A structural equation model for enhancing effectiveness of engineering, procurement and construction (EPC) major projects: End-user’s perspective
Engineering, Construction and Architectural Management
ISSN: 0969-9988
Article publication date: 3 September 2018
Issue publication date: 20 September 2018
Abstract
Purpose
The purpose of this paper is to define and analyze causal factors shaping the effectiveness of engineering, procurement and construction (EPC) major projects in meeting the product objectives, from the end-user’s perspective.
Design/methodology/approach
An online survey questionnaire was developed and administered to end-users working in major oil and gas projects. Data collection process was initiated on, around 275 end-users, and 213 responses were received, achieving a high response rate of 77 percent.
Findings
The results indicate that both alignment of objectives and end-user’s engagement factors exhibit a positive influence on effectiveness of EPC, with the former having higher contribution than the latter. In this context, the product success triangle reveals higher preference of the end-user’s team toward quality than schedule and cost objectives.
Research limitations/implications
Shifting the efforts of involving the end-user forward in time, starting from the planning stage, alleviates the adverse impacts of design changes as well as increases the ability to save cost, improve performance and increase end-user’s satisfaction.
Practical implications
The model raises the awareness of oil and gas industry practitioners toward the critical factors influencing the project effectiveness and proposes useful techniques for maintaining proper alignment between project and product objectives as well as facilitating end-user’s engagement at the site level. As such, it can serve as a motivation tool for aligning the objectives and acknowledging the engagement, with the aim of achieving the product success.
Originality/value
The effectiveness of EPC structural model was developed and tested using PLS–structural equation modeling statistical technique. The interpretation of the structural model demonstrated that both end-user’s engagement and alignment of objectives are essential to successfully achieve project effectiveness.
Keywords
Acknowledgements
This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors. Special thanks are extended to Dr Taoufik Zoubeidi for his valuable comments during the statistical assessment of the structural model. The authors would like to thank the management of Abu Dhabi National Oil Company (ADNOC) and group companies for facilitating data collection.
Citation
Aldhaheri, M., Bakchan, A. and Sandhu, M.A. (2018), "A structural equation model for enhancing effectiveness of engineering, procurement and construction (EPC) major projects: End-user’s perspective", Engineering, Construction and Architectural Management, Vol. 25 No. 9, pp. 1226-1252. https://doi.org/10.1108/ECAM-07-2017-0130
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited