Following on from our previous White Paper ‘How To Manage Licensing Requirements in Project Definition and Execution’, another challenge is to implement licensing and regulatory requirements during project execution. Some projects derail because of non-compliances which, once identified, strongly impair the start-up and operability of the project deliverable. In our new White Paper 2020-04 ‘How To Implement Licensing Requirements During Project Execution Phase’ we examine more particularly how to transfer licensing requirements into project execution to ensure conformity.

Licensing conditions will arise from the interactions between the Owner and the licensing body during the licensing case instruction and will be formalised in the formal license terms. Main licensing conditions are ideally formalised just prior the Final Investment Decision for large projects, or shortly thereafter for smaller projects.

However, some additional licenses might be required during the course of the project e.g. building permits, operating permits that will also contain a set of conditions and terms. Ongoing surveillance by the licensing authority of the construction works will also create another list of demands and requirements.

All those license conditions will apply both to the project phase (execution plan) and to the design of the facility. We observe that projects often have difficulties in including those conditions and requirements in their design and project execution. This demonstrates that a comprehensive regulatory requirement management process must be put in place. Requirements must be applied through Management of Change and be flowed down to the workers.

In addition, in order to build the licensing case, a number of assumptions are being taken by the design team that are not always formalised and verbalised. However, the licensing body will also require compliance with those assumptions underlying the licensing case. It is essential to formalise those requirements during the production of the safety case to ensure they are properly accounted for during the project definition phase.

Implementing licensing conditions in a project is a critical aspect and is not always performed properly. The recommended approach is to deal with those conditions as requirements and run a full cycle of application and verification to build a compliance dossier, including formal Management of Change in case of any update or new licensing conditions.

The associated organisation needs to be considered carefully. Substantial resources may be required in highly regulated industries, and the interface with the operator must be carefully designed. Understand better about those challenges and how to resolve them in our new White Paper 2020-04 ‘How To Implement Licensing Requirements During Project Execution Phase’

If you can’t access the link to the white paper, copy and paste the following link in your browser: https://www.projectvaluedelivery.com/_library/2020-04_implement_licensing_requirements_project_execution_phase_v0.pdf