CM-MA-700 Preparation of Proposals and Administration of Contract Documents

Detalles

Table of Contents  

  1. Purpose
  2. Application
  3. Responsibilities
  4. Invitation to Bid
  5. Proposal Preparation and Approval
  6. Contract Award, Execution and Close Out
  7. Flowchart
  8. References
  9. Attachments

1. Purpose

1.1 Objectives

This procedure shall be maintained to ensure that:

  •   proposals are prepared in response to the Invitation to Bid or other request (ITB);
  •   contractual responsibilities are adequately defined;
  •   contractual requirements differing from those in the ITB are resolved;
  •   contractual risks are minimized;
  •   proposal and contract documents are effectively controlled;
  •   proposal and contracts receive the proper level of management approvals.

2. Application

This procedure is applicable to Company, and shall be used for all product lines.

All applicable Corporate Company requirements established in Corporate Company procedures (see references) are translated/incorporated into this Company procedure.

Where the proposal effort is limited (e.g. less than 200 operations manhours) then this procedure may be less formally applied, at the discretion of the Senior Program Manager (= Company Regional Product Line Manager) and in practice with the Company guidelines for proposals issued from the regional level.

For Environmental proposals see also procedure ref. 8.15

3. Responsibilities

Responsibilities are as defined herein.

4. Invitation to Bid

4.1 Receipt of Invitation to Bid (ITB)

The Business Development Manager who receives the invitation to bid shall discuss the ITB in relation to Corporate Company sales policy with the Senior Program Manager, Business Development Manager and General Manager to determine whether Company will accept the ITB and pursue the project or that it will be handed over to another Corporate Company office, or Company  will decline to bid.

4.2 Obtaining Approval to Bid

The Senior Program Manager shall obtain approval to bid from the Corporate Company V.P. Product Line in case the proposal preparation budget is expected to exceed the established limits. See reference 8.1 (CS-0200, chapter III B).

The Business Development Manager shall inform the Customer on Company's decision to submit a proposal.

5. Proposal Preparation and Approval

5.1 Assignment of Proposal Manager

A Proposal Manager is assigned by the Senior Program Manager in consultation with the General Manager and the Business Development Manager. The Business Development Manager shall ensure registration of the ITB in the Sales Register.

5.2 Preparation of Job Prospect Analysis (JPA) and Proposal Budget

The Business Development Manager prepares in consultation with the Manager of Proposals a JPA, giving concise information on the ITB (e.g. estimated value, duration, chance of award and type of job; see attachment 1) and win strategy.

The Manager of Proposals estimates and establishes a proposal budget in consultation with the Proposal Manager and the Business Development Manager (see attachment 2).

The Business Development Manager or the Senior Program Manager shall register the JPA in the Sales register and then circulate the JPA and win strategy for approval as appropriate.

5.3 Proposal Strategy Meeting

The Senior Program Manager will arrange a strategy meeting before or as soon as possible after approval to bid is obtained. The following personnel are invited:  (marked with "*" are minimum required):

Subsidiary Vice President *  and/or
General Manager   *
Manager of Business Development *  and/or
Business Development Manager *
Senior Program Manager *
Proposal Manager *
Manager of Proposals  
Contracts Manager  
Manager of Finance & Accounting  
Manager of Project Management Services *
Manager of Process  
Manager of Engineering  
Manager of Procurement  
Manager of Construction  

The Business Development Manager and Proposal Manager shall prepare and present the project win strategy for discussion and approval during the strategy meeting.

Items of discussion also include the bidding strategy, taking into account the competitive situation and may include teaming partnerships, joint ventures, associations, or consultants. The meeting provides guidelines for the preparation of the proposal, e.g.; requirement for and composition of proposal team, allowable proposal budget, required accuracy of estimates, required management reviews, execution philosophy and schedule requirements.

The results of the meeting shall be minuted by a company confidential memo if a significant number of action items are identified.

The above described formal strategy meeting may be dispensed with for limited effort proposals. In such cases the proposal strategy is set by the Senior Program Manager, the Proposal Manager and the Business Development Manager.

5.4 Control of Proposal Budget

The Proposal Manager shall monitor, control and report manhour expenditures (and other proposal costs if significant) weekly to the Senior Program Manager and forecast final proposal costs.

The Manager of Proposals is responsible for reporting proposal costs in accordance with ref.8.10:

  •   a proposal number is provided to Finance and Accounting;
  •   the proposal number is registered on the JPA register.

For limited effort proposals a sub-number of the Business Development Manager's personal account number may be used to monitor the proposal Budget.

5.5 Control of Inquiry Documents

All formal communications with the Customer shall be controlled in accordance with ref.8.11 in particular:

  •   all verbal communications shall be confirmed in writing;
  •   the Business Development Manager shall ensure all documents are distributed appropriately and maintain a register of all incoming and outgoing formal documents indicating Customer, subject (e.g ITB  number), document number, title, issue description and date. All documents shall be filed in an incoming and outgoing transmittal file to enable traceability.

The Proposal Manager shall maintain a proposal file to control all formal and informal proposal documents (technical and commercial), providing a complete overview of the history even including AVO's, memo's, and so on. This file shall be verified against the sales file and handed over to the Project Manager at the start of the project.

5.6 Preparation of Proposal Schedule and Distribution of the ITB

The Senior Program Manager is responsible to coordinate all required Corporate Company management reviews. The Proposal Manager will provide all relevant milestone data. (Attachment 8 provides information for management review).

The Proposal Manager finalizes the Proposal Schedule (see attachment 7) in conjunction with the Manager of Proposals. This schedule shall allow for timely execution of estimates, required Corporate Company management reviews, adequate review of proposal write-ups, collation of the final document and delivery.

The Proposal Manager prepares and distributes packages of relevant parts of the ITB to those who must contribute to and/or review the proposal.

5.7 Preparation of Project Execution Philosophy

The Proposal Manager prepares a Project Execution Philosophy in line with what is agreed in the strategy meeting.

The Senior Program Manager reviews and approves this Project Execution Philosophy to ensure that a proper basis for job execution is established.

This document provides the framework for proposal write-ups and the detailed Discipline Manhour Estimates and must therefore explain in enough detail how the job will be organized, coordinated and executed.

5.8 Proposal Kick-Off and Coordination

The Proposal Manager is responsible to coordinate the technical proposal. In parallel, the Business Development Manager is responsible to coordinate the preparation of the commercial/contractual input.

In case of a proposal executed by a dedicated proposal team, a formal kick-off meeting shall be organized by the Proposal Manager with follow-up meetings as required to discuss specific details. For limited effort proposals, only an action memo may be issued with follow-up meetings with individuals to discuss details.

All employees, contributing to the proposal, shall be invited for the proposal kick-off meeting. The Proposal Manager shall ensure that minutes of meeting are prepared and distributed.

An information package will be established by the Proposal Manager to ensure an effective distribution and communication of relevant information, in addition to the ITB documents:

 

Input from:

·  Type of Contract

Business Development Manager

·  Customer Details

Business Development Manager

·  Plant Details

Business Development Manager

·  Competition

Business Development Manager

·  Management Requirements

Business Development Manager

·  Anticipated Award Date for the Project

Business Development Manager

·  Special Features

Business Development Manager

·  Teaming Agreements

Senior Program Manager

·  Proposal Budget and Schedule

Proposal Manager

·  Index to Proposal Write-Ups

Manager of Proposals

·  Action/Responsibility List

Proposal Manager

·  Project  Execution Philosophy

Proposal Manager

The checklist for proposal instructions, see attachment 11, shall be used by the Proposal Manager as a basis for the action/responsibility list.

5.9 Preparation of Proposal Write-Ups

Subsequent to the proposal kick-off, responsible parties shall distribute relevant documents within their department and prepare their input to the proposal package in accordance with the ITB, the Project Execution Philosophy and instructions of the Proposal Manager and Business Development Manager.

In accordance with the proposal schedule, draft proposal write-ups shall be forwarded to the Manager of Proposals (technical) or the Business Development Manager (commercial), preferably in electronic format. They coordinate the collating and editing of write-ups and shall check conformance with the ITB.

The Proposal Manager shall check technical and commercial write-ups for overall consistency.

The edited write-ups are checked and commented, by the author and the Discipline/Department Manager.

Ambiguous/contradictory information shall be communicated/solved promptly by the Proposal Manager.

5.10 Preparation of Manhour Estimates per Discipline/ Department

The Manager of Project Management Services prepares a manhour estimate per Discipline/ Department, based upon historical or other available project data.

The Senior Program Manager decides if it is required for operational departments to also prepare a manhour estimate, depending on type of contract, chance of award, complexity, type and nature of the job.

Manhour Estimates prepared by operational departments are based upon the overall Project Execution Philosophy. Deviations from existing standard working methods might be required of which the impact shall be carefully evaluated and approved by the Department Manager and Senior Program Manager.

The Proposal Manager shall review/comment on both estimates and shall agree with the Senior Program Manager a total project manhour estimate to be utilized in the proposal.

5.11 Site Visit

A Site Visit will be carried out, when required, to be decided upon by the Senior Program Manager in consultation with the Proposal Manager.

A list of subjects, personnel and schedule is established by the Proposal Manager in consultation with the appropriate Discipline/ Department Managers prior to approval by the Senior Program Manager.

An agenda and list of attendees are communicated to the customer prior to any visits.

5.12 Preparation of Materials and Subcontract Estimate

The Manager of Project Management Services is resposible for the preparation of a Materials and Subcontract Estimates. 

Depending on the required estimating accuracy, bids are requested by Procurement.

5.13 Compilation of Draft Proposal and Corporate Company Management Review Package

The Manager of Proposals shall compile the complete Draft Proposal and reviews all information to ascertain compliance with the ITB.

The Proposal Manager shall prepare a Management Review Package  (MRP) in the following format, dependent upon required management review level:

Management Review Level

Required Format

Level II

Modified Appendix 7 of CS-0200

Level I,0,00

Appendix 7 of CS-0200

The following functional groups will provide inputs, advice and assistance to the Proposal Manager in preparing the MRP: (see attachment 10).

Functional Group

Information to be Provided

Business Development

Marketing Data
 

Win Strategy
 

Pricing Strategy
 

Negotiation Strategy

Project Management

Services

Margin Summaries (Opportunity/risk)
 

Cost Estimates
 

Schedule Information

Contracts

Review of ITB Terms and Conditions. Preparation of Proposal Terms and Conditions. Insurance Matters and other Contractual and Legal Support

After completion, the Management Review Package is transmitted to Corporate Company Management in advance of the review presentations with respective Corporate Company Management.

5.14 Teaming, Consortium and Joint Ventures

Before a binding Teaming Agreement (involving any type of consortiums, joint ventures or other binding partner relationships) can be offered or accepted in connection with a proposal, the Teaming Agreement requires review in accordance with ref.8.9:

  • the Contracts Manager shall prepare the teaming agreement; complete all information on the review form and ultimately obtain all required review and approval signatures;
  • the Senior Program Manager is responsible for attaching a memo, explaining the qualifications of the proposed team member and why it makes strategic and tactical sense to team with that team members and for the coordination with team members.

5.15 Internal Estimate Review

An internal review meeting is organized by the Business Development Manager to review and evaluate all pertinent data resulting in manhours and costs and culminating in the Pricing Sheet. (See attachment 3).

The Pricing Sheet shall be signed by the Project Management Services, Manager of Business Development, Business Development Manager, Proposal Manager, Senior Program Manager prior to being signed by the General Manager.

5.16 Corporate Company Management Review of Proposals and Negotiation Limits

The Senior Program Manager in conjunction with the Contracts Manager will coordinate with Corporate Company the final scheduling of the required Management Review Meetings and shall notify required attendees. (See attachment 8)

Corporate Company management reviews are conducted by the Senior Program Manager using the MRP package as prepared by paragraph 5.13.

As a result of these meetings the final proposal pricing guidelines are fixed and negotiating limits established.

5.17 Preparation of Commercial Proposal

The Business Development Manager prepares in parallel the commercial proposal and/or the proposal submittal letter. Comments and exceptions to contractual terms and conditions are provided to the Business Development Manager by the Contracts Manager.

5.18 Company Management Review of Draft Proposal

Within Company, the Draft Commercial and Technical Proposal shall be reviewed/ commented by:

·  Senior Program Manager or his designee.

The Manager of Business Development or his designee shall review the draft commercial proposal. The Senior Program Manager is ultimately responsible for content and consistency of the entire proposal. 

5.19 Proposal Update and Final Review

The Proposal Manager and Business Development Manager shall resolve all ambiguous comments.

The proposal is updated accordingly and reviewed by the Manager of Proposals and the Proposal Manager in a joint effort.

5.20 Final Approval of Proposal

After the proposal has been prepared appropriate levels of Company and Corporate Company management will approve submittal to the Customer.

The Contracts Manager shall ensure that the proposal review form as shown in attachment 4 is signed by the appropriate personnel prior to submission, indicating his or her concurrence with or comments on the proposal.

In general, proposal approval confirms that:

  •   appropriate management reviews have been conducted;
  •   commercial terms are properly addressed;
  •   technical content is presented correctly;
  •   pricing is in accordance with management direction;
  •   the proposal is ready to be submitted.

Corporate Company approvals granted via video/telephone conference reviews may be so noted on the approval form by the Contracts Manager.

5.21 Proposal Delivery

The Manager of Proposals is responsible for timely delivery of the complete proposal to the Customer.

5.22 Follow up and Contract Negotiation

The responsibility for proposal follow-up and contract negotiations rests with the Business Development Manager supported by the Contracts Manager, Senior Program Manager and Proposal Manager.

Negotiation limits on price and individual terms and conditions are as established during the Corporate Company proposal review.

In the event negotiations cannot be concluded within the pre-approved parameters, negotiation limits may be revised during the negotiation process, subject to management review and approval.

During the proposal follow-up and negotiation period, the Customer may request clarification or response to specific questions, which may require sections or parts of the technical or commercial proposal to be revised. These responses shall be clearly identified with revision number, date and or the specific Customer reference by the Business Development Manager.

The Contracts Manager supported by the Business Development Manager, shall ensure that any change to the proposal agreed during the negotiation process are reflected in the final contract.

6. Contract Award, Execution and Close Out

6.1 Review and Approval of Contract Documents

Prior to execution, contract documents must be reviewed by the Project Manager, Business Development Manager, Contract Manager and approved by the Senior Program Manager or General Manager.

The Contracts Manager is responsible to determine who should review the document and to ensure that, pending circumstances, the appropriate individuals review and approval signatures are obtained on the Request for Execution of Document form(see attachment 5).

6.2 Signing of Contract

Contracts shall be signed exclusively by the Company General Manager or those specifically authorized in accordance with specified approval limits.

6.3 Limits of Authority

The Senior Program Manager in consultation with the General Manager shall determine the limits of authority of the Project Manager and issue formally a written notice of such limits.

6.4 Preparation and Distribution of Internal Sales Order

Promptly after receipt of a valid contract or letter of intent, the Contract Manager shall prepare and issue a Sales Order (see attachment 6) in accordance with ref.8.4 to:

  •   record the receipt of each Customer contract;
  •   distribute essential contractual information;
  •   allow for internal charge numbers to be established.

Succeeding issues of the Sales Order shall describe the complete life of the sales order.  (See attachment 12).

6.5 Start of Work

Work shall only be performed after receiving appropriate contractual coverage from customers. There may, however, be circumstances under which it is prudent to start in advance of such coverage. In such instances, it is necessary to obtain advance approval through a Company Funding Request (CFR) in accordance with ref. 8.6:

  •   the Senior Program Manager may authorize the CFR for expenditures of company funds on a single project up to pre-established limits. All CFR's shall be coordinated by the Contracts Manager.

6.6 Contract Briefing

The successful transition from proposal to contract execution requires that the personnel responsible for meeting the Company's contractual requirements fully understand these requirements. A contract briefing shall therefore be provided for most contracts with a potential value in excess of 2 million $US or when special contractual conditions or risks exist. The Contracts Manager shall prepare a contract briefing document in accordance with ref. 8.5 and shall be presented or distributed in accordance with ref. 8.12.

6.7 Control of Contract During Project Execution

The Contracts Manager is responsible to control all contractual documents during project execution. The assigned Project Manager shall provide the Contracts Manager with copies of all project variations as described in ref.8.13 and other contractual documents including key correspondence.

6.8 Contract Completion/Close Out

Upon completion of the project as determined by the Project Manager, and all warranty and other contract obligations as determined by the Contracts Manager, reference is to be made to the close-out procedure (ref.8.14) a Project Close-out Notice Form is issued by the Contracts Manager.

7. Flowchart

8. References

 

Document Number

Title

Level
8.1  

CS-0200

Proposal Review and Approval

Corporate Standard
8.2  

CS-0201

Review and Approval of Contract Documents

Corporate Standard
8.3  

CS-0202

Delegation of Contract Signature Authority

Corporate Standard
8.4  

CS-0203

Recording Receipt of Contract Documents

Corporate Standard
8.5  

CS-0204

Contracts Briefing Procedure

Corporate Standard
8.6  

CS-0205

Expenditure of Company or Management Risk Fund

Corporate Standard
8.7  

N/A

N/A

  
8.8  

CS-0207 

Review and Approval of Negotiation Plans

Corporate Standard
8.9  

CS-0208

Review and Approval of Teaming Agreements

Corporate Standard
8.10  

CM-MA-701

Control of Proposal and Business Development Costs

2
8.11  

CM-MA-119

Document Control

2
8.12  

CM-PE-304

Launch and Kick-Off of Projects

2
8.13  

CM-PE-313

Control of Project Variations

2
8.14  

CM-PE-118

Project Close-out

2
8.15  

CM-MA-702

Environmental Proposals

2

 

9. Attachments

Forms

1.  

Job Prospect Analysis

(typical example)

2.  

Proposal Budget Estimate

(typical example)

3.  

Pricing Sheet

(typical example)

4.  

Proposal Approval Form

(typical example)

5.  

Request for Execution of Document

(typical example)

6.  

Sales Order:  European Region

(typical example)

Miscellaneous Guidance Documents

7.  

Proposal Activity Schedule

(typical example)

8.  

Proposal Review Levels

(typical example)

9.  

Contract Documents Requiring Review by RE&C Corporate

(typical example)

10.  

Flow Diagram for Management Review Package (MPR)

(typical example)

11.  

Checklist Proposal Instructions

(typical example)

12.  

Notice of Job Award:  Flow Diagram of Sales Order

(typical example)


Job Prospect Analysis

(Typical Example)

See hard copy for example of attachment

Proposal Budget Estimate

(Typical Example)

See hard copy for example of attachment

Pricing Sheet

(Typical Example)

See hard copy for example of attachment

Proposal Approval Form

(Typical Example)

See hard copy for example of attachment

Request for Execution of Document

(Typical Example)

See hard copy for example of attachment

Sales Order:  European Redion

(Typical Example)

See hard copy for example of attachment

Proposal Activity Schedule

(Typical Example)

See hard copy for example of attachment

Proposal Review Levels

(Typical Example)

See hard copy for example of attachment

Contract Documents Requiring Review by RE&C Corporate

(Typical Example)

See hard copy for example of attachment

Flow Diagram for Management Review Package (MPR)

(Typical Example)

See hard copy for example of attachment

Note: hard copy for examples are not available

Subjects to be Considered During a Contract Review

Item   Subject

1.       Project Particulars

          Client
          Location (plant and Client)
          Type of plant
          Capacity/size
          Type of work (revamp/grass roots)
          Technology and Licensing

2.       Company Experience with Client

          Known Company Client
          New Client
          Future work potential

3.       Company Experience with (Similar) Facility

          Feedback of potential problem areas

4.      Articles of Agreement

          Definitions
          Object of the contract
          Contract type (reimbursable, lump sum services, lump sum turnkey, other)
          Overall scope of work and division of responsibility
          Obligations of the contractor (Company)
          Obligations of the Client
          Cooperation and coordination between contractor and Client
          Proprietary rights and licenses, secrecy and patents
          Effective date of contract
          Assignment of contract
          Contract price, terms of payment bonuses and incentives
          Performance bonds and bank guarantees
          Indemnification
          Insurance
          Guarantee of workmanship and materials
          Performance guarantees and performance guarantee tests
          Liquidated damages
          Warranties
          Rectification of defects and modifications to the works
          Liabilities and waiver
          Taxes, levies
          Suspension of work
          Termination and cancellation of the contract
          Force majeure
          Language governing the contract
          Applicable laws and conformity with local statutes
          Settlement of disputes and arbitration
          General provisions
          Notices and approval
          Disclosures
          Time of essence
          Delivery and execution of the works
          Supervision of the work and access to work

5.      Contract Details

          Description of the works
          Basis of design
          Battery limits of the plant
          Documents requiring approval of the Client
          List of technical services to be performed by the contractor
          Detailed description of services to be supplied by the Client
          Exclusions from the scope of services of contractor
          Scope of delivery of equipment and materials by the Client
          Scope of supply of equipment and materials by contractor
          Catalysts supply by Client or contractor
          Spare parts (for commissioning/start up/.... years service) bought by Client or contractor
          List of chemicals by Client or contractor
          List of pre-qualified vendors for critical equipment
          Time schedule of implementing each stage of the contract
          Governmental authorities, requirements and contacts
          Procedures for variations, additions and changes
          Engineering procedures
          Client specifications, standards, procedures
          Client supplied documents/data
          Codes and standards and minimum requirements for equipment specifications
          Details of inspection during fabrication
          Description of agreements with licensors
          Process guarantee procedures
          Contractual drawings
          Safety requirements
          Quality of products (special requirements)
          Quality and quantity of effluents Effluents and emission standards
          Disposal of waste requirements
          Limitation of exposure Procurement procedures
          Inspection, testing and certification
          Packing, shipping and marking (delivery conditions)
          Storage at site
          Construction procedures
          Mechanical completion and pre-commissioning procedures
          Manuals and catalogs

6        Execution Aspects

          Award date (planned/actual)
          Required manpower levels and assigned personnel, (own/agency ratio engineering execution strategy)
          Subcontracting/joint venture arrangements
          Special local conditions/politics/customs
          Special (local) authority requirements
          Special quality requirements
          Special safety requirements
          Future extension requirements (equipment/plot/piping/civil and structural)
          Last minute agreements/deviations
          Licenses: agreements/agents/consultants
          Preparation of budgets and estimates (consider escalation, accuracy and date)
          Waste allowances/excess materials
          Procurement execution strategy/bidding procedure
          Critical delivery items
          Construction execution strategy
          Subcontract conditions
          Site rules and regulations
          Client's site services, temporary utilities, facilities, etc.
          Handover procedures ? mechanical completion, RFSU
          Progress review meetings required
          Administrative requirements

  • Document format, numbering systems (documents, equipment, lines)
  • Symbols to be used

          Scheduling requirements
          Reporting systems and reporting requirements
          Computer use (extension/location/type)

Proposal Instructions to be Prepared and Coordinated by the Proposal Manager

This section presents the format and check?lists for use in preparing the Proposal Instructions. It will be prepared and coordinated by the Proposal Manager to cover the larger types of proposals which include engineering, procurement and construction and will be adjusted as necessary to suit the particular proposal concerned (e.g. lump sum turnkey).

The Proposal Instructions is a vital document for all Departments working on the preparation of the proposal and it is important that it should be written in brief terms but with no omissions. It is not necessary to repeat the descriptive matter which is contained in other documents such as the Client's Enquiry Documents and in such cases the document, page and clause numbers should be stated in the Proposal Instructions. To avoid the risk of misunderstanding, it is preferable to state "None", "Not Applicable", "By Others", "See so? and?so", "To follow", or "Hold", rather than omit the item altogether.

The Proposal Instruction must be issued to all personnel who will be required to work on the preparation of the proposal.

 

Checklist for Proposal Instructions

Proposal Instructions (Rev. No.)

Proposal No.

Project Title

Summarize the requirements of the Enquiry Documents and extent of the work to be performed by Company for the contract.

9.1 Client

Give following information as applicable:

  •   Client
  •   Address
  •   Telephone No.
  •   Telex No.
  •   Cables
  •   Project Reference No.
  •   Personnel  (Gives names of contacts on particular subjects where necessary)
  •   Give addresses of other Client's offices involved and other Companies participating (if any).

9.2 Client's Agent/Consultant/Licensor

Give similar information as in 1.1 if applicable.

9.3 Location of Plant

Give town and country.

For remote locations give the nearest large town.

For pipelines give the complete route.

9.4 Enquiry Documents

Give list of Enquiry Documents received from Client.

9.5 Project Definition

Give list of plant sections, services and ancillaries for which Company is to quote.

Give details of Phases or Stages if applicable.

List in accordance with the price break?down format stipulated by the Client if applicable.

9.6 Licensed Processes Involved

Give details and state if process package provided by Client, developed by Company or from client basis of obtained independently by Pass information on cost of Royalties to Estimating separately if applicable.

Activities by Departments

Sales

Coordinates proposal activities of the legal, financial and human resources department.

Prepares and/or reviews, as appropriate, the following:

  •   Bidding strategy
  •   Full review of proposed contract (ITB)
  •   Preparation of sales letter
  •   Input for pricing
  •   Clients contact
  •   Special and/or alternative recommendations
  •   Establishes levels of liabilities, bonuses, penalties and liquidated damages
  •   Project related financing and counter-trade proposals
  •   Agency contracts

Contracts

Prepares and/or reviews, as appropriate, the following:

  •   Contract conditions
  •   Guarantees and liabilities
  •   Insurances
  •   Secrecy agreements
  •   Special conditions of subcontractors and/or vendors
  •   License agreements
  •   Cooperation agreements for joint venture and/or partnership
  •   Quotations for special insurance
  •   Interfaces with Company affiliated companies' legal departments
  •   Parent company guarantee

Finance and Accounting

Prepares and/or reviews, as appropriate, the following:

  •   Guarantee
  •   Bank
  •   Performance
  •   Retention
  •   Currency exchange risks and possibilities to cover these risks, including credit risks
  •   Determination of currency in consultation with Sales
  •   Onshore/offshore contracting in consultation with Sales
  •   Tax
  •   Income tax on personnel
  •   Income tax on corporation
  •   Payment terms and conditions in consultation with Sales
  •   Pricing of reimbursable costs
  •   Financing (if applicable)

Human Resources

Prepares and/or reviews, as appropriate, the following:

  •   Assignment conditions and terms for Home Office personnel and construction personnel and related effects such as:
  •   Cost of living differential
  •   Housing and removals
  •   Travel assignments
  •   Visa and work permit requirements and costs
  •   Taxation
  •   Schooling
  •   Qualifications of the employee
  •   Agency contracts

Product Line Manager

  •   Assigns the Proposal Manager
  •   Guides proposal effort
  •   Selection of candidates for assignment
  •   Final review of proposal prior to management approval

Proposal Manager

Coordinates proposal activities of the Engineering, Procurement, Construction and Controls Departments.

Prepares and/or reviews, as appropriate, the following:

  •   Review of proposed contract (ITB)
  •   Coordination of technical matters between Company and Client
  •   Preparation of proposal index and indication of responsibilities (together with Manager of Proposals)
  •   Preparation proposal schedule
  •   Organization of site visits in consultations with Sales
  •   Progress report to management
  •   Preparation project organization chart
  •   Preparation of the proposed project execution plan
  •   Preparation/review of proposed project schedule
  •   Review/assistance in manpower assignment
  •   Review of draft write?ups
  •   Review of estimate (manhours and costs)

Manager of Proposals

Prepares and/or reviews, as appropriate, the following:

  •   Clients requirements vis?à?vis the draft write?up
  •   Project history and/or experience lists
  •   Personnel resumes
  •   Manpower availability
  •   Corporate information on Company and/or Company
  •   Overall company organization chart
  •   Review of draft write?ups to ascertain compliance with ITB
  •   Arrange for typing and printing
  •   Heat and material balances
  •   Process flow diagrams
  •   Equipment specification/data sheets
  •   Piping and instrument diagrams
  •   Utility summaries
  •   Flare loads
  •   Control system lists
  •   Special material requirements
  •   Process guarantees
  •   (Pre?)commissioning
  •   Process execution plan
  •   Assignment durations
  •   Selection of candidates for assignment
  •   Manhour estimate

Engineering

Prepares and/or reviews, as appropriate, covering all specialist engineering and drafting departments, the following:

  •   Scope of engineering services
  •   Appropriate Clients standards
  •   Site surveys
  •   Requisitions
  •   Layouts
  •   Availability of hardware/software
  •   Application of software
  •   Bulk take?offs/estimates
  •   Piping and instrument diagrams
  •   Line tables
  •   Engineering subcontracting
  •   Engineering planning
  •   Organization charts
  •   Engineering execution plan
  •   Assignment durations
  •   Selection of candidates for assignment
  •   Manhour estimate

Procurement

Prepares and/or reviews, as appropriate, the following:

  •   Vendor and/or subcontractor list(s)
  •   Evaluation of vendors and/or subcontractors
  •   Negotiations with potential vendors and/or subcontractor
  •   Inquiries to vendors
  •   Conditions of purchase
  •   Predicted price developments and escalation
  •   Shipment/delivery conditions
  •   Discount possibilities
  •   Special expediting and/or inspection requirements/liabilities or conditions
  •   Procurement execution plan
  •   Assignment durations
  •   Selection of candidates for assignment
  •   Manhour estimate

Construction

Prepares and/or reviews, as appropriate, the following:

  •   Contract/agreement
  •   Site survey(s), area survey(s)
  •   Subcontractor list(s)
  •   Evaluation of potential subcontractors
  •   Preparation of subcontract bidding documents
  •   Analysis of subcontractors' bids and negotiations
  •   Preparation of construction organization charts and assignment terms and conditions
  •   Project schedule and construction planning
  •   Special requirements, (temporary) site facilities, utilities and construction equipment
  •   Mechanical completion definition
  •   Predicted subcontract's price development and escalations
  •   Construction execution plan
  •   Assignment durations
  •   Selection of candidates for assignment
  •   Manhour estimate
  •   Field Office cost estimate

Quality Assurance

Prepares and/or reviews, as appropriate, the following:

  •   Specific Client?required quality activities/responsibilities
  •   Quality requirements and/or clauses to be imposed on vendors and/or subcontractors.
  •   Quality?related potential liabilities.

Project Management and Control Services

Prepares and/or reviews, as appropriate, the following:

  • Home Office material cost estimate
  •   Manhour estimates and rates
  •   Escalation
  •   Risk analysis
  •   Predicted expenditure curves
  •   Currency split
  •   Planning and scheduling
  •   Progress measurement
  •   Workload curves
  •   Manpower availability lists
  •   Field Office cost estimate
  •   Estimate of material, equipment and field labor
  •   Contract price breakdown
  •   Payment installments
  •   Historical cost and manhour data
  •   Project control execution plan
  •   Assignment durations
  •   Selection of candidates for assignment
  •   Manhour estimate

Notice of Job Award

(Typical Example)

See hard copy for example of attachment

Note: hard copy for examples are not available