Execution of Construction Projects is always a challenge since the associated risks & associated financial stakes with project delivery are big. Considering mega projects (circa multi-million / billion $), management of each project activity has to be with great deal of care.
Petrocontracts are experts in offering following Commercial Management Services:
Selecting the right contracting strategies for construction works is vital and shall commensurate with the construction execution plan and availability of resources.
Incorrect or inappropriate strategies impact the construction progress and jeopardizes the project completion. Such an impact on construction leads to claims & overruns. Disputes that could easily been avoided in the first place can result in sizeable delays potentially costing millions.
The focus shall be on selecting the right contract strategy through proper risk assessment process. Petrocontracts has tremendous experience in capturing such issues while developing the contracting strategies.
Offered Services - Contracts Management:
- Development of contractual strategy
- Due diligence on contract structure
- Contract risk analysis
- Prequalification of Contractors
- Bid support / Tender – RFQ - RFP development
- Bids Evaluation
- Contract administration including Change management
construction cost management services
Petrocontracts provides cost estimations of projects based on quantification of works by engineering team.
Budgetary and detailed cost estimates for EPC are developed in line with client's protocols & requirements.
Vendor quotes are solicited, where appropriate, local material costs are obtained from suppliers in the vicinity of the project, and labor productivity rates are derived from project experience and history and internationally recognized estimating guide.
No construction project is executed without encountering problems, including claims and other disputes. The differentiator between success and failure is how those claims / disputes are managed.
Petrocontracts offers claims services to our clients (owners, contractors, subcontractors, engineering companies and others).
Petrocontracts vast experience & in depth capabilities helps in managing the Claims. We analyze the claims in detail by breaking them down event-by-event and issue-by-issue, to help facilitate a thorough evaluation of the problem. We then identify the complex liability, causation and damage components of a claim and develop an effective resolution at root cause level and which add values to the project delivery by:
a) Presentation of Claims – Preparation, Investigation & Analysis
b) Management of Claims – Strength and Weakness Assessment of Claim Issues, Defense & Negotiation
c) Entitlement Analysis - Cause & Effect and Liability
d) Delay, Disruption and Acceleration Claims & Cost Analysis
e) Damages Assessment, Recovery of Costs and Loss of Profit
f) Dispute Avoidance, Strategy & Dispute Resolution including arbitration or ADR routes
g) Claim Prevention Strategy
Claims Preparation & Defense
In the event of contractual disagreements, it is crucial to be fully prepared. Petrocontracts team makes sure that you have all the relevant facts, detail and information to protect your best interests.
Poorly produced claims or misinformed defenses reduce the likelihood of parties settling. The impact of this can be far reaching and also can prove costly and time consuming.
- Claims strategy (extension of time and monetary claims)
- Complex change, measurement and valuation issues
- Extension of time claims
- Delay and disruption assessment and valuation
- Damages claims
- Forensic Delay Analysis
Contractual disputes can prove detrimental & costly affair & thus the best way is to avoid descending into dispute.
Petrocontracts, therefore, focuses upon avoiding disputes in the post-contract stage. Petrocontracts, advice is to avoid potential pitfalls at the start of the project and also regularly monitor progress to ensure the risk of dispute is kept to an absolute minimum.
- Careful analysis of key project risks
- Contract administration & performance monitoring
- Progress updates and audits
- Specialist planning & project controls
- Schedule risk analysis
In the event of contractual dispute in spite of all measures to avoid, it is important that dispute is resolved without any delay.
Petrocontracts have plenty of experience in investigating the root cause and reason behind contractual stand-still and project delays, and providing expert & independent advice as to how best to proceed for a win-win outcome.
- Dispute resolution strategy and management
- Strategic negotiation
- Independent expert advisor services
- Acting as mediator expert on the like of arbitrator or adjudicator
Petrocontracts offer forensic planning service so as to assess the delays that occurred during a construction programme period and evaluates whether those delays were foreseeable and avoidable.
The term ‘forensic’ is used because this work is typically undertaken after the construction process has been completed. Forensic planning can also be used to assess how much of an influence the delays may have had on the overall cost and timescale of a project.
Contractually, the base line schedule agreed at the beginning of contract works are compared with the actual time line in undertaking the works. Comparison between the baseline and actual schedule will demonstrate the delays. Construction projects can be delayed due to a number of varying circumstances; these often include:
• Inadequate information
• Contractor or client failures
• Variations [in work, specification & design]
• Poor communication
• Financial issues
Petrocontracts uses Window sampling method which allows us to take a number of predetermined periods of time and analyse the implications of the collated information and the impact on the construction activities within that period. It is an efficient and cost-effective method of analysis in drawing conclusions about the overall implications of the delays.