Project procurement management in EPC projects : a comparative analysis of different organization structures and role distribution

Abstract

Successful procurement process is one of the major part of engineering, procurement, and construction (EPC) projects and involves all stages of the project from the bidding process to completion. A well-organized procurement organization can significantly improve project schedules, increase client satisfaction and quality and deliver cost efficiencies. Controversially, poor project procurement management can result in chaos related to time, cost, quality, and organizational effectiveness.As organizations, digitalization levels, market situations, work methods and standard requirements continue to evolve rapidly, there is a need to analyze existing methods while exploring alternative approaches to optimize project procurement. Such efforts are essential to ensure a more efficient and sustainable procurement organization capable of delivering superior project outcomes.The objective of this thesis is to analyze three different organizational structure that is currently applied by EPC companies, evaluating their respective advantages and disadvantages. Another aim of the this study is to define how Procurement organization can be more effective and adaptable. Finally this study recognizes the importance of examining not only operational results but also the broader impacts on employee motivation and the sustainability of the procurement organization itself. Therefore, the thesis seeks to offer a comprehensive perspective on optimizing procurement structures in EPC projects.