Project Controls International

FPSO and Topsides

West African Costs

Basis of Estimate

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Que$tor Estimates

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2.       Expectations

 

2.1. Contract Administration

 

The Project Manager must ensure that Company’s project team understands the requirements of the contract and that both parties, the Company and the Client both adhere to it. Familiarity with the pertinent contractual terms and conditions is essential for project personnel to recognize their contract rights and duties.

 

After contract award the Project Manager should assemble the project leadership team to review the contract, the change process and the type of records that need to be maintained. Actions by the Client which disrupt or hinder Company’s ability to perform under the explicit or implicit contractual requirements to Company's detriment are grounds for Company to request compensation and/ or extensions in time from the Client through the change order process. One should not expend additional monies to mitigate client delays without the client's formal instruction. The Project Manager is responsible to ensure that the Project Team has the necessary dedication, personnel and resources to effectively administer change order preparation and processing. The Project Manager is also responsible to form a Claims Management Team when circumstances warrant as discussed below.

 

 

2.2.  Timely Client Change Order Notification

 

Project Management Teams are expected to limit the number of claims on a project by insisting upon the timely issue of formal Client Change Orders during the course of project execution, when the negotiating position is the strongest. Allowing disagreements to be tabled until the end of the project results in the Company having to negotiate from a position of weakness, increases the difficulty to locate contemporaneous cost and schedule information to justify our entitlements, and has a detrimental impact on cash flow and the predictability of job profit. In addition to potential cost impact, all notifications must address potential schedule impact or at a minimum reserving our right to evaluate the cumulative effect of multiple changes. Cost and schedule mitigation steps must be highly visible, documented, and performed with the full involvement of our client.

 

 

2.3. Client Satisfaction

 

Project teams are not normally authorized to unilaterally make concessions to Clients in an effort to improve client satisfaction. The expectation is for Clients to abide by the express and implied contractual terms and in the same manner Client expects Company to abide by them. Therefore the Company delivers on its contractual obligations and likewise expects the Client to do so as well.

 

 

2.4. Approval to Proceed

 

Project Management Teams must do everything within their power and the limitations of the contract to obtain formal client change orders for variations in work scope.

 

 

2.5. Client Change Order Register

 

Client Change Order Registers are to be maintained on every project and should be included as a part of monthly Company internal project reports. In addition to approved Client Change Orders, these Client Change Order Registers are to include all Client Change Orders that have been denied or which remain unresolved with the client. Furthermore, each project is expected to conduct a weekly internal meeting to review the status of Client Change Orders.

 

 

2.6. Claims Management Escalation

 

Client Change Orders or other matters which can not be agreed between Company and the client within a reasonable time frame should be elevated to Company Executive Management for review.

 

 

2.7. Claims Strategy Development

 

In the event that satisfactory closure can not be reached with the customer, the Project Manager is responsible for developing a Claims Strategy for review by Executive Management.

 

 

Link to section 1. Introduction

Link to section 2. Expectations

Link to section 3. Claim Development Process

Link to section 4. Claim Strategy Development

Project Claims and Change Orders Procedure - Expectations

Communication

The importance of good communication. Or telepathy as the alternate!

Selected Articles

An “armchair scheduler” or frontline messenger?

Why Project Controls
P6 vs. MS Project

The two contenders. But which one is better?

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Meetings

Love them or hate them. How to conduct successful productive meetings.

Funny, but true. Video on the functions of Project Controls.

Enjoy!

Settings do matter: pick the wrong settings and your schedule’s output will be meaningless.

What the text books didn’t tell you
Primavera P6 Settings
Video - Project Controls

Selected Articles

Tips on Scheduling

50% Science, 50% Art, 100% Communication

Why Project Controls?