Günther DÖRFLERLeitung Contract ManagementAREVA NP GmbH
Hill- und VDMA-Veranstaltung1.Runder Tisch Claim- und Contract-Management
Frankfurt, 8.Oktober 2010
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 3 All rights are reserved, see liability notice.
AREVA NP
Contract Management at AREVA NP GmbH
Agenda
Aktuelle Entwicklung desprozessorientierten Projektmanagementsmit dem Fokus auf Claim- und Contract-Management
►AREVA – Firmenprofil und Tätigkeitsfelder
►Spektrum der Contract-Managementaufgaben im Anlagenbau
►Wissensaufbau und Wissenstransfer für das Projektmanagement
►Strukturierter Erfahrungsrückfluss aus erlebten Herausforderungen
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 4 All rights are reserved, see liability notice.
AREVA NP
The 5 Business Groups reflect AREVA’s Integrated Structure
> Mining
> Recycling> Site Value
Development> Logistics> Cleanup
> Renewable Energies
Nuclear operations
> Chemistry> Enrichment> Fuel
> New Builds > Installed Base> Equipment> Nuclear Measurement> Products & Technology> Propulsion & Research
Reactors
Major Projects Sales Organization
Engineering & Project Organization
The 5Business Groups
Reactors& ServicesFront EndMining Back End Renewables
Functional Departments
Executive Board
Executive Committee
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 5 All rights are reserved, see liability notice.
AREVA NP
AREVA Group across the globe
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 6 All rights are reserved, see liability notice.
AREVA NP
Key data AREVA Group
€43.302bn
EMPLOYEES
+ 9.6%€816mCONSOLIDATEDNET INCOME
€97mOPERATING INCOME
€8.529bnSALES REVENUE+
5.4%
BACKLOG
47,817
+ 1.8%
+ €240m
∆ 09/08
2009 figures – Nuclear and Renewable Energies
+ 5%
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 7 All rights are reserved, see liability notice.
AREVA NP
AREVA in GermanyNuclear and Renewable Energies
AREVA NC*Frankfurt/MainBerlin
AREVA NPErlangenDuisburgKarlsteinLingenKarlsteinOffenbach
CANBERRA EURISYSRüsselsheim
*In 2008 AREVA NC in Germany was merged with URANGESELLSCHAFT mbH
Hamburg
** planned
AREVA WindHamburg**BremerhavenStadeAREVA Bioenergy GmbHBremen
Enrichment TechnologyJülich
Bremen
Duisburg
BerlinLingen
Bremerhaven
Erlangen
FrankfurtOffenbach
KarlsteinRüsselsheim
Stade
Jülich
5700 employees workingfor AREVA in Germany
Front EndReactors and ServicesBack EndRenewable Energies
HeadquarterProductionBranch Offices
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 8 All rights are reserved, see liability notice.
AREVA NP
AREVA NP GmbH > Sales: €945 million* (HGB) (2008: €878 million)
Reactors43%
Fuel38 %
Service19%
*Status 12/2009
Sales byBusiness Groups foreign markets: about 43 %
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 9 All rights are reserved, see liability notice.
AREVA NP
Contract Management / Claim ManagementDefinitions Page 1/2
Claim Management
CHANGESDeviations,
changes,start after the Contract
has been signed
Change Management
Abweichungs Management
Änderungs ManagementDeviationVariation
Contract Change Control SystemProcess by which the contract may be modified, including the documentation, tracking systems,
dispute resolution procedures, and approval levels necessary for authorizing the change.
source: ESI Intl., Dictionary of Project Management Terms
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 10 All rights are reserved, see liability notice.
AREVA NP
Contract Management
starts right away in the proposalphase, from contract negotiations
through contract execution until final hand over to the Client
Contract Management / Claim ManagementDefinitions Page 2/2
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 11 All rights are reserved, see liability notice.
AREVA NP
Engi-nee-ring
Compo-nents Pro-
cure-ment
Con-struc-tion
LegalLegal Policy
Project Business Stakeholders and Influencing Factors
Legal
Customer
Project
Licensing
Legal Policy
ContractMgt
Project Mgt
PM Qualific
ProcessesMethodsToolsHR
QualityRiskMgt
Schedule
CostProfit
Company Balance Sheet
Engi-nee-ring
Compo-nents Pro-
cure-ment
Con-struc-tion
ContractMgt
Project Mgt
PM Qualific
ProcessesMethodsTools
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 12 All rights are reserved, see liability notice.
AREVA NP
The Transmission of Deviations / Changes / Claims
CustomerSupplier
Change ReasonsChange Reasons
Change Reasons
Change Reasons
+ Costs
Change Reasons + Costs Change Reasons + Costs
Procure-ment Project
►Changes have Reasons
►To know the reasons means to create / defend profits
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 13 All rights are reserved, see liability notice.
AREVA NP
Contract Management
75% of all additional costs result fromdeviations from schedule
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 14 All rights are reserved, see liability notice.
AREVA NP
Contract ManagementCM support during the whole project process
Offernegotiation
Offerpreparation
Project ExecutionWarranty
Period
Negotiationsupport
(1) Claim Management
CM work-shop
Contract Change Mgt
CM work-shop
CM work-shop
Preparationsupport
(..) priorities for activitiesto be covered
(2) Contract Change Mgt
(5) Negotiationsupport
(3) CM work-shop
(4) CM work-shop
(4) CM work-shop
(6) Preparationsupport
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 15 All rights are reserved, see liability notice.
AREVA NP
Who is “The Contract Manager” ?
Is the Contract Manager conforming to standards?(Ist der Contract Manager „NORMGERECHT“?)
►No „Master of Contract Management“
►Recruitment launched only 2 years ago
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 16 All rights are reserved, see liability notice.
AREVA NP
Background of “The Contract Manager” 1/2
Professions•Engineers•Lawyers•Commercial Managers
Requirements and Skills•Interdisciplinary thinking and acting •Legal, commercial and technical competences•Distinct ability to analyse complex situations•Sensitivity concerning complex interrelations
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 17 All rights are reserved, see liability notice.
AREVA NP
Background of “The Contract Manager” 2/2
Requirements to qualify as Contract Manager•High interest in designing complex contracts•Willingness to acquire a deep contract knowledge base•Team-oriented mindset: exchange information openly and actively with project-related parties
individual development towards Contract Manager starting from various backgrounds
•Professional experience, preferably in the field of plant engineering and construction and various activities within the job•Purpose-orientated, advanced vocational training•Intensive exchange of knowledge and experience with external know-how carriers•High training curve due to discussions of one’s own and other projects within the team•Training on the job through „part-time“ involvement in various projects
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 18 All rights are reserved, see liability notice.
AREVA NP
Contract Management within AREVA NP GmbHOne centralized contact point for use of external C M experts
Center of Competence for knowledge about Consulting CompaniesContact with Consulting Companies which understand the needs of AREVA
Structured process to fullfill the requirements of the pr ojects1. Project requests CM support with a job profile2. Check for fitting and available internal capacity, if not3. Start Request For Proposal with competent Consulting Companies4. Evaluate offers and participate in decision process5. Discuss with the project management individual CM strategies6. Monitor performance of external CM experts
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 19 All rights are reserved, see liability notice.
AREVA NP
Contract ManagementTrainings offered for project managers and project teams
Advanced Contract Mgt 2d
Contract-WS ½ dstart site activity
Return on
Experience½ d
Basic Claim Mgt. 1d Purchaser-WS
½ d
general for project business specific per project
Contract Law
WS 1d
Contract-WS ½ dstart + 12m
Contract-WS ½ dat start of project
Legal
1d +
1d=1day
basi
ckn
owle
dge
expe
rt
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 20 All rights are reserved, see liability notice.
AREVA NP
Contract Workshops
Samples regarding a contract workshop at project take-o ffwith focus on:► 1 Project organisation, responsibilities► 2 Contractual Parties involved
� 2.1 Contract documents (Contract, Annexes, Appendices )� 2.2 Document ranking� 2.3 Contradictions in Contract documents
► 3 Supply and services due, scope of supply (roughly), i nterfaces► 4 Milestones and penalized deadlines► 5 ...► 6 ...► 7 ...► 8 ...► 9 ...► 10 ...► 11 ...► 12 Various, specifics, etc.
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 21 All rights are reserved, see liability notice.
AREVA NP
Approvalrequest
by AREVA
Acceptance
by Customer
No responsefrom Customer
30 days OKDeemedacceptance
OK
Contract Workshops Example for Approval Process page 1/2
Refusal
by Customer
30 days
???
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 22 All rights are reserved, see liability notice.
AREVA NP
Response Areva
AcceptanceCustomer
ApprovalCustomer
RefusalCustomer
Mutual settlement
Reviewedproposal
No Response
Deemedacceptance
OK
7 days
Example for Approval Process page 2/2
Contract Workshops
Refusal
by Customer
7 days 14 days 14 days
Reviewedproposal
OK
OK
7 days 14 days 7 days
ApprovalCustomer
7 days
7 days
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 23 All rights are reserved, see liability notice.
AREVA NP
Contract ManagementTrainings offered for project managers and project teams
Advanced Contract Mgt 2d
Contract-WS ½ dstart site activity
Return on
Experience ½ d
Basic Claim Mgt. 1d Purchaser-WS
½ d
general for project business specific per project
Contract Law
WS 1d
Contract-WS ½ dstart + 12m
Contract-WS ½ dat start of project
Legal
1d +
1d=1day
basi
ckn
owle
dge
expe
rt
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 24 All rights are reserved, see liability notice.
AREVA NP
Clearly defined technical standards
R................
S................
D................
K................
E................
Scheduling / Deadline monitoring
D................
T................
Consortium agreements
R...............
L................
REX@CMContract Management – Return on Experience
Return on Experience
Project Initiation Phase
On-Site
Warranty Period
Execution Phase
Proposal Phase
1
2
3
4
5
6
7
2
5
8
8
1
9
10
11
4 6
3
79
103
11
C.................
On-site activities
13
1312
35
97
11
12
1012
12
11
14
12
14
14
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 25 All rights are reserved, see liability notice.
AREVA NP
REX@CM Agenda for each topic
►General Introduction►...........
►real Example / Examples►...........
►Recommendations►...........
►workshop duration half day
►5 topics in one workshop
►topics preselected with
unit manager
►30 minutes per topic
►10 to 15 participants
► mixture of sales and
project execution staff
Contract-/ Claim Management – 1.Runder Tisch October 8, 2010 v3 page 27 All rights are reserved, see liability notice.
AREVA NP
Any reproduction, alteration, transmission to any th ird party or publication in whole or in part of this document and/or its con tent is prohibited unless AREVA has provided its prior and written consent. T his prohibition concerns notably any editorial elements, v erbal and figurative marks and images included herein.This document and any information it contains shall not be used for any other purpose than the one for which they were prov ided. In particular, no patent application and/or registered design may be ap plied for on the basis of the information contained herein.
The terms EPR TM, ATMEA1TM, KERENATM, and AREVA are trademarks owned by AREVA or its affiliates. Any use or any partial or total reproduction of these trademarks without prior writ ten authorization of AREVA or its affiliates is prohibited.
Notice