ProCon for Capital Projects
ProCon for Capital Projects is a solution suite for the Project and Contract Professionals who are challenged with managing high value contracts to strict time and budget schedules.
Throughout the stages of any oil and gas project there are considerable contracting risks that impact on the return on investment. Unforeseen changes often occur to the design and scope which can cause further calls to increase investment. This overrun in turn has a direct effect in the investment returns of the venture.
Typically contracts form the greatest portion of the project investment. Often these contractual relationships are complex and span years if not decades. Considerable time and effort is spent in their design, development, negotiation, award, management and measurement in execution. Pre and post the contract award processes form the core principles of project strategy and execution. They provide a basis for acceptable business compliance and control through out a project.
ProCon delivers an entire end to end contracts solution for capital intensive projects right from Pre-FEED to Decommissioning. ProCon delivers value across the contracting function and through the project�s life cycle.
| 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 Contractor 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. |
Click here to request more information about our product or services.