Contents
Page
References WA3
Introduction and objectives 44
Resumé 1/4I6
Topic | Introduction wary
1 General 7
2 Reasons for contracting out 8
3° What is a contract 9
4 Biffective contracting 10
5 The contracting process u
6 The cender board 2
Topic 2. The preparation phase VANS
1 Initial preparations B
2 Contract strategy 145
2.1 Major decisions 4
2.2. Contracts and sub-contracts 14
2.3. Types of contract 16
2.4 Incentives 7
2.5 Milestones 20
3 Definition of the contract scope of work al
Topic 3 Going out co tender 4123
1 ‘Types of tender 23
2 Preliminary enquiry 24
3. Pre-qualification 24
A The invitation co eender 25
Topic 4 Contract award 4136
1 Receipt of tenders 36
2 Evaluation of renders 36
3 Letters of intents 37
4 Award of contract 37
‘Topic 5 ‘The contract documents 1/4138
1 The document 38
2 Pare 1 - The Form of Agreement 39
3. Part 2 - The Conditions of Contract 40
4 Part 3 ~The Scope of Work 49
5 Part 4 - Contractor's Execution Plan 51
6 Part 5 - Provisions by Contractor 51
7 Pare 6 - Provisions by Company 52
8 Part 7 - Standards 52
1
WDIP- Contract management Poge 174/1
v2.009 Part 8 - Drawings 53
10 Pare 9 - The Schedule of Prices and Rates 34
11 Pare 10 - Administration Procedures 54
12 Pare 11 - The Performance Guarantee 56
13. Parc 12 - The Performance Bond 56
Appendix I Letter of Tender 114/57
Appendix 2 Conditions of Tender 14159
Appendix 3 Form VII - Technical information 1/4162
Appendix 4 Form of Agreement 14/68
Appendix 5 Concents list of Part 3 - The Scope of Work - of a drilling contract 14/7
Appendix 6 The Scope of Work of a drilling contract wArna
‘Appendix 7 Contents list of Part 3 - The Scope of Work - of a services contrac 114176
Appendix 8 The Scope of Work of a services contract 1Am79
Appendix 9 Part 9 - The Schedule of Prices and Rates (from a drilling concract) 14/81
Questions 14193
Page 1/4/2 A WOIP - Coniract management
v2.00References
Guidelines for Use of Standard Prequalification, Invitation co Tender and Contract
Documents for Drilling and Drilling-Related Services
SIPM EPO/S1, The Hague
Revision: June 1990
Improving Drilling/Well Construction Performance chrough Better Contracting
Rushmore Associates
SIPM-EP, Drilling Engineering Conference, 1994
Shell's “Drilling in the Nineties”
A Guide for Contractors
SIPM EP91-0740 March 1991
Commercial Contracting Guidelines
SIPM FN/05 November 1993
WDLP - Contact management Page 1/4/3
v2.00Introduction and objectives
This Pare is intended to give guidance on key aspects of contracting by providing an overview
of the various types of contract and contracting activities. Ie also highlights some of the PRE-QUALIFICATION
In order ¢o ensure that contracts are placed only with contractors of known integrity, ade-
quate financial standing, acceptable HSE performance and proven workmanship, SIEP and
OUs have procedures in place for the appraisal and approval of contractors. A standard Pre-
qualification document called: “Standard Pre-qualification to Tencler Document for Drilling,
and Drilling Related Services” is available from CPS-EP and is used to record the
Commercial, Technical and Experience information necessary for the pre-qualification of con-
tractors. Guidelines for the evaluation of contractors on the basis of chis information can be
found in the document called: "Guidelines for use of Standard Pre-qualification, Invitation to
Tender and Contract Documents for Drilling and Drilling Related Services” also available
feom CPS-EP.