Andy Aston, SVP Americas presents how Turner & Townsend achieved claim reductions while using AVEVA tools. Learn how you can avoid claims through the execution of the work with various techniques, data and documentation, and proper change order management.
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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
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5. Turner & Townsend
Who are Turner & Townsend?
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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.
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
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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
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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
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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.
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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
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12. Turner & Townsend
What can lead to a claim?
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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?
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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
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15. Turner & Townsend
Communication with contractor(s)
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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
17. Turner & Townsend
Partnership: critical success factors
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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
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19. Turner & Townsend
minimise claims and maximise performance?
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