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    Ceda Webinar On Contract Selection PDF

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    Jurun Bidanshi
    This document provides guidance on effective contract-type selection in the dredging industry. It addresses issues like commercial risk allocation, contracting methods, and project procurement. The document outlines a general introductory section explaining the procurement process and contract types. It also describes six "Key Aspects" for consideration when selecting a contract, like project scope, risk allocation, and schedule. Finally, it proposes a scoring matrix tool to assess the key aspects for different contract types and compare their suitability based on the project's level of uncertainty for the owner. The aim is to assist contract awarders in evaluating and customizing their procurement method.

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    Ceda Webinar On Contract Selection PDF

    Uploaded by

    Jurun Bidanshi
    129 views14 pages
    This document provides guidance on effective contract-type selection in the dredging industry. It addresses issues like commercial risk allocation, contracting methods, and project procurement. The document outlines a general introductory section explaining the procurement process and contract types. It also describes six "Key Aspects" for consideration when selecting a contract, like project scope, risk allocation, and schedule. Finally, it proposes a scoring matrix tool to assess the key aspects for different contract types and compare their suitability based on the project's level of uncertainty for the owner. The aim is to assist contract awarders in evaluating and customizing their procurement method.

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    This document provides guidance on effective contract-type selection in the dredging industry. It addresses issues like commercial risk allocation, contracting methods, and project procurement. The document outlines a general introductory section explaining the procurement process and contract types. It also describes six "Key Aspects" for consideration when selecting a contract, like project scope, risk allocation, and schedule. Finally, it proposes a scoring matrix tool to assess the key aspects for different contract types and compare their suitability based on the project's level of uncertainty for the owner. The aim is to assist contract awarders in evaluating and customizing their procurement method.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    129 views14 pages

    Ceda Webinar On Contract Selection PDF

    Uploaded by

    Jurun Bidanshi
    This document provides guidance on effective contract-type selection in the dredging industry. It addresses issues like commercial risk allocation, contracting methods, and project procurement. The document outlines a general introductory section explaining the procurement process and contract types. It also describes six "Key Aspects" for consideration when selecting a contract, like project scope, risk allocation, and schedule. Finally, it proposes a scoring matrix tool to assess the key aspects for different contract types and compare their suitability based on the project's level of uncertainty for the owner. The aim is to assist contract awarders in evaluating and customizing their procurement method.

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    You are on page 1of 14

    Effective Contract-Type Selection

    in the Dredging Industry

    Charles Wilsoncroft
    Partner, HKA
    Chairman CEDA DMC Contract Working Group
    Background
    • DMC members identified knowldge gap in
    industry
    • Decreasing margins and increasing
    commerical risk changing the way contracts
    are procured
    • Terms of Reference drafted June 2017 to
    inform industry stakeholders
    Background
    Issues to be addressed include:
    • Types of project procurement re: commercial risk allocation;
    • Contracting methods e.g. EPC, D&B, traditional;
    • Alternative tender types e.g. early contractor involvement;
    • Review of project types (e.g. reclamation, offshore wind etc.) against
    procurement methods;
    • Advantages and disadvantages of contracting methods for all parties
    including contractors and client/owner bodies; and
    • Links/references to current available propriety standard conditions used
    for dredging and offshore works.
    Outline Structure

    • General introductory section


    • “Key Aspects”
    • Scoring matrix
    General Introductory Section
    • Outline narrative explaining procuremnt
    process with considerations
    • Explanation of certain procurement methods
    and contract types
    • Centered around flowchart, mapping from
    post-concept to entering into contract phase
    “Key Aspects”
    • Fundamental concept introduced in the
    document
    • Based around the principe of 6 key items for
    consideration against which the contract
    selection can be “measured”
    • Align closely with items within the Dredging
    Management Checklist
    “Key Aspects”
    Key Aspects Parameters/Considerations

    A. Project Scope How fixed or open is the scope of work?

    B. Physical/Environmental Site How well known are the physical conditions at site?
    Conditions

    C. Risk Allocation/Liabilities What balance of risk do the parties wish to make?


    Who is best placed to manage risk?
    D. Owner’s Control/Contractor’s How much control does the owner want? How
    Flexibility much flexibility to work will the contractor have?

    E. Time & Schedule Is the end date critical or is there flexibility


    regarding when the works can be completed?
    F. Price & Valuation How much security of price does the owner want?
    Scoring Matrix
    • Tool provided to “score” the key apsects and
    to compare to certain contract types
    • Key aspects “scored” on a 1-10 scale:
    – 1 = Owner certainty
    – 10 = Owner uncertainty
    • Results plotted against certain contract types
    Scoring Matrix
    • Construct Only – Charter;
    • Construct Only – Re-measurable;
    • Construct Only – Lump sum;
    • Maintenance – Performance Based – Lump
    Sum;
    • Design & Construct – Lump Sum; and
    • D&C++/EPC – Lump Sum.
    Scoring Matrix
    Construct Only - Visualization of Owners's uncertainty
    Charter (higher value indicates increased uncertainty)
    A. Project Scope
    10
    Construct Only -
    Remeasureble 9
    8
    7
    Construct Only - Lump
    6
    Sum B. Physical / Environmental Site
    F. Price & Valuation 5 Conditions
    4
    Performance Based / 3
    Maintenance - Lump
    2
    Sum
    1
    Design & Construct - 0
    Lump Sum

    D&C++/EPC - Lump
    Sum
    E. Time & Schedule C. Risk Allocation/Liabilities
    Sample Score

    D. Owner's Control / Contractor's


    Flexibility
    Summary
    • Single-point reference document regarding
    procurement and contract selection
    • Aim to assist the contract awarder in assessing
    and/or tailoring method
    • Use of Key Aspects to “score” and compare
    contracting options
    Save the date for...

    CEDA UK webinar:
    Future Considerations for the Ports and the Dredging Industry

    • Date: 23 October 2020


    • Time: 10.00 – 11.15hrs (London time)
    • Free of charge, registration required

    www.dredging.org
    Thank you for participating!

    Find us & connect

    www.dredging.org Central Dredging Association - CEDA

    Groups: CEDA, Young CEDA, CEDA-UK @CEDAdredging

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