintainer training provided by the contractor and/or vendor prior to handover. Maintenance plans All necessary maintenance plans required to support the care, custody and control of the asset following handover, must be developed, implemented in the CMMS and released for use prior to the first day the owner assumes care, custody and control of the asset. Maintenance plan familiarisation must form part of any training provided to the maintenance teams by the contractor or the vendor prior to handover. Safety and other procedures Safety and other procedures must be in prior to handover to ensure the safety and effective management of the asset. Isolation permits, permit to work systems, hot work permits etc. must all be established and verified prior to the first day the owner assumes care, custody and control of the asset. Consumables and Spare parts All consumables and spare parts required for the operation and maintenance of the assets identified in the project deliverables documents, must be procured, delivered, catalogued and stocked prior to handover. Cataloguing of spare parts must meet the owner's standard cataloguing format and must be traceable in the owners CMMS back to the individual asset's that use the consumable or spare part. Operational risk assessment A formal risk assessment of the asset in its handover configuration (i.e. its long term configuration) must be carried out prior to handover. This risk assessment must identify any operations or maintenance risks and provide appropriate procedures and controls to eliminate or mitigate these risks. Pinch point identification, traffic movement risks, electrical hazards, high pressure systems etc. must be identified and documented. Copyright 2013 Dr. JA Healy Page 4
6 Warranty and defect liability All warranties, warranty extensions, defect liability agreements etc. must be identified, documented and communicated to the owner at handover. Specific warranty requirements such as maximum operating loads, maintenance services etc. must be clearly identified by the contractor and communicated to the owner at handover to ensure that warranty agreements will be honoured by the vendor at a later date. Copyright 2013 Dr. JA Healy Page 5
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