The Exciting Contracts Committee

“Building the Foundation”

Report to the 2006 Best Practices Conference

Dave King and Jane Sidnell

Len Addinall – ShellDarryl Baron – Dow

Scott Burrell – SuncorGraham Campbell – CoSynSuzanne England – Revay

Jim Freiburger – JacobsDamian Gannon – ATCO

Mike Gordon – BantrelDavid Hamilton – Enbridge

Kathy Kendrick – Miller Thompson LLP

2005 /2006 Committee Members

Bill Kenny – Miller Thompson LLPDave King – Stantec

Brian Lacey – Clark BuildersTim Mann – Suncor

John Schadan – SNC LavalinLes Shaw – Ledcor

Jane Sidnell – Miller Thompson LLPLaura Sugimoto – AMEC

Neil Tidsbury – CLRA

2005 /2006 Committee Members (Cont)

Jim Freiburger – OPTI Nexen (06 Jacobs)

Don Guglielmin – CNRLSean James – AMEC

Catherine Sarsfield – Petro CanadaLaura Sugimoto – Independent (06 AMEC)

Dariel Suhan – NovaGreg Toth – Kinder Morgan

Rick Watters – EnCana (COAA Board Member)

New 2007 Committee Members

Purpose: To enhance Efficiency, Profitability and Performance Develop standard forms of contract for use in Alberta Consistent approach to common issues

Goals: To equitably allocate risk and responsibility to the party best able to

manage the risk Implementation:

Standard format and organization Standard or align definitions and terminology Proper ordering of subject matter Flexibility through use of schedules

Follow up: Regular review and revisions Promotion of the use of the documents.

Guiding Principles

Stipulated Price contract (SP): Published (1997) and one review cycle completed (2003)

Engineer, Procure and Construct contract (EPC): Published (2005)

Engineer, Procure an Construction Management contract (EPCM):

Guiding Principles document – Completed November 2005 Philosophy document to be issued at 2006 Best Practices –

Completed EPCM contract issued for 2007 Best Practices – On

schedule Construction Management contract (CM):

Viewed as a sub-set of the EPCM and will be developed after the EPCM is published.

Scope and Progress

Build a working committee that is representative of the participants:

Owners, Contractors, Consultants, Legal

Industry sectors: Mining, Petrochemical, Power, Pipelines, Infrastructure etc.

Edit “Guiding Principles” to better reflect preferred sequence of deliverables:

Document issued to board for comment November 2005

Develop “Philosophy Document” to provide guidance for development of the EPCM contract:

Two review cycles complete

Issued for comment: Draft 2 to Board; Draft 3 to Best Practices session

Develop contract documents using EPC contract as template:

Ongoing on schedule for delivery of document to 2007 Best Practices

Establish subcommittee to develop Appendix B – Reimbursable Costs

2005 / 2006 Activities

Maintain a balanced representation of all sectors from members actively working on the Committee

Continue the effort to ensure full active representation from all stakeholders

Publish final edition of EPCM Philosophy document

Complete development and issue EPCM Contract, together with all Appendices, including Appendix B – Reimbursable Costs

Work with our colleagues on the other Best Practices Committees and COAA communications staff to gauge and promote the use of COAA contracts

Establish long term plans for the Contracts Committee that ensures the development of best practices that are relevant to the needs of our industry

2006 / 2007 Activities

Closing