High-value, high-risk projects are delivered late
Online tendering: tender schedules often overrun due to a lack of formal process, resulting in key stakeholders missing deadlines or review periods.
No early warning indicators: lack of visibility of the project's likely commercial outcome, because there is no method to assess the impact of multiple contract changes.
Contract auditability: critical information may be scattered among various systems, in different formats, making reviewing projects post-completion is difficult. Staff turnover makes it challenging to get a single source of ‘truth’ when issues arise.
Expectation and interpretation: lack of clarity between the parties can create conflicting expectation and interpretation of the contractual obligations leading to change and potential claims.
High-value, high-risk projects are over budget
Change control: lack of formal process for managing change means that stakeholders may have to deal with invoices with no prior knowledge of the who, when and why context.
Claims mitigation and defence: a stakeholder may face a claim by breaching contract terms. They could overlook an important date-based or event-driven contractual obligation. Then, if record-keeping has been lacking, they have little defence against the claim.
Obligations: missed contract obligations (from either party) can cause risk exposure or even financial penalties.
Payment verification: verification can be a challenge with multiple subcontractors AFPs (applications for payment), risking erroneous payments and penalties for late approvals.
EFFECTIVE CHANGE CONTROL
All change orders are initiated from within AVEVA ProCon using preapproved templates. Dynamic workflow manages the routing of change requests to the designated parties for review and authorisation. Identifying the impact ($/schedule) of potential change quickly allows time for scrutiny and to mitigate the risk of unnecessary changes.
MITIGATE CONTRACTOR CLAIMS
Alerts and reminders lower the risk of missing contractual obligations, helping to avoid claims. If one does arise, easily access all correspondence for excellent claims defence.
ENHANCED FINANCIAL CONTROL
Early warning indicators help management to direct their attention to the most critical situations, reducing unplanned cost overruns. Automatic line-item invoice reconciliation prevents erroneous payments and rates for work not yet delivered or already completed.
BEST PRACTICE GOVERNANCE
AVEVA ProCon promotes transparency, aligning remote project teams with approved business processes to make contract award and execution even easier.
Earlier and improved handover from design and construction to operations.
IMPROVED CONTRACT DELIVERY
Using one central system encourages on-time and on-budget contract delivery as all contractor interactions and issues are dealt with efficiently.
We introduced AVEVA ProCon across all of our 250+ capital projects, and the capital overrun fell from 157% to 103% of the forecast budget expenditure.Global Oil Major. Regional Head of Projects
Before using ProCon, a claim management used to involve 10 people, usually highly-paid lawyers, working 24 hours a day for 7 days. Now we can run a report from ProCon in response to a claim in minutes. On the last two claims we realised a cost avoidance benefit of approximately 1,680 lawyer hours and avoided claims of $22M.Head of Contracts, Major Oil Operator, Australia
We deploy ProCon 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 projects to work against.Shell
ZERO CLAIMS on $12bn Shell Prelude - first FLNG ever built.Shell
+$1.2BN recovered from JV partners for valid project changes.IOC
ProCon is targeted to save +$1m per day and $1bn over 3 years.Woodside