A Project Approach To Optimize Time and Cost - Petroleumclub.ro

MAC Scope <strong>and</strong> Contract CompensationCompensationMAC ScopeTRAININGSTART-UPCONSTRUCTIONReimbursable Rates• Difficult to define total requirements <strong>and</strong>/or• Contractor not in control of schedule,sequence & highly dependent on othercontractor activitiesTrainingCommissioning &Startup SupportConstructionSupervisionDetailed Design& HardwareSupplyFEEDEngineeringDETAIL DESIGN&HARDWARESUPPLYLump Sum• Provisional lump sum for major portion ofcontract• Contractors will bid on a “model” systemconfiguration as defined in ITT• “Model” approach keeps all bidders on equal<strong>and</strong> competitive basis• “Model” will be adjusted to actual systemconfiguration at end of FEED; there will beadditions <strong>and</strong> deletions as technical definitionimproves• Additions <strong>and</strong> deletions will be incorporatedinto lump sum based on firm-bid schedule ofrates <strong>and</strong> unit costsOperationsSupport(Lifecycle)FEEDReimbursable Rates• Difficult to define total requirements beforeFEED• MAC must work with multiple contractorswithout control over interfaces, responsetime, <strong>and</strong> changing requirementsSlide 25