Table of Contents
1. Introduction
2. Challenges in Oil and Gas Capital Projects
3. Aligning Project Processes with Corporate Best Practices
4. The Role of Karen in Contracting Resources and Framework Agreements
5. The Importance of Measuring Contract Effectiveness
6. Informing Projects about Pre-Negotiated Framework Contracts
7. The Pressure on Karen to Provide Accurate Information
8. Consolidating Data and Dealing with Missing Information
9. Ensuring Adherence to Business Processes
10. Introducing Procon: Ensuring Rigor and Consistency
11. The Benefits of Using Procon in Capital Projects
12. Tracking Call-Offs and Measuring Agreement Effectiveness
13. Aligning Projects with Corporate Best Practice Procedures
14. Consolidated Overview of Contracting Activities
15. Providing Critical Information to Management
16. The Time-Saving Benefits of Procon
17. Focusing on Projects Requiring Expertise
18. Conclusion
**Aligning Project Processes with Corporate Best Practices**
In the complex world of oil and gas capital projects, aligning project processes with corporate best practices can be a daunting task. Karen, a contract specialist in the supply chain team of a major oil and gas company, faces this challenge on a daily basis. Her role involves delivering best practices contracting resources and framework agreements to the organization's capital projects spread throughout the world. However, she often finds it difficult to align the processes of a project with the corporate best practice guidelines.
**Challenges in Oil and Gas Capital Projects**
Oil and gas capital projects are intricate entities, often involving joint ventures with other oil companies and sometimes even government involvement. The project teams are comprised of strong-willed, highly experienced personnel who may have different approaches based on their previous projects and the context of a different company's best practice guidelines. This creates a volume of contracting business processes and graphic workflows that Karen must deliver.
One of the challenges Karen faces is informing all the projects about the pre-negotiated framework contracts for which her team at the corporate center has secured favorable rates. She does this through email bulletins containing links to central document repositories. However, she finds herself under pressure to provide accurate information to her VP on the constantly changing contracting environment.
**The Role of Karen in Contracting Resources and Framework Agreements**
Karen's responsibility goes beyond delivering contracting tools and resources. She also measures the effectiveness of the contracts awarded by the capital projects. This involves gathering information from the projects about contract spend overruns, cost risks, delays, and more. However, the data she receives is often outdated, making it challenging to have an accurate understanding of the company's exposure to contractual risk on its capital projects.
Karen's team consolidates the separate spreadsheets into a final report, but it is often filled with missing and misleading information. Despite her efforts, Karen feels detached from the projects and harbors doubts about whether the experienced contracting teams are adhering to the business processes and taking advantage of the pre-negotiated frameworks.
**The Importance of Measuring Contract Effectiveness**
To gain peace of mind, Karen realizes the necessity of visiting every project office to ensure they are following the prescribed workflows and adhering to the business processes. This is where Procon comes into play. Smart organizations use Procon to ensure rigor and consistency throughout their project's contracting functions.
Karen introduces Procon to each new capital project, which is pre-populated with all the best practice contracting processes that she and her team have refined. This ensures efficiency and auditability within each project. Procon guides the project teams, providing appropriate document templates for maximum efficiency and procedural compliance.
**Informing Projects about Pre-Negotiated Framework Contracts**
One of the key benefits of using Procon is that it allows projects to take advantage of the pre-negotiated framework agreements held within the system. This saves time and ensures access to the best possible rates and terms with each supplier. Karen can now track the call-offs across all projects and measure the effectiveness of the pre-negotiated agreements, providing useful information for renegotiating the framework agreement in the future.
**Consolidating Data and Dealing with Missing Information**
By using Procon, Karen can ensure that every project is aligned with corporate best practice procedures. This guarantees that each project receives the best possible terms from their suppliers. Additionally, Procon provides Karen with a complete consolidated overview of the contracting activities, including changes to scope, contractual risks, claims, overruns, and more. This critical information is readily available to management at any time.
**The Time-Saving Benefits of Procon**
The use of Procon by all the projects has significantly reduced Karen's workload, allowing her to focus on visiting only the projects that require her expertise. This has made Karen a lot happier, as her management now has access to all the critical information they need. Procon has streamlined the contracting processes, ensuring efficiency, and providing peace of mind to Karen and her team.
Highlights
- Aligning project processes with corporate best practices in oil and gas capital projects is a challenging task.
- Karen, a contract specialist, faces difficulties in aligning project processes with corporate guidelines.
- Oil and gas capital projects involve joint ventures and government involvement, making alignment even more complex.
- Karen's role includes delivering contracting resources and measuring contract effectiveness.
- Informing projects about pre-negotiated framework contracts is crucial but challenging due to the constantly changing contracting environment.
- Consolidating data and dealing with missing information is a common issue in contract management.
- Procon is a solution that ensures rigor, consistency, and efficiency in project contracting functions.
- Procon allows projects to take advantage of pre-negotiated framework agreements, saving time and ensuring favorable rates and terms.
- Karen can track call-offs and measure the effectiveness of the agreements, providing valuable information for future negotiations.
- Procon provides a consolidated overview of contracting activities, enabling better management decision-making.
FAQ
**Q: How does Procon help in aligning project processes with corporate best practices?**
A: Procon is pre-populated with best practice contracting processes, guiding project teams to follow prescribed workflows and ensuring procedural compliance.
**Q: What are the benefits of using Procon in oil and gas capital projects?**
A: Procon saves time by providing access to pre-negotiated framework agreements, ensuring favorable rates and terms with suppliers. It also allows for tracking call-offs and measuring agreement effectiveness.
**Q: How does Procon streamline contracting activities?**
A: Procon provides a consolidated overview of contracting activities, including changes to scope, contractual risks, claims, and more, ensuring efficiency and better management decision-making.
**Q: How has Procon impacted Karen's workload?**
A: Procon has significantly reduced Karen's workload, allowing her to focus on projects that require her expertise, resulting in increased efficiency and job satisfaction.
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