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Soft Target Collaborative approach Arm’s length approach Owner managing approach
(e.g. Feed+ obe+ EPC (e.g. Feed + bid EPC) (e.g. Feed+ bid EPsCm + bids P, C)
conversion)
Owner involvement in üü ü üüü
performance

Contractor incentive in üü üüü ü
performance

Predictability of üüü üü ü
performance
Know how capitalization üüü ü üü

Local content growth üü ü üüü

Asset value üüü ü üü
maximization

Table 4 Soft targets index for alternative contracting schemes

• The market trends support a collaborative can be executed successfully in multicultural
approach between the Owners and Contractors environment properly evaluating the risk profile and the
that have the know how to manage the increasing possible execution strategies.
complexity of conflicting requirements. The main conclusions are:
• But it is not rare a reckless and opportunistic • A rational approach to the project execution
approach to risk management by market agents. scheme, as the one used for Bourgas HRPC
• While ultimately Owners need reliability and project, paves the way to a successful project.
Contractors need early visibility of execution • HRPC project was performed under a collaborative
strategies approach since the FEED and finally resulted in a
success.
The table shows how the “soft” targets (long term • While not advocating for any specific contracting
assets not easily measureable but not less important of scheme, we recognize that often the project
the main “hard” targets) benefits from a collaborative context suggests, in a straightforward way, the
approach. optimal execution scheme and contractual
A collaborative approach pursues the optimization of arrangement.
the project execution, recognizing its intrinsic value • Early involvement and non-episodic collaboration
beyond the specific contractual arrangement, that is a between the Owner and the EPC Contractors
consequent detailed implementation of the intended creates the conditions for a common growth in
agreement by the Parties of the Project Execution project execution performance.
Strategy.
Stakeholders awareness and alignment on project
The collaborative approach values: ultimate targets is the pre-requisite for every successful
- joining the efforts and the know how in the right project.
moment during the development of the project;
- assigning the risks fairly and rationally;
- rewarding the proactivity of the project teams. References
With a long term vision of the ultimate project targets. [1] Ilshat Sharafutdinov: H-oil Hydrocracking Complex
construction, commissioning and start-up experience.
Current challenges and plans for the future, EPC BBTC
Conclusion Conference Proceedings, Moscow 2016;
HRPC project success demonstrates that megaproject [2] Sergey Andronov, Stefano Polimeni: Lukoil

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