Module 9 - Managing Project Procurement - PowerPoint Presentation Rev 2
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Description
Welcome to Worley Parsons Project Management Process (WPMP) Training Module 9 – Managing Project Procurement
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Managing Project Procurement About this training session
Introduction
Overview of Procurement
Responsibilities for Procurement
Commencing the Procurement Process \Procurement Planning
SmartPlant Materials
Procurement Reports
Procurement Initiation
Procurement Execution
Procurement Close-out
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Learning Objectives
On completion of this module, you will be able to:
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Identify and understand the procurement methodologies and tools available to Project Managers for the management of EPCM projects
Learning Outcomes On completion of this module, you will be able to demonstrate an understanding that:
Early involvement of the Procurement function in project planning is essential
The project’s procurement strategy and procurement plan must align with the overall project strategy
Clear definition of the objectives of the Procurement Process is critical for the project team
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Procurement in WorleyParsons
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Procurement is an integral part of the WorleyParsons’ growth strategy
Procurement shall support the company to compete more successfully as a leading provider of professional services worldwide
Overview of Procurement What is procurement?
Procurement is the process by which materials, equipment and third-party services are acquired for projects
Key procurement interfaces include:
• • • • • • • • 6
Project Management
Engineering HSE Quality
Cost Estimation Project Controls Construction Management
Legal & Risk
Overview of Procurement What does procurement involve? …the acquisition of materials, equipment or third-party services:
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At the best possible total cost of ownership
In the right quantity and quality
At the right time
In the right place
For the direct benefit of the customer
Procurement and Capex
The Capital Expenditure (Capex) of a Project can be split into a few elements:
• Engineering and design – approx. 10% of Capex • Procurement: − Materials and equipment – approx. 30 to 45% of Capex − Contracts – approx. 30 to 45% of Capex
• Balance is owners’ costs, insurance, land purchases etc
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The above is indicative only and dependent on the type and location of a project. However, on average the Capex element managed by procurement ranges between 60% and 90% of the overall project value
Overview of Procurement What is the role of procurement in a project?
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Procurement is the bridge between Engineering (design) and Construction (execution)
Overview of Procurement Procurement is divided into 2 functions
Materials Management
• Purchasing, Expediting, Materials Control, Coordination of Inspection (liaising with Quality), Traffic/Logistics, Warehousing/ Inventory Control etc
• Legal agreement used is a Purchase Order
Contracts
• Acquisition and management of third-party services • Legal agreement used is a Contract
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Both Purchase Orders and Contracts are written and binding legal agreements between relevant parties to supply either goods or services against agreed conditions
Procurement Executive Directive
To minimise risk exposure, procurement services are usually provided for and on behalf of Customers, in the Customer’s name or “on Customer paper” – this is the company’s preferred position
However, this does not preclude provision of procurement services in WorleyParsons’ name or on “WorleyParsons’ paper” – requires CEO to proceed in any event where additional supplier-related risks and liabilities are assumed (eg warranty obligations, delivery commitments, product liability, etc)
In most instances, procurement services are provided on behalf of the Customer, requiring active interaction with the Customer and their various approvals to proceed
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EMS Workflows and Procedures 1/2 Contracts
Contracts services cover the provision of third-party services such as construction labor, inspection services, painting and sand blasting
The provision of contract services is governed by the Contracts Workflow in EMS containing a number of procedures, guidelines, forms and templates
Preferred Terminology:
• ITT = Invitation to Tender • Contract = legal agreement for the provision of services
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EMS Workflows and Procedures 2/2 Materials Management
Materials Management includes the purchasing of goods and equipment, subsequent expediting, inspection and receipt.
The provision of Materials Management services is governed by the Materials Workflow in EMS containing a number of procedures, guidelines, forms and templates
Materials Management activities are managed and tracked through SmartPlant Materials, WorleyParsons’ Materials Management system which starts from creation of the requisition through to final material reconciliation on site
Preferred Terminology:
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• RFQ = Request for Quotation • Purchase Order (PO) = legal agreement for the supply of goods
Overview of Procurement WorleyParsons procurement process Project Procurement Plan Determine procurement requirements
Close- out Activities
Procurement Initiation
Conclude the engagement of the suppliers Record the performance against each order & contract
Identify potential suppliers
Materials Field Administration Activities
Pre-award Activities * Materials Management * Contracts
Field Purchasing Transport/ Logistics Receipt on site Warehousing
Obtain quotations Select the preferred suppliers
Post-award Activities
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Manage the supplier Administer POs and contracts Manage POs/ contract variation Expediting/ Inspection
Responsibilities for Procurement
As Project Manager, you are responsible for the overall management of procurement activities associated with the project
You are not responsible for the execution of procurement activities That is the responsibility of your Project Procurement Manager
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To fulfill your responsibilities, you should work closely with the Procurement Manager
Responsibilities for Procurement WorleyParsons’ procurement capability
Procurement specialists in each region
Detailed procurement procedures, guidelines and associated documentation
Deployment of SmartPlant Materials as the company-wide materials control system to record, track and report on procurement activity
Global supplier database for materials, equipment and services
Global Sourcing initiatives
Supply arrangements with key suppliers
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Responsibilities for Procurement Procurement resourcing
Procurement staff managing the Materials Management and Contracts activities usually:
• Work either from a core Procurement group in a key company location or
• Form a part of a dedicated project procurement team
Procurement activities on the project are usually led by an experienced Project Procurement Manager
Where warehousing staff are required for specific customers or projects, they are usually located on site
Inspection may involve in-house or third-party inspectors, depending on the location of the inspection activities
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Procurement Process Commencing the procurement process for a project
Establish exactly what the customer requirements are and what WorleyParsons has committed to do
Establish your procurement team and set out their responsibilities
Procurement to participate in the Project Risk Assessment and ensure that risk mitigation is included in the Procurement Plan to be developed
Procurement to incorporate appropriate flow-down conditions from the Prime contract (the agreement between Customer and WorleyParsons) in the Project Conditions to ensure compliance and alignment (e.g. including customer’s confidentiality requirements, alignment of warranty periods etc.)
Procurement to develop the project procurement procedures, based on EMS but incorporating as appropriate Customer’s requirements (e.g. approval interfaces)
Arrange to have the project set up on SmartPlant Materials
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Ensure WBS is established
Procurement Planning Planning
Planning is at the crux of all project activities
Procurement is no exception
The aim of procurement planning is to:
• Know what needs to be procured, when, where and how • Identify critical long lead items and services • Establish order and consistency in the way the procurement activities are performed
• Understand the risks involved in the project environment and identify mitigating actions 19
The Project Procurement Plan is part of the Project Execution Plan
Procurement & Risk Management
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Procurement is an integral part of risk management on the project
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Develop appropriate procurement/ contracts/ materials management strategies, identifying the various risks (market, forex, local content requirements, taxation and importation issues, logistics complexities, etc. to be managed)
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Use EMS procurement procedures to the largest extent, however, recognize Customer requirements in the project specific procedure.
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Ensure that the project specific procurement procedures are approved by the customer and shared with the project procurement team
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Develop the procurement schedule early, in line with the overall project schedule, resulting in correct priorities to achieve the Required on Site Dates
Procurement Planning What you need to plan for
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Procurement Planning When planning occurs Identify
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Evaluate
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Define
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Execute
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Procurement Strategy
Procurement Plan
Materials Management Plan , if required
Contracts Plan , if required
Purchasing and Contracts Initiation
Materials Management Plan, if required Contracts Plan, if required Materials Field Administration Materials Management and Contracts Close-out
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Operate
Procurement Planning Project Procurement Strategy
Project Procurement Strategy (PPS) is the:
• Process for identifying and documenting the procurement opportunities applicable to the project
• First step in developing the Project Procurement Plan
Typically, the PPS is first developed during the scoping stages of a project
Sometimes the customer provides the initial procurement strategy for further development in the Project Procurement Plan
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Procurement Planning Project Procurement Strategy
During the development of the PPS, the following factors need to be considered:
Purchasing activities can involve long lead times
Certain materials and equipment may be particularly critical to a project’s success
Purchasing activities usually involve multiple countries (infrastructure and logistics, local legislation etc.)
Market and technology developments can impact on the success of a project and therefore need to be monitored on an ongoing basis 24
Procurement Planning Project Procurement Strategy
The PPS is a hierarchical matrix covering the entire work scope of a project, broken down into separate ‘work packages’
Only the major critical items are separately identified as work packages
These packages are created and identified according to:
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•
Unique technical and commercial attributes of the work activities they comprise
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Methods by which they are to be executed
Procurement Planning Example of a PPS matrix Components Physical Discipline
Special Equipment Item B
Balance of Plant
Civil Works
Project Management
Project Management Services Contractor – Reimbursable Costs with Incentives Fee – $ 70m total
Design
Design Contract – Lump Sum – $10m
Procurement
Materials Control
Specialist Supplier A – Lump Sum Purchase Order – $200m total
Construction / Erection Services
Installation Contract – Lump Sum – $10m
Quality Inspection
Specialist Quality Contract – All-in rates – $10m
Part of Project Management Services
Commissioning / Start-up Assistance
Part of Supplier A Purchase Order
Contract
Fabrication
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Special Equipment Item A
Specialist Supplier B – Lump Sum Purchase Order – $100m total
Part of Supplier B Purchase Order
Facilities E & P Contract – Reimbursable Costs with Fixed Fee – $30m total
Construction Contract – Reimbursable Cost and Equipment Rates with Incentives Fee - $100M total
N/A
Procurement Planning Project Procurement Strategy
The structure of the PPS depends on the:
• Scope of work • Nature and complexity of the project • Requirements of the customer
The PPS assists in:
• Administrative and commercial planning • Cost/schedule control functions of a project 27
Procurement Planning Benefits of a PPS
Allows a concise, high-level overview of how procurement activities relate to the execution strategy of the project
Illustrates alternative ways of executing the project procurement activities
Identifies where:
• Consolidation (or further break-down) of work scopes can work to the project’s advantage
• Gaps may occur in hand-offs during execution
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A Procurement Strategy is a deliverable that can be provided for projects in Identify and Evaluate phase
Procurement Planning When planning occurs Identify
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Evaluate
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Define
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Execute
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Procurement Strategy
Procurement Plan
Materials Management Plan , if required
Contracts Plan , if required
Purchasing and Contracts Initiation
Materials Management Plan, if required Contracts Plan, if required Materials Field Administration Materials Management and Contracts Close-out
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Operate
Procurement Planning Planning in the various WMPM project phases
Projects in Identify and Evaluate phases:
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While you might not be able to fully identify these requirements, you should be able to identify them in broad scope Concentrate on Procurement Strategy approach
Projects in Define phase:
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The procurement needs of the project should be sufficiently identified to support the Customer’s overall project schedule Full fledged procurement plan can be developed
Projects in Execute phase:
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The procurement needs are clearly identified and a procurement plan shall be developed to achieve the timely delivery of the project Full fledged procurement plan must be developed
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Procurement Planning Project Procurement Plan
Documents the basis for obtaining and managing materials, equipment and third-party services required for project execution
Addresses relevant aspects of both materials management and contracts for the project
Maps out the various anticipated risks and constraints and identified mitigating actions
Identifies critical supplies (see also Procurement Strategy) and outlines general strategy
Ensures that the procurement activities align with the overall project schedule
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Procurement Planning Project Procurement Plan
The Project Procurement Plan:
• Must clearly define the deliverables of the procurement process • Needs to be ‘fit for its purpose’
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Procurement Planning Project Procurement Plan
Criticality-Value Assessment High
The Project Procurement Plan may also include details about the targeting of procurement efforts The Project Procurement Manager will consider the assessment in the strategy development
Criticality
Bottleneck, e.g. special alloy steel grade
Critical, e.g. turbine compressor
Ensure continuity Develop alternatives Revise specifications
Form closer relationships Direct negotiations
Routine, e.g. piping bulk blanket orders
Leverage, e.g. customer’s standard agreement
Simplify procurement process Automate Rationalise supplier base
Maximise commercial advantage Competitive tender Standardisation
Low High
Low
Value Potential
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Procurement Planning Project Procurement Plan
Where the complexity and / or size of the project warrant it, the Project Procurement Plan may be further developed in separate plans:
• A detailed Project Materials Management Plan • Separate detailed Project Contracts Plan for major contract packages
• Separate detailed Procurement Plans for key procurement packages
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Procurement Planning Materials Management planning The various elements of the Procurement Plan are further defined in the Materials Management Plan, including:
Specific strategies for buying materials and equipment
Associated activities for managing the expediting, traffic/logistics etc
The materials control and reporting systems
Prioritization of procurement activities and associated engineering deliverables in line with the ROS (Required on Site dates) as defined in the project schedule
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Procurement Planning Materials Management planning (cont’d)
Level of procurement effort based on cost, schedule, criticality, and other relevant factors
POs/activities already executed and/or underway prior to engagement of WorleyParsons
Transition of early purchase agreements from the customer
Material control systems
Quality management, verification and inspection, which includes an outline of inspection to be undertaken
Site materials management plans
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Procurement Planning Materials Management planning Subsets of the Material Management Plan
Engineered equipment planning
Bulk materials planning
Prefabrication planning and modularization
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Procurement Planning Engineered equipment planning
The primary objective is to ensure that items are acquired and released in time to meet the overall project schedule
The dates on which items are required on site to meet construction needs drive the engineering and procurement planning and activity for engineered equipment
A major equipment list for the project needs to be developed early
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Procurement Planning Bulk material planning
Planning for bulk materials can be more complex than planning for engineered equipment
Bulk materials control starts with an examination of the project schedule to assess:
• What bulk materials are required over time • Critical required on site (ROS) dates
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Procurement Planning Prefabrication planning and modularization
Procurement planning:
• Is usually very complex for extensive prefabrication • modularization often involving multiple sites
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An extensive prefabrication program demands an early procurement planning effort that addresses the interfaces between vendors, fabricators and site construction
Procurement Planning Contracts planning
The Contracts Plan can be:
• Subset of the Project Procurement Plan or • Separate plans—complex projects
The main focus of project contracts planning is the selection the best contractor under the best available terms and conditions
Needs to:
• Analyze the options and the marketplace for the required services
• Define the number, type, scope, timing, interfaces, compensation basis, etc of major contracts to be developed for the project from early planning through start-up 41
Procurement Planning Contracts Planning in Define Phase
For Projects in the Define phase the Project Contracts Plan needs to document:
• Critical contracting issues (e.g. labour resource constraints, market constraints) for the major contracts
• How will the impact be managed and the risk mitigated? • What is the schedule to meet timely completion of the Project?
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Procurement Planning Contracts Planning in Execute Phase
For Projects in the Execute phase, the Project Contracts Plan review the constraints and identify mitigation measures similar to the Define phase projects but not just for major contracts.
• All anticipated contracts are identified. • If the project is a continuation of a Define phase project, the Contracts Plan developed for the Define phase will be reviewed and updated by the Project Procurement Manager to reflect project progress and significant new developments
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A list of matters that typically need to be considered are listed on page 32 of the participants manual
Procurement Planning Approving the Project Procurement Plan
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The customer must approve the Project Procurement Plan as part of the Project Execution Plan
SmartPlant Materials
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WorleyParsons uses a suite of project management systems to record, track, control and report on projects
SmartPlant Materials
SmartPlant Materials is used to:
• Identify • Record • Track materials and equipment required and purchased for a project
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SmartPlant Materials SmartPlant Materials has four integrated modules, which are described on page 36 of the workbook
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SmartPlant Materials
Maintains the Material Stock Code catalogue
Generates bulk requisitions via interface to design systems (e.g. PDS)
Generates equipment and services requisitions
Preparation of RFQs
Supports bid evaluations
Creates and, if required, amends POs
Facilitates expediting
Facilitates Traffic/Logistics
Facilitates stores management
Can undertake invoice reconciliation via Invoice Matching Interface module
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SmartPlant Materials
SmartPlant Materials imports bills of materials from 2-D/3-D engineering design software and other sources
SmartPlant Materials supports better material planning on site and material reconciliation through the ability to track imported bills of materials from Requisition to Material Issue
Materials are identified as being in any of the following phases:
• • • • • • • • 49
Requisition
RFQ Purchasing Expediting Shipping Warehouse receipt Storage Material Issue
SmartPlant Materials Using SmartPlant Materials for recording and tracking contracts
SmartPlant Materials was designed as a system for controlling materials and equipment, not for administering contracts
SmartPlant Materials can, however, be used to record basic information about contracts
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SmartPlant Materials Setting up SmartPlant Materials for a project
Each individual project needs to be set up in SmartPlant Materials so that its procurement activities can be recorded, monitored and reported
SmartPlant Materials should be set up as soon as the Project Procurement Plan or Materials Management Plan has been approved
You are responsible for ensuring that SmartPlant Materials is set up properly
You work with the project Procurement Manager to identify and obtain the information for the set up
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SmartPlant Materials—Training Training in SmartPlant Materials
When you need to start using SmartPlant Materials, you will receive specific training on how to use it
Contact the Business Systems Group to arrange the training
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Procurement Reports Procurement reports
Procurement activities are monitored and reviewed regularly
SmartPlant Materials generates a range of reports which you use to monitor progress and identify actions to be taken to address issues
Two particularly important reports for the management of procurement activities are the:
• Procurement Status Report • Procurement Expediting Report
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Procurement Initiation Overview of procurement initiation
The Project Procurement Manager is responsible for completing the activities that enable purchasing and contracts to be initiated
The initiation activities should be completed during the early stages of the project
The initiation activities are:
• •
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Purchasing initiation Contracts initiation and formulation
Part of the initiation activities is the development of the Project terms and conditions for purchase orders and contracts.
•
These may be provided by the Customer as we will typically be acting on their behalf.
•
The conditions shall be checked for alignment with the Prime contract.
Procurement Initiation Overview of purchasing initiation (Materials Management)
Purchasing initiation involves setting up the project base for the Purchasing documentation and databases
The main activities are:
• Identifying PO provisions (including standard Terms and Conditions)
• Preparing standard documentation, including Instructions to Bidders, master Request for Quotation, master purchase order document
• Carrying out vendor pre-qualification • Establishing a project vendor list
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Procurement Initiation Overview of Contracts initiation and formulation
Contract initiation and formulation involves:
• Setting up the project base for contracts documentation (including standard Terms and Conditions)
• Establishing the contracts system for the project
The main activities are:
• Establishing the contract types, sites conditions, HSE etc • Preparing common enquiry requirements and special contract provisions
• Carrying out contractor pre-qualifications • Establishing the contractor list
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Procurement Execution Overview of procurement execution
All procurement execution activities are undertaken by the Project Procurement Manager and the Procurement team
You are responsible for ensuring that the procurement activities are executed in accordance with the Project Procurement Plan
You and your Project Procurement Manager need to hold regular meetings to:
• Review the status of procurement activities • Identify issues early and determine the action required to minimize any adverse impact
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Procurement Execution Materials Management execution—purchasing pre-award process
The purpose of the Purchasing Pre-award Process is to award the POs under which the project’s materials and equipment are obtained
The pre-award process ensures that all bidders are treated fairly and equitable, that the confidentiality of the information is maintained and that the recommendation to award is in accordance with the agreed evaluation criteria
•
Agreed evaluation criteria may be as simple as ‘Technically acceptable, lowest cost’ or more complex ‘Total Cost of Ownership’ (TCO). Consider that TCO often requires Customer input as well.
•
Competitive bidding is indicated. However, if single source is considered for purchase orders, justification must be provided. This may include proprietary technology or customer’s standardisation preference.
Project Purchasing pre-award activities occur predominantly during the Execution phase
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For long-lead items some activities may occur in the Define phase
Procurement Execution Materials Management execution—purchasing pre-award process
Preparing enquiry packages, including special terms and requirements (for example, supplier data, support, spares)
Issuing the enquiry packages and managing bid preparation and receipt process
Managing all communications with bidders during bidding and evaluation
Evaluating the bids
Preparing recommendations for award, conducting post-bid negotiation and facilitating final issue
Entering all data related to the purchases into SmartPlant Materials
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Procurement Execution Materials Management execution—purchasing pre-award process As Project Manager, you will need to ensure that the procurement team:
Maintains the required level of confidentiality of information
Ensures that engineering deliverables are aligned to support timely procurement activities
Maintains the interfaces between Engineering, Quality and Construction
Involves the Project Procurement Manager in the regular team progress meetings
Undertakes and completes procurement activities in accordance with the Project Procurement Plan
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Procurement Execution Materials Management execution—purchasing award process
Purchase Order documents are to be prepared by Engineering and Procurement on receipt of the approved Award Recommendation
Kick-off meetings are arranged as required
Post-award activities are initiated by the project procurement team
Once internal and other approvals have been obtained to place a contract or a PO the Procurement Manager is the only person with the authority to confirm the commitment for the contract or PO with the supplier on behalf of WorleyParsons and/or our customers
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Procurement Execution Materials Management execution—purchasing award process You are responsible for ensuring that the award process is properly undertaken You need to:
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Confirm that the cost of the awarded POs is within the project budget
Provide relevant information to the project’s Cost Controls Manager
Procurement Execution Materials Management execution—purchasing post-award process
This process covers award of a PO through to receipt at site and financial close-out
The purpose of the Purchasing Post-award Process is to:
• Administer the POs to obtain the project’s materials and
equipment on schedule and in accordance with specifications
• Provide cost and schedule information to Project Services • Identify PO issues for Risk Management activities • Liaise with Inspection to ensure compliance to specifications
The Purchasing Post-award Process covers the technical and commercial activities in the manufacture and delivery of materials and equipment
Ensure all meetings and vendor contact are coordinated by Procurement.
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Procurement Execution Materials Management execution—purchasing post-award process The main activities in the Purchasing Post-award Process are:
Expediting (including Supplier documentation)
Inspection coordination
Traffic/Logistics
Receiving on site, warehousing and preservation
Change/Claim administration
Invoice payment
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Procurement Execution Materials Management execution—purchasing post-award process Effective procurement performance requires:
Use of SmartPlant Materials
Monitoring the vendor’s engineering and manufacturing processes
Meeting documentation obligations
Measuring and assuring conformance to the technical specification
Administering delivery of the materials and equipment
Managing any changes to the PO technical and commercial provisions
Managing any claims by the vendor for additional payment or schedule time
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Procurement Execution Materials Management execution—purchasing post-award process As Project Manager you are responsible for ensuring that:
The Construction Manager involves the Project Procurement Manager in construction progress review meeting
For most items, weekly status meetings are sufficient
For critical items, daily review meetings between the Construction and Procurement Managers may be required
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Procurement Execution Materials Management execution—purchasing materials field administration process
The Materials Field Administration Process governs the day-to-day procurement activities on site
The actual administration is the responsibility of your Project Procurement Manager
Materials Field Administration may include site administration, purchasing and contracting
You are responsible for ensuring that the requirements for materials field administration are included in the Project Procurement Plan
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Procurement Execution Contracts execution—contract pre-award process
The purpose of the Contracts Pre-award Process is the contracting of third-party services
Project Contracts pre-award activities predominantly occur during the Execution phase
For early contracts, some activities may occur in the Define phase
The deliverables of the Contracts Pre-award Process are:
• • • •
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Bidders lists Enquiry packages
Approved recommendations for award Contract documents
Cost and schedule information provided to Project Services and contracts issues input into Risk Management activities
Procurement Execution Contracts execution—contract award process Contractor selection
A thorough prequalification process will normally be executed for major contracts, e.g. fabrication contracts. This will involve multiple disciplines to prepare the questionnaire for the relevant work scope, typically including construction, engineering, quality, HSE as well as project controls and procurement.
Competitive, sealed bids are indicated for major contracts
If single source is considered for service contracts, justification must be provided. This may include proprietary technology (e.g. software) or customer’s preference.
Once internal and other approvals have been obtained to place a contract or a PO the Procurement Manager is the only person with the authority to confirm the commitment for the contract or PO with the supplier on behalf of WorleyParsons and/or our customers
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Procurement Execution Contracts execution—contracts post-award process
The Contracts Post-award Process covers the technical and commercial activities
The main activities are:
• • • • •
Awarding contracts
Administering and monitoring the contractors Managing any changes to the contract Managing any claims
Processing any payments and back charges, reconciling quantities and finalizing all contract obligations
• Providing cost and schedule information to Project Services • Identifying any contracts issues for Risk Management activities 70
Procurement Execution Purchase order and contracts variation
PO and contract variation must be processed in accordance with the Management of Project Change Process
You and the Procurement Manager must sign-off any variances before they can take effect
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Case study—group discussion
The scenario for the case study is on page 55 of your workbooks
Discussion topics:
What would you say are the key procurement issues on the project?
What can be done to remedy the situation?
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Procurement Close-out Responsibilities for procurement close-out
The Procurement team completes the procurement close-out tasks
You are responsible for ensuring that the Project Procurement Manager and the procurement team do this
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Procurement Close-out Materials Management close-out
Project Materials Management close-out activities generally occur late in the Execution phase
Close-out must follow the requirements for finalization of supply as set out in the Project Procurement Plan
The main objectives of materials close-out are:
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• • • • • •
Materials reconciliation Surplus management
Final inspection (this is a Quality activity) Receipt Final Vendor Documentation Claims resolution Closing out of all PDs
Procurement Close-out Contracts close-out
Close-out must follow the requirements for finalization of supply as set out in the Project Procurement Plan
The main objectives of contracts close-out are:
• • • • •
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Provision of acceptance certificates
Confirmation of warranties Handover of documentation Final inspections (Quality activity)
Claims resolution and payment reconciliation
Demobilization of the site by WorleyParsons and the contractor does not necessarily indicate final close-out of the project
Summary and Feedback
Review learning objectives and outcomes
Summary
• • • • • • • •
Overview of Procurement Responsibilities for Procurement Commencing the Procurement Process \Procurement Planning SmartPlant Materials Procurement Reports Procurement Initiation Procurement Execution Procurement Close-out
Questions
Evaluation
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Module 9 Managing Project Procurement Thank you for your participation
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