Abstract. This paper identifies drivers for cost and schedule overruns in subsea production system projects from a supplier's point of view. Subsea Production Systems connects subsea wells to offshore vessels, and enable efficient and safe hydrocarbon production. Using root cause analysis, cause and effect diagram, and Pareto charts in a specific company we identified three main drivers of cost and schedule overruns: qualification of products, changing vendors frequently, and project management. Detailed analyzes of a reference project found that the supplier identified about half of the technology gaps during the tender phase. Technology qualification programs of key components were not included in the bid, although the project had to pay for related cost overruns. In summary, the project could have eliminated more than two thirds of the cost escalation related to qualification costs by capturing all technology gaps in the early tendering phase, and as a result significantly increased the profitability.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.