76 Project Management for the Oil and Gas Industry

project, especially ensuring that needed resources have been

committed to the project and remain available.
• A project manager is required for each project.
−− The project manager is responsible for initiating, planning,
executing, and controlling the total project effort. Members
of the project team report to the project manager for project
assignments and are accountable to the project manager for
the completion of their assigned work.

Definition of Inputs to Step 1:

Contract: A contract is a contractual agreement between the organiza-
tion performing the project and the organizing requesting the proj-
ect. It is treated as an input if the project is being done for an external
customer.
Project statement of work (SOW): This is a narrative description of prod-
ucts or services to be supplied by the project. For internal projects,
it is provided by the project initiator or sponsor. For external proj-
ects, it is provided by the customer as part of the bid document. For
example, request for proposal, request for information, request for
bid, or contract statements may contain specific work to be done. The
SOW indicates the following:
• Business need based on required training, market demand, tech-
nological advancement, legal requirement, government regula-
tions, industry standards, or trade consensus
• Product scope description, which documents project require-
ments and characteristics of the product or service that the proj-
ect will deliver
• Strategic plan, which ensures that the project supports organiza-
tion’s strategic goals and business tactical actions
Enterprise environmental factors: These are factors that impinge upon the
business environment of the organization. They include organiza-
tional structure, business culture, governmental standards, industry
requirements, quality standards, trade agreements, physical infra-
structure, technical assets, proprietary information, existing human
resources, personnel administration, internal work authorization
system, marketplace profile, competition, stakeholder requirements,
stakeholder risk tolerance levels, commercial obligations, access to
standardized cost estimating data, industry risk, technology vari-
ances, product life cycle, and PMIS.
Organizational process assets: These refer to the business processes
used within an organization. They include standard processes,
guidelines, policies, procedures, operational templates, criteria for