AGENDA

► COO Order Process

► Schedules
► Progress measurement
► Invoicing
► Project control

Date : October 2014

 RFP Issued by 1- Request For Proposal RFP ( includes Scope,
ISG technical data, compensation, target date )

Contractor
Prepare
Proposal
2.-Contractors proposal; issue within 14 days from receipt of RFP and shall include:
Contractor •Scope of work, Construction Methodology, Realistic level 3 schedule, Agree Operator
Submit proposal compensation method or propose different one .
to ISG
•Cost estimate; the Contractor shall generate and provide a realistic cost estimate.
14 DAYS Period

No
ISG
ISG not Agree with

Call Off Order

proposal ISG Agree with
Yes proposal

ISG Issue
COO
Workflow

Contractor ► Lump Sum Or Unit rate COO : Contractor

Execute invoice based on approved achieved progress up
Workscope to 90% . The remaining 10% on acceptance of
completion certificate .

No
Work not completed
ISG
at satisfaction of ISG
Work completed at
Yes satisfaction of ISG
Contractor issue a final ISG approve payment of
ISG Issue completion commercial statement remaining 10% on acceptance
certificate for each COO of completion certificate.
 Call Off Order (COO) Process
Type of COO :
1. For wellpads and access roads
2. For modifications
3. For misc ad hoc services

Initiation of work :
1- Request For Proposal RFP (
includes Scope, technical data,
compensation, target date )
OPERATOR CONTRACTOR

2- Proposal for performing

the job

3- Upon agreement , issue COO

Month : October 2014

Call Off Order (COO) Process
•Contractors proposal; issue within 14 days from receipt of RFP and shall
include:
• Scope of work
• Construction Methodology
• Realistic level 3 schedule
• Agree Operator compensation method or propose different one
• Cost estimate; the Contractor shall generate and provide a realistic cost
estimate.
 Call Off Order (COO) Process
COO Package contents :
• Request for Proposal document (RFP)
• Detailed Scope of work . Not only brief description in COO form; add
detailed SOW attachments to the COO for clarity ( if no workpack reference
applicable)
• Contractor level 3 schedule ( detailed COO activities)
•COO Type : Lump sum, Unit rates, Day rates, Reimbursable
•Compensation method : Monthly progress based on ongoing or completed
activities
•Cost : lump sum price or cost estimate shall not be exceeded without written
approval

As lesson learn , the COO’s must be optimised (reduce numbers by grouping small scopes for
same MOC when possible) , and should be a comprehensive document package with all above
requirements to ensure successful execution of the work and compensation of contractor

Month : October 2014

 Call Off Order (COO) Process
COO Close-Out :

● Upon Completion and satisfactory of work performed for each

COO by Contractor

● Operator issue a Completion Certificate

● Contractor issue a final commercial statement for each COO

Final installed quantities if

applicable
Total manhours by category if
applicable
Approved changes
Final cost

Month : October 2014

Progress Measurement
Contractor’s Obligations
● Accurate measurement of physical progress and timely reporting of
progress for each COO to Operator

Measurement of
each activity +
calculation

SITE
LEVEL 3 PLAN PLANNED % Vs ACTUAL % MEASUREMENT
(PROGRESS
ACHIEVED)
Activities to be
weighted

COO PROGRESS CURVE

Month : October 2014

Invoicing

INVOICE PAYMENT : 30 DAYS AFTER RECEIPT

LESSONS LEARNS
CONTRACTOR to ensure the following data are correct on the invoice :
1- Description of COO and location of work .
2- COO No and relevant MOC No .
3- Type of COO : Lump Sum , Unit rates , Day Rates , Reimbursable .
4- Appropriate compensation method used .
5- Only One monthly invoice to present .

Month : October 2014

 Cost Control & Reporting
COST CONTROL

Contractors obligations in term of COST CONTROL are:

-Commitments
● Provide monthly Cost Status Reports :
-VOWD incl Invoiced Cost.
Issue date: 25th of the Month.
-Monthly cost report
Issue date :10th of the month

◙ Commitments : include MOB / DEMOB costs + all approved COO’s values

◙ VOWD for each COO : VALUE OF WORK DONE is the measure in term of cost of the
achieved progress / work to date for each COO .
VOWD = CUMULATIVE INVOICED COST + ESTIMATE OF
NON INVOICED WORK ACHIEVED TO DATE

◙ Final Forecast Cost FFC: Assessment by Contractor of Anticipated final cost for each COO
.
FFC = VOWD + TO GO FORECAST
Where TO GO is the measure of remaining work / progress to be
completed

Month : October 2014

 Contractors Reporting
► Monthly Report : Two hard copies and one electronic

• HSE performance : including any incidents during the month

• Executive summary : for achieved activities during the month and activities for next period
• Areas of concern : and their impact on execution of the services
• Cost Status Report : ( the one submitted on the 5th of the month)
• Status report of activities on going
• Changes to Contractor’s organisation
• Level 2 schedule : for all contract approved COO’s to date
• Progress data : actual Vs planned for each COO scope .
• Histogram of actual manpower Vs planned .
• COO change status : approved changes to date
• Technical site queries raised during the month .
• Digital photographs : indicating the construction progress on main COO’s .

Date of issue : ten days after month cut-off

◙ Items in red are mandatory and must be detailed , accurate , with more focus from
CONTRACTOR.

Month : October 2014

Quarterly Performance review (QPR) :

• The objective of Performance Reviews meetings are to improve In Salah

Gas (Sonatrach, BP, Statoil) and Contractor performance and Support the
contractor to deliver the Construction programmes of work.

• QPR Meeting content:

– HSE Incidents/Accidents
– HSE Supervision, PPE Issues, Safety Observations / Conversations
– Support from head office
– Contractor key personnel
– Prefabrication workshop performance, QA/QC
– Planning: Level 3 Plan Quality, Progress Reporting Quality, Progress
Status, Factors Affecting Plan & Progress.
– Contract Administration: Contract Value status, RFP & COO’s
assessment
– Cost Control: COO’s Cost control & Invoicing, COO’s Progress Vs
Spending
CONCLUSION FROM PROJECT CONTROL PERSPECTIVE

Important success factors for this contract depend on :

1- The quality of the COO issued by OPERATOR

2- The timely execution by CONTRACTOR
3- Management and control of COO by CONTRACTOR
4- Strong schedule control including manpower histograms
•Support slides
 Schedule
Contractors obligations
● Provide a Schedule Development and Control Plan (SDCP) for the work.

Include essentials for :

•Schedule Development
•Project Control Schedule Analysis
and Forecasting
•Progress Reporting

● Provide two Schedules :

► Level 3 Detailed Schedule for each COO ( Detailed schedule
showing all required activities including milestones & key dates to
complete each COO) .
► Level 2 Contract Summary Schedule (a roll up of Level 3 Schedule
including all approved COO to date and represented with one bar)

● Provide inputs to OPERATOR Level 1 Integrated Field Plan (primary

milestones and major work activities prepared by Operator).
SCHEDULE CHANGES
The schedule end date or other milestones shall only be modified when a change to the
existing COO scope is approved by OPERATOR via the COO process described on the
previous pages .

Month : October 2014

Invoicing
ONE SINGLE ALL-INCLUSIVE MONTHLY INVOICE INCLUDING :

-Mobilisation
To be agreed
within first ten
-Amount to invoice for COO’s days of the month
between
-Demobilisation OPERATOR &
CONTRACOR

Unit rate or LS work : % complete

AMOUNT TO INVOICE FOR COO Day work/ Day Hire : Approved timesheets for
days worked for personnel & equipments
Reimbursable : based on third party paid
invoices, procurement + mark up

Month : October 2014

 Invoicing
INVOICING PROCESS

► Mobilisation : to be invoiced based on approved progress up to 90% .

Remaining 10% after acceptance by OPERATOR of mobilisation Certificate .

► Demobilisation : to be invoiced acceptance by OPERATOR of demobilisation

certificate .

► Lump Sum Or Unit rate COO : to be invoiced based on approved achieved progress
up to 90% . The remaining 10% on acceptance of completion certificate .

► Daywork COO : to be invoiced based on approved timesheets for personnel &

equipments

► Reimbursable COO : Reimbursable mean that CONTRACTOR has paid for third party
services or materials procured for OPERATOR . Then OPERATOR need to compensate
CONTRACTOR based on paid invoices plus contractual mark-up . Supporting invoices
documentation is very important to ensure compensation .

Month : October 2014

Cost Control & Reporting
COST CONTROL
Very important
to ensure
•Cash Flow Projection : OPERATOR has
the necessary
3 months look-ahead of future monthly
cash to pay
invoices in contract currency Contractors
Issue Date : invoices

each 8th of the month

REPORTING
● 3 Reports required from contractor :

► Daily Report :
- mainly on available resources and key issues .

► Weekly Report : Two hard copies and one electronic

Include the following area :
-HSE performance including any incidents during the month
- Progress for current activities
- Resources status (planned Vs engaged)
- Level 3 schedule for current plan & progress ( incl curves)
- Forecast activities for coming week
Date of issue : two days after week cut-off

Month : October 2014

 Call Off Order (COO) Process

Note :
 For minor works , the RFP document could be just a short email .
 RFP’s should be recorded properly in a system as they are the
only proofs for any initiated work by OPERATOR .

No work should start without following the above

process and requirements

Month : October 2010

 Call Off Order (COO) Process
Change to COO’s:
1- RFP for scope change By Operator
OPERATOR CONTRACTOR

2- Change Request (cost, schedule

impact ) within 14 days

3- Upon agreement , add revision to COO

If rejected , issue a rejection letter ( within
14 days)

1- Issue cost and schedule

change in a CHANGE REQUEST By Contractor
CONTRACTOR OPERATOR

2- Upon agreement ,raise new revision to COO

If rejected , issue a rejection letter ( within 14
days)
Important Notes :
 Revision of COO should be made properly by raising new COO revision document with same COO No as initial
COO + Rev No ( Rev 1 , 2 , …) , with appropriate backup to COO for cost and schedule change .

 The COO revision should include the COO revision form with two attached documents : the RFP for change +
Change request for OPERATOR changes , or just COO revision and change request for CONTRACTOR changes .

Month : October 2010