An effective contract architecture is essential to deliver a capital project successfully. Yet even ‘iron clad’ contracts need updating once the project is underway. And poor contractor relationships or inefficient communication can hamper project planning, causing cost overruns and time delays before the designers even get to work. You need a contracting system that clearly sets out roles and responsibilities, and that can adapt with your project as it evolves. Digitisation can help manage the risk, assist in improving processes and improve governance. Industry leaders are already using AVEVA ProCon to successfully manage their project contracts. Discover how AVEVA ProCon could help your business. Contact the team at http://www.aveva.com/Contact/

1. WHY AVEVA PROCON
SHOULD BE ON YOUR
RADAR
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2. © 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.
THE BUSINESS
CHALLENGE

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“To prevent excessive cost overruns …
companies will need to employ advanced
risk analytics to analyse and quantify
capital spend to effectively plan for future
needs, to predict potential issues and
execute successfully”
Booz Allen Hamilton, Trends for 2015

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“Poor Contract Management Costs
Companies 9% – Bottom Line”
Tim Cummins, CEO
International Association for Contract & Commercial Management
(IACCM)
Source: https://www2.iaccm.com/resources/?id=6845

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“Sometimes if a decision isn’t forthcoming
from the owner’s team, a contractor may
move ahead with an inappropriate and
costly solution to a problem”
PWC – Correcting the Course of Capital Projects, April 2013

6. © 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.
HOW COSTS CAN BE
AVOIDED

7. THE PROBLEMS WE SOLVE
© 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.
Contract
Delivery
Proactive obligation,
milestone and supplier KPI
management
Reduced over-runs, usually
associated with change,
tendering and extensions
due to missed obligations
and milestones
Safeguard Own
Position
Contractual relationships
protected by best practice
governance
Teams not working in
isolation, avoiding silos,
reducing administration
efforts
Financial
Control
Improving cash-flow by
removal of pre-invoice
capital leakage
Zero visibility of potential
change prior to the event
Claims &
Disputes
A controlled contract
communication channel
Organisations with best-in-
breed tools and processes
have the best claims
mitigation capability
Control over
Change
High cost of change due to
a lack of best practice
processes
When justified change
takes place, cost recovery
from partners is critical

8. THE PROCON SOLUTION
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CONTRACTOR REGISTRATION
PRE-QUALIFICATION
TENDER MANAGEMENT
CONTRACT AWARD
TENDER PERFORMANCE
ANALYSIS
MANAGE COMMUNICATIONS
CONTROL CHANGES
& OBLIGATIONS
TRACK & VERIFY PAYMENTS
& BUDGET CONTROL
MANAGE CLAIMS & DISPUTES
LESSONS LEARNT & FEEDBACK
PRE-AWARD POST-AWARD
ProCon Portals

9. BENEFITS OF USING PROCON
© 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.
AVEVA ProCon
Efficient and Transparent
Tender Management
Reduced Avoidable
Cost Overruns
Claims Prevention and
Claims Defence
Contractual Obligation
Compliance
Enhanced
Governance
▲ Manage the tender and
associated communication
and document exchange
process efficiently in ProCon
▲ Use pre defined tender
templates and mandated
corporate business
processes for the tender
process
▲ Single channel of
communication between
contracting parties
▲ Pre defined communication
templates for ALL exchange
– aligned with contractually
agreed response times
▲ Manage payment verification
at line item level - no more
erroneous payments
▲ All Change Order requests
dealt with in a timely manner
in line with corporate
mandated business
processes
▲ No surprises - no avoidable
breach of contract -advance
notification of actions you
must undertake to comply
with contracted response
times and all contractual
obligations
▲ Single version of truth on
who made what decision
when and all associated
documentation /
authorisations / support
material linked together in a “
Claims Defence File”
▲ Timely exchange of
information that prevents
project execution escalating
out of control
▲ Contracting parties achieve
the project deliverables
unimpeded by delays that
otherwise result from failure
to meet obligations on time
▲ Totally transparent contract
execution
▲ Real Time visibility of all
KPI’s - monitor contractor
performance across all
projects
▲ Contracts awarded and
executed 100% in line with
corporate business
processes
▲ Totally transparent contract
award

10. CUSTOMER FEEDBACK
© 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.
“We’ll be using ProCon more and more. We deploy it on our 16
largest projects but there’s scope to extend it further. The Prelude
deployment of ProCon has been a pathfinder for Shell and is the
benchmark for other Shell projects to work against.”
SHELL

11. AVEVA PROCON
© 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.
Helping decision makers improve the performance
and profitability of their large and complex projects through
complete contract control
AN AVERAGE OF 5% SAVING ON PROJECT COSTS

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13. © 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.