CONTRACTING / PROCUREMENT ISSUES

PRESENTATION BY SUJIT DASH (GENERAL MANAGER

POWER, PUNJ LLOYD)

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

NEW ZEALAND WAS

RANKED 5TH IN THE 2011
HUMAN DEVELOPMENT
INDEX

4TH IN THE 2011 INDEX OF

ECONOMIC FREEDOM

Source: The Heritage Foundation

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

LOOKING THROUGH THE PRISM OF SELF THE

WORLD

LOOKING THROUGH THE PRISM OF PROJECT

MANAGEMENT & EXECUTION CONTRACTING &
PROCUREMENT

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

DEVELOPER:

100
90
O 80
U OUTSOURCING
T 70
S
O 60
U
ABC
50
R
C
PQR
40
I XYZ
N
G
30
% 20
10
0
ABC PQR XYZ
COMPANY

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

BUSINESS MODELS:

High on EPC High on EPC

Low on OEM High on OEM

Low on EPC Low on EPC

Low on OEM High on OEM

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

ORDERING MODELS:

SINGLE EPC CONTRACT (BTG + BOP)

SEPARATE BTG & BOP CONTRACTS

BTG SUPPLY & BOP + BTG ETC

BTG & BOP ON PACKAGE ROUTE

BOILER, TG, BOP ON PACKAGE ROUTE

22-May-2012
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EPC CONTRACTORS:

SOLUTION FOR EVERY MODEL !

OEM PREFERENCE: EQUIPMENT SUPPLY

CONTRACTING COMPANY: BOP

e-BOP

BTG ERECTOR

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

DRIVERS:

PAST EXPERIENCE

INTERNAL STRENGTH

MARKET OPPORTUNITY

ECONOMIC CONSIDERATION

RISK MITIGATION

LONG TERM GOAL

PACKAGING PHILOSOPHY

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

PACKAGING PHILOSOPHY:
TURNKEY PACKAGES

TURNKEY PACKAGES WITH INTERNAL CIVIL AGENCY

SEPARATE SUPPLY PACKAGES WITH INTERNAL

ERECTION AGENCY

SEPARATE SUPPLY PACKAGES WITH DISCIPLINE-

WISE SINGLE ERECTION AGENCY

PACKAGING AT EQUIPMENT LEVEL

22-May-2012
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PROS & CONS:

MORE THE MERRIER

LESS THE EASIER

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

PROS & CONS:

BACK TO BACK

TRANSFER OF RISK BUT TO WHAT EXTENT

OWNING THE RISK BUT AT WHAT PRICE

ACCEPTANCE FOR TAKING THE RISK

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

PROS & CONS:

CIVIL & STRUCTURAL

SITE ESTABLISHMENT

OVER HEADS

22-May-2012
CONTRACTING / PROCUREMENT ISSUES

PROS & CONS:

COMMERCIAL TERMS & CONDITIONS

CASH FLOW MANAGEMENT

22-May-2012
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TRENDS & CHALLENGES:

EMERGENCE OF BOP CONTRACTORS

DELAY IN COMMENCEMENT OF PROJECTS

STEEP COMPETITION

RESOURCE CRUNCH

DELAY IN PROJECT EXECUTION

PRESSURE ON BOTTOM LINE

22-May-2012
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TRENDS & CHALLENGES:

CONSOLIDATION IN BOP MARKET

JOINT VENTURES

EXTINCTION

SURVIVAL OF THE FITTEST

22-May-2012
We get it done.
THANK YOU