ProCon for PMC Contractors
ProCon for PMC Contractors is an “out of the box” solution for major contractors who have won a contract from an operator or joint venture to deliver project management services. ProCon provides a systemised way to ensure procedures and controls are delivered into the contract management aspect of the PMC. Contractors who have won a PMC for all intents and purposes become the operator and they are the gatekeepers of each and every contract that is let. It is important that the Contractors show to their clients that all possible risks in managing contracts are being addressed and ProCon helps to demonstrate that international best practice is being followed.
Contracts form the greatest portion of the project investment and it is the job of the PMC Contactor to provide resources to manage this investment. Often these contractual relationships are complex and span years, so therefore it is vitally important that the PMC Contractor delivers effective Contract Management Services as part of its offering. ProCon for PMC Contractors is very easy to deliver and is supplied over the Internet. You don”t need a sophisticated network infrastructure to implement the solution; in fact it can be delivered as a service, which can be switched on and off when needed.
As ProCon delivers an entire end to end contracts solution for capital intensive projects, it can really act as a value add for the PMC Contractor. In reality Contractors bidding for a PMC need to show to operators how they will manage the project. By adding ProCon to the bid you can strengthen you contract management services offering.
| Challenges | How ProCon helps |
|---|---|
Managing Supplier RelationshipsContract managers need to record supplier details, supplier capabilities, pre-qualification lists, insurance details, audited accounts etc. of potential suppliers. In certain cases joint venture projects which are governed by production sharing agreements often have local content demands. |
Use the ProCon Supplier Relationship Management Module to pre- qualify suppliers using pre-determined, best practice questionnaire templates, capture the resulting score and categorise suppliers and contractors by score results and by categories of goods and services.Use the ProCon E-Business Portal to allow suppliers to log on and keep information up to date. |
Best PracticeUsing best practice and referencing standard documents (ITT and Contract templates) The team that is managing the creation and issuance of the invitation to tender documents often includes individuals who are contracted on to the project and therefore need access to the projects standard best practices and business processes. |
Use the ProCon Tender Management Module to expedite the creation and issuance of tender documents using tender templates and the best practice business rules set by the project. ProCon provides libraries of pre approved contract templates to meet various contract strategies and conditions. |
Creating transparency and ability to auditOil and Gas reserves are often exploited at a significant distance from the corporate office. The on-site contracts team must be in a position to prove that the tendering and contract award process is fair and transparent. |
Use the embedded audit trail throughout ProCon to capture each step in the tender to contract award process, allows remote auditing to take place. |
Managing variations and changesContract teams are inundated with large volumes of contract related communications, obligations and variations post award of a contract. Typically these arrive by post or email and must be captured and managed in one central place. |
ProCon has an inbuilt contracting language in the ProCon Contract Management Module that is shared by all parties to the contract and all post-contract-award communications originated by one party and received by another take place inside ProCon. |
Managing Claims and disputesProjects are frequently subject to unforeseen claims that result in a drain on cash reserves and delays to time to first oil. |
Use the ProCon E-Business Tools to standardise the contracting relationship, allow contractors to raise variations, issue transmittals and comply with obligations. Use the E-Business contractor portal to originate variation proposals and track the same through the approval process. |
Forecasting variations and spotting potential claim situationsThe project management team must capture and report on the financial status of contract as it evolves with little visibility into possible variations to contract that have been issued by the contractor but are not yet approved. The contracts team is challenged with consolidating a myriad of information stores in order to get a concise picture of the current contract financial status. |
The ProCon Contract Management Module captures all communications and escalations, both internal and external, within contract amendments, variations, applications for payment in one place. |
Reporting Contract PerformanceThe project team must capture and report back on performance of the contractor onsite. |
The ProCon Contract Management Module has embedded dynamic questionnaires which can be used to capture regular contractor performance. |
Reporting cost recovery statusIn Joint Ventures with investment partners and where licences are awarded under Production Sharing Agreements, the project team must provide rationale for cost overruns to support cost recovery claims under the respective partnership agreements. |
See the history of how, why and when changes have taken place with the ProCon Contract Management Module. Record who’s involved in the decision trails and report clearly on the reasoning behind the changes. A complete audit trail is available to provide backup to the contract changes. |
Managing Back to Back Continuity IssuesMany projects operate back to back shift patterns. The Project Manager must facilitate this job-sharing environment with no loss of continuity of business. |
The entire ProCon suite acts as a contract centric collaboration environment; it schedules, alerts, stores and supports the contracting teams. It provides a central repository of all contract related tasks and information, shared by back to back contract teams in a secure setting. |
Managing early stage project cost and budget challengesAt the early project stage, typically pre-feed, the project has little budget to commit to systems and therefore relies on ad-hoc approaches to issuing test drilling and early seismic tenders. |
ProCon is available as service, delivered on an ASP basis to facilitate the early project phases. |
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