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A Supporting Tool
for the Rational Identification
of Contracting Strategies
for Complex Projects
The methodology that Technip is refining as a decision aid
for assisting Clients since early stages of project life
Olimpia Loiacono, Jorge Corredor Botero
Technip Italy SpA
T here is no better introduction to approaches to contracting which differ in
the many alternatives possible important respects, such as the extent of the
and to the topic at large than the responsibility of the contractor, the extent
brief discussion on contracting to which the Company must co-ordinate
approaches presented by the construction, and, in many cases, the total
United Nations [1]. Borrowing the cost to the Company. Entering into a single
words therefrom, “there are different possible contract places the responsibility for the
entire construction on a single party; if several
The selection of a contracting strategy for a complex project in the contracts are entered into, and the works upon
Oil and Gas industry is contingent on several key elements resulting completion is defective, it may sometimes be
thereby in various possible alternatives to be considered. Following difficult to determine which contractor is liable.
from the concept of bounded rationality, when it comes to the iden- Mandatory legal regulations in the country of the
tification and evaluation of different alternatives, decision-makers Company may require that a certain contracting
often make choices based on techniques and practices that have approach be used by the Company in order
been used successfully in the past rather than by examining all pos- to develop the technological capability of the
sible alternatives through a systematic approach. The result there- country and to conserve foreign exchange. In
from is a satisfactory solution that may be far from the optimal one, such cases, the Company will have either to
which instead can only be identified by a full rational process with contract with a single contractor or to enter into
well supported grounds. several contracts, including local enterprises. In
addition, the extent of the contractor’s liability
to taxation may influence the contracting
approach.
Impiantistica Italiana - Maggio-Giugno 2015 47
