Sharing best practice and good commercial contractual controls

  • Sharing best practice and good commercial contractual controls

    Posted by Gavin Esslemont on July 9, 2020 at 10:23 am

    Whilst I appreciate the sensitive nature of commercial discussions in an open forum, without naming involved parties or contract specifics, I am keen to understand if anyone has anything to share in terms of commercial contractual mechanisms that were designed collaboratively by the contracting parties, to arrive at principles that ensured the alignment of all contracting parties to reach the same goal. It could be that one party wants to execute work as “cheaply” / low cost as possible, whilst another party may wish to maximise the overhead and profit contribution arising from the execution of the work … both objectives not necessarily traditionally aligned.

    The work may not be just cost driven, but may be schedule driven, or performance driven.

    Really keen to hear from people so that we can get the industry thinking creatively, to get away from the traditional approach where it makes sense. Of course, sometimes the traditional way IS the appropriate model to use but keen to hear alternatives that people have “worked” and ended up with a win for all stakeholders involved.

    Gavin Esslemont replied 1 year, 11 months ago 2 Members · 2 Replies
  • 2 Replies

    July 9, 2020 at 7:36 pm

    Hi Gavin, this is a really important ‘value’ lever in decommissioning for both supply chain and operators to generate value in delivery for both parties, whilst balancing risk / reward mechanisms. Innovative commercial models is the new buzzword for decommissioning, but in practice what does this actually mean. It would be great to get some broader discussion on the group forum to see what has worked for supply chain and operators on real projects.

    Feel free to push out the new group discussion via the social share icons on the page. Branch out via LinkedIn to encourage participation and discussion.

  • Gavin Esslemont

    July 11, 2020 at 8:39 pm