CONTRACT LIFECYCLE MANAGEMENT IN MINING

Transcription

1 CONTRACT LIFECYCLE IN MINING Main Conference: June 2013 Workshops: 25, 26, 27 June 2013 Venue: Traders Hotel Brisbane STRATEGIES FOR EFFECTIVE CONTRACT SELECTION, DRAFTING, GOVERNANCE AND DISPUTE RESOLUTION KEY SPEAKERS: Derrick Hansen General Manager Operations (Australia East), Procurement Rio Tinto Wayne Clarke Principle Contracts Specialist Wesfarmers Resources Limited Vicki Ellington Senior Contracts Administrator, Sanjiv Kothari Head Techno Commercial Mining Pankaj K Sinha Project Director - Commercial Hancock Coal Sean Fitzpatrick Group Manager Strategic Sourcing Oz Minerals Bryan Scruby Head of Department, Procurement Adrian Parsonage Lead Contracts Specialist Sundance Resources AUSTRALIA S ONLY MINING SPECIFIC CONTRACT EVENT ENHANCE YOUR LEARNING BY ATTENDING: WORKSHOP A: Reducing Risks and Costs through Effective Contract Lifecycle Management WORKSHOP B: Human Factor Influence on Decision Making and Contract Selection WORKSHOP C: Improving Contract Management Capabilities

2 Dear Contract Management Professional, Contract Lifecycle Management is becoming increasingly important in the mining industry given the uncertain economic outlook. Contracts need to be controlled tightly to minimise risks and costs, while ensuring effective project delivery. With that in mind, Contract Lifecycle Management in Mining 2013 has been developed to enable you to: Identify and Allocate Risks in the contracting process Improve project delivery by selecting the appropriate contract type and design Establish effective governance and management procedures to ensure that the contract supports project delivery Generate cost savings in existing long term contracts Resolve contract disputes through negotiation, reducing the risk of contract breach and legal mechanisms Make the most of this opportunity to hear from your peers and industry experts on how to reduce risk and costs, manage contract delivery and resolve disputes and claims. Book by the 29th of March to take advantage of the $600 early bird discount! Simply call , iqpc.com.au or book online at www. contractmanagementinmining.com.au I look forward to meeting you in June. Kind Regards, CONTRACT LIFECYCLE IN MINING Ross Clayton Event Director Contract Lifecycle Management in Mining 2013 Mining IQ EXPERT SPEAKER PANEL INCLUDES: Derrick Hansen General Manager Operations (Australia East), Procurement, Rio Tinto Wayne Clarke Principle Contracts Specialist Wesfarmers Resources Limited Jim Bergman Vice President, Asia Pacifi c and Middle East Vicki Ellington Senior Contracts Administrator Sanjiv Kothari Head Techno Commercial Mining Pankaj K Sinha Project Director - Commercial Hancock Coal Sean Fitzpatrick Group Manager Strategic Sourcing Oz Minerals Shaneen Meyers Relationship Contracting Specialist Peter Steele Resource Projects Service Group Manager GHD Bryan Scruby Head of Department, Procurement Adrian Parsonage Lead Contracts Specialist Sundance Resources Dr Simone Kelly Assistant Professor of Finance Bond University Bert La Fleur Contract Management Professional Hugh Thompson Principle Mining Engineer GHD Dr Cyril Jankoff Chief Executive Offi cer The Risk Doctor Jim Millar Commercial Manager Abigroup Who will you meet? Contract Managers Contract and Procurement Superintendents Commercial Managers General Counsel Company Secretary Procurement Managers Attendees of the Contract Lifecycle Management in Mining event are entitled to take advantage of the negotiated rates available at the Traders Hotel Brisbane. To check availability or book these rates, go to and click on the Venue & Accommodation page for a direct link to rates.

3 DAY ONE TUESDAY, 25 JUNE 2013 CONTRACT LIFECYCLE IN MINING 8.30 Registration and Welcome Coffee 9.00 Opening Remarks from the Chairman Jim Bergman, Vice President, Asia Pacifi c and Middle East, 9.10 Identifying and Allocating Risks in the Contracting Process in EPC Project Identifi cation of the risks associated with the project Developing strategies and risk Management framework Allocation of risks between parties to a transaction according to extent of control, exposure and ability to minimise risks Managing contractual risk on an ongoing basis The dangers of assigning too much risk to a single party for future contract relationship management Pankaj K Sinha, Project Director-Commercial, Hancock Coal Pty. Ltd 9.50 Developing Contracting and Procurement Procedures to Reduce Project Risks The importance of standardised procedures for mitigating the risks associated with skill gaps and staff turnover Developing contracting and sourcing strategies for new projects Creating procedures for contract governance to avoid the need to create bespoke solutions for each project Bryan Scruby, Head of Department, Procurement, 10:30 Morning Refreshments and Networking Break 11:00 Case Study: Contracting for International Mining Operations Adrian is responsible for the development of the contracts and procurement strategy for the Mbalam Iron Ore Project in the Cameroon. In this session he will cover: Risk assessed contract selection including contract type and special conditions Using risk assessments to determine the contracting and procurement strategies for international and local suppliers Understanding the contract risk profi les for each supplier category and developing appropriate controls Ensuring supplier adherence to health, safety and governance standards Developing tender packages that include a focus on capabilities and supply standards of local providers Adrian Parsonage, Lead Contracts Specialist, Sundance Resources 11:40 Panel Discussion: How to Generate Cost Savings in Existing Long Term Contracts How can the scope of work and services be amended for further effi ciency gains? How can you transfer risk to generate cost savings? How can effi ciency measures and key performance indicators be included in the agreement retrospectively? How can the administration and reporting burden be reduced for both parties? Are there any other key means by which to generate cost savings? Jim Bergman, Vice President, Asia Pacifi c and Middle East, Panellists: Sean Fitzpatrick, Group Manager Strategic Sourcing, Oz Minerals Bryan Scruby, Head of Department, Procurement, Sanjiv Kothari, Head Techno Commercial Mining, 12:20 Lunch and Networking Break 13:00 Contract Negotiation Techniques for Mining Agreements The analytical, commercial and interpersonal skills required to be a competent negotiator Clearly identifying the commercial goals for both organisations, and the key terms for each party Understanding which commercial terms you are happy to concede in the negotiation process Controlling the stages and timing of the negotiation to improve outcomes Utilising contract negotiation scenarios to improve competency and prepare individuals The principle of win-win and how it can be employed in a negotiation Focusing the negotiation on value and not price Sanjiv Kothari, Head Techno Commercial Mining, 13:40 Contracting Methods for Effective Project Development; from Exploration, through Feasibility onto Execution Identifying desired behaviour and selecting the appropriate contract Contractor selection matrices; risk analysis associated on contract selection What contract types suit the delivery of which services, at which stages of a project, for which company Assessing traditional vs partnership contracting styles Evolution and future of contract types in mining Aligning scopes, deliverables and rewards with project goals. Specifi cally how to cope with change at an operational level Hugh Thompson, Principal Mining Engineer, GHD Peter Steele, Resources Projects Service Group Manager, GHD 14:20 Afternoon Refreshments and Networking Break 14:50 Roundtable Discussion: How do you Balance Risk and Cost during the Contracting Process? How do you decide on the appropriate contract type? How do you balance risk appetite against factors such as project outcomes, duration and cost? What are the key contract clauses to include to reduce risk and the potential for disputes? How do you ensure that both parties do not take on risks that they do not understand? Jim Bergman, Vice President, Asia Pacifi c and Middle East, 15:30 Enhanced Contracting for Capital Works Projects Investigating the typical timeline for a mining infrastructure project Simplifi cation of the contracts to make them workable Improving the quality of risk understanding and allocation Jim Millar, Commercial Manager, Abigroup 16:30 End of Day 1 16:40 Networking Drinks 17:00 Workshop A: Reducing Risks and Costs through Effective Contract Lifecycle Management

4 DAY TWO WEDNESDAY, 26 JUNE 2013 CONTRACT LIFECYCLE IN MINING 8.30 Registration and Welcome Coffee 9.00 Opening Remarks from the Chairman Jim Bergman Vice President, Asia Pacifi c and Middle East, 9.10 Keynote: Contract Management and Procurement at Rio Tinto Derrick Hansen General Manager Operations (Australia East), Procurement, Rio Tinto 9.50 Strategies for Appropriate Communication and Interaction with Suppliers Communications between customers and vendors often become evidence in the instance of a dispute. This session will outline how to effectively communicate in a contracting environment by: Ensuring that staff understand the implications of their communications Exploring ethics, behaviours and what could be considered corrupt Improving internal communications between engineers and contracts Vicki Ellington, Senior Contracts Administrator, Morning Refreshments and Networking Breaks Governance of Procurement Contracts for Junior Explorers Junior explorers account for approximately 1/3 of explorers listed on the stock exchange Key risks are associated with the procurement of intermittent drilling contracts Contract geologist, camp sites, mud men, the Company man, pipe acquisition, cementing and a myriad of other contracts are dependent on the main drilling contract and its performance. Effectively oversee the contract management process and assign risks and redress to appropriate parties when breakdowns occur, Diffi culties in enforcing contractors adherence to health, safety and governance standards especially when these standards are poorly developed by the junior explorer Dr Simone Kelly, Assistant Professor of Finance, Bond University Roundtable Discussion: What are the Right Competencies for a Contract Manager? How do you balance the engineering and commercial and legal acumen? Are the engineers being supported? How do you ensure you staff have the right capabilities to effectively measure, quantify and evaluate a mining project? Jim Bergman, Vice President, Asia Pacifi c and Middle East, Strategies for Dispute Resolution in the Mining Sector Formal vs Informal Solutions The importance of addressing any potential causes of dispute early on Tailoring the strategy for dispute resolution according to the relationship with client and vendor Negotiation strategies for achieving a mutually acceptable agreement Utilising a mediator or order to help achieve a mutually acceptable arrangement Resolving a dispute through arbitration or litigation Wayne Clarke, Principal Contracts Specialist, Wesfarmers Resources Limited Panel Discussion: Strategies for Dispute Resolution What is the role of communication? What are the key informal means to overcome a dispute? How do you decide when to take the legal option? Jim Bergman, Vice President, Asia Pacifi c and Middle East, Panellists: Shaneen Meyers, Relationship Contracting Specialist, Vicki Ellington, Senior Contracts Administrator, Wayne Clarke, Principal Contracts Specialist, Wesfarmers Resources Limited Afternoon Refreshments and Networking Breaks Achieving Breakthrough from Breakdown Suitable situations for switching to an alliance contract The seamless transition from a hard dollar to an alliance contract mid project Managing project delivery risk and maintaining momentum during transition Project change management and transforming team behaviors and attitudes into the new contract style Educating stakeholders on the change in contracting style Shaneen Meyers, Relationship Contracting Specialist, End of Conference 16:00 Workshop B: Human Factor Influence on Decision Making and Contract Selection Making and Contract Selection Lunch and Networking Break

5 WORKSHOPS 25, 26 & 27 JUNE 2013 CONTRACT LIFECYCLE IN MINING WORKSHOP A: Reducing Risks and Costs through Effective Contract Lifecycle Management 17:00 19:30 Tuesday, 25 June 2013 Project failure can more often than not be traced back to ineffective contract lifecycle management. A successful contracting strategy not only relies on deciding upon the best contract type and structure, but also having the appropriate governance procedures in place to ensure adherence. By attending this workshop, participants will: Understand the principles of contract lifecycle management Examine the critical success factors to any successful contracting process Explore how to develop effective cross functional teams Assess how to reduce the risk of project failure by engaging in planning upstream Learn what effective team selection and relationship management means for the contract outcome, and how you can utilise it on site About your facilitator: Bert La Fleur Contract Management Professional Bert has over 30 years experience in contract management, procurement and physical supply chain in both Public and Private Sector. During a 23 year career within Defence (Army) Bert worked as a Senior Logistician with experience in Operational Logistics and Public Sector Supply Chain Management. A transition to civilian life within the Mining resulted in 15 years experience within the Private Sector where Bert was appointed to various levels management from site based Warehousing and Purchasing Coordinator to Supply Superintendent. At a corporate level Bert was involved in various project orientated roles around Business System Implementation, Continuous Improvement Systems specialising in Contract Life Cycle Management, Supply Chain Standardisation and Governance. Most recently, as a Supply Chain Performance Manager Bert was involved as the Contract Management Lead for Australia as a part of a much bigger Supply Chain Globalisation team initiative for a major global mining entity. WORKSHOP B: Human Factor Influence on Decision Making and Contract Selection 16:00 18:30 Wednesday, 26 June 2013 When choosing the right contract model there are many factors that infl uence that decision. In addition to fi nancial, political and environmental factors, human factors can infl uence judgements and choices which in turn infl uence that fi nal decision. With human factors there are underlying elements that infl uence the decision process. With an increased awareness of these factors, individuals have the opportunity to make more objective and better informed judgements throughout their decision making process. This workshop will explore human, organisational and project factors that should be considered to reach the right contract procurement decision. By attending, participants will: Learn how to ensure a contract model procurement decision is not put at risk Understand the types of behaviours and human factors that can provide a more informed basis for the best decision outcome Develop organisation and project criteria based decision making that typically lead to a specifi c type of contract model chosen About your facilitator: Shaneen Meyers Relationship Contracting Specialist Shaneen has over ten years experience in Management Consulting including facilitation of strategic and operational business planning, organisational change, executive and team coaching and organisational development. She brings knowledge and hands on experience from multiple industry sectors including the mining, manufacturing, construction, energy, government and banking. WORKSHOP C: Improving Contract Management Capabilities 09:00 11:30 Thursday, 27 June 2013 In the current resource climate, contract management processes are increasingly important. Improved contract management processes not only offer an increased likelihood of achieving project objectives but also the ability to reduce the level of commercial risk. In this workshop Cyril will consider ways to improve Contract Management processes, including: What makes good contract management capabilities? Identifying your organisation s contract management capability risks Mitigating your organisation s contract management capability risks Using an established maturity model to identify and mitigate your contract management capability risks. This session will end with you developing your own action plan to manage risks and improve your management capabilities. About your facilitator: Dr Cyril Jankoff Chief Executive Offi cer The Risk Doctor Cyril is a business improvement consultant who works in the area of mitigating commercial contract risks. Cyril s qualifi cations and expertise in law, accounting, management and education over 30 years give him a multi-perspective approach in consulting in the area of managing contracts. He has provided in-house training for many Australian companies including Rio Tinto, Department of Defence, Kodak, Melbourne Water, Newcrest and Toyota and for Reliance Industries Ltd in India.

6 Register Early & Save! To speed registration, please provide the priority code located on the mailing label or in the box below. WHERE Traders Hotel, Brisbane, Queensland 159 Roma Street, Brisbane, QLD, 4000, Australia WHEN? June 2013 TEAM DISCOUNTS IQPC recongise the value of learning in terms. Take advantage of one of these special rates: Register a team of 3 to the conference at the same time from the same company and receive $500 discount Register a team of 4 to the conference at the same time from the same company and receive a free pass for a 5th delegate Ask about multi-event discounts. Call for more details Please note: Only one discount applies ACCOMMODATION Attendees of the Contract Lifecycle Management in Mining event are entitled to take advantage of the negotiated rates available at the Traders Hotel Brisbane. To check availability or book these rates, go to and click on the Venue & Accommodation page for a direct link to rates QUICK and EASY WAYS to REGISTER CONTRACT LIFECYCLE IN MINING STANDARD PACKAGES SAVE $600 EXTRA EARLY BIRD *Register & pay before 29th March 2013 Main Conference: June 2013 Workshops: 25, 26, 27 June 2013 SAVE $400 EARLY BIRD *Register & pay before 16th April 2013 STANDARD PRICE Conference + 3 Workshops $ GST = $ $ GST = $ $ GST = $ Conference + 2 Workshops $ GST = $ $ GST = $ $ GST = $ Conference + 1 Workshops $ GST = $ $ GST = $ $ GST = $ o REGISTER ME for Contract Lifecycle Management in Mining 2013 PLUS: o Workshop: oa ob oc DELEGATE 1 [FIRST NAME] [SURNAME] DELEGATE 2 [FIRST NAME] [SURNAME] DELEGATE 3 [FIRST NAME] [SURNAME] MAIL IQPC, Level 6, 25 Bligh Street, SYDNEY NSW 2000 (PHOTOCOPY THIS FORM FOR ADDITIONAL DELEGATES) Conference Only $ GST = $ $ GST = $ $ GST = $ ORGANISATION * Payment must be received by IQPC prior to 5pm AEST on the cut-off date. # Registrations received without payment or a Government PO will incur a processing fee of $99 + GST = $ per registration. Please send me set(s) of AUDIO COMPACT DISCS and PRESENTATIONS CD at $ ($799 plus GST) or $ ($549 plus GST) Presentations CD only Please keep me informed via about this and other related events 2 WAYS TO SAVE! Book early for HUGE EARLY BIRD savings. Book as a TEAM, save & benefit as a team. ADDRESS POSTCODE TELEPHONE ( ) FAX ( ) APPROVING MANAGER [FIRST NAME] [SURNAME] NOTE: PAYMENT IS DUE WITHIN 7 DAYS FROM REGISTRATION TO SECURE YOUR PLACE. Registrations received without payment or a Government PO will incur a processing fee of $99+GST = $ per registration. Payment prior to the conference is mandatory for attendance. Payment includes lunches, refreshments, a copy of conference presentations via FTP website or workbook and all meeting materials. If payment has not been received two weeks before the conference, a credit card hold will be taken and processed. This card will be refunded once alternate payment has been received. PRIVACY - YOUR CHOICE Any information provided by you in registering for this conference is being collected by IQPC and will be held in the strictest confi dence. It will be added to our database and will be used primarily to provide you with further information about IQPC events and services. By supplying your address and mobile telephone number you are agreeing to IQPC contacting you by these means to provide you further information about IQPC products and services. From time to time IQPC may share information from our database with other professional organisations (including our event sponsors) to promote similar products and services. Please tick the box below if you do NOT want us to pass on your details. To amend your current details, advise of duplicates or to opt out of further mailings, please contact our Database Integrity Maintenance Department, Level 6, 25 Bligh Street, SYDNEY NSW Alternatively, database@iqpc.com.au, call or fax I do not wish to have my details made available to other organisations IQPC CANCELLATION AND POSTPONEMENT POLICY: FOR DETAILS OF IQPC S CANCELLATION AND POSTPONEMENT POLICY PLEASE VISIT: IQPC ABN All RIGHTS RESERVED. The format, design, content and arrangement of this brochure constitute a copyright of IQPC. Unauthorised reproduction will be actionable by law. o CHEQUE ENCLOSED FOR $ (Please make cheques payable to: IQPC) PLEASE CHARGE o American Express o Visa o MasterCard o Diners Club CREDIT CARD NUMBER AMEX 4 DIGIT CODE EXPIRY DATE NAME OF CARD HOLDER [PLEASE PRINT]