Procurement for Construction

VI CONVEGNO NAZIONALE Sezione Logistica, Trasporti e Spedizioni Procurement for Construction Project Management LOGISTIC FOR CONTRACT PROJECTS: WHAT DEVELOPMENT FOR THE FUTURE? (La Logistica per i Progetti EPC: quali sviluppi futuri?) Franco Concari Project Management Systems Presidente Vicario IPMA Italy Giovanni Del Serrone Procurement Dept.Director 1

The EPC Project: is managed by the EPC Contractor Supplier Supplier Supplier Supplier SPOOLS PREFABRICATION YARD Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Jobsite Supplier Supplier Supplier Supplier Supplier Procurement for Construction: the Transportation Project is the driving belt 2

The Transportation Project: actuated by the Forwarding Agent Departure Port / Airport Air/ Sea solutions Arrival Port / Airport Transport Warehouse Warehouse Cargo Hauler Transport End Customer Supplier/Customer Job Site The Transportation Project exploits the most effective logistic solutions. 3

Need of a Forwarding Agent SYNERGIES & PARTNERSHIPS BUSINESS VOLUME LEVERAGE IN-HOUSE SPECIFIC EXPERTISE OPERATIVE RESOURCES CONTACTS & RELATIONSHIP 4

TPIT Expectations FAIR AND STEADY PARTNER IN THE PROACTIVE SUPPORT FOR PROJECT EXECUTION TIMELY, UPDATED & CONTINUOUS INFORMATION FLOW ENHANCE PROJECT KNOWLEDGE COUNTRY OF DESTINATION: - Local Staff - Expatriates TEAM STRENGTH IMPROVEMENT To become also DRIVER IN THE DEVELOPMENT OF THE OVERALL TRASPORT SYSTEM 5

C O M M I T M E N T to Project Result TPIT Expectations 100% E F F E C T I V E P A R T N E R S H I P USUAL CUSTOMER / SUPPLIER RELATIONSHIP P L A Y E R S 6

EPC CONTRACTOR Commitment Based on Technip experience and management model PROJECT SCHEDULE SECURING SHIPPING STRATEGY IMPLEMENTATION FULL COST MANAGEMENT DOCUMENTS MONITORING Create a solid frame for the execution of the TRANSPORTATION PROJECT 7

TRANSPORTATION PROJECT Proposal Stage Define the shipping strategy for the Proposal to be competitive for the award of the specific Project Get the Project! DIMENSIONS (LXWXH) WEIGHTS QUANTITIES ORIGINS SHIPPING STRATEGY TYPOLOGY DELIVERY TERMS LAND COST OUTCOME FREIGHT EXW / FCA EU REFORWARDING LOCAL CONVENTIONAL CONTAINER AIR 8

TRANSPORTATION PROJECT Early Project Stage Define the reference coordination frame for the execution of the Transportation Project Each Stakeholder has a role! SHIPPING PP/PTC PREPARATION NM 603 NM 604 PRELIMINARY PL s DATA BALANCE PP607 PTC 604 PP604 SHIPPING SURVEY ML 602 SR 6720 DATA COLLECTION MR 6720 INQUIRY PACKAGE Prescription for Preparation of Documentation Packages (D1001/2/3) for transport XXXX- PP 607 Frame to services supply transport information by SUPPLIER with relevant Support Forms XXXX- PTC specific 604 for the Project Addendum A to 1000 GTC 603 and 1000 GTC 604 ITB NEGOTIATION FA SELECTION PREPARATION OF MR FOR ORDER SERVICE ORDER BID LIST CBT BEFORE CBT AFTER Responsibility Shipping Matrix documents in the XXXX- PP compilation 604 compilation of Shipping and Documents by CLIENT, CONTRACTOR, FA distribution requirements 9

TRANSPORTATION PROJECT Shipping Survey (whenever needed) Define and solve the critical and risk issues of the Transportation Project No surprise in Project execution! SHIPPING PP/PTC PREPARATION PP607 PTC 604 PP604 SHIPPING SURVEY ML 602 NM 603 NM 604 PRELIMINARY PL s DATA BALANCE SR 6720 DATA COLLECTION MR 6720 INQUIRY PACKAGE ITB BID LIST NEGOTIATION CBT BEFORE FA SELECTION CBT AFTER PREPARATION OF MR FOR ORDER INFRASTRUCTURES (roads, ports, railways, etc) LOCAL AUTHORITIES & REGULATIONS CARRIERS LOCAL MARKET SERVICE ORDER 10

TRANSPORTATION PROJECT Shipping Requisitioning Define the Shipping Strategy For the management of the Transportation Project! SHIPPING PP/PTC PREPARATION PP607 PTC 604 PP604 NM 603 NM 604 PRELIMINARY PL s DATA BALANCE SHIPPING SURVEY ML 602 SR 6720 DATA COLLECTION MR 6720 INQUIRY PACKAGE TECHNICAL DOCUMENTS SR 6720 EQUIPMENT MATERIAL LIST SP 6720 Transport Service Special Conditions ITB BID LIST NEGOTIATION CBT BEFORE FA SELECTION PREPARATION OF MR FOR ORDER SERVICE ORDER CBT AFTER COMMERCIAL DOCUMENTS PS 6720 Price List 1000 GTC 605 Transport Service General Conditions 11

NM 603 NM 604 PRELIMINARY PL s DATA BALANCE TRANSPORTATION PROJECT Progressive and cumulative price construction Define the Transportation Contract For the management of the Transportation Project! SHIPPING PP/PTC PREPARATION PP607 PTC 604 PP604 SHIPPING SURVEY ML 602 SR 6720 DATA COLLECTION MR 6720 INQUIRY PACKAGE ITB BID LIST PS 6720 Price List & SHIPPING STRATEGY How we plan to move Project material from around the world up to Job Site TECHNICAL & COMMERCIAL TABULATION Pick up complete conveyance (bulk portion) + Pick up exceptional items + Export + Customs Port Handling Operations NEGOTIATION FA SELECTION CBT BEFORE CBT AFTER Sea Freight Conventional PREPARATION OF MR FOR ORDER SERVICE ORDER Port Handling Operations + Import Customs + Complete Conveyance + exceptional items 12

TRANSPORTATION PROJECT Mutual obligation highlights Define clear obligations for all parties For the management of the Transportation Project! SHIPPING PP/PTC PREPARATION PP607 PTC 604 PP604 SHIPPING SURVEY ML 602 NM 603 NM 604 PRELIMINARY PL s DATA BALANCE SR 6720 DATA COLLECTION MR 6720 INQUIRY PACKAGE ITB BID LIST NEGOTIATION CBT BEFORE FA SELECTION PREPARATION OF MR FOR ORDER CBT AFTER What Who PRIOR NOTICE BOOKING CONFIRMATION TRANSIT TIME SERVICE ORDER Associated risks VESSEL UNAVALAIBILITY DEAD FREIGHT DEMURRAGE PENALTIES 13 FOR DELAY

TRANSPORTATION PROJECT General Frame Transport Services Agreement = Mandato senza rappresentanza (Agent acting in its name but on behalf of the Principal, except specific services) FORWARDING AGENT Obligation to PERFORM No obligation to DELIVER 14

TRANSPORTATION PROJECT TPIT Forwarding Agent Liabilities FOR TRANSIT TIME LIABILITY DELAY PENALTIES FOUNDAMENTAL BREACH TERMINATION/DAMAGES Liabilities are confined to the execution of relevant services 15

TRANSPORTATION PROJECT Forwarding Agent scope of work IN ITS NAME BUT ON BEHALF OF ITS CUSTOMER: To enter into the transportation agreement AND To take over the commodities (from Vendor) To take care of packing To provide insurance coverage (no in TPIT case) To carry out Custom Clearance operations 16

TRANSPORTATION PROJECT TPIT Forwarding Agent Obligations To coordinate/organize transport operations To adopt adequate technical solutions in its transport design To check loading, lashing and securing operations To report to TPIT loading etc. non-conformities To obtain the required transport authorizations To promptly interact with Insurance company in case of claim AND To comply with TPIT Code of Ethics To comply with applicable laws and regulations 17

PROJECT EXECUTION General Frame Project success is achieved through an integrated effort 18 Exchange of information and communication are essential for an integrated management

2007 TRANSPORTATION PROJECT IT Tool integration: today evolution 2008 FRAGMENTED & MANUAL HANDLING FULLY INTEGRATED MANAGEMENT From manual handling of paper documents 19 towards IT Integration inside Contractor systems.

TRANSPORTATION PROJECT IT Tool integration: expectations for the future FORWARDING AGENT ETD/ETA ATD/ATA SHIPPING SCHEDULE READINESS SHIPPING DOCS SUPPLIER A single Internet Portal to exchange information and communications of the Transportation Projects

LOGISTIC FOR CONTRACT PROJECTS: Present environment Logistic Business for Contract Projects: Complex management environment Limited in business volume High value in the Project execution process Limited use of italian transportation Companies Limited use of integrated IT Systems How to improve the situation in the future? 21

FORWARDING AGENT KEY ROLE for the future Knowledge of the global transportation market Ability to manage its Partners to achieve the objectives of the Transportation Project Understanding of the ECP Project execution issues Ability in proposing solutions also for Transportation Projects in extreme environments Real time information on actual status of Transportation Project Driver in the innovation trend and stimulating Partners towards innovation 22 DRIVER IN THE DEVELOPMENT OF THE OVERALL TRASPORT SYSTEM: TO BE MORE COMPETITIVE IN THE INTERNATIONAL MARKET

EPC CONTRACTOR KEY ROLE for the future Facilitate integration in Project Organization Stimulate integration of information systems Improve the timing and quality in supplying information for the Transportation Project And..other suggestions from F.A.? DRIVER AND INTEGRATOR IN PROJECT MANAGEMENT AND EXECUTION: TO BE MORE COMPETITIVE IN THE INTERNATIONAL MARKET 23/68

LOGISTIC FOR CONTRACT PROJECTS: WHAT DEVELOPMENTS FOR THE FUTURE? Carg o Haule r Wareh ouse Departur e Port / Airport Air/ Sea soluti ons Arriva l Port / Airpor t Trans port End Custom er Job Site Wareh ouse Contribuire allo sviluppo della Filiera Italiana Per il successo nel contesto internazionale 24 Trans port

LOGISTIC FOR CONTRACT PROJECTS: WHAT DEVELOPMENTS FOR THE FUTURE? Idee & proposte Sviluppare e consolidare i sistemi di relazioni (supply networks) tra EPC Contractor e Forwarding Agent. Usare il Project Management come base culturale comune. Indirizzare le attività di network a migliorare i sistemi di comunicazione e di gestione nei Transportation Projects. Migliorare l integrazione dei sistemi informatici e le telecomunicazioni fra questi stakeholders. Avviare Progetti comuni di innovazione, con la collaborazione dell Università. 25 ANIMP è il contesto in cui sviluppare queste proposte.

LOGISTIC FOR CONTRACT PROJECTS: WHAT DEVELOPMENTS FOR THE FUTURE? Azioni già fatte Seminario «Aumentare l integrazione gestionale tra Logistica e Committenza» (IPMA Italy + Sezione Logistica) svoltosi a Roma il 16.4.2012: sono emerse idee ed è iniziato il networking. Corso di Project Management indirizzato alla Logistica sviluppato in collaborazione tra IPMA Italy e Sezione Logistica: «Logistic e Project Management nella Realizzazione di Grandi Impianti» Milano 28-29-30 Novembre e 1 Dicembre 2012. 26

LOGISTIC FOR CONTRACT PROJECTS: WHAT DEVELOPMENTS FOR THE FUTURE? Altre possibili azioni Organizzare anche nel 2013 dei Seminari di confronto sul tema della «Comunicazione nei Transportation Projects» Creare in ANIMP un Comitato misto finalizzato a definire possibili innovazioni per integrare la gestione delle informazioni. Possibili partecipanti: IPMA Italy, Logistica, Componentisti, Informatica. Avviare uno studio, con la collaborazione dell Università, che analizzi quali miglioramenti gestionali si potrebbero ottenere con sistemi di Automatic Identification and Data Capture/Collection (AIDC), per indirizzare ed omogeneizzare scelte innovative della filiera. 27/68 Le condividete.? e quali altre azioni suggerite.?

LOGISTIC FOR CONTRACT PROJECTS: WHAT DEVELOPMENTS FOR THE FUTURE? Le parole chiave del messaggio sono (*): affidabilità, integrazione e fiducia Bisogna focalizzare l attenzione sulle relazioni e sulla comunicazione: gestiamo il nostro futuro definendo obiettivi innovativi, perseguiamoli con l attenzione di un Project Manager. (*) da Seminario del 16.4.2012 28

LOGISTIC FOR CONTRACT PROJECTS: WHAT DEVELOPMENTS FOR THE FUTURE? Domande? Suggerimenti e proposte? Carg o Haule r Wareh ouse Departur e Port / Airport Air/ Sea soluti ons Arriva l Port / Airpor t VI CONVEGNO NAZIONALE Sezione Logistica, Trasporti e Spedizioni Trans port End Custom er Job Site Wareh ouse Trans port 29 Procurement for Construction