Transcript Slide 1

The Exciting Contracts
Committee
“Building the Foundation”
Report to the 2006 Best Practices
Conference
Dave King and Jane Sidnell
2005 /2006 Committee Members
Len Addinall – Shell
Darryl Baron – Dow
Scott Burrell – Suncor
Graham Campbell – CoSyn
Suzanne England – Revay
Jim Freiburger – Jacobs
Damian Gannon – ATCO
Mike Gordon – Bantrel
David Hamilton – Enbridge
Kathy Kendrick – Miller Thompson LLP
2005 /2006 Committee Members (Cont)
Bill Kenny – Miller Thompson LLP
Dave King – Stantec
Brian Lacey – Clark Builders
Tim Mann – Suncor
John Schadan – SNC Lavalin
Les Shaw – Ledcor
Jane Sidnell – Miller Thompson LLP
Laura Sugimoto – AMEC
Neil Tidsbury – CLRA
New 2007 Committee Members
Jim Freiburger – OPTI Nexen (06 Jacobs)
Don Guglielmin – CNRL
Sean James – AMEC
Catherine Sarsfield – Petro Canada
Laura Sugimoto – Independent (06 AMEC)
Dariel Suhan – Nova
Greg Toth – Kinder Morgan
Rick Watters – EnCana (COAA Board Member)
Guiding Principles
Purpose:
To enhance Efficiency, Profitability and Performance
Develop standard forms of contract for use in Alberta
Consistent approach to common issues
Goals:
To equitably allocate risk and responsibility to the party best able to
manage the risk
Implementation:
Standard format and organization
Standard or align definitions and terminology
Proper ordering of subject matter
Flexibility through use of schedules
Follow up:
Regular review and revisions
Promotion of the use of the documents.
Scope and Progress
Stipulated Price contract (SP):
Published (1997) and one review cycle completed (2003)
Engineer, Procure and Construct contract (EPC):
Published (2005)
Engineer, Procure an Construction Management
contract (EPCM):
Guiding Principles document – Completed November 2005
Philosophy document to be issued at 2006 Best Practices –
Completed
EPCM contract issued for 2007 Best Practices – On
schedule
Construction Management contract (CM):
Viewed as a sub-set of the EPCM and will be developed
after the EPCM is published.
2005 / 2006 Activities
Build a working committee that is representative of the participants:
Owners, Contractors, Consultants, Legal
Industry sectors: Mining, Petrochemical, Power, Pipelines, Infrastructure etc.
Edit “Guiding Principles” to better reflect preferred sequence of deliverables:
Document issued to board for comment November 2005
Develop “Philosophy Document” to provide guidance for development of the
EPCM contract:
Two review cycles complete
Issued for comment: Draft 2 to Board; Draft 3 to Best Practices session
Develop contract documents using EPC contract as template:
Ongoing on schedule for delivery of document to 2007 Best Practices
Establish subcommittee to develop Appendix B – Reimbursable Costs
2006 / 2007 Activities
Maintain a balanced representation of all sectors from members
actively working on the Committee
Continue the effort to ensure full active representation from all
stakeholders
Publish final edition of EPCM Philosophy document
Complete development and issue EPCM Contract, together with
all Appendices, including Appendix B – Reimbursable Costs
Work with our colleagues on the other Best Practices
Committees and COAA communications staff to gauge and
promote the use of COAA contracts
Establish long term plans for the Contracts Committee that
ensures the development of best practices that are relevant to the
needs of our industry
Closing