AVEVA ProCon: Complete Contract Risk Management
Protect capital investment, drive performance and improve profitability.
Meeting the Needs of Asset Intensive Industries
The current low oil price and weaker global economy means that addressing the root causes of cost and schedule overruns is crucial to success. Our many years' experience delivering results with Owner Operators helped develop AVEVA ProCon Contract Management software.
The solution was specifically designed to meet the needs of asset intensive industries; to protect capital investment, drive performance and improve profitability when building and operating high value assets. Built-in, best-practice, claims management and contract bid management processes help to add peace of mind through efficiency.
Specifically Designed to Meet Your Needs
AVEVA ProCon is designed to manage contracts throughout the asset life cycle. Best results are achieved when it is introduced at the pre-award stage, but it has useful applications when brought in to any stage of the asset life cycle.
Understanding Your Challenges...
High-value, high-risk projects are delivered late
- Contract auditability: critical information may be scattered among various systems, in different formats, making reviewing projects post-completion difficult. Staff turnover makes it challenging to get a single source of ‘truth’ when issues arise.
- Expectation and interpretation: lack of clarity between the parties can create conflicting expectation and interpretation of the contractual obligations leading to change and potential claims.
- No early warning indicators: lack of visibility of the project's likely commercial outcome, because there is no method to assess the impact of multiple contract changes.
- Online tendering: tender schedules often overrun due to a lack of formal process, resulting in key stakeholders missing deadlines or review periods.
Projects Over Budget
High-value, high-risk projects are over budget
- Claims mitigation and defence: a stakeholder may face a claim by breaching contract terms. They could overlook an important date-based or event-driven contractual obligation. Then, if record-keeping has been lacking, they have little defence against the claim.
- Payment verification: verification can be a challenge with multiple subcontractors AFPs (applications for payment), risking erroneous payments and penalties for late approvals.
- Change control: lack of formal process for managing change means that stakeholders may have to deal with invoices with no prior knowledge of the who, when and why context.
- Obligations: missed contract obligations (from either party) can cause risk exposure or even financial penalties.
... And How We Can Help
AVEVA ProCon manages change in a disciplined manner
Effective Change Control
All change orders are initiated from within AVEVA ProCon using preapproved templates. Dynamic workflow manages the routing of change requests to the designated parties for review and authorisation. Identifying the impact ($/schedule) of potential change quickly allows time for scrutiny and to mitigate the risk of unnecessary changes.
Enhanced Financial Control
Early warning indicators help management to direct their attention to the most critical situations, reducing unplanned cost overruns. Automatic line-item invoice reconciliation prevents erroneous payments and rates for work not yet delivered or already completed.
Mitigate Contractor Claims
Alerts and reminders lower the risk of missing contractual obligations, helping to avoid claims. If one does arise, easily access all correspondence for excellent claims defence.
Best Practice Governance
AVEVA ProCon promotes transparency, aligning remote project teams with approved business processes to make contract award and execution even easier.
Earlier and improved handover from design and construction to operations.
Improved Contract Delivery
Using one central system encourages on-time and on-budget contract delivery as all contractor interactions and issues are dealt with efficiently.
How is AVEVA ProCon Different?
High risk, high value projects are unpredictable by definition. As they evolve, unforeseen changes will arise – along with the risk of large and unplanned cost overruns – unless this change is managed in a disciplined manner. It's vital that all stakeholders are kept informed in real time of project deviations and any contractual risk exposure.
Our many years of industry best practice experience means AVEVA ProCon's specific knowledge, predesigned templates and configurable software system improves efficiency straight out of the box. Managing high risk / high value build or maintenance contracts is made smoother, and personalised to your organisational requirements.
- Complete audit trails are automatically maintained, initiate and manage project change orders and requests all in one place with ProCon, as well as tracking communications with your contractor.
- Access real-time financial reports within the software's dashboard view, with all submitted change requests, approved change orders, and pro-forma invoices factored in to the financial status.
- Record keeping is completely automated, with contractual obligations captured and managed with alerts and reminders, and workflows are automatically generated.
- Complete audit trail for stakeholders to use if any legal claims arise against performance of contractual obligations.
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