QP launches contracting process initiative
Posted: 27 February 2006
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Under the direction of His Excellency Abdullah bin Hamad Al-Attiyah, Second Deputy Prime Minister, Minister of Energy and Industry, Qatar Petroleum has recently launched an initiative to improve its complete contracting process.
Working committees were formed to investigate various possible short-term activities, and a number of possible improvements were identified and recommended for implementation.
These include the formation of a Contract Forum consisting of Qatar Petroleum and the companies that it contracts with, and benchmarking of the Qatar Petroleum contracting process against norms and practices in the international oil and gas industry.
The purpose of the Contract Forum and benchmarking exercise is to share ideas and information on possible improvements in contracting strategies, contract management and contract execution techniques in line with cost effective and best industry practices.
The first meeting of the Contract Forum took place during the first quarter of 2005 and was attended by delegates of local and international companies. A number of benchmarking actions have also been initiated.
As a result of the above, Qatar Petroleum decided on certain changes to its contract conditions for work and service contracts. These include the following:
Waive the tender bond requirement for single source tenders.
Waive tender fees for single source and classified tenders.
Reduce tender fees in general.
Implement an early payment discount principle for selected contracts above QR 50 million.
Introduction of advance payment of 10% on all GTC contracts against submission of a bank guarantee of equivalent value.
Implement multi currency payments on selected major contracts. Waive the retention money requirement for all contracts where the contractor can provide a performance bond.
Posted by Editor Pipeline Magazine
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