working together to minimize claims; maximize performance
TRANSCRIPT
making the difference
Working together to minimise claims and maximise performance
Andy Aston - Turner & Townsend Inc.
31st January 2017
2
making the difference
Working together to minimise claims and maximise performanceAndy Aston
January 2017
3
Turner & Townsend
Agenda
Andy AstonSVP Americas
The objective
Share ideas and good practice Outline benefits of system based
contract management Invite discussion and comment
Agenda
• Pre Award
• Post Award
• Partnerships
4
Turner & Townsend
Who are Turner & Townsend?
5
Turner & Townsend is an
independent professional services
company specialising in programme
management, project management,
cost management and consulting
across the real estate,
infrastructure and natural
resources sectors.
With 97 offices in 41 countries,
we draw on our extensive global
and industry experience to manage
risk while maximising value and
performance during the construction
and operation of our clients’ assets.
Turner & Townsend
The contracting process
6
Assess Select Define Execute Operate
Turner & Townsend
Pre award – bidding
Pre Request for Proposal (RFP) Consideration
Contracting strategy Multiple factors to consider
Scope of Work Unambiguous?
Contract type & commercial model. Method of engagement and compensation
During RFP Consideration
“Cold Eyes” Consistency and clarity?
Realistic expectations Are you being reasonable?
Clarification of bids Document and formalize
7
Turner & Townsend
Pre award - negotiation
Negotiation Consideration
Clear clauses negotiations clear scope, clear risk allocation, clear standards, etc.
Changes clear process for addressing changes
Responsibilities defined for parties, including regular exchange of information
Understanding Awareness of what is being signed
8
Turner & Townsend
Pre award - contract gaming
Avoids the contract drivingthe wrong behaviours in theparties
Identify potential areas ofuncertainty that could leadto claims & disputes
The Project Team isforewarned and forearmed ofpotentially problematic areasand can develop responsesprior to occurrence
Reinforce the Project Teamsunderstanding of thecontract and
Test the key contractualprocesses / ways of workingthat need to be followed postcontract
9
Test the contract Why ?
Turner & Townsend
Post award – claim mitigation
Consideration Action
Knowing the contract and supporting documents
create an abridged version of the contract for team members to reference regularly to ensure they do not act contrary to the contract
Meeting your obligations meet the time limits to review information, when areas will be released to a contractor, availability of owner resources, and completion deadlines of owner scope
Data and Documentation resolution of changes and issues and ultimately claims often comes down to who has the better data to support their position.
10
Turner & Townsend
Post award – claim mitigation
Consideration Action
Change order preparation ensure it is comprehensive andreasonable, tying back to the contractwhere possible to clearly define thescope being changed, any expectedexecution changes, and otherrequirements.
Change order reviews and execution
timely, thorough, and reasonable change orders should be executed in a timely manner
allow the contractor the ability to coordinate and perform the work
11
Turner & Townsend
What can lead to a claim?
12
Lack of clarify on the “Scope of Work”
Lack of clarity on roles and
responsibilities
Errors or omissions
Inadequate planning
Information provided to the
Contractor during the RFP and in
execution
Ambiguous contract drafting
Experience of the contractor
Indecision from the CPChem on
Change / RFI / requests
Turner & Townsend
What can lead to a claim?
13
Lack of clarity on communication protocols
“buying a job”; be ready
Inadequate project controls
Defective work
Delayed mobilization
Design changes
Delays free-issue items
Company “over stepping”
Interface management
Turner & Townsend
Post award – claims behavior
In the office
Spurious or incorrect statements and comments either verbally or in correspondence.
Unsubstantiated allegations of Company and/or Owner’s acts or omissions.
Allegations of delay or deficiencies in Company and/or Owner provisions (Engineering, Materials, etc.).
Notices or warning communications
In the Field
Lack of cooperation with work instructions
Reduction in or redeployment of resources
Failure to execute or proceed as required with priority activities.
Failure to execute / finalise work where high expenditure results in little return.
Submission of faulty work for inspection / acceptance
14
Turner & Townsend
Communication with contractor(s)
15
Keeping of live records (trend register)
Correspondence register (letters and notices)
Email register
Progress reporting against the agreed schedule
Issue certificates
Recording the minutes of meetings
Be careful of Verbal representations
Turner & Townsend
The partnership recipe
16
Critical Management
Skills
Critical Contextual
Characteristics
Partnering Success
Subject & Objective measure
INPUTS OUTPUTS
Cheng, Li, Love (2000)
Turner & Townsend
Partnership: critical success factors
17
Category Description
1 Adequate resources People, data, equipment made available?
2 Management support Senior management commitment?
3 Mutual trust Sharing all levels of data & info?
4 Long term commitment What investment have been made to make the partnership work?
5 Co-ordination Are the companies working together
6 Creativity Innovation and positive change
7 Effective communication How and to what extent?
8 Conflict resolution Is there any, and how is it resolved?
9 Perceived satisfaction ofpartner
Is the partnership seen to be working on both sides?
10 Compatible goals Do they meet each others needs?
Turner & Townsend
Is a partnership right for you?
Recommended for use? Challenges?
Multiple, on-going series of projects or long term project
One off, no opportunity for repeat business
Client desires to work with limited companies to improve predictability over time…
Maturity of the organization
Client is prepared to agree a reasonable profit for the contractor on day 1….
Poor understanding of the effort needed to make it work
Contractor understands the potential long term benefit of the relationship…
Conflicting goals…
High quality outcome desired with client prepared to invest their time and effort
Can all parties be trusted
18
Turner & Townsend
minimise claims and maximise performance? Click here to contact the team today!
avevaworld.com
@aveva
/aveva
Turner & Townsend IncOne Westchase Center10777 WestheimerSuite 1160HoustonTX 77042USA
t: +1 (713) 457 9400e: [email protected]
20
© Turner & Townsend Inc. This content is for general information purposes only and does not purport to constitute professional advice. We do not make any representation or give any warranty, express or implied, and shall not be liable for any losses or damages whatsoever, arising from reliance on information contained in this document.
It must not be made available or copied or otherwise quoted or referred to in whole or in part in any way, including orally, to any other party without our express written permission and we accept no liability of whatsoever nature for any use by any other party.
Thank-you