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PROCUREMENT

The business world growing very fast and the competitiveness is getting more and more difficult day by day. If you are not providing services or material that are specialized, you will need to do more in reducing your costs. Similarly, if you are a client, buying specialized products, you will need to develop customized strategies in order to optimize your costs. Outsourcing the procurement activities has started to become a trend to be able to gain commercial advantages, though it has pros and cons. Especially for an EPC Project, Procurement of equipment, materials and services represents a major portion of overall costs. If you like to improve your competitiveness in the market, you need to pay more attention on your procurement strategies.

ALTERNATE DISPUTE RESOLUTION

Due to the fact that the resolution of a dispute is quite prolonged and costly exercise, everyone has started to look for alternatives to it. Indeed, if both Parties have an intention to settle any dispute, they only need a trustworthy mediator, nothing more. As a mediator, you will need to see all the facts presented by both parties, assess their legitimacy and the quantum and propose a soft landing solution that will be acceptable to both parties. It is not easy if the parties has taken extreme positions. Give it a try, by time, the positions might change.

CONTRACTING

Contracting out or contracting in? Do you need to know what are the best practices? Are you looking for how Clients operates? What are the pitfalls in a Contracting Process? How you can increase your chances for being awarded an EPC or FEED Project? Indeed, Clients are not different than the Contractors. They follow the same principles of Contracting. However, by gaining more knowledge on how do they perceive it, their culture and identifying the risks associated with, you can improve your profitability and relations with the Clients.

If you are contracting out, again you need to know how your subcontractors perceives your project and prepares their proposals.

TRAINING

Training is an efficient tool to develop your organizations strengths only if you have the right instructor, customized material to your need and the audience who are eager to improve. There are no Instructor in the World whom knows everything. The Instructor is responsible to establish an interactive environment that will help people to raise their level of knowledge. In-house training is an efficient way of learning but does not tell you much about other side of the table. You need the right person with right material to repair your wall.

CONTRACT MANAGEMENT

Contracts are part of our daily life and much bigger transactions. Contracts are usually seen as a reference document when needed. It might be too late to look at it. It is very important to follow and comply with the Contract, know their rights and obligations very well and ask for your rights in accordance with the Contracts. Most of the disputes are generated from non-compliance to the Contracts. Respect to other Party’s requirements as long as all in compliance to it. If the Contracts are not administered and managed in a systematic way, the product to be delivered under the Contract may not be to the expectations from all aspects, i.e. Cost, Schedule, Safety and Quality. Do not ignore it! You are lucky if an EPC Project or FEED Project is completed without referring to your Contract:)

PROJECT MANAGEMENT

Being in the Projects for more than 20 years and certified PMP, I would not classify myself as a Project Manager. However, I can provide advises which can be valuable the way and the processes that you are managing your projects. Project Controls plays an essential role in Project Management. I call them as “right arm” of the Project Managers. Project Managers having poor Project Control team or having no idea about what Project Control is , are one of the reasons for Project failures as per my experience.