Module 9 - Managing Project Procurement - PowerPoint Presentation Rev 2

Welcome to Worley Parsons Project Management

Process (WPMP) Training

Managing Project Procurement

 Introduction

 Overview of Procurement

 Responsibilities for Procurement

 Commencing the Procurement Process \Procurement Planning

 SmartPlant Materials

 Procurement Reports

 Procurement Initiation

 Procurement Execution

 Procurement Close-out

Learning Objectives

On completion of this module, you will be able to:

 Identify and understand the procurement methodologies and tools

available to Project Managers for the management of EPCM projects

Learning Outcomes

 Early involvement of the Procurement function in project planning

is essential

 The project’s procurement strategy and procurement plan must

align with the overall project strategy

 Clear definition of the objectives of the Procurement Process is

critical for the project team

On completion of this module, you will be able to demonstrate an understanding that:

 Procurement is an integral part of the WorleyParsons’ growth

strategy

 Procurement shall support the company to compete more

successfully as a leading provider of professional services worldwide

6

Overview of Procurement

 Procurement is the process by which materials, equipment and

third-party services are acquired for projects

 Key procurement interfaces include:

•

Project Management

•

Engineering

•

HSE

•

Quality

•

Cost Estimation

•

Project Controls

•

Construction Management

•

Legal & Risk What is procurement?

Overview of Procurement

 At the best possible total cost of ownership

 In the right quantity and quality

 At the right time

 In the right place

 For the direct benefit of the customer

What does procurement involve?

Procurement and Capex

 The Capital Expenditure (Capex) of a Project can be split into a

few elements:

•

Engineering and design – approx. 10% of Capex

•

Procurement:

− Materials and equipment – approx. 30 to 45% of Capex

− Contracts – approx. 30 to 45% of Capex

•

Balance is owners’ costs, insurance, land purchases etc

 The above is indicative only and dependent on the type and

location of a project. However, on average the Capex element managed by procurement ranges between 60% and 90% of the overall project value

Overview of Procurement

 Procurement is the bridge between Engineering (design) and

Construction (execution)

Overview of Procurement

 Materials Management

•

Purchasing, Expediting, Materials Control, Coordination of

Inspection (liaising with Quality), Traffic/Logistics, Warehousing/ Inventory Control etc

•

Legal agreement used is a Purchase Order

 Contracts

•

Acquisition and management of third-party services

•

Legal agreement used is a Contract

 Both Purchase Orders and Contracts are written and binding legal

agreements between relevant parties to supply either goods or services against agreed conditions

Procurement Executive Directive

 To minimise risk exposure, procurement services are usually

provided for and on behalf of Customers, in the Customer’s name or “on Customer paper” – this is the company’s preferred position

 However, this does not preclude provision of procurement services

in WorleyParsons’ name or on “WorleyParsons’ paper” – requires CEO to proceed in any event where additional supplier-related risks and liabilities are assumed (eg warranty obligations, delivery commitments, product liability, etc)

 In most instances, procurement services are provided on behalf of

the Customer, requiring active interaction with the Customer and their various approvals to proceed

EMS Workflows and Procedures 1/2

 Contracts services cover the provision of third-party services such as

construction labor, inspection services, painting and sand blasting

 The provision of contract services is governed by the Contracts

Workflow in EMS containing a number of procedures, guidelines, forms and templates

 Preferred Terminology:

•

ITT = Invitation to Tender

•

Contract = legal agreement for the provision of services

13

EMS Workflows and Procedures 2/2

 Materials Management includes the purchasing of goods and

equipment, subsequent expediting, inspection and receipt.

 The provision of Materials Management services is governed by the

Materials Workflow in EMS containing a number of procedures, guidelines, forms and templates

 Materials Management activities are managed and tracked through

SmartPlant Materials, WorleyParsons’ Materials Management system which starts from creation of the requisition through to final material reconciliation on site

 Preferred Terminology:

•

RFQ = Request for Quotation

•

Purchase Order (PO) = legal agreement for the supply of goods

Overview of Procurement

WorleyParsons procurement process

Pre-award Activities * Materials Management * Contracts

Obtain quotations Select the preferred suppliers

Project Procurement Plan

Determine procurement requirements

Procurement Initiation

Identify potential suppliers

Post-award Activities

Manage the supplier Administer POs and contracts Manage POs/ contract variation

Materials Field Administration Activities

Field Purchasing Transport/ Logistics

Receipt on site Warehousing

Close-out Activities

Conclude the engagement of the suppliers

Record the performance against each order & contract

Responsibilities for Procurement

 As Project Manager, you are responsible for the overall

management of procurement activities associated with the project

 You are not responsible for the execution of procurement activities

That is the responsibility of your Project Procurement Manager

 To fulfill your responsibilities, you should work closely with the

Responsibilities for Procurement

 Procurement specialists in each region

 Detailed procurement procedures, guidelines and associated

documentation

 Deployment of SmartPlant Materials as the company-wide materials

control system to record, track and report on procurement activity

 Global supplier database for materials, equipment and services

 Global Sourcing initiatives

 Supply arrangements with key suppliers

 Procurement staff managing the Materials Management and Contracts activities usually:

•

Work either from a core Procurement group in a key company

location or

•

Form a part of a dedicated project procurement team

 Procurement activities on the project are usually led by an

experienced Project Procurement Manager

 Where warehousing staff are required for specific customers or

projects, they are usually located on site

 Inspection may involve in-house or third-party inspectors, depending

on the location of the inspection activities Procurement resourcing

Procurement Process

 Establish exactly what the customer requirements are and what

WorleyParsons has committed to do

 Establish your procurement team and set out their responsibilities

 Procurement to participate in the Project Risk Assessment and ensure that

risk mitigation is included in the Procurement Plan to be developed

 Procurement to incorporate appropriate flow-down conditions from the Prime

contract (the agreement between Customer and WorleyParsons) in the Project Conditions to ensure compliance and alignment (e.g. including

customer’s confidentiality requirements, alignment of warranty periods etc.)

 Procurement to develop the project procurement procedures, based on EMS

but incorporating as appropriate Customer’s requirements (e.g. approval interfaces)

 Arrange to have the project set up on SmartPlant Materials

 Ensure WBS is established

Procurement Planning

 Planning is at the crux of all project activities

 Procurement is no exception

 The aim of procurement planning is to:

•

Know what needs to be procured, when, where and how

•

Identify critical long lead items and services

•

Establish order and consistency in the way the procurement

activities are performed

•

Understand the risks involved in the project environment and

identify mitigating actions

 The Project Procurement Plan is part of the Project Execution

Plan Planning

Procurement & Risk Management

 Procurement is an integral part of risk management on the project

•

Develop appropriate procurement/ contracts/ materials management

strategies, identifying the various risks (market, forex, local content requirements, taxation and importation issues, logistics complexities, etc. to be managed)

•

Use EMS procurement procedures to the largest extent, however,

recognize Customer requirements in the project specific procedure.

•

Ensure that the project specific procurement procedures are

approved by the customer and shared with the project procurement team

•

Develop the procurement schedule early, in line with the overall

project schedule, resulting in correct priorities to achieve the Required on Site Dates

Procurement Planning

Procurement Planning

When planning occurs

Identify 1 Evaluate 2 Define 3 Execute 4 Operate

Procurement Strategy

Procurement Plan

Materials Management Plan, if required

Purchasing and Contracts Initiation

Materials Management Plan, if required Contracts Plan, if required

Materials Field Administration

Contracts Plan, if required

Procurement Planning

 Project Procurement Strategy (PPS) is the:

•

Process for identifying and documenting the procurement

opportunities applicable to the project

•

First step in developing the Project Procurement Plan

 Typically, the PPS is first developed during the scoping stages of a

project

 Sometimes the customer provides the initial procurement strategy for

further development in the Project Procurement Plan Project Procurement Strategy

Procurement Planning

 Purchasing activities can involve long lead times

 Certain materials and equipment may be particularly critical to a

project’s success

 Purchasing activities usually involve multiple countries (infrastructure

and logistics, local legislation etc.)

 Market and technology developments can impact on the success of a

project and therefore need to be monitored on an ongoing basis

During the development of the PPS, the following factors need to be

considered:

Procurement Planning

 The PPS is a hierarchical matrix covering the entire work scope of a

project, broken down into separate ‘work packages’

 Only the major critical items are separately identified as work packages

 These packages are created and identified according to:

•

Unique technical and commercial attributes of the work activities

they comprise

•

Methods by which they are to be executed

Procurement Planning

Example of a PPS matrix Components Physical   Discipline Special Equipment Item A Special

Equipment Item B Balance of Plant Civil Works Project

Management

Project Management Services Contractor – Reimbursable Costs with Incentives Fee – $ 70m total

Design Design Contract – Lump Sum – $10m Facilities E & P Contract –

Reimbursable Costs with Fixed Fee – $30m total Procurement Specialist Supplier A – Lump Sum Purchase Order – $200m total Specialist Supplier B – Lump Sum Purchase Order – $100m total Fabrication Construction Contract –

Reimbursable Cost and Equipment Rates with Incentives Fee - $100M total

Materials Control Construction / Erection Services

Installation Contract – Lump Sum – $10m

Quality Inspection Specialist Quality Contract – All-in _{rates – $10m} Part of Project Management Services Commissioning / Start-up Assistance Part of Supplier A Purchase Order Part of Supplier B

Procurement Planning

 The structure of the PPS depends on the:

•

Scope of work

•

Nature and complexity of the project

•

Requirements of the customer

 The PPS assists in:

•

Administrative and commercial planning

•

Cost/schedule control functions of a project

Procurement Planning

 Allows a concise, high-level overview of how procurement activities

relate to the execution strategy of the project

 Illustrates alternative ways of executing the project procurement

activities

 Identifies where:

•

Consolidation (or further break-down) of work scopes can work to

the project’s advantage

•

Gaps may occur in hand-offs during execution

 A Procurement Strategy is a deliverable that can be provided for

projects in Identify and Evaluate phase

Procurement Planning

When planning occurs

Identify 1 Evaluate 2 Define 3 Execute 4 Operate

Procurement Strategy

Procurement Plan

Materials Management Plan, if required

Purchasing and Contracts Initiation

Materials Management Plan, if required Contracts Plan, if required

Materials Field Administration

Contracts Plan, if required

Procurement Planning

 Projects in Identify and Evaluate phases:

•

While you might not be able to fully identify these requirements, you

should be able to identify them in broad scope

Concentrate on Procurement Strategy approach

 Projects in Define phase:

•

The procurement needs of the project should be sufficiently identified to

support the Customer’s overall project schedule

Full fledged procurement plan can be developed

 Projects in Execute phase:

•

The procurement needs are clearly identified and a procurement plan

shall be developed to achieve the timely delivery of the project Full fledged procurement plan must be developed

Procurement Planning

 Documents the basis for obtaining and managing materials,

equipment and third-party services required for project execution

 Addresses relevant aspects of both materials management and

contracts for the project

 Maps out the various anticipated risks and constraints and identified

mitigating actions

 Identifies critical supplies (see also Procurement Strategy) and

outlines general strategy

 Ensures that the procurement activities align with the overall project

schedule

Procurement Planning

 The Project Procurement Plan:

•

Must clearly define the deliverables of the procurement process

•

Needs to be ‘fit for its purpose’

Procurement Planning

 The Project Procurement Plan

may also include details about the targeting of procurement efforts

 The Project Procurement

Manager will consider the assessment in the strategy development

Criticality-Value Assessment

Project Procurement Plan

Bottleneck, e.g. special alloy steel grade

Ensure continuity Develop alternatives Revise specifications

Critical, e.g. turbine compressor

Form closer relationships Direct negotiations

Routine, e.g. piping bulk blanket orders

Simplify procurement process

Automate

Rationalise supplier base

Leverage, e.g. customer’s standard agreement Maximise commercial advantage Competitive tender Standardisation Criticality Low Low High Value Potential High

Procurement Planning

Project Procurement Plan

 Where the complexity and / or size of the project warrant it, the Project

Procurement Plan may be further developed in separate plans:

•

A detailed Project Materials Management Plan

•

Separate detailed Project Contracts Plan for major contract

packages

•

Separate detailed Procurement Plans for key procurement

Procurement Planning

The various elements of the Procurement Plan are further defined in the Materials Management Plan, including:

 Specific strategies for buying materials and equipment

 Associated activities for managing the expediting, traffic/logistics etc

 The materials control and reporting systems

 Prioritization of procurement activities and associated engineering

deliverables in line with the ROS (Required on Site dates) as defined in the project schedule

Procurement Planning

 Level of procurement effort based on cost, schedule, criticality, and

other relevant factors

 POs/activities already executed and/or underway prior to

engagement of WorleyParsons

 Transition of early purchase agreements from the customer

 Material control systems

 Quality management, verification and inspection, which includes an

outline of inspection to be undertaken

 Site materials management plans

Procurement Planning

Subsets of the Material Management Plan

 Engineered equipment planning

 Bulk materials planning

 Prefabrication planning and modularization

Procurement Planning

 The primary objective is to ensure that items are acquired and

released in time to meet the overall project schedule

 The dates on which items are required on site to meet construction

needs drive the engineering and procurement planning and activity for engineered equipment

 A major equipment list for the project needs to be developed early

Procurement Planning

 Planning for bulk materials can be more complex than planning for

engineered equipment

 Bulk materials control starts with an examination of the project

schedule to assess:

•

What bulk materials are required over time

•

Critical required on site (ROS) dates

Procurement Planning

 Procurement planning:

•

Is usually very complex for extensive prefabrication

•

modularization often involving multiple sites

 An extensive prefabrication program demands an early procurement

planning effort that addresses the interfaces between vendors, fabricators and site construction

Procurement Planning

 The Contracts Plan can be:

•

Subset of the Project Procurement Plan or

•

Separate plans—complex projects

 The main focus of project contracts planning is the selection the best

contractor under the best available terms and conditions

 Needs to:

•

Analyze the options and the marketplace for the required

services

•

Define the number, type, scope, timing, interfaces, compensation

basis, etc of major contracts to be developed for the project from early planning through start-up

Procurement Planning

 For Projects in the Define phase the Project Contracts Plan needs to

document:

•

Critical contracting issues (e.g. labour resource constraints,

market constraints) for the major contracts

•

How will the impact be managed and the risk mitigated?

•

What is the schedule to meet timely completion of the Project?

Procurement Planning

 For Projects in the Execute phase, the Project Contracts Plan

review the constraints and identify mitigation measures similar to the Define phase projects but not just for major contracts.

•

All anticipated contracts are identified.

•

If the project is a continuation of a Define phase project, the

Contracts Plan developed for the Define phase will be

reviewed and updated by the Project Procurement Manager to reflect project progress and significant new developments

 A list of matters that typically need to be considered are listed on

page 32 of the participants manual Contracts Planning in Execute Phase

Procurement Planning

 The customer must approve the Project Procurement Plan as part of

the Project Execution Plan

SmartPlant Materials

 WorleyParsons uses a suite of project management systems to

SmartPlant Materials

 SmartPlant Materials is used to:

•

Identify

•

Record

•

Track

SmartPlant Materials

SmartPlant Materials has four integrated modules, which are described on page 36 of the workbook

SmartPlant Materials

 Maintains the Material Stock Code catalogue

 Generates bulk requisitions via interface to design systems (e.g.

PDS)

 Generates equipment and services requisitions

 Preparation of RFQs

 Supports bid evaluations

 Creates and, if required, amends POs

 Facilitates expediting

 Facilitates Traffic/Logistics

 Facilitates stores management

 Can undertake invoice reconciliation via Invoice Matching Interface

SmartPlant Materials

 SmartPlant Materials imports bills of materials from 2-D/3-D engineering

design software and other sources

 SmartPlant Materials supports better material planning on site and material

reconciliation through the ability to track imported bills of materials from Requisition to Material Issue

 Materials are identified as being in any of the following phases:

•

Requisition

•

RFQ

•

Purchasing

•

Expediting

•

Shipping

•

Warehouse receipt

•

Storage

•

Material Issue

SmartPlant Materials

 SmartPlant Materials was designed as a system for controlling

materials and equipment, not for administering contracts

 SmartPlant Materials can, however, be used to record basic

information about contracts

SmartPlant Materials

 Each individual project needs to be set up in SmartPlant Materials so

that its procurement activities can be recorded, monitored and reported

 SmartPlant Materials should be set up as soon as the Project

Procurement Plan or Materials Management Plan has been approved

 You are responsible for ensuring that SmartPlant Materials is set up

properly

 You work with the project Procurement Manager to identify and

obtain the information for the set up

SmartPlant Materials—Training

 When you need to start using SmartPlant Materials, you will receive

specific training on how to use it

 Contact the Business Systems Group to arrange the training

Procurement Reports

 Procurement activities are monitored and reviewed regularly

 SmartPlant Materials generates a range of reports which you use to

monitor progress and identify actions to be taken to address issues

 Two particularly important reports for the management of

procurement activities are the:

•

Procurement Status Report

•

Procurement Expediting Report

Procurement Initiation

 The Project Procurement Manager is responsible for completing the activities

that enable purchasing and contracts to be initiated

 The initiation activities should be completed during the early stages of the

project

 The initiation activities are:

•

Purchasing initiation

•

Contracts initiation and formulation

 Part of the initiation activities is the development of the Project terms and

conditions for purchase orders and contracts.

•

These may be provided by the Customer as we will typically be acting on

their behalf.

•

The conditions shall be checked for alignment with the Prime contract.

 Purchasing initiation involves setting up the project base for the Purchasing documentation and databases

 The main activities are:

•

Identifying PO provisions (including standard Terms and

Conditions)

•

Preparing standard documentation, including Instructions to

Bidders, master Request for Quotation, master purchase order document

•

Carrying out vendor pre-qualification

•

Establishing a project vendor list

Overview of purchasing initiation (Materials Management)

 Contract initiation and formulation involves:

•

Setting up the project base for contracts documentation

(including standard Terms and Conditions)

•

Establishing the contracts system for the project

 The main activities are:

•

Establishing the contract types, sites conditions, HSE etc

•

Preparing common enquiry requirements and special contract

provisions

•

Carrying out contractor pre-qualifications

•

Establishing the contractor list

Overview of Contracts initiation and formulation

Procurement Execution

 All procurement execution activities are undertaken by the Project

Procurement Manager and the Procurement team

 You are responsible for ensuring that the procurement activities are

executed in accordance with the Project Procurement Plan

 You and your Project Procurement Manager need to hold regular

meetings to:

•

Review the status of procurement activities

•

Identify issues early and determine the action required to

minimize any adverse impact Overview of procurement execution

Procurement Execution

 The purpose of the Purchasing Pre-award Process is to award the POs under

which the project’s materials and equipment are obtained

 The pre-award process ensures that all bidders are treated fairly and

equitable, that the confidentiality of the information is maintained and that the recommendation to award is in accordance with the agreed evaluation criteria

•

Agreed evaluation criteria may be as simple as ‘Technically acceptable,

lowest cost’ or more complex ‘Total Cost of Ownership’ (TCO). Consider that TCO often requires Customer input as well.

•

Competitive bidding is indicated. However, if single source is considered

for purchase orders, justification must be provided. This may include proprietary technology or customer’s standardisation preference.

 Project Purchasing pre-award activities occur predominantly during the

Execution phase

Procurement Execution

 Preparing enquiry packages, including special terms and

requirements (for example, supplier data, support, spares)

 Issuing the enquiry packages and managing bid preparation and

receipt process

 Managing all communications with bidders during bidding and

evaluation

 Evaluating the bids

 Preparing recommendations for award, conducting post-bid

negotiation and facilitating final issue

 Entering all data related to the purchases into SmartPlant Materials

Procurement Execution

 Maintains the required level of confidentiality of information

 Ensures that engineering deliverables are aligned to support timely

procurement activities

 Maintains the interfaces between Engineering, Quality and

Construction

 Involves the Project Procurement Manager in the regular team

progress meetings

 Undertakes and completes procurement activities in accordance with

the Project Procurement Plan

Materials Management execution—purchasing pre-award process As Project Manager, you will need to ensure that the procurement team:

Procurement Execution

 Purchase Order documents are to be prepared by Engineering and

Procurement on receipt of the approved Award Recommendation

 Kick-off meetings are arranged as required

 Post-award activities are initiated by the project procurement team

 Once internal and other approvals have been obtained to place a

contract or a PO the Procurement Manager is the only person with

the authority to confirm the commitment for the contract or PO with

the supplier on behalf of WorleyParsons and/or our customers Materials Management execution—purchasing award process

Procurement Execution

 Confirm that the cost of the awarded POs is within the

project budget

 Provide relevant information to the project’s Cost Controls

Manager

Materials Management execution—purchasing award process You are responsible for ensuring that the award process is properly undertaken

Procurement Execution

 This process covers award of a PO through to receipt at site and

financial close-out

 The purpose of the Purchasing Post-award Process is to:

•

Administer the POs to obtain the project’s materials and

equipment on schedule and in accordance with specifications

•

Provide cost and schedule information to Project Services

•

Identify PO issues for Risk Management activities

•

Liaise with Inspection to ensure compliance to specifications

 The Purchasing Post-award Process covers the technical and

commercial activities in the manufacture and delivery of materials and equipment

 Ensure all meetings and vendor contact are coordinated by

Procurement.

Procurement Execution

The main activities in the Purchasing Post-award Process are:

 Expediting (including Supplier documentation)

 Inspection coordination

 Traffic/Logistics

 Receiving on site, warehousing and preservation

 Change/Claim administration

 Invoice payment

Procurement Execution

Effective procurement performance requires:

 Use of SmartPlant Materials

 Monitoring the vendor’s engineering and manufacturing processes

 Meeting documentation obligations

 Measuring and assuring conformance to the technical specification

 Administering delivery of the materials and equipment

 Managing any changes to the PO technical and commercial

provisions

 Managing any claims by the vendor for additional payment or

schedule time

Procurement Execution

 The Construction Manager involves the Project

Procurement Manager in construction progress review meeting

Materials Management execution—purchasing post-award process As Project Manager you are responsible for ensuring that:

 For most items, weekly status meetings are sufficient

 For critical items, daily review meetings between the Construction

Procurement Execution

 The Materials Field Administration Process governs the day-to-day

procurement activities on site

 The actual administration is the responsibility of your Project

Procurement Manager

 Materials Field Administration may include site administration,

purchasing and contracting

Materials Management execution—purchasing materials field

administration process

You are responsible for ensuring that the requirements for materials field administration are included in the Project Procurement Plan

Procurement Execution

 The purpose of the Contracts Pre-award Process is the contracting of

third-party services

 Project Contracts pre-award activities predominantly occur during the

Execution phase

 For early contracts, some activities may occur in the Define phase

 The deliverables of the Contracts Pre-award Process are:

•

Bidders lists

•

Enquiry packages

•

Approved recommendations for award

•

Contract documents

 Cost and schedule information provided to Project Services and

contracts issues input into Risk Management activities Contracts execution—contract pre-award process

69

Procurement Execution

Contractor selection

 A thorough prequalification process will normally be executed for major

contracts, e.g. fabrication contracts. This will involve multiple disciplines to prepare the questionnaire for the relevant work scope, typically including construction, engineering, quality, HSE as well as project controls and procurement.

 Competitive, sealed bids are indicated for major contracts

 If single source is considered for service contracts, justification must be

provided. This may include proprietary technology (e.g. software) or customer’s preference.

 Once internal and other approvals have been obtained to place a contract or

a PO the Procurement Manager is the only person with the authority to

confirm the commitment for the contract or PO with the supplier on behalf of WorleyParsons and/or our customers

Procurement Execution

 The Contracts Post-award Process covers the technical and

commercial activities

 The main activities are:

•

Awarding contracts

•

Administering and monitoring the contractors

•

Managing any changes to the contract

•

Managing any claims

•

Processing any payments and back charges, reconciling

quantities and finalizing all contract obligations

•

Providing cost and schedule information to Project Services

•

Identifying any contracts issues for Risk Management activities

Procurement Execution

 PO and contract variation must be processed in accordance with the

Management of Project Change Process

 You and the Procurement Manager must sign-off any variances

before they can take effect

 The scenario for the case study is on page 55 of your workbooks

Discussion topics:

 What would you say are the key procurement issues on the project?

 What can be done to remedy the situation?

Procurement Close-out

 The Procurement team completes the procurement close-out tasks

 You are responsible for ensuring that the Project Procurement

Manager and the procurement team do this Responsibilities for procurement close-out

Procurement Close-out

 Project Materials Management close-out activities generally occur

late in the Execution phase

 Close-out must follow the requirements for finalization of supply as

set out in the Project Procurement Plan

 The main objectives of materials close-out are:

•

Materials reconciliation

•

Surplus management

•

Final inspection (this is a Quality activity)

•

Receipt Final Vendor Documentation

•

Claims resolution

•

Closing out of all PDs

Procurement Close-out

 Close-out must follow the requirements for finalization of supply as

set out in the Project Procurement Plan

 The main objectives of contracts close-out are:

•

Provision of acceptance certificates

•

Confirmation of warranties

•

Handover of documentation

•

Final inspections (Quality activity)

•

Claims resolution and payment reconciliation

 Demobilization of the site by WorleyParsons and the contractor does

not necessarily indicate final close-out of the project Contracts close-out

Summary and Feedback

 Review learning objectives and outcomes

 Summary

•

Overview of Procurement

•

Responsibilities for Procurement

•

Commencing the Procurement Process \Procurement Planning

•

SmartPlant Materials

•

Procurement Reports

•

Procurement Initiation

•

Procurement Execution

•

Procurement Close-out  Questions  Evaluation

Module 9 Managing Project Procurement