Best Practice - Lessons learned General Contract Management

Transcription

1 TEBODIN Best Practice - Lessons learned General Contract Management Roy Piek, Director PMC Moscow April 19, 2017

2 Level of Influence Project Expenditures Visualization of Influence vs Expenditures during project Major Influence Decreasing Influence Low Influence Overall Cost Influence Curve Point Project where changes influence Authorization result rapidly Project Expenditures Mechanical Completion Scouting Phase Conceptual Design Phase BASIC Engineering Detail Engineering Procurement /Construction TO / SU Project Life Cycle Tebodin Chemical Event RP April 19, 2017 page 2

3 Building Information Modeling (BIM) BIM it is a tool for engineering, when 3D model is developed with indication of technical, financial and time attributes of each element. Tebodin executes projects using this technology in order to reach high quality and time & cost saving. BIM advantages*: 10% - saving of the contract value through clash detections. 7% - reduction of project time 3% - cost estimation accuracy (MTO) 80% - reduction in time taken to generate a cost estimate *Based on Stanford University center for Integrated Facilities Engineering Tebodin Chemical Event RP April 19, 2017 page 3

4 Various contract strategies Engineering - Procurement - Construction: EPC Contractor with responsibility for design (all or parts) Project Management - Contract/Consultancy: PMC Management company controlling Contractor(s) & Construction Engineering - Procurement - Construction Management: EPCM Design/Management company responsible for design (detail level t.b.d.) and controlling Contractor(s) & Construction Tebodin Chemical Event RP April 19, 2017 page 4

5 EPC/PCM or EPCM? Advantages compared EPC + PMC: One Stop Shopping "One point of Contact" Best/Only for well defined projects before EPC Contractor selected (Minimal Unknowns) Hands off" client approach to project Minimal Legal / Financial Risk Minimal Client Staffing Requirements EPCM: More Control over (Engineering) Process` Better for less defined projects with anticipated changes to scope of supply Less Legal Litigation (Identify issues early and remedy situation before larger problems arise) Owner's contracting Flexibility (different contractors, materials purchasing etc) Tebodin Chemical Event RP April 19, 2017 page 5

6 Recent experience Cherepovets Tebodin is the partner for integration of foreign installations in large plants General Contractor was changed to multi-subcontractors with PMC team >20 FTE on site No general contractor at site, these functions taken over by the PMC team Logistics and Materials by PMC team Brownfield requires huge attention (design, utilities, materials, interfaces, etc.) Tebodin Chemical Event RP April 19, 2017 page 6

7 Choice of Project organization is crucial for success General contractor vs multi subcontracting: Only the strong points of a contractor shall be used, scope which contractor has weaknesses shall not be hired. For different scope of works, multiple contractors to involve with proven experience To avoid any monopoly position of one company Only financially strong companies to involve It is an option to have No general contractor at site: it can be done Purchasing by three party agreements is an option See also the investors guide for information on many more topics Tebodin Chemical Event RP April 19, 2017 page 7

8 Best practice / Lessons learned, general contract management Introducing of extra contractual clauses to the contractors contract: Examples avoid claims of extra works based on an incomplete BOQ: working drawings and clients requirements shall prevail over BOQ avoid charge of huge indirect cost by contractors in case of delays on others behalf: there shall be an indication/limitation of monthly indirect cost in the contract or main proposal; avoid charge of huge amounts of manpower for extra works: in the contract a man power schedule shall be included, which can be used against (over estimated) extra works negotiations; Use performance guarantee retention clauses (up to 10% to hold from monthly payments) Watch out: First delays up to 1 to two months occur already at start of the construction: Management/control of in time contract signing by client, LOI, and in time advance payment (contractors promise to start based on LOI, but later will claim delay on the contract signing. Do not use the LOI advantage in the critical path. Tebodin Chemical Event RP April 19, 2017 page 8

9 Best practice / Lessons learned, general contract management If you want to be secured by a reliable and cost aware engineering and PMC company, call us. Tebodin Chemical Event RP April 19, 2017 page 9

10 We make CHEMICALS work