Project Management Institute

Using modularization to manage construction of onshore process plants

a theoretical approach and a case study

This paper presents a model aimed at supporting construction managers in the early stages of projects by generating quantitative results and "what-if" analyses about modularization, i.e., fabricating and preassembling plant elements far from where the plant is to be placed. To build the model, the activities influenced by modularization have been identified. The related cost drivers have been distinguished, and the impact of modularization on these cost drivers has been evaluated. Last, the overall project costs under the modular and traditional approaches are compared. The proposed model has been tested on a real-life case study. By using the proposed model, the average error in estimating project cost parameters is reduced about 70%, or from 30% to 10%, comparing the preliminary studies that contractors usually perform in the early steps of projects.
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