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AVEVA ProCon fiatech-shell-case-study-slideshare 2016

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Shell 'Clear and Consistent Communication in the Essence of a well-executed Project' Case Study by Adina Anwar, Senior Contracts Manager

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AVEVA ProCon fiatech-shell-case-study-slideshare 2016

  1. 1. CASE STUDY Clear and Consistent Communication is the Essence of a well-executed Project
  2. 2. OpportunitiesBeingAddressed Improving major capital project success rate in the current market climate Fiatech Global Forum | 2016 Outside our control 2 Under Our Control • Capital Discipline • the projects we sanction • the partners we choose • how well we execute
  3. 3. The importance of contractual communications Fiatech Global Forum | 2016 3 • Communications are governed by contractual obligations • Communications provide early warning indicators of risk • Clarity, consistency and timeliness build good contractual relationships • A complete communication audit trail is fundamental to managing and defending against claims [WHEN BUILDING MEGAPROJECTS]
  4. 4. Standardization of communication processes 4 • Communications are governed by contractual obligations – Format, terminology – Frequency – Communication channel – Turnaround time of formal responses • Failure to meet contractual obligations exposes either party to risk of penalties or claims Our solution: a shared communications platform Fiatech Global Forum | 2016
  5. 5. Shared, secure, web enabled communications platform 5 Owner Operator view of contract communications register and status Contractor view of contract communications register and status • All contractually significant communications must be transmitted via the system • Provides full transparency and traceability • Always the latest version of communications, with the latest attachments • No silos of emails scattered around personal mailboxes Fiatech Global Forum | 2016
  6. 6. 6 Standard templates enforce a common execution language General Correspondence TQ Technical Query MO M Minutes of Meeting TAF Travel Authorisation Form Change Management DCN Design Change Notice TDR Technical Deviation Request COR Change Order Request CO Change Order Manage Payment AFP Application For Payment PC Payment Certificate MCC Milestone Completion Certificate INV Invoice • Consistent terminology across all contracts • Consistent templates and formats across all contracts • Consistent reporting across all contracts • Reduced administration for both parties • Increased clarity about outstanding issues and risks between parties Fiatech Global Forum | 2016
  7. 7. Communications are early warning risk indicators 7 The contract risk management solution • Identifies and quantifies potential changes – Scope – Quality – Cost – Schedule • Ensures that decisions about potential changes to scope, schedule, cost are made by the right people, at the right time, in the right sequence Our solution: Automated workflow on the shared platform Fiatech Global Forum | 2016
  8. 8. Workflow improves efficiency and risk transparency 8 Change Order Process • Business processes defined for communications that carry potential risk e.g. Technical Queries, Change Order Requests, Applications For Payment, Claims • Approval sequences improve efficiency and traceability • Accommodates delegated authority policies Decisions about potential change made by the right people, at the right time, in the right sequence Fiatech Global Forum | 2016
  9. 9. Aggregating Contract Risk Management Metrics across Project Portfolio 9 Organization Business Unit 1 Project Alpha Contract A1 Contract A2 Project Bravo Contract B1 Contract B2 Business Unit 2 Project Charlie Contract C1 Contract C2 Project Delta Contract D1 Contract D2 Change Order Requests Claims Applications for Payment Technical Deviation Requests Standardization and workflow allows potential megaproject contract risk data to be rolled up across: • All major contracts • All projects/depts • All assets/business units Fiatech Global Forum | 2016
  10. 10. ProCon Analytics Insights 10Fiatech Global Forum | 2016 [EXAMPLE OF REPORTS]
  11. 11. ProCon: Claim Management 11 Leveraging the communication audit trail to manage and defend against claims: • A complete communication audit trail is fundamental to managing and defending claims • Acts as the tamper-proof independent source of truth Our solution: automated commercial audit trail on the shared platform Fiatech Global Forum | 2016
  12. 12. Managing and defending against claims 12 Independent source of truth acts to minimize and defend against claims ProCon preserves the “red thread” of personal and corporate responsibility through the chain of communications linked to contract obligations. Owner Operator ProConOperatorPortal ProConContractorPortal $ Contractor DISCIPLINE • Risks • Reviews • Schedule Impact • Who? • Responsible • Accountable • Consulted • Informed • Instructed • When? • Compliance • Supporting Documents • Decisions • Obligations Claims defense – “building a better bundle” Traceability of every decision, linked to supporting evidence, in context, and time lined. Fiatech Global Forum | 2016
  13. 13. Summary: the importance of contractual communications when building megaprojects 13 • Large complex capital projects in this low oil price climate require proactive contract risk management. Improve what is within your control. • Communications are governed by contractual obligations • Communications provide early warning indicators of risk • Clarity, consistency and timeliness build good contractual relationships • Standardization is key to improving transparency, efficiency and reporting cross-project contract risk • A complete communication audit trail is fundamental to managing and defending against claims Fiatech Global Forum | 2016
  14. 14. Thank You! Questions? 14 Adina Anwar Senior Contract Manager – Major Capital Projects Shell Projects and Technology adina.anwar@shell.com Fiatech Global Forum | 2016
  15. 15. © 2016 8over8, an AVEVA Group company. All rights reserved. All trademarks herein are the property of their respective owners. 8over8 and the 8over8 logo are trademarks of 8over8. 8over8.com @8over8 /8over8

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