Design of a safety cost estimation parametric model in oil and gas engineering, procurement and construction contracts

The purpose of this research is to identify parameters that govern safety costs in oil and gas projects. An initial conceptual model was proposed to identify the contractual position of safety management system in engineering, procurement and construction (EPC) projects, followed by identification of safety work packages and estimated costs per package. Next, a work breakdown structure (WBS) and cost breakdown structure (CBS), with the suggested safety parameters included for the case study project in focus. Then, a mathematical model was designed based on the parametric modeling approach and the related weighting factors were determined. The proposed model can be considered as an innovative approach to designing safety indicators in oil and gas projects. Field studies and interviews were conducted to investigate the validity of the variables based on the Delphi method. Finally, safety management costs for different phases of the project and related weighting factors were determined separately. The results indicate that the safety management's weighting factors are 1.1% of the total project's weighting factor.