Change Management

Change is to make improvement or become something different condition or situation that is the differences from baselines or contract basis. The Change work process are defined in the Change Control and the Change Management Procedure.

Change Control is a systematic process of controlling and managing all changes made to a product, system, or project including the scope of project or programme, plans or procedures, contract terms and conditions, or applicable laws and regulations, etc., from the contract basis or baselines. The Change Control involves the change identification, evaluation, impact analysis, approval, or rejection or deferring of any changed items, and updating the baselines. The Change Control is a part of the Change Management.

Change Management is a systematic work process of monitoring and controlling changes to minimise impact on the project. The Change Management includes the scope of work change, design basis change (before or after approval work process), design and engineering, work process change, and organisational change, etc. The Change Management work process is the identification of changes (e.g., difference from baseline); analysing impact; review and approval of change; implement changes, and feed back results. A Project need to assign a nominated change management person.

Change Management Procedure is a project procedure that defines the change work management processes including an initiation, review, approval, and implementation. Especially, the Change Management Procedure covers the critical information or document (e.g., P&ID, etc.) change after HAZOP reviews that is required an additional review and approval from authority groups including operation, maintenance, project, and planning team because of a late change impact on the project.

Contract Management is the process of managing legally binding agreements from the initial stages of deciding on the services needed, choosing of a provider of services, negotiation, and monitoring of the service until the contract ends that is the systematically and efficiently managing contract creation, execution, and analysis for the purpose of maximising financial and operational performance and minimising risk. The Contract Management is the management of contracts made with goods and services suppliers, partners, or employees, etc., that includes negotiating the terms and conditions in contracts and ensuring compliance, as well as documenting and agreeing on any changes or amendments that may arise during its implementation or execution.

Change in Scope is a change to the originally defined project scope that is the alteration and deviations from the agreed with the client in the contract scope of work or baseline scope of work. The Scope Change can be caused by insufficient definition of project requirements; insufficient scope statement; market changes; government regulation changes; project site conditions, or client opinion changes. Any Change in Scope must be proceeded with the Project Change Management Procedure and compensated for time and expense based on the approved through a written supplemental agreement. (Refer to the Change Order (CO); Change Control)

Change Order (CO) is a formal document work process which covers any changes from baseline or contract basis, possibly affect to the overall project schedule and cost. The Change Order may be either added to (positive) or deleted (negative) the scope of work from the original project scope. The Change Order work is proceeded in accordance with a Project Change Management Procedure, and can be executed as an independent task or project.

Change Work refers to the Change Order (CO).

Claim is 1) to request payment of expenses based on the policy or agreement; 2) to demand for compensation of losses or expenditures due to a change or deviation from baseline and contractual agreement.

Design Change Control is a systematic process of the design changes that is the most challenging aspects and most important matters of the successful project execution. Early identification of change items is the critical to manage and minimise the negative impacts by all members' responsibility. An Engineering Manager is a primary responsible person for ensuring the design change processes that is fully implemented and evaluating the impact of the engineering baselines such as deliverables, technical matters, resources, etc., with discipline leads and other project team members, and communicating with a project management.

Design Development is the design and engineering work process that is based on FEED or Basic Engineering information to develop the Detailed Design and Engineering document for the procurement, construction, operation, and maintenance of a project. The Design Development defines and describes all important aspects of the project focusing on the selection of materials; development of technical specifications for detailed engineering and construction; and generation of construction drawings and document. During Design Development, design issues should be resolved to fix the size and character of the entire project including civil and structural, mechanical, and piping, control and electrical systems, and materials as well as other operability and maintainability requirement.

Deviation is a difference or change from the baseline or contract basis that may be considered potential or already be in the process of actually occurring. A Deviation work is proceeded in accordance with the Change Management Procedure. (Refer to the Standard Deviation; Mean Deviation)

Management of Change (MOC) is a systematic approach to organisational changes that ensures the safety, health, and environmental risks and hazards are properly controlled. A MOC provides the avoidance of the consequences of unforeseen risks that can affect processes, systems, people, or organisational structures through planning and coordinating the implementation of changes.

Modification is a change or to modify something that improves the value or quality.

Potential Change Notice (PCN) is a document sent to a client describing project changes that is quickly developed, identified, analysed, solutions of the change events, and the impacts on the project. A PCN document includes the reasons for the change, and identifies and quantifies a potential change on the project and the projected impact of the change (can be positive or negative) that is a first step of the Change Management work processes. A PCN can be called as a Project, Process, or Product Change Notification.

Scope Change is a deviation from the project scopes or works originally agreed and included in the contract that can be either added to or deleted the scope of work from the original project scope. The Scope Change request is managed as part of the Scope Management or Change Management procedures with which the work process determines what changes may be approved by the Project Manager as well as authority for approving other changes. A contract change order may be needed to alter the project scope.

Scope Management is a work process of the project scope of work managing and controlling that is ensuring the performance the project requirements specified in the contract. The Scope of Work includes not only for a contractor and an owner but also a third party studies, reviews and approvals. The Scope Management techniques allow a project manager to allocate the right amount and quality of the work to the project internal and external organisation to complete the project. The Scope Management also requires the scope of work change management and control in accordance with the project change management procedure during the project execution until the project is successfully handed over to the owner. 

Scope of Facility (SOF) is a part of the Scope of Work (SOW) that is mainly tangible assets. A SOF is the brief overview of the project facilities to be designed and constructed under the contact, and clearly defined the capacity of a plant or each unit and technologies including the process performance and utility consumption. Major critical equipment and equipment list can be added, and owner's providing items should be listed. (Refer to the Scope of Work (SOW))

Scope of Service (SOS) is an effort service (intangible) based on experience and knowledge. A SOS is a brief overview of the services to be provided including specific major activities in project management, engineering, procurement service, construction management service, and commissioning and start-up service, etc. A SOS is specified estimated resources amount and mobilisation plan, etc., in the contract document. (Refer to the Scope of Work (SOW))

Scope of Work (SOW) is to be provided works including services (tangible and/or intangible) by a contractor against an owner’s compensation based on the contract and related terms and conditions. A SOW can be further detailed as Scope of Facility (SOF, hardware) and Scope of Service (SOS, software).

Variation is a slight difference or change from the usual arrangement or agreed contract condition. The Variation work is proceeded in accordance with a contract such as a Change Management Procedure.

Contract Scope of Work (SOW) is a foundation of the contract and project baseline. The Contract SOW document is initiated by owner included in the ITB (Invitation to Bid), and developed and proposed by contractor, and finalised after clarification and negotiation meeting between owner and contractor, and included in the contract document. The project execution members including a project manager should review the project Contract Scope of Work (SOW) document and agree them with internal and external organisation before the contract is signed.

Interface Management is the activities of defining, controlling, and communicating the information needed at the common boundary where direct contact between two different cultures, devices, entities, environments, systems, etc., when working with multiple contractors, subcontractors, and clients. The Interface Management is a systematic implementation work process on the project including the streamline communications, identifies critical interfaces, and monitors ongoing work progress while mitigating risks. (Refer to the Project Interface)