ISSN: 2222-6990
Open access
Every project involved in oil and gas fabrication erected onshore usually experiences cost overruns if lack of monitoring. This cost overrun is closely related to the use of machines, manpower, methods, money, and materials (5M) in order in a project where all these resources require a good financial cycle. However, these cost overruns often occur due to improper management planned resource allocation from 5M. Therefore, this study was aimed to examine the importance on management of resource allocation control from cost overruns specifically in oil and gas fabrication projects as a preliminary study. Semi-structured interviews were conducted with ten (10) qualified specialists in Engineering Procurement Construction (EPC) projects from the Oil and Gas industry. Among the importance that contribute to project controlled are spending within budget, financial control meeting project value, optimizing usage of materials, sufficiently manage machinery and manpower to match project goals. The networks with the ATLAS-ti, it was discovered that money had a greater impact on the allocated resources, and the issue of budget or money allocation that does not meet project requirements is a major issue that led to cost overruns.
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In-Text Citation: (Roshdi et al., 2022)
To Cite this Article: Roshdi, F. R. M., Ismail, K., Lop, N. S., & Wahab, L. A. (2022). Cost Overruns in Engineering Procurement Construction (EPC) Fabrication Oil and Gas Megaprojects in Malaysia: The Importance of Resource Allocation (5M). International Journal of Academic Research in Business and Social Sciences, 12(9), 1491 – 1499.
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