Agreements between a client and a contractor are typically formalized in a contract, and this holds true for specialized projects like Turnarounds. A Turnaround involves many activities, some of which are done on specific equipment like compressors or switchgear. While routine maintenance is often part of the delivery contract, Turnaround activities are extensive, often requiring partial dismantling for part replacement, inspection, or repair. It is crucial to establish clear contract terms covering costs, including travel and accommodation, delivery times, and more.
Timing of tender
When tendering a contractor for Turnaround activities, it is essential to outline the tasks the contractor must undertake. Determine whether it involves solely executing the work or also encompasses work preparation. If the latter, be aware that this requires adequate time, necessitating early entry into the market. In uncertain markets, secure agreements on rates and potential indexations.
Comparing bids
Unless scope is known in full detail, a lump sum contract might not be feasible. Instead, opt for unit rates, convertible into a lump sum at the estimating period’s end. To compare contractor bids, create a dummy scope based on past Turnaround data, ensuring it realistically reflects the contractor’s activities. Emphasize that the dummy scope is for comparison only, as actual costs may vary.
Ensure Contract Completeness
Since certain activities, like manhole and fire watch duties or crane operation, may only be compensated on a time and material basis. Clear agreements on overtime, shift compensation, and the number of required employees or equipment, are crucial. Additionally, maintain an open-minded approach to embrace new opportunities arising from technological developments since the last Turnaround.
Safety starts within the contract
Safety and schedule take precedence during contract implementation, making it advantageous to select a contractor familiar with the factory. Additionally, ensure agreements cover potential manpower scaling due to unforeseen setbacks. Turnarounds demand intensive, time-sensitive work with long hours. Contract conditions should prioritize safety and agree on working hours. Resolve potential issues preemptively in the contract to maintain a positive atmosphere during the Turnaround.
The ultimate goal is a safe, on-time, and within-budget Turnaround. A well-crafted contract with clear agreements forms the foundation for achieving this goal.
