Effectively Managing Contracts

Effectively Managing Contracts

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  AVEVA WORLD NORTHAMERICA USER MEETING 2017 This presentation provides an overview of AVEVA’s contract management solution, ProCon, a contract risk-management solution that helps owner operators manage contractors to ensure on time and on budget delivery for capital projects. Presented by: Jack Leahey – AVEVA Discover how AVEVA can transform your business today www.aveva.com
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  NORTH AMERICA USERMEETING 2017 TIME AVEVA ProCon Overview Jack Leahey VP Global ProCon Sales
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  Copyright © 2017AVEVA Solutions Limited and its subsidiaries. All rights reserved. This presentation may include predictions, estimates, intentions, beliefs and other statements that are or may be construed as being forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could result in actual outcomes differing materially from those projected in these statements. No statement contained herein constitutes a commitment by AVEVA to perform any particular action or to deliver any particular product or product features. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. The Company shall not be obliged to disclose any revision to these forward-looking statements to reflect events or circumstances occurring after the date on which they are made or to reflect the occurrence of future events.
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  Copyright © 2017AVEVA Solutions Limited and its subsidiaries. All rights reserved. Contents  The Business Case for “CLM” Contract lifecycle Management  ProCon from the Owner Operator Point of View  ProCon from the Contractor Point of View  ProCon Pre-Award  ProCon Post-Award  ProCon Analytics  Customer Quotations AVEVA WORLD NORTH AMERICA USER MEETING 2017
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  Introduction to ProCon Copyright© AVEVA 2016 All rights reserved. 5 ProCon SUB-CONTRACTORS CONTRACTORS CONTRACT PROFESSIONALS PROJECT PROFESSIONALS STAKEHOLDERS BUSINESS IMPROVEMENT & GOVERNANCE The Business Challenge “Poor Contract Management Costs Companies 14% - Bottom Line”. - Tim Cummins, CEO of the International Association for Contract & Commercial Management (IACCM), and 8over8 Partner Source: https://www2.iaccm.com/resources/?id=6845
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  Introduction to ProConfor Owners Copyright © AVEVA 2016 All rights reserved. 6 Contractor Qualification & Pre-Qualification Contracting Plan/Strategy & Tender Approvals Tender Preparation (RFx/ITT) Tendering Period (RFx / ITT) Technical Evaluation Commercial Evaluation & Award Recommendation Contract Preparation and Award Manage Contract Initiation Manage Formal Instructions Manage Closeout Manage Performance / Risk Manage Variations / Payment Contracting Lifecycle Management ProCon Pre-Award • Potential Contractor Registration of Interest, Pre-Qualification • Contract and Tender Planning • Preparation of Tender packages/documents • Management of Document reviews • Preparation of Bid/shortlists • Online Tender Management – Issue RFx / ITT’s and Receiving submissions • Tender and Bid clarifications, bulletins & Addendums • Awarding Contracts ProCon Post Award • Contract and Communication Register • Contract Team Management • Contract Tasks, Alerts , Events, Calendar and Obligations • Setup and Manage internal Contract workflow ad External Correspondence • Track internal and External Approvals and variations • Variation / Amendment Management and Risked financial forecasts ProCon Analytics • Pre-Award and Post-Award dashboards containing CLM KPI’s that can have multiple layer drill down capabilities, custom reporting, and self service analytics CONTRACT PROFESSIONALS PROJECT PROFESSIONALS STAKEHOLDE RS BUSINESS & GOVERNANCE
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  Introduction to ProConfor Contractors Copyright © AVEVA 2016 All rights reserved. 7 Contractor Qualification & Pre-Qualification Tendering & RFI Reponses Contract Award Formal Communications Channel Reponses to all Owner Queries Submit Variations requests & AFP’s Contracting Lifecycle Management ProCon Pre-Award for Contractors • Contractor Registration and all Pre-Qualification information submitted • Formal Qualification and interest in bidding communications • Tender clarification questions and responses • Submittal of RFI’s and Tender Packages • Any responses needed for Owner questions from Document reviews • Short Listed Communication • Formal Negotiations • Contract Awarded or Communication of Loss ProCon Post Award for Contractors • Secure and auditable Communication Register • All submittals to owners • All changes requests, technical and commercial • Owners and contractors both have access to all communications • Submit all applications for payment • Receive Contract Closeout Punch list / Certificate CONTRACTORS CONTRACTORS
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  Introduction to ProCon: Pre-Award for Owners Copyright © AVEVA 2016 All rights reserved. 8 Competitive Bidding Sole Source Fast-Track Award Operational (Low Value) Contracting Plan and Tender Approvals Tender Preparation (RFx/ITT) Tendering Period (RFx/ITT) Tendering Evaluation Commercial Evaluation and Award Recommendation Contract Preparation and Award Contracting Plan and Tender Approvals Tender Preparation (RFx/ITT) Tendering Period (RFx/ITT) Tendering Evaluation Commercial Evaluation and Award Recommendation Contract Preparation and Award Record Tender Process Documents & Award Contract Operational (Low Value) Example : steps for “Competitive Bidding” process designed and configured in ProCon. NOTE! ProCon Pre-Award processes can be maintained, updated and tailored (as required) by nominated ProCon Administrators. Pre-Award Processes : ProCon will come with Pre- designed and configured Pre- Award processes.
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  Introduction to ProCon: Post Award for Owners Copyright © AVEVA 2016 All rights reserved. 9 2. Post Award Contract Communications Templates: Pre- designed and configured in ProCon. 1. Separate ProCon portals for Company and Suppliers/Contractors.
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  Introduction to ProCon: Post Award for Owners Copyright © AVEVA 2016 All rights reserved. 10 Manage Communications/Instructions CFC Correspondence from COMPANY CTC Correspondence to COMPANY INT Internal Correspondence RPT-IN Reports (By Contractor) RPT-OUT Reports (By Company) MoM-IN Minutes of Meeting (By Contractor) MoM-OUT Minutes of Meeting (By Company) SI Site Instruction TQ Technical Query TR Technical Response RFA Request for Authorisation RqC Request for Certificate Manage Payment MCC Milestone Completion Certificate AFP Application for Payment PC Payment Certificate INV Invoice Manage Closeout HOC Handover Certificate PUN Punchlist DEF Defect Correction Notice FAS Final Account Statement PCC Partial Completion Certificate FCC Final Completion Certificate CCC Contract Closeout Certificate Manage Change AMD Contract Amendment VR Variation Request VRC Variation Request Contractor VO Variation Order DCN Design Change Notice TDR Technical Deviation Request PCI Potential Change Item Manage Claims/Disputes CCL Claim (By Company) CLM Claim (By Contractor) CLI Insurance Claim Post Award Communication Templates : ProCon will come with pre-designed and configured Post Award Contract communication templates. Example : Each Communication template has its own separate process designed and configured in ProCon – e.g. “CFC”
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  Introduction to ProCon: Analytics for Owners Copyright © AVEVA 2016 All rights reserved. 11 • ProCon Analytics provides an opportunity to predict and monitor the commercial outcome of contracts • Commercial improvements can be achieved by leveraging analytics to: • Provide Early Warning Indicators of risk • Predict and improve the management of potential variations and claims • Monitor Compliance • Transform end to end contracting effectiveness
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  ERP Document Management Engineering ProCon • ContractChange Orders • Governance and standards • Enhanced contract performance • Contractor relationship management • Claims defence – risk mitigation • Business analytics – enhanced decision making • Tendering and contract portfolio planning ProCon Integration Project Controls Supply Chain / Procurement Engineering Management Facilities Management Contractors Document Management Project Control / Cost Management Desktop Copyright © AVEVA 2016 All rights reserved.
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  Copyright © 2017AVEVA Solutions Limited and its subsidiaries. All rights reserved. What our clients are saying “We’ll be using ProCon more and more. We deploy it on our 16 largest projects but there’s scope to extend it further. The Prelude deployment of ProCon has been a pathfinder for Shell and is the benchmark for other Shell projects to work against.”
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  Copyright © 2017AVEVA Solutions Limited and its subsidiaries. All rights reserved. What our clients are saying “ProCon’s transparency gives you the big picture and the close-up view of every detail into project- critical processes and procedures. ”
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  Copyright © 2017AVEVA Solutions Limited and its subsidiaries. All rights reserved. What our clients are saying “It’s important to know that data can’t be compromised. With ProCon all information is stored securely in one place – that’s highly reassuring for an operation like ours, collaborating across diverse locations.”
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  Copyright © 2017AVEVA Solutions Limited and its subsidiaries. All rights reserved. What our clients are saying “I am really pleased with ProCon - all our users have adopted it enthusiastically”
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  Copyright © 2017AVEVA Solutions Limited and its subsidiaries. All rights reserved. Conclusion Contract lifecycle management is an often overlooked or an under appreciated area of project management. When performed well and integrated into the project management work processes and systems the bottom line benefit can be from 5% to 15% savings of the entire project budget! AVEVA WORLD NORTH AMERICA USER MEETING 2017
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  TIME Thank you NORTH AMERICAUSER MEETING 2017
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  Do you wantto discover how AVEVA ProCon can help you manage your contracts for better project delivery? Click here to contact the team today! AVEVA WORLD NORTH AMERICA USER MEETING 2017 avevaworld.com @aveva /aveva