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85M102006D
85M102006D
85M102006D Shaw Stone & Webster, E&C Shaw Stone & - - PDF document
85M102006D Shaw Stone & Webster, E&C Shaw Stone & - - PDF document
85M102006D Shaw Stone & Webster, E&C Shaw Stone & Webster, E&C Presentation Presentation to to ECRI ECRI Conversion from OBE to Lump Sum - Conversion from OBE to Lump Sum - Pitfalls and Issues Pitfalls and Issues Dr
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85M102006D
Perceived CLSTK Advantages Perceived CLSTK Advantages
- Reduced Cost
- Increased Schedule
- Improved Alignment
- Early Procurement Cycle
- Value Engineering
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85M102006D
Contract Types Contract Types
- Converted LSTK (Pure Open
Book)
- Converted LSTK (Fixed
contingency/allowances)
- Adjusted LSTK
- Conversion Services (LS or
Reimbursable)
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85M102006D
Conversion Timing Conversion Timing
E s tim ating Confidenc e Levels 60% 65% 70% 75% 80% 85% 90% 95% 100% 1 2 3 4 5 6 7 8 9 10 11 12 M onth No Level of Confidence 0% 2% 4% 6% 8% 10% 12% 14% 16% Estimate Allowances Level of Confidenc e E s tim ate A llowanc es
B asic Engineering P hase Detailed Engineering & P ro curement Co mm itments o f Equipment P O's. Develo pment o f B ulk M aterial Quantities. M arket P ricing Levels Fixed Sub-Co ntract P ricing Levels agreed Feasibility Estimate B udget Estimate Definitive Estimate P .O. P laced fo r Co mpresso rs P .O's fo r B alance o f Equipment P laced
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85M102006D
Why Convert? Why Convert?
- Risk Management (Transfer)
- Financing Requirement
- “One Stop” Contractor
- Schedule
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85M102006D
Why Not Convert? Why Not Convert?
- Non Alignment/Agreement of Open Book
Estimate
– MTO’s – Allowances – Contingency
- Balance Book Funded
- Lack of Comparison
- Different Perceptions of Risk
- Conversion Fee
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85M102006D