Managing Contracting Model - Bilfinger

Bilfinger Industrial Services
Turnarounds
Managing contracting as a model for success
Wolfgang Amerer | Hannover Messe 2013
11. April 2013

Managing Contracting Model
Activities within a Turnaround
Planning & Preparation
Maintenance
Static Equipment
Rotating Equipment
Valves
Instrumentation
Plant
TAR
Subcontracts
Scaffolding
Insulation
Industrial Cleaning
Cranage & Transportation
Inspections &
Acceptance Testing
Material Management &
Spare Parts
Projects
Piping
Instrumentation
Process Control
Turnarounds - Managing contracting as a model for success
page 2

Managing Contracting Model
Turnaround phases
Preparation & Planning phase
▪ Time scheduling
▪ HSEQ plan
▪ Work package planning & calculation
▪ Agree on interfaces – RASCI chart
▪ Material management
▪ Resource planning (in steps)
▪ Infrastructure
▪ SD planning & support
Execution phase
▪ Site management
▪ Supervision & co-ordination
▪ Execution and project process
▪ Operational and progress monitoring
▪ HSEQ co-ordination & observation
Finalisation
▪ Technical documentation
▪ SU planning & support
▪ Review lessons learned
Turnarounds - Managing contracting as a model for success
page 3

Managing Contracting Model
Bilfinger Industrial Services TAR key markets
Middle/North Europe
Western/South Europe
N. Africa and Middle East
TAR business
Eastern Europe
Turnarounds - Managing contracting as a model for success
page 4

Managing Contracting Model
Future Trends Turnaround Market
▪ 68 TAR per year at an average cost of € 42.6 mn in Europe
▪ Total demand for TAR services will decrease by 20% by 2020
(mainly refinery business)
▪ An increase in contract volume can be expected between 2013
and 2017 due to additional capital project investment
▪ Different purchasing strategies of customers
▪ Customers try to perform turnarounds in smaller parts
(depending on legal requirements and plant design)
▪ Plant operators will increasingly try to organise and develop their
TAR department skills across multiple locations (only possible for
international companies)
▪ Operators will use more independent planning and project partners
due to increasing complexity of TAR’s
Turnarounds - Managing contracting as a model for success
page 5

Managing Contracting Model
Different levels of partnership in Turnaround projects
Initial Activities Preparation
Planning
Execution Finalization
Turnarounds - Managing contracting as a model for success
page 6

Managing Contracting Model
Different levels of partnership in Turnaround projects
Initial Activities Preparation
Planning
Execution Finalization
Personnel Supplier
Level 1
- provision of personnel
Turnarounds - Managing contracting as a model for success
page 7

Managing Contracting Model
Different levels of partnership in Turnaround projects
Initial Activities Preparation
Planning
Execution Finalization
Single Contractor Level 2
- execution of
mechanical
works
- coordination
of activities (SIP)
- HSEQ
Personnel Supplier
- provision of personnel
Level 1
Turnarounds - Managing contracting as a model for success
page 8

Managing Contracting Model
Different levels of partnership in Turnaround projects
Initial Activities Preparation
Planning
Execution Finalization
Unit Contractor (Main Contractor)
Level 3
Single Contractor
Level 2
- planning
- execution
of mechanical
works
- coordination of
activities (SIP)
- HSEQ
- execution of
mechanical
works
- coordination
of activities (SIP)
- HSEQ
Personnel Supplier
- provision of personnel
Level 1
Turnarounds - Managing contracting as a model for success
page 9

Managing Contracting Model
Different levels of partnership in Turnaround projects
Initial Activities Preparation
Planning
Execution Finalization
Managing Contractor - MC (General Contractor) Level 4
Unit Contractor (Main Contractor)
Level 3
Single Contractor
Level 2
- initial activities
- planning and preperation
of all trades
- managing & coordination
of all activities in the unit(s)
- execution of mech. works
- HSSE (MC-customer)
- QA/QC (MC-customer)
- planning
- execution
of mechanical
works
- coordination of
activities (SIP)
- HSEQ
- execution of
mechanical
works
- coordination
of activities (SIP)
- HSEQ
Personnel Supplier
- provision of personnel
Level 1
Turnarounds - Managing contracting as a model for success
page 10

Managing Contracting Model
Managing Contractor principals
All under one umbrella
▪ Early selection of best performing
contractor
Client TA
Management
Managing
Contractor
▪ Reduction of number of interfaces
▪ Early development of plans for
scoping, HSE, QA-QC
▪ customer focus on infrastructure
▪ Use of existing site contracts
Client
Independent
QA/QC
Client
Deboolenecking
Subcontractors
Technical
Specialists
▪ customer focus on project controls:
planning / scheduling, HSE,
QA-QC, costing (budget)
Turnarounds - Managing contracting as a model for success
page 11

Managing Contracting Model
Managing Contractor Function
“The MC is responsible for the safe, environmental friendly execution and completion of all scoped works in a
specific unit, within defined duration and in accordance with the quality criteria as set.
In order to achieve the goals, the MC supervises and coordinates all works in the field from formal handover by
operations till formal completion and handover to customer.”
This comprises of the following management aspects:
• Managing of all administration, staff officers and planning & control functions
• Supervising of own direct personnel via qualified supervision
• Coordination of main-contractors and supporting services via qualified coordinators
• Coordination of all technical specialists which do not have a dedicated supervisor
Project Management
Field Supervision
Field Coordination
Field Coordination
• Cooperation with customer’s facilitating / debottlenecking coordinators via field supervision
• Cooperation with customer’s HSE manager and QA-QC coordinators via QA-QC supervision
Turnarounds - Managing contracting as a model for success page 12

Managing Contracting Model
Managing Contractor Turnaround Organisation
Project management level
TA Manager
Planning / Scheduling
Support functions
(Progress, HSEQ)
Secretary Administration
SHE Manager
Time Scheduling
Work Preparation
QA/QC Manager
Progress / Extra Works
Documentation
Warehouse Keeper
Cleaning yard
Material Keeper
Site management level
Site Manager
Coordination functions
Coordinator
Cleaning
Coordinator
Scaffolding
Coordinator
Insulation / Painting
Coordinator
Cranage/Transport
Coordinator
Inspection
Coordinator
Electrical/Instrumentation
Superindendent level
Superintendent
Supervisor level
Supervisor
Torens / Reactor
Supervisor
Drums / Specials
Supervisor
Furnace / Flare /
Stack
Supervisor
Airfin
Supervisor
Exchanger
Supervisor
Safties / Dual valves /
General valves
Supervisor
Piping
Supervisor
Rotating
Foreman level
Turnarounds - Managing contracting as a model for success
page 13

Managing Contracting Model
Managing Contractor Turnaround Organisation
Project management level
Client TA Management
TA Manager
Planning / Scheduling
Support functions
(Progress, HSEQ)
Secretary Administration
SHE Manager
Time Scheduling
Work Preparation
Customer QA/QC Coordinators
QA/QC Manager
Progress / Extra Works
Documentation
Warehouse Keeper
Cleaning yard
Material Keeper
Site management level
Site Manager
Coordination functions
Coordinator
Cleaning
Coordinator
Scaffolding
Coordinator
Insulation / Painting
Coordinator
Cranage/Transport
Coordinator
Inspection
Coordinator
Electrical/Instrumentation
Superindendent level
Superintendent
Supervisor level
Supervisor
Torens / Reactor
Supervisor
Drums / Specials
Supervisor
Furnace / Flare /
Stack
Supervisor
Airfin
Supervisor
Exchanger
Supervisor
Safties / Dual valves /
General valves
Supervisor
Piping
Supervisor
Rotating
Foreman level
Turnarounds - Managing contracting as a model for success
page 14

Managing Contracting Model
Managing Contractor Turnaround Organisation
Project management level
Client TA Management
TA Manager
Planning / Scheduling
Support functions
(Progress, HSEQ)
Secretary Administration
SHE Manager
Time Scheduling
Work Preparation
Customer QA/QC Coordinators
QA/QC Manager
Progress / Extra Works
Documentation
Warehouse Keeper
Cleaning yard
Material Keeper
Site management level
Site Manager
Coordination functions
Coordinator
Cleaning
Coordinator
Scaffolding
Coordinator
Insulation / Painting
Coordinator
Cranage/Transport
Coordinator
Inspection
Coordinator
Electrical/Instrumentation
Superindendent level
Superintendent
Supervisor level
Supervisor
Torens / Reactor
Supervisor
Drums / Specials
Supervisor
Furnace / Flare /
Stack
Supervisor
Airfin
Supervisor
Exchanger
Supervisor
Safties / Dual valves /
General valves
Supervisor
Piping
Supervisor
Rotating
Foreman level
Turnarounds - Managing contracting as a model for success
page 15

Managing Contracting Model
Managing Contractor Turnaround Organisation
Project management level
Client TA Management
TA Manager
Planning / Scheduling
Support functions
(Progress, HSEQ)
Secretary Administration
SHE Manager
Time Scheduling
Work Preparation
Customer QA/QC Coordinators
QA/QC Manager
Progress / Extra Works
Documentation
Warehouse Keeper
Cleaning yard
Material Keeper
Site management level
Site Manager
Coordination functions
Coordinator
Cleaning
Coordinator
Scaffolding
Coordinator
Insulation / Painting
Coordinator
Cranage/Transport
Coordinator
Inspection
Coordinator
Electrical/Instrumentation
Superindendent level
Customer facilitating coordinators
Superintendent
Supervisor level
Supervisor
Torens / Reactor
Supervisor
Drums / Specials
Supervisor
Furnace / Flare /
Stack
Supervisor
Airfin
Supervisor
Exchanger
Supervisor
Safties / Dual valves /
General valves
Supervisor
Piping
Supervisor
Rotating
Foreman level
Turnarounds - Managing contracting as a model for success
page 16

Managing Contracting Model
RASCI Chart
RASCI Chart
Client TA 2010 SC & Management
Manager Maintenance
Section Head Turnarounds
Managing Contractor
(Main) Subcontractor & technical Specialists
Client Supervision for specific Electrical & Rotating works
Suppliers
Client QA/QC Co-ordinator
Client debottlenecking Co-ordinator
Scope Management
1 Scope control Pre - Turnaround (development, changes, freeze & release to Managing Contractors) > Scope Change Procedure C/I A R
2 Field scope change (more/less w ork process) identification & quantification (w ork preparations > impact on schedule, costs) during Turnaround > CVI Procedure R C C C C/S
3 Approval of scope change & formal instructions to Managing Contractor C/S
A R
4 Instruct ow n personnel, main subcontractors and technical specialists w A I
ith respect to scope changes and carry out the approved more/less w orks R I I I
5 Field facilitation/support Managing Contractors w ith respect to execution of all scoped w orks A S S S R
Budget & Cost management
1 Prepare and agree w ith Client on schedule of norms for all relevant w orks, equipment and materials A R
2 Development & control of budget estimate based on scope R
I A
3 Daily report on cost status & variations I A R
4 Verify/challenge cost impact of each individual scope change, R check against unit rates & update cost forecast C/S C/S
Organization & personnel
1 Development & communication of pre-TA organization chart R C/S C/S
I A C/S C/S C/S C/S
2 Development & communication of organization chart for entire TA/IS 2010 I A R C/S C/S C/S C/S C/S C/S
3 Development & communication of organization chart for each main unit I A I R C/S C/S C/S C/S C/S
4 Development of tasks, roles & responsibilities of each individual function A R C/S C/S I I I
5 Selection & appointment of MC key function holders for w ork preparation / execution A R
6 Selection & appointment of Client key function holders for w ork preparation / execution R C/S
A
7 Set-up and agree (de)mobilisation planning for ow n staff, non-w orking supervision and I A site facilities w ith Client R
8 Prepare list of all direct labour, w orking supervision, staff and non-w orking supervision w ith all relevant information for access to Client site A R
9 Prepare Request for Company pass forms for all persons identified A R
10 Agree on (un)planned personnel/staff changes/replacements I R/C R/C C C
Work preparation
1 Agree w ith Client on computerized w ork preparation system to A R
be applied (for ow n w orks).
2 Provide all relevant technical data required for all Turnaround Services and agree w ith Client R
on the scope of w ork incl. w orks main subcontr. & technical services A
3 Review major and minor Turnaround preparation activities by means of field checks A R C/S
4 Prepare detailed field w ork packages for all scoped w orks to be executed by the managing contractor according to Client quality standard A R C/S
5 Co-ordinate, check content & quality and approve the detailed field w ork packages to be executed by main subcontractors and technical specialists A R C/S C/S C/S
6 Prepare materials requirements list including spare parts, bulk materials, etc. A R C/S C/S C/S
7 Prepare inquiry packages based on the Client frame agreements for main sub contractors and technical specialists A R C/S C/S C/S
8 Check, review and approve quotations from main subcontractors and technical specialist on scope (correct & complete) A R C/S C/S C/S
9 Double check quotations (terms & conditions, scope, etc.) of main subcontractors and technical specialists and place orders R C/S
10 Identify and prepare all other activities to ensure a successful w ork preparation & execution of the Turnaround A R C/S C/S C/S
11 Submit w ork packages for technical and commercial evaluation to Client according WR procedure A R
12 Discuss and agree w ork packages of Managing Contractor including Lump-Sum pricing and associated costs for w ork package w ith Client A R
13 Review and mitigate all risks / hazards involved w ith the w orks in the preparatory phase A R
The RASCI Chart summarises
who is
R esponsible,
A ccountable,
S upport,
C onsulted and
I nformed
In customer’s TA
Managing Contractor Model.
Turnarounds - Managing contracting as a model for success page 17

Managing Contracting Model
Summary – The Role Managing Contractor
• Awareness of roles & responsibilities
• Managing / supervising of own management and field personnel
• Co-ordination of sub-contractors
• Co-operation with customer’s facilitating / debottlenecking team
• Co-operation with customer’s HSE manager and QA-QC coordinators
• Driving non-technical aspects of TA (pro-activeness)
• HSE organisation
• Communication
• TA organisation
• Commercial (more-less work procedure)
Turnarounds - Managing contracting as a model for success page 18

Managing Contracting Model
Added value
▪ Minimization of interfaces
▪ Minimization of customer’s temporary operative staff
▪ Lump sum contract is possible
▪ Customer’s focus on critical path, debottlenecking and
technical problems solving
▪ Control of the whole TAR via KPI’s possible
▪ Priority setting to safety and quality possible
▪ Early development of plans for scope, QA/QC, manpower
▪ Early commitment, teambuilding & involvement in working methodologies
▪ Early fixing of required resources
▪ Cost advantage due to less interfaces and to synergies
Turnarounds - Managing contracting as a model for success
page 19

Managing Contracting Model
Case study
Customer:
Project:
Kuwait Petroleum Europoort B.V., Rotterdam / Netherlands
TA 2010 Lube Oil Plant
Plan. & Prep. Phase: December 2009 – September 2010
Execution Phase: October 2010
Manpower mech.:
Site Management: 65
125 (25,000 hours)
Scope of Services: ▪ Preparation, detailed planning, time scheduling
▪
▪
▪
▪
▪
▪
▪
▪
Site management and supervision incl. material handling
Coordination of all disciplines / trades
Execution of mechanical works: drums, columns, reactors,
furnaces, valves, heat exchangers (total: 676 pcs.)
Bundle pulling/setting incl. Handling, 85 pcs. (own equipment)
Site equipment, tool management
Internal transportation / logistics
Flange fastening “Rotabolts“, bolt tensioning
SD/SU assistance
Involved Bilfinger comp.:
Bilfinger IS (scaffolding, insulation, painting, tracing)
Turnarounds - Managing contracting as a model for success
page 20

Borealis Polyolefine GmbH
Schwechat | Austria
Project TAR Schwechat 2011
Planning 2010, 2011
Execution time 2011
Type of contract
Manpower
Managing contractor
500 (220,000 hours)
Scope of services ▪ Planning, work preparation
▪ Project management
▪ Rotating and static equipment
▪ Valve services
▪ E/I&C services
▪ Insulation
▪ Co-ordination of sub-contractors
Turnarounds - Managing contracting as a model for success page 21

Thank you very much for your attention