Effectively Managing Contracts

AVEVA WORLD NORTH AMERICA 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

NORTH AMERICA USER MEETING 2017

TIME

AVEVA ProCon Overview

Jack Leahey VP Global ProCon Sales

Copyright © 2017 AVEVA 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.


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


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

Introduction to ProCon for Owners


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 STAKEHOLDERS

BUSINESS & GOVERNANCE

Introduction to ProCon for Contractors


Contractor Qualification & Pre-Qualification Tendering & RFI Reponses Contract AwardFormal

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

Introduction to ProCon :Pre-Award for Owners


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


Contracting Plan and Tender Approvals

Tender Preparation

(RFx/ITT)

Tendering Period

(RFx/ITT)

Tendering Evaluation

Commercial Evaluation and Award

Recommendation


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.

Introduction to ProCon :Post Award for Owners


2. Post Award Contract Communications Templates: Pre-designed and configured in ProCon.

1. Separate ProCon portals for Company and Suppliers/Contractors.

Introduction to ProCon :Post Award for Owners


Manage Communications/InstructionsCFC 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 InstructionTQ Technical Query TR Technical Response

RFA Request for AuthorisationRqC Request for Certificate

Manage PaymentMCC Milestone Completion CertificateAFP Application for PaymentPC Payment CertificateINV Invoice

Manage CloseoutHOC Handover CertificatePUN PunchlistDEF Defect Correction NoticeFAS Final Account StatementPCC Partial Completion CertificateFCC Final Completion CertificateCCC Contract Closeout Certificate

Manage ChangeAMD Contract Amendment

VR Variation RequestVRC Variation Request ContractorVO Variation Order

DCN Design Change NoticeTDR Technical Deviation RequestPCI Potential Change Item

Manage Claims/DisputesCCL 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”

Introduction to ProCon :Analytics for Owners


• 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

ERP

Document Management

Engineering

ProCon

• Contract Change 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

FacilitiesManagement

Contractors

DocumentManagement

Project Control / Cost Management

Desktop

Copyright © AVEVA 2016 All rights reserved.

http://www.kildrummy.com/product/manager.asp


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.”


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. ”


What our

clients are saying

“It’s important to knowthat data can’t becompromised. WithProCon all information is stored securely in oneplace – that’s highlyreassuring for an operation like ours,collaborating acrossdiverse locations.”


What our

clients are saying

“I am really pleased with ProCon - all our users have adopted it enthusiastically”


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!


TIME

Thank you

NORTH AMERICA USER MEETING 2017

Do you want to discover how AVEVA ProCon can help you manage your contracts for better project delivery? Click here to contact the team today!


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Effectively Managing Contracts