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making the difference
Working together to minimise
claims and maximise performance
Andy Aston - Turner & Townsend Inc.
31st January 2017
making the difference
Working together to minimise claims
and maximise performance
Andy Aston
January 2017
Turner & Townsend
Agenda
Andy Aston
SVP 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 driving
the wrong behaviours in the
parties
 Identify potential areas of
uncertainty that could lead
to claims & disputes
 The Project Team is
forewarned and forearmed of
potentially problematic areas
and can develop responses
prior to occurrence
 Reinforce the Project Teams
understanding of the
contract and
 Test the key contractual
processes / ways of working
that need to be followed post
contract
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 and
reasonable, tying back to the contract
where possible to clearly define the
scope being changed, any expected
execution changes, and other
requirements.
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 of
partner
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 Inc
One Westchase Center
10777 Westheimer
Suite 1160
Houston
TX 77042
USA
t: +1 (713) 457 9400
e: andy.aston@turntown.com
www.turnerandtownsend.com
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

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Working Together to Minimize Claims; Maximize Performance

  • 1.
  • 2. making the difference Working together to minimise claims and maximise performance Andy Aston - Turner & Townsend Inc. 31st January 2017
  • 3. making the difference Working together to minimise claims and maximise performance Andy Aston January 2017
  • 4. Turner & Townsend Agenda Andy Aston SVP 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
  • 5. 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.
  • 6. Turner & Townsend The contracting process 6 Assess Select Define Execute Operate
  • 7. 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
  • 8. 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
  • 9. Turner & Townsend Pre award - contract gaming  Avoids the contract driving the wrong behaviours in the parties  Identify potential areas of uncertainty that could lead to claims & disputes  The Project Team is forewarned and forearmed of potentially problematic areas and can develop responses prior to occurrence  Reinforce the Project Teams understanding of the contract and  Test the key contractual processes / ways of working that need to be followed post contract 9 Test the contract Why ?
  • 10. 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
  • 11. Turner & Townsend Post award – claim mitigation Consideration Action Change order preparation ensure it is comprehensive and reasonable, tying back to the contract where possible to clearly define the scope being changed, any expected execution changes, and other requirements. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. Turner & Townsend The partnership recipe 16 Critical Management Skills Critical Contextual Characteristics Partnering Success Subject & Objective measure INPUTS OUTPUTS Cheng, Li, Love (2000)
  • 17. 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 of partner Is the partnership seen to be working on both sides? 10 Compatible goals Do they meet each others needs?
  • 18. 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
  • 19. Turner & Townsend minimise claims and maximise performance? Click here to contact the team today! avevaworld.com @aveva /aveva
  • 20. Turner & Townsend Inc One Westchase Center 10777 Westheimer Suite 1160 Houston TX 77042 USA t: +1 (713) 457 9400 e: andy.aston@turntown.com www.turnerandtownsend.com 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