Critical Factors to Overcome Project Scope Creep in the Oil and Gas Industry: Analytic Hierarchy Process Approach

Abstract

This study aims to determine procurement and project management critical factors to develop procurement strategy with stakeholders to eliminate project scope creep (PSC) risks in the oil and gas (O&G) sector. Analytical hierarchy process (AHP) methodology is applied to prioritize the critical factors from tendering management (TM), contract quality (CQ), and project management (PM) criteria to solve the PSC problem. Data are from eight managerial levels and two specialists from procurement and project departments of two O&G companies in the UAE context. The study revealed that there are six factors out of 15 that are critical factors from procurement management: 1) tender strategy, 2) tender clarifications meetings and negotiation, 3) tender document preparation, 4) techno-commercial bids evaluation and award, 5) well-written contracts, and 6) supplier selection criteria. This study provides managers with tools and strategies for successful project management practices in the UAE.

Keywords Analytical Hierarchy Process, Contract Management, Contract Quality, Oil and Gas Sector