Typical scope, nature of work and project

Typical
Sub-Contractor Arrangements

The sub-contractor arrangements
include the following:

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

·        
Execution Partner Work
Packages’ Management Cost Reimbursable or fixed price contract with variations.
The contracts are normally used for small scope of work and well-known environments
and possible repetitive type of work. An example might be fencing for a
sub-station.

·        
Technical Services – Fixed
Price or Cost Reimbursable. An example might be a consultant performing an EIA
study.

·        
Technology Supply – Lump sum
Turn Key. An example might be supply of a water treatment plant.

·        
Constructor (Installer) – Bill
of Quantity, re-measured contracts. Examples might be erecting power
distribution between two points, or civil works for site preparation.

·        
Supply Agreements – Fixed
Price. Examples might be the supply of pumps, or 20 miles of electrical cable.

·        
Bill of Quantity Re-Measurable
Contracts for Construction or Installation work. Ideally suitable where work is
easily measured by a quantity as measure and cost by a rate per quantity, like
civil works with ft3
(cubic feet) of excavation at a certain rate per ft3 (cubic feet) or structural steel with ton of steel at a rate per
ton.

 

4.1.5          Sourcing for Project Controls Based on
EVM

The success of project controls
using earned value management requires appropriate sourcing. The owner should
request from the contractors; Project Controls using Earned Value Management,
as per appropriate specifications. The different contract strategies require
different specifications which need to be tailored for the specific scope,
nature of work and project controls capability of contractor. The important
sourcing mechanisms include the following:

·        
The Owner is to evaluate and
grade contractors according to their project controls capability or maturity
level.

·        
The Owner is to appropriately
train, and contract with contractors as and when needed.

·        
Sourcing Approach for EPC and
Fixed Price, including Supply Agreements Contracting Environment.

o    Owner to perform Compliance Inspection to establish the Project
Controls confirmation of contractors to specification during a tender period.

o    Contractors to submit Project Controls methods and project control
deliverables for evaluation by the Owner during tender submission to have
proposed deliverables and method statements.

o    Agree Baseline project deliverables for Project Controls using
Earned Value Management during contract negotiations.

o    Project Controls according to Baseline supported by change
management, when needed.

·        
EPCM, Cost Reimbursable, and
BOQ Contracting Environment.

o    Contractors to submit preliminary Project Control methods and
project control deliverables for evaluation by the Owner, with tender
submission.

o    Owner to Contract for Project Controls using Earned Value Management
by means of specifications, as well as auditing rights to conduct Compliance
Inspections.

o    Agree preliminary project deliverables for Project Controls using
Earned Value Management during contract negotiations.

o    Control project against preliminary project deliverables for Project
Controls using Earned Value Management in first period (60 days).

o    Agree baseline project deliverables for Project Controls using
Earned Value Management during first period (60 days).

o    Project Controls according to Baseline supported, by change
management when needed, earliest or after preliminary contract period of 60
days.

·        
The Owner is to perform
Compliance Inspection to establish the Project Control confirmation of
contractors to specification during contract period.

 

4.1.6          Specifications
– When EVM is specified

The specifications for Project Controls
using Earned Value Management Principles are structured for the contract
strategy.

 

4.1.7          EPC and Sales Agreement on Fixed Price
Contracts

These contracting arrangements
will require a good scope definition and contractors with well-developed and
mature project controls systems. The EVM guidelines provided to contractors for
tender and contracting purposes will be the 10-point guideline. The contractor
will be expected to submit proposed project control statements and proposed project
control deliverables in tender phase. The project control deliverables will be
finalized in baseline project control deliverables during contract
negotiations. The project controls will be based on the baseline project
control deliverables from the start of the project, with change control for any
changes required in the baseline.

 

4.1.8          EPCM Cost Reimbursable and BOQ
Contracts

These contracting arrangements
will not have a good scope definition and contractors might not have
well-developed and mature project control systems. The EVM guidelines provided
to contractors for tender and contracting purposes will be the 32-point for
EPCM contractors, and 10-point guideline for sub-contractors. The contractor
will be expected to submit preliminary project control statements and
preliminary project control deliverables in tender phase for definition period
of contract. The preliminary project control deliverables will be finalized
during contract negotiations and used during the contract definition period,
until the baseline project control deliverables are developed and agreed with
the Owner. The project controls will be based on the baseline project control
deliverables from this point onwards, with change control for any changes
required in the baseline.

 

4.1.9          Service Level Agreements

The Functions executing projects are also expected to
implement project controls using EVM. The sourcing standard specifies the roles
and responsibilities, and Service Level Agreements (SLA) specification on
project controls specifies the methods and expected project controls.

4.2  Managing Contractor Maturity Levels

The Owner is reliant on
contractors, each with their own project controls tools and methods, which can
vary in maturity. Owners will have to consider this mentioned fact when
contracting, and managing the contractors (as indicated in the image below).
The contractors’ maturity will vary from Fundamental, to Intermediate, up to
Expert level. Successful project controls for the different levels of maturity
will require appropriate governance and support from the owner, including
contract strategy, specification, and training.

The Owner’s team is involved, as
indicated in the image below.

x

Hi!
I'm Joan!

Would you like to get a custom essay? How about receiving a customized one?

Check it out