EPC Contracts Management
ENDED
Training by
Customized Training Solutions (CTS) Pte. Ltd.
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On-Site
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SGD 2,985.00
Details
Overview
As competition intensifies within the global oil and gas industry; organisations seek different ways in which to achieve a sustainable competitive advantage. One response to this has been to be the ‘bearer’ of risk-i.e. the contractor
company decides to offer the client a ‘one-stop shop’ solution – to undertake the entire scope of a project by being the main contractor and subsequently managing the entire range of sub-contractor agreements to ensure that the deliverable in question is met
in its entirety. These type of contracts are often referred to as EPC (see title above) contracts. Another common name for them is ‘Turnkey’ contracts. If the contract can be executed successfully, the contractor stands to benefit, whilst if there are problems
and delays, it is the contractor who will bear these costs.
Learning objectives
On completion of this course, delegates will:
- Be familiar with the ‘building blocks’ of commercial contracts and understand how they interrelate to one another and what their purposes are
- Grasp the importance of considering risk management when entering into a commercial contract – have awareness of potential ramifications
- Understand the key features and components of an EPC contract
- Be aware of how bidding and tendering processes operate for the award of an EPC contract
- Know what to consider when pricing an EPC contract
- Understand the relationship between EPC contracts and host government agreements
- Be familiar with the different methodologies for resolving disputes that might arise as a consequence of operating a turnkey contract
Who should attend?
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Personnel wishing to grasp an understanding of EPC contracts and their mechanics
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Legal personnel
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Procurement and tendering personnel
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Management tasked with running projects and dealing with stakeholders
Outline
Day 1
Some pertinent and relevant contractual provisions that are of central importance – such as:
- Understanding the ramifications of Indemnity; insurance and liability provisions
- Provisions relating to risk and performance
- Warranties and guarantees
- Termination clauses
- Damages – LDC’s
- Renegotiation clauses and review mechanisms
- Price escalation clauses
- Consequential loss exclusion clauses
- Dealing with breach of contract
- Assignment and novation of contract
- Force Majeure provisions
Some key features of consideration of EPC contracts:
- Single point ownership – ramifications – advantages and disadvantages
- Time constraints (consider LDC’s in section 1)
- The fixed price basis – advantages and disadvantages
- Procurement responsibilities – ramifications
- Achieving/matching specification – quality and ‘fit for purpose’- what guarantees have been given?
Day 2
Effective risk management
- Environmental analysis – understanding where you are operating
- Competitor analysis – assessing competitors against what you are doing
- Performing Due Diligence – knowing who the stakeholders are; what their interests are and thinking in ‘scenarios’
- Understanding the classifications of risk that might impact upon an EPC contract – I.e. – financial risk; risk to the organisation (reputation; commitment of resources; etc.); risk of non-performance (consider topic 1 above) (risk of subcontractor non-performance); risk associated with regulatory compliance/- i.e. local content provisions – what are the ramifications of these? Political risk – instability; nationalisation, etc. (consider ‘Force Majeure’ above); organisational bias towards pricing bids and tenders; uncertainties/inconsistencies within FEED impacting price
- Establishing effective and realistic mitigation strategies (tied to bullet point 3 above)
- What are our project capabilities? (management and execution)
Day 3
Scoping EPC projects
- Getting the focus right – what is included and what is excluded – (for example – are we also handling the commissioning – or simply delivering operational facility?)
- Checking scope against the project business case
- Considering resource requirements
- The importance of effective ‘trade-off’ decision making processes
- Identifying and managing critical lead times
Corporate Social Responsibility and Stakeholder Analysis
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Tangible benefits/effects of a coherent CSR policy – entry to new markets; increased revenue; compliance with regulatory requirements etc.
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Intangible benefits – positive PR; enhanced corporate reputation; local community development; differentiation from competitors; retention of staff; strong supplier relationships; creation of sustainable competitive advantage, etc.
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Stakeholder Analysis – who are our stakeholders? Where are they located? How powerful are they? What is their impact/influence upon our business?
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Stakeholder Analysis – stakeholder groupings are not static
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Stakeholder Analysis – Corporate Strategic Initiatives and tactical realities – what is the role of the stakeholder?
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Stakeholder management and dispute resolution – managing the interface efficiently
Speaker/s
About the Trainer
Christopher Lennon has 26 years’ experience within the oil and gas industry – initially working offshore on rigs in the UK and Norway before becoming involved with projects and supply chain issues. He helped establish an anti-corrosion
production facility in Aberdeen for casing tubular – running the production facility initially before going on to create and manage the supply chain. He has set up distribution networks supporting the North Sea E&P industry within Aberdeen. He has managed
(and continues to do so) a variety of ‘special projects’ internationally – normally strategic or change management focused.
He has worked/consulted extensively within the field of supply chain management – is a contracts specialist and an international commercial arbitrator. He has the Freedom of the City of London; is a Fellow of the Chartered Institute
of Arbitrators; a Liveryman of the Worshipful Company of Arbitrators and a member of the Association of International Petroleum Negotiators. He holds an MBA and LLB from the University of Aberdeen, as well as the Chartered Institute of Arbitrators DipICArb.
He has over 13 years teaching experience at a number of universities across a wide range of subjects. He is currently the author and tutor of the module ‘Managing Projects and Optimizing Operational Performance.’ For Middlesex University’s International Oil
and Gas MBA programme (an online delivery medium). Chris works internationally consulting/training. He has delivered training to project managers of PDVSA; SONATRACH; OMV and a variety of North Sea based companies.
Recently he travelled to the Republic of Myanmar – where he delivered a bespoke training package in all areas of project management to the heads of the country’s oil and gas companies. He was personally welcomed by the Minister
of Energy.
Special Offer
Early bird: Less SG$100 for registration on or before 22nd February 2016
Group discount: 10% discount for 3 or more participants
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