Onshore Construc Ws

KBR Onshore
Construction Workshop
July 11 12, 2002
The Warwick Hotel
Houston, Texas
Innovation Breakout Session
Creative Problem
Solving
KBR
Innovation
SESSION #1 SUBCONTRACTOR PERFORMANCE
IDEA CONNECTIONS AND BIG IDEAS
Onshore Construction Workshop

Innovation Breakout Session #1
Subcontractor Performance
Thursday, July 17, 2002
IDEA CONNECTIONS:
How to ensure subcontractor requirements of KBR Systems and Processes?
Ideas
Train subcontractor employees
Put requirements in contract ITB
Review requirements in pre-bid
Detailed review to a minimum standard
Put KBR personnel in subcontractor team staff
Rewrite KBR requirements in a format which is clear and easy to
understand
Perform these services for the subcontractor
Allow subcontractor to use his own systems
Streamline KBR systems
Subcontractor shows (presentation) KBR how system and processes work
in pre-award
Use combination of KBR and subcontractor systems
Page 1 of 44

Big Idea
Put a KBR Guy in the Bidders Office (Coach the Bidder)
KBR to put together a scope of work ITB for a sub contract with provisions
that a KBR employee knowledgeable around our systems and processes and
will be placed at the subcontractor office. In pre-bid meeting the selected
KBR employee will be made available.
Place a KBR systems and procedures person with each bidders office
Give bidders a template for each of the required systems
Assign points to the best use of the systems at bid
Actions:
1. Put a KBR guy in the office
2. Do a pre-bid workshop (2 days)
3. Assign the KBR coach to the subcontractor if he wins (3 months)
Obstacles:
1. Confidentiality
2. Cost
3. Commitment
Page 2 of 44

IDEA CONNECTIONS:
How to Improve Subcontractor Control Systems?
Ideas
Detailed pre-qualification of subcontractors to a minimum standard
Training of subcontractors to KBR systems
Support with KBR personnel when needed
Weekly meetings
Involve the subcontractor
If they do not pre-qualify, dont hire
Address requirements pre-bid
Help subcontractors along in ways that will assist them on project, so
they will have the expertise later
Reward them when they do a good job. Cause them to want to do better
Define our minimum requirements for them
Why do subs have to have the same level as KBR
Clearly define expectations of both parties
Page 3 of 44

Big Idea
Determine what level of reporting is required.

Determine why that level is required
Determine KBRs level of responsibility
Determine is it nice to have or really needed
Understand the bidders capabilities
Adapt KBR to his capabilities
Support his shortfalls with KBR staff and systems
Added subcontractor training by KBR
What is wrong with the subcontractor control systems? Does subcontractor

control system meet KBR minimum standard?
ID the minimum requirements to control the project.
Page 4 of 44

IDEA CONNECTIONS:
How to Improve KBR Administration?
Ideas
Know the scope
Train the KBR subcontract administration
Hire qualified Administrative Manager (sub)
Provide incentives to KBR administrators based on subcontractor
performance
Innovative Idea workshops for subcontractor administrators
Establish Lessons Learned database
Communication with subcontractor through social get-togethers
Have a visual scorecard, in public place where all subcontractors are
rated (peer pressure)
Set out expectations of KBR administrators clearly
By proper training by assessment performance
By establishing comprehensive training program
By setting effective performance goals via PPR
Education
Establish career path
Page 5 of 44

Big Idea
Mutual Investment in Career Training
Establish career path with training programs

Identify personnel, field and headquarters that have an aptitude for
subcontractor work
Mentor program for personnel that move to field assignments in order to
ensure understanding of subcontractor administration
Headquarter expert/instructor for a Help Desk for problems
Clear cut check list on administering subcontracts
Open lines of communication between Subcontract Manager,
Subcontractor, Construction Manager and client
Provide subcontract administrator with a clear scope of work to issue to
the subcontractor
Develop trust within project organization subcontract manager,
subcontractor and KBR construction management
Clear list of hazards in failing to administer subcontract properly
Page 6 of 44

IDEA CONNECTIONS:
How to keep subcontractor focused on schedule in addition to making
profit?
Ideas
Keep clear documented schedule in front of subcontractor
Hold expectation meetings with subcontractor
Structure subcontractor proposal to incorporate schedule related bonus
Upfront alignment session
Tie profit to schedule milestones (no schedule no money)
Provide support to subcontractor to help achieve schedule goals
Show them that they are part of the team
Their participation in two week look a heads and schedule reviews
They need to know up front our expectations
Have subs participate in schedule review meetings
Seek feedback from subs on issues that are holding them back
Eliminate barriers for subs
Require subs to open their books to us for review
Page 7 of 44

Big Idea
Pay for Performance
Establish guidelines in pre-bid meetings

Establish subcontractors who are willing to put their fee at Risk for
performance
Provide full scope for bid
Award contract
Tie their profit to schedule milestones
Have subs participate in Schedule Review Meeting
Actions:
1. Tie profit to schedule milestone
2. Negotiate milestone to be realistic (i.e. every two weeks)
Obstacles:
1. Front end loading by subcontractor
2. Subcontractor has to front the money until milestone attains
Page 8 of 44

IDEA CONNECTIONS:
How to get Subcontractor to work to the levels required of them?
Ideas
Clearly define scope of work to subcontractor and ensure subcontractor
understands what is required of them prior to work start
Proactively manage subcontractors during work execution
Hold pre-award meetings to clarify scope of work
Regular expectation meetings
Hold offsite social get togethers to discuss performance
Make sure subcontractor understands their construction scope
Identify penalties in their scope for non performance
More frequent monitoring of subcontractor work systems
Regular on-going performance audits
Stick to and enforce penalties no matter how unsavoury it may seem
Page 9 of 44

Big Idea
Timely and Effective Audits
Ensure that pre-award meetings are held to make sure that both parties
fully understand the scope being in the contract
Make sure that subcontractor fully understands any penalties that may
be in place and that KBR will enforce them
During the course of the work hold regular meetings to monitor progress
and keep them on track
Do not accept sub-standard performance
Advise subcontractor construction management of need to improve
performance if they are to continue working for KBR
Actions:
1. Clear understanding of scope of work
2. Timely effective audits
3. Subcontractor management accountability
Obstacles:
1. Ability to effectively interface with subcontractors
2. Accepting sub-standard performance
3. Not willing to take time required to improve shortcomings
Page 10 of 44

IDEA CONNECTIONS:
How can we solve the Language Barrier?
Ideas
Hire personnel for several key positions who can speak in other languages
Require ability to speak in English as a requirement qualification for
hiring
Use real-time interpretation ear-phones for key communication
addresses
Cannot solve only (can improve)
Use more interpreters
Teach more staff different languages
Remember we are in their country
Use visual aids as much as possible pictures are more understandable
Hand held translators
By providing proper training
By employing qualified personnel in the countries we work in
Page 11 of 44

Big Idea
Ensure Key Personnel Speak English - Common Language
Comprehensive language training for our staff personnel

Use of visual aids to maximum extent possible
By hiring a retaining a key supervising staff personnel in the key
countries where we operate
Ensure that all key personnel speak a common language (usually English)
Monitor workforce to see if job instructions given by supervisors are
fully understood
Actions:
1. Ensure key personnel speak English
2. Ensure that resource available to maintain all visual aids
3. Verify work instructions are fully understood by workforce
Obstacles:
1. Finance of LSTK projects as English speaking supervisors may cost more
2. Resource may not always be available
Page 12 of 44

IDEA CONNECTIONS:
How to ensure that Subcontractors are Pre-qualified to Same Standard?
Ideas
Define essential standards of requirements
Review subcontractors in market place
Interview in person each subcontractor
Complete engineering details so all scope is known
Review other clients they have had
Go to other jobsites they have worked
Introduce an exam they must pass
Accept no exceptions no flexibility
Obtain signed commitment from subcontractor CEO
Develop a detailed KBR procedure for pre-qualification
Minimize the number of areas which are considered during prequalification
As the subcontractors to determine the minimum level of prequalification required
Check other projects that they have worked before
Use subcontract manual
Dont listen to client
Page 13 of 44

Big Idea
I. Prepare a detailed Standard of Requirements
A. Historical Data
1. Provide template to obtain actual performance on construction
projects
a. Safety Record
b. Cost & Schedule performance
c. Claims performance
II. Contact previous clients of perspective contractor and check references
Look at records of projects on which they have worked
III. Compare performance against criteria established in I
Actions:
1. Identify the critical factors to evaluate
2. Obtain data from other clients and previous projects
3. Assess performance (2) against requirements (1)
Obstacles:
1. Lack of information in a timely manner
2. Resistance of individual to conduct due diligence check
3. Non availability of subcontractor who can meet our needs
Page 14 of 44

IDEA CONNECTIONS:
How to Improve weak subcontractor safety practices?
Ideas
KBR to provide standard training to subcontractors
Eliminating the weak supervisors from subcontractors
Ensure procedures are all in place and fully understood
Ensure required practices have a good process in place
Include subcontractors innovative practices such as behaviour based
principles
Reward subcontractors for methods that improve performance
Include subcontractor as part of team in all meetings
Train all personnel
Change culture of area to improve workers understanding
Incentives
S.A.F.E.
Penalties for poor performance
Treat subcontractors personnel as if they are (were) KBR personnel
Include time in the schedule to evaluate and train prior to starting any
work
Page 15 of 44

Big Idea
Safe Subcontractor
Include written KBR procedures, a process to evaluate and identify

shortcomings between a subcontractors safety penalties and KBRs
practice
Provide any support or training to a subcontractor for any shortcomings
identified in (1) prior to mobilization
Ensure at a pre-mobilization meeting that expectations for subcontractor
performance, systems and outcomes are identical to those of KBR
Treat subcontractors personnel identical to KIBR personnel (crafts,
supervisors and management)
Include subs participation in all inspections and job walks
Safety performance incentives
Actions:
1. Assessment of problem areas
2. Training and support
3. Include sub in monitoring activities
Obstacles:
1. Participation of subcontractor management
2. Subs do not have budget for it
3. KBR internal costs
Page 16 of 44

IDEA CONNECTIONS:
How do we get clients to allow for adequate time to properly qualify
Subcontractor?
Ideas
Use and accept one subcontractor recommendations
Align with owners on the pre-qualification conditions
Use owner subcontractor who have proven success
Clearly define subcontractor strategy with client prior to prequalification process
Prepare strategy (with client) for tender evaluation
Initiate tender cycle ASAP after subcontractor scope of work identified
and subcontractor requirements are approved by client
Get client approval of subcontractor plan as early as possible
Built timeframe for subcontractor qualification in subcontractor
execution plan
Page 17 of 44

Big Idea
Overhead Staffing
Build sufficient time in the project subcontractor contracting execution

plan for qualifying subcontractors
Get client approval on subcontracting execution plan
Implement the plan
Demonstrate to the client the probable outcome if sufficient time is not
allowed
Develop a KBR procedure to minimize the time necessary for
subcontractor pre-qualification
Establish a minimum standard within KBR for subcontractor prequalification wherein we cannot award prior to this minimum achieved
Get a jump on qualification time by doing the pre-qualification earlier
with more preliminary information
Actions:
1. Build sufficient time in a subcontract execution plan
2. Demonstrate to the client the probable outcome of sufficient time is not
allowed
3. Develop a KBR procedure to minimize pre-qualification time
Obstacles:
1. Project schedule may not have enough time
2. Fixed requirements in contract
3. Cost Issues
Page 18 of 44

IDEA CONNECTIONS:
How to Find Qualified Subcontractors?
Ideas
Create a database from ongoing projects
Better qualification process
From Project experience
Get owners database/history
Personal history of team
Advertise on web
Client input on subs they sue
Solicit subcontractor names from other KBR projects
Search web
Establish metrics for evaluating performance for use with A above
Talk to your friends get recommendations
Check references
Build a corporate database that all projects can dsp. into
Run our own training school for subcontractors to bring to our standards
Make the requirements achievable
Page 19 of 44

Big Idea
Formal Disciplined KBR Database of Subcontractor
Performance
Use Internet based tools to gather subcontractor details prior to any

particular project needing a specific subcontractor.
Take time needed to qualify these, including following up of references
Incorporate into a central database that new projects can dip into on an
as needs basis.
Require each KBR project to provide specific performance data after
completion of each subcontract
Catalogue historical performance data so that new prospective
subcontract users may evaluate the past performance of all catalogued
subcontractors performance
Compare KBRs historical data with latest references possible
Question subcontractors about past performance history/database to
reconcile against references and current market/operational conditions
of subcontractor
Actions:
1. Formalize a central KBR database of subcontractors past performance
2. Require and review current references
3. Reconcile database and current references for any conflicts
Obstacles:
1. Formal collection and maintenance of current performance database
2. Obtaining and verification/contacting references
3. Receiving subcontractors performance data in proper/usable format
Page 20 of 44

IDEA CONNECTIONS:
How to improve Safety Systems?
Ideas
Understand their system

Use KBR standards
Use 12 Best Practice systems
Alignment of values
Consistently demonstrate our commitment
Be prepared to kick where necessary
Educate them
Show them our commitment
Be open to their suggestions make them part of the team
Teamwork
Incentive
Recognition
Safety moments before each meeting
Workshops
Lessons Learned
Integrate all personnel into Safety Department
Rotate line supervisor into Safety Department
Review for impacts schedule/cost and plan for implementation
Include behaviour base training
Offer training in our systems that have been successful
Review old systems for being out of date or need revision
Page 21 of 44

Big Idea
Subcontractor should be considered part of the project team at time of

the award part of the team
Be willing to share processes with subcontractor that will create a winwin for all with break-through performance
Develop a process for determining the behaviour culture the
subcontractor brings to the project
Reward for being successful
Include subcontractor in all parts of project
Review their and our commitment to safety
Train and educate all personnel
Actions:
1. Part of Team
2. Include subcontractor in all parts of project
3. Train and educate all personnel to KBR standard
Obstacles:
1. Money
2. Contract limitations
3. Subcontractor management may be road block
Page 22 of 44

IDEA CONNECTIONS:
How to Improve Subcontractor Administration?
Ideas
Issue subcontractor KBR reporting format with examples
Establish relationship with subcontract admin group
Walk through first billing face to face
Training
Be more selective in choosing
Clearly define the requirements up front
Place KBR personnel in subcontractor organization to assist
Reduce admin requirements to bare minimum
Integrate subcontractor admin and KBR admin to a single system
Hire the right subcontract manager qualified
Have admin manager more involved with subcontract administrator
Participate in scheduling meetings
Minimize backup requirements for billings
Subcontractor administrator to train staff on T&C of contract
Give subcontractor administrative time to develop subcontract
Page 23 of 44

Big Idea
Contract Brief
Integrate subcontractor and administrator to a single system

Minimize back up requirements for monthly billings
Contract briefing with staff to understand terms and conditions
Pre-qual meetings to understand contract requirements
Train KBR subcontract managers to stay consistent
Actions:
1. Communicate contract requirements to all involved
2. Audit processes for compliance to subcontract procedures
3. Give admin (subcontractor) manager clear scope and time to develop
Obstacles:
1. Schedule
2. Client
3. Training craft superintendents on requirements to start subcontract
Page 24 of 44

IDEA CONNECTIONS:
How to have subcontractors have a win/win situation with KBR?
Ideas
Spelled out specifically in the contract

Enforce the contract with penalties
Pre-qualification meetings
Hold accountable for $
Partner with subcontractors
Set limits on profits they can make
Treat subcontractors fairly
Coach subcontractors
Help subcontractors who need it
Form an integrated team with subcontractors
Joint milestones and rewards
Marry their bosses daughter
Share the risks
Share the rewards
Negotiate a fee
Lump sum contracts
Trust and open relationship
Subcontractor to write contract
Page 25 of 44

Big Idea
A.
1. Subcontractor administration manager writes contract
2. Team reviews contract before going to subcontractors
Team consists of craft superintendent and upper management
B.
1. Have weekly or monthly meetings with subcontractor to check progress
Incentives and penalties equal $ on downside as offered as incentive
Owner accept risk for quantity growth and subcontractors accept
productivity risk
Actions:
1. Team review subcontract before going to subcontractor
2. Weekly review meeting
3. Add incentives and penalties to contract
Obstacles:
1. Team not yet mobilized
2. Subcontractors do not meet reporting requirements
Schedule update
ACLS reported, etc.
3. Owner will not buy-in
Page 26 of 44

IDEA CONNECTIONS:
How to get the subcontractor to bid the right level of overhead?
Ideas
Obtain breakout of rates
Obtain organization chart and list of responsibilities
Better define KBR ITB definition
Issue NTE requirements to subcontractor
Meet with subcontractor to define requirements at pre-qualification
meeting
Pre-award audits
Ensure subcontractor understands scope and can justify rates and
overhead
Good quality subcontractor administrator required
Review requirements with separate pre-bid meeting
Have verbal presentations by bidders of what they will use
Define what they are to bid for overhead
Structure contract with incentives on reporting/management, etc.
Define requirements of overhead
Page 27 of 44

Big Idea
Overhead Staffing
The ITB will include a good scope definition of work. This will also include
management, controls, and safety expectations. Have pre-bid meetings to
discuss and clarify requirements. Ask for documentation of staffing and
responsibilities. Create an environment that will make the contractor want
to provide adequate overhead staffing by structuring incentives that reward
good management, reporting, etc. Have subcontractor present examples of
regular documentation from other projects. Seek feedback from
subcontractor to evaluate understanding.
Actions:
1.
2.
3.
Share scope of work and KBR expectations

Pre-award Audits
Seek subcontractor feedback
Obstacles:
1.
2.
3.
Subcontractor unable to staff qualified personnel

KBR staffing, contractor availability
Subcontractor dishonesty
Page 28 of 44

IDEA CONNECTIONS:
How to cause owners not to get involved in subcontractor selection?
Ideas
Address at contract award

Agree on subcontract plan early in project
Dictate no involvement
Integrate team building in project team for better client relation
Adhere to subcontractors qualification criteria
Make good bid-tab comparisons
Present a subcontractor plan to owners that proposes reduced client
involvement
Demonstrate competency in selecting best subcontractors for the work
Build confidence with owner and qualified subcontractors
We manage our other business to clients satisfaction
Tell client why we dont want to go with the subcontractor they want
Show them a better qualified subcontractor
Bid lump sum Turn Key
Page 29 of 44

Big Idea
Limit Owner Involvement
Have KBR subcontractor admin personnel in place at beginning of the

project
Understand parameters for project location
Meet with client to understand their expectations
Draft subcontractor bid plan for project
Present bid plan to client and explain how we want to do it
Explain why client should let us execute our plan
Actions:
1.
2.
3.
Develop trust through good performance

Define Subcontractor Bid Review process with hold points for client
review
Meet with client to understand expectations
Owners distrust
Schedule limits
Contract requirements owner approvals
Prepare strong recommendations when proposing subcontractor
Develop subcontractor review committee to minimize involvement
to key points
Dont let owner find anything wrong with packages
Team build with owner to develop trust
Obstacles:
Page 30 of 44

IDEA CONNECTIONS:
How to understand contractors own cultures?
Ideas
Conduct a culture survey(s)

Ask them what they think their culture is
Alignment sessions
Visit with past clients
Market research on culture of business type
Talk with employees
Have an in-depth investigation on processes
Are they willing to change culture to align with ours
Put yourself in their position
Conduct surveys and interviews
Conduct alignment sessions
Observe subcontractor in action with major projects
Hire someone on KBR team who is part of their culture
Improving quality of life for subcontractor
Page 31 of 44

Big Idea
Managing Cultures for Win-Win Projects
Visit with past clients of subcontractor

Have alignment (Team Building) Sessions
Hire someone on KBR team who is or was part of their culture
Improve quality of life issue for subcontractor when on the jobsite
Assess the culture that exist and determine if KBR and subcontractor
cultures can be combined for using those that have big impact
Determining if subcontractor has the desire to improve his current view
on provisional services that provide break-through performance
Determine if the subcontractor understands his companys own culture.
Actions:
1. Access what culture problems exist between the two companies
2. Consider alignment sessions to merge win-win cultures
3. Maximize similarities Minimize differences
Obstacles:
1. Whos Right Whos Wrong?
2. Cost considerations if subcontractor has not been awarded the work
3. Total participation by both parties
Page 32 of 44

IDEA CONNECTIONS:
How do we insure proper definition of Subcontractor Scope?
Ideas
More people to review scope

Complete specifications
Qualified person to write scope
Provide full scope from engineering prior to issuing
Have clients become more standard in their requirements
Have subcontractors involved during development of scope
Pre-selection meetings with all potential subcontractors
If we have the subcontractor on our paper, client should not have input
on anything
Contract or definition thoroughly written
Have some of our craftsmen review the scope
Have client review scope prior to issue
Page 33 of 44

Big Idea
Assign qualified person the responsibility of writing the plan. Have him
gather proper technical and commercial information. Prepare preliminary
draft of scope. Review with client and then individually with potential
subcontractors.
Qualified subcontractor scope of work writer should be skilled technical
writer in addition to experienced with technical and commercial issues.
Review statement of requirements with engineering and with client along
with scope of work draft. Review draft scope of work with potential
subcontractor tenders if tender cycle will permit this (timing of it).
Actions:
1. Use qualified person (technical, commercial) to write subcontractor scope
of work
2. Have engineering/and client, subcontractor type permitting) review
subcontractor scope of work
Obstacles:
Page 34 of 44

IDEA CONNECTIONS:
How to ensure that subcontractors have sufficient Safety
Programs/Systems?
Ideas
Review subcontractors procedures

Give subcontractors our systems
Train subcontractors supervisors
Ensure that their systems are fully understood by supervisor and
workforce
Follow up on giving them our systems with good training in system
Audit systems and procedures prior to award
Evaluate owner commitment to value of safety
Concentrate on results/not systems or procedures
Create positive influences to have good systems/programs
Post safety scorecard in public place
Interview the subcontractors line supervision regularly
Review past safety results with subcontractor management at bid stage
Page 35 of 44

Big Idea
Overhead Staffing
Require that subcontractor have a training program in place prior to

award for all workers and staff
KBR site management interview the subcontractor line supervision
regularly to audit/ensure the quality and understanding of the safety
program
Post subcontractor safety performance and results at the welfare area
Require that all subcontractors attend the KBR orientation with the KBR
Safety Rules as minimum guidelines they must follow
Review any safety data and programs the subcontractors have to make
sure they are in compliance
Page 36 of 44

IDEA CONNECTIONS:
How should we ensure that subcontractors understand the Scope of Work?
Ideas
Bring subcontractors in earlier

More KBR subcontractor administrative personnel
More detail for subcontractors on bids
Subcontractor to explain Scope back to KBR
Ask more questions
Subcontractor to produce schedule
Subcontractor to produce work execution dates
Review scope of work with subcontractors line personnel
Monitor early execution methods
Ensure clear review of scope and HSE requirements by KBR
Audit subcontractor prior to award
Ensure subcontractor schedule matches KBR schedule
Ask subcontractors point blank
Verify by inspection
Page 37 of 44

Big Idea
Scope It Out!
A meeting needs to take place between the subcontractor and KBR prior to
the award, for the subcontractor to explain back to KBR the Scope of Work,
and produce a schedule satisfactory to KBR. KBR will also monitor the
subcontractors in their execution methods and daily activities.
The schedule is the key since it depicts their knowledge of the scope.
Review their cost control budget if possible. (not possible on a lump sum
bid). Review the subcontractor schedule with the subcontractors line
supervision (foremen) prior to/during commencing the work. Hold site
walkabout tours with subcontractor supervision at regular intervals. Ask to
see their BOMS for materials they are buying.
Actions:
1. Pre-award/scope clarification meeting
2. Review detailed schedule from subcontractor
3. Review subcontractor schedule with subcontractor line supervisors on a
regular basis
Obstacles:
1. Schedule pressure prevents holding thorough pre-award meeting and
review of detailed schedule
2. Subcontractor does not produce detailed schedule in timely fashion
3. BOMs not available
Page 38 of 44

IDEA CONNECTIONS:
How to get more trained supervision for Subcontractors?
Ideas
Set requirements for subcontractors supervisors

Assist in training subcontractors supervisors
Incentive programs for subcontractors to provide trained supervisors
Meet with subcontractor supervisors before putting them to work
Evaluate supervisors after a short period of time
Give subcontractor feedback as to performance of supervisors
Import supervisors
Pre-bid Prove supervisors reputation and past performance
Develop, teach and train the same as KBR prior to start of work
Work with subcontractor management to help develop subcontractor
supervision
Spending time with subcontractor supervision in helping develop
subcontractor supervisors
Page 39 of 44

Big Idea
Set requirements for subcontractors supervisors

Give subcontractor feedback as to performance of supervisors
Interview subcontractor supervisors before approving them to work on
project
Incentives to front line supervisors based on performance
Review supervisors performance throughout project execution
Assist subcontractors to have supervisors participate in onsite training
program
Remove from project hose supervisors who are not capable of executing
the requirements
Promote from site personnel
Actions:
1. Interview subcontractor supervisors
2. Train subcontractor supervisors same as KBR
3. Pay for performance
Obstacles:
1. Getting rid (next worse than this)
2. Promoting from within (Union?)
3. Cost of more qualified personnel
Page 40 of 44

IDEA CONNECTIONS:
How can KBR improve subcontract planning?
Ideas
Communicate to contractor scope

Training in software
Increase overhead cost to accommodate
Discuss with subcontractor how he plans to execute work
Discuss obstacles in meeting schedule deadlines
Discuss resources required to meet schedule deadlines
Define others work in area for them
Give subcontractors time frame to do complete job
Use all same systems
By providing constructive feedback on shortcomings
By providing training/assistance as required
Provide clear requirement during bidding/proposal stage
Allow early involvement in constructability process
Page 41 of 44

Big Idea
Communicate detail scope to contractor

Require they use same control system
Create a detail subcontractor plan early in project
Allow early involvement in constructability process
Include subcontractor in scope development
Integrate all schedules/include subcontractors in reviews
Make sure subcontractors have understanding of all work going on and
where they fit in
Have subcontractors use KBR schedulers and planners
Actions:
1. Communicate scope of work to subcontractor in detail
2. Subcontractor to develop execution plan
3. Review and include subcontractor in all schedule meetings
Obstacles:
1. Subcontractor to sue same program
2. Subcontractor to sue KBR planners and schedulers
3. Include subcontractor in scope of work development
Page 42 of 44

IDEA CONNECTIONS:
How to improve claims management?
Ideas
Produce clearly defined scope

Maintain change order procedures
Follow company change management procedures
Ensure adequate subcontract administration
Review each claim against original scope of work
No claims allowed
Included subcontractor as an integral part of our change management
procedure/administration
Clearly/openly document change management system
Impose up-front binding arbitration for disagreements
Avoid claims by managing the contract better
Shared goals and rewards penalties remove need for claims
Kill all the lawyers
Prime contractor must implement claims team early in subcontract to
properly manage subcontractor
Compile concise daily reports on each subcontractor
Minimize adversarial relationships with subcontractor
Page 43 of 44

Big Idea
Were a Team!
Subcontractor statement of requirements (from client) should form basis

of clearly defined subcontractor scope of work.
Subcontractor work scope must be written by persons experienced in
construction work execution
Ensure subcontractor work is inspected and followed to provide
background before claims arise. Help minimize misunderstanding of
scope as work is performed
KBR should set-up subcontractor claims team prior to execution of key
subcontracts. Claims team should be dedicated to properly documenting
subcontractor work execution.
Initiate team building exercise with subcontractor
Actions:
1. Scope of Work sufficiently detailed to avoid claims
2. Monitor/inspect subcontractor progress to ensure compliance with
schedule
3. Teambuilding process with subcontractor to establish close relationship
Page 44 of 44
SESSION #2 ENGINEERING DELIVERABLES

Engineering Deliverables
Friday, July 18, 2002
IDEA CONNECTIONS:
How to create Engineering awareness of real time issues?
Ideas
Engineering Manager assigned as construction support lead at site
Proactive field information request with weekly teleconference to discuss
Project Director and Engineering Manager focal point review tied to
construction milestone. (Accomplishment)

Show the impact of the issues were not addressed
Discuss issues in all pertaining meetings
Follow up the issue and make sure that it does not stall. Assign a
responsible person
Where possible, engineers to visit site to review issues and see impact
first hand
Put engineers on-site to work as field engineers in the areas they
designed
Construction staff on task force to provide engineering with continuous
communication/advise
Make a one to one connection for each big issue Engineering and
Construction - assign cell phones and require daily communication
(discipline to discipline)
Post all key issues in a prominent location in engineering office with dates
and assigned responsible person (also in field - include milestones)
Pick a few bad issues and send engineering to site to fix
Weekly video conference between Engineering and Construction
Page 1 of 26

Big Idea
Accountability and Ownership of Milestones
Place the milestone requirements out, assign a champion for each. Have
champion further assign folks to take on the pieces to obtaining the
milestone. Have the Champion post-regular status to making the
milestone. This should be made available to the field site also so they can
follow the progress to obtaining milestone. Champion must share plus &
minus to the goal and predict the completion in each report. This should
be done in the field also back to engineering.
Actions:
Obstacles:
1. Coordinate issuance of the document and the format
2. Agree on format and how much information to include
Page 2 of 26

IDEA CONNECTIONS:
How to have Engineering Resources available when Construction needs
issues resolved?
Ideas
Contract engineering resources

Maximize use of automated design tools
Look to other design centers within KBR for resources
Pre-plan prior to commencement of activities
Engineering Management needs to better direct engineering resources
per construction driven EPC
Engage contract engineering labor
Establish an engineering resource pool, the same way we have in
Construction
Minimize amount of issues by re-establishing check of drawings now a
days, little checking is done
Engage construction personnel in the office during design phase
Assign construction support team early in the engineering design and
move to project site at the appropriate time give the contact list to the
construction personnel
Monitor the time it takes to resolve an issue and communicate back to
engineering
Reward outstanding performances
Expand engineering department staff to have ability to respond
Spend more time/money in training and executing it right the first time
to reduce frequency of emergency needs
Promote more sensibility to best work ethic as a job requirement
Page 3 of 26

Big Idea
Positioning for Success
All engineering deliverables must be checked. Checking must include

consideration of both technical, logistic and construction requirements.
Check what is on the deliverable and for what is missing from the
deliverable.
Train engineers how to apply their skills and knowledge to address both
the technical and non-technical needs of the design and execution plan.
Create engineering resource pool to do training and to be responders to
urgent needs. Utilize new hires under experts supervision in pool to
develop construction customer attitude.
Establish early (prior to start of detailed engineering) standards and
models for deliverables with construction discipline involvement to share
mutual needs.
Develop relationships at discipline level through mutual alignment and
commitments.
Actions:
1. Review company work methods with process owners for opportunity to
inject requirements that provide the opportunity for earlier and
continuous integration
Obstacles:
1. Paradigms
2. Silos
Page 4 of 26

IDEA CONNECTIONS:
How to come up with integrated EPC Plan?
Ideas
Expound on what if situations

Prepare contingency plans
Develop back to front execution approach
Mobilize planners to the project team and not just personnel (familiar
with Primavera)
Full participation by client, engineering, construction, commissioning,
client customers, etc. in developing schedule
Develop high level overview schedules first and develop them further get
buy-in before drilling down further
Start early by framing EPC integrated schedule from historical basis
Develop detailed execution plan within historical framework
Never go outside historical framework without an agreed and detailed
plan of execution to support/validate deviation
Integrated workshops with engineering/construction personnel
Establish a primary leader for the process
Breakdown large tasks into simplistic manageable tasks for schedule
development
Assign a senior planner, one from engineering and one from field familiar
with the type of facility, i.e., NH3, Refinery, LNG, Chemical this
immediately opens communication
Brainstorm the critical items with EPC Group before setting the plan
one groups needs many not be another groups critical item
Keep the high level plan in front of the team always
Page 5 of 26

Big Idea
Elicit Planning Culture
Each project will create a construction plan training program which will be
lead by the Construction Management team and attended by discipline
engineers. The goals of this training program will be education, mutual
respect, understanding of inter-relations and ultimately a better team. The
training will be organized on a discipline/craft basis such that like
backgrounds and skills are interfacing on subjects they both know and
hopefully enjoy.
Develop jointly a team culture based on project requirements. Project
Manager and Construction Manager to champion. Identify milestones and
publicise/monitor/reward achievements.
Actions:
1. Provide budget
2. Develop/Implement Program
3. Recognize achievements
Obstacles:
1. Financial constraints
2. Time allocation
3. Resource availability
Page 6 of 26

IDEA CONNECTIONS:
How to Instil Ownership in Engineers?
Ideas
Give construction presentations to task force

Make engineering work double shifts
Stock options
Make their leaders part of the construction planning process
Provide clear easy to follow construction metrics on a regular basis to tie
discipline engineer to Construction
Reverse bonuses: Engineers get bonus for constructions progress and
vice versa
Better training and higher priority on engineering for construction
defined needs
Follow-up on impact of design effect on construction feedback
Ensure personal connection/relationship between designer/engineer and
construction personnel
Allow engineers to visit job site and review issues of their discipline with
their counter part
Bring craftsman to the office to discuss how they install the deliverable
and what makes their job more efficient
Measure rework and provide feedback to the individual/department
Develop a behaviour based process to assist engineers in changing their
attitudes toward their work
Recognize them for outstanding achievements on a regular basis in front
of their peers
Create competition among work groups
Conduct integration/alignment training with applicable disciplines
Identify and recognize achievements on Web site
Set benchmark standard for success
Page 7 of 26

Big Idea
In order to make Engineering and Construction disciplines representatives

understand how and when to coordinate they need to have training in the
techniques and methods they should use that help create an alignment
culture, Train them in facilitating interface meetings so they can maximize
on their respective concerns. Help them to understand that they are
extremely important to the process.
Only initiate bonuses to engineers if construction makes schedule. Include
construction in this bonus, develop a step change process to change
culture.
Actions:
1. Make this a Best Practice mandatory for all EPC projects
2. Should be developed by Construction
3. Perform training at Maner Lake, etc.
Obstacles:
1. Funding and management of bonus plan
2. Allocation of time for training
Page 8 of 26

IDEA CONNECTIONS:
How to increase communication between Engineering and Construction?
Ideas
Provide weekly photos of site progress
Work the real issues do not just generalize
Keep a construction representative in engineering and place an

engineering representative in the field
Distribute more widely an informal report from engineering about
status and problems
Encourage informal phone and/or e-mail contact between field personnel
and engineers
Emphasize the importance of understanding we are on the same team and
not adversaries
Issuing and distributing either a daily report or weekly report from
construction to engineering and from engineering to construction and
make a project wide distribution
Teambuilding to enhance the relationship between engineering and
construction people and to know each other when issues arise
Conduct weekly project status meetings with engineering and
construction at the same time
Construction Manager is full partner and a key member of the leadership
team with involvement in all key engineering meetings from the start
Fulltime Engineering Manager and support team assigned early at site to
provide construction support and committed resource for communications
and problem solving
Tie top management team performance review to TIC and successful
completion of project EPC milestones
A lot of engineers demobilize from the project during/before
construction keep the engineers on distribution lists of high level
project performance, deficiencies, etc. project close-out reports
Page 9 of 26

Project close-out reports get team together to discuss what went well
and didnt build a level of involvement throughout project
Page 10 of 26

Big Idea
Detailed and full-time construction involvement

Plan for rotating experienced construction discipline superintendents into
early Engineering FEL and FEED
Rotate engineering leads into the construction field to assist with details
Maintain constant communication flow: Construction to
Engineering/Engineering to Construction
Conduct teambuilding session to enhance relationships between project
team members
Recognize employees for well communicated ideas and issues
Actions:
4. Budget for personnel
5. Identify employees and stick with tem
6. Include communications in recognition program
Obstacles:
4. Funding
5. Commitment of management
6. Employees agreement to go to the field
Page 11 of 26

IDEA CONNECTIONS:
How To Define Clear Objectives For Project?
Ideas
Involve all in customer chain to understand needs

Engineering and Construction buddy system in design
Understand details of project
Early teambuilding sessions with all parties
Explain what the buddy system is and means to the team
More involvement from project management in early stages of project
Keep it simple repetitive and clear beats complex and once only
Establish simple clear milestones for all key activities (sequential events)
Involve more personnel in articulating the objectives give others a
chance to talk
Make maximum use of FEL process to define scope, set project
objectives, and obtain unanimous consensus make sure equipment
definition and control strategies definition are completely accurate
Construction must define necessary lead times and optimum backlog to
engineering to the discipline lead level
Tie incentives for engineers to attaining pre-determined and agreed upon
objectives
Make objectives short so people can remember them
Page 12 of 26

Big Idea
Macro - Management
Establish simple clear milestones for all key activities (sequential events)
and tie an incentive to it.
Clear milestones for key activities will help the team focus on them and easy
to remember if there is a sequence logic to it, that will help employees
personally interested in obtaining this goal.
Break down difficult tasks into simplistic modules there are manageable
Provide managers and superintendents with clear responsibilities,
authority to manage and hold accountable
Actions:
4. Assign responsibilities
5. Provide Authority
6. Establish incentives
Obstacles:
3. Reluctance to fund incentive
4. No vision of the big picture
5. Non responsive employees
Page 13 of 26

IDEA CONNECTIONS:
How to Obtain Vendor Data On Time?
Ideas
Include major penalties if data slips from vendors

Include incentives for vendors to deliver data earlier
Award pre-engineering purchase orders prior to placement of full
purchase order
Keep close coordination with vendors on data collection
Support vendor in succeeding to get incentives
Track/define critical purchase orders
Define requirements up front as part of inquiry process, ensure
commitment to same
Early and continuous vendor surveillance
Ensure internal vendor support is proactive monitored expedited
Deliver accurate engineering drawings on-time
Vendor surveillance by construction personnel
Select vendors based on performance and quality pass price to
customer
Leak accounting information to SEC if vendors dont pay
Buy shelf designs as much as possible
Commit internal expeditor to make sure engineering review and approval
of data submittals occurs on schedule
Page 14 of 26

Big Idea
Two Phase Vendor Data POs
How to obtain vendor data on time
On the most critical equipment (long lead, complex, field assembly time),
packaged equipment select supplier and award Engineering P.O. at earliest
stage of project. This is extremely helpful if preliminary funding is available
prior to final project funding. This is additional risk money that must be
committed by owner at the conceptual stage.
Work with suppliers to develop consistent specifications prior to P.O.
placement.
Bid P.O.s in two phases First for Vendor Data and delivered at same time
second for full P.O. award.
If necessary award first PO to one or more bidders keeping competition
going. When successful Ts and Cs are determined, award full P.O.
Actions:
4. Early Purchase of Vendor Engineer
5. Two Phase POs a. Early Vendor Engineer b. Full PO Award
6. Build compelling case for action
Obstacles:
4. Early funding commitments
5. Clients reluctance to early fund
6. Vendor reluctance if no carrot
Page 15 of 26

IDEA CONNECTIONS:
How to make Engineering aware of Construction Needs?
Ideas
Create construction situation room in HOC
Make Construction participation a requisite for promotion to leadership
positions for Engineering

Regular constructive interface meetings with a construction driven
agenda
Share the issues in the field with Engineering daily logistics, people
restraints, equipment, etc.
Share the progress construction normally catches the easy design work.
The different designs what holds the project up
Make Construction part of the task force
Relationship building between Project Engineers, Discipline Leads and
Construction Management
Full time commitment of Construction Management to FEL and Detailed
Execution phase
Involve craft superintendents in key detail design task, not just
constructability
Have Construction present how they envision the Construction Program to
occur, focusing on key construction needs
Good communication channels with a solid relationship built on trust
where each group understands the difficulties and constraints of the
other
Video tapes/pictures from the field narrated by Construction
Fully engaged Construction Management involvement in establishing
project objectives
Conduct early EPC and client alignment meetings that develop individual
commitment statements of mutual support
Page 16 of 26

Construction representation and support of Engineering at Engineering

office Engineering representation and support of Construction at
Construction office
Involve specific Construction Management personnel
Page 17 of 26

Big Idea
Constructions Top Ten
3D CADD depiction on how the plant will be constructed with lay-down

areas, etc.
Construction develop Top 10 list of key success criteria for the
Construction Program
Conduct team meetings with all groups how they can support Top 10 list
Construction work with each group, to describe to them what they can
do/vice versa to effectively support each other
Make it fun and not controversial/adversarial
Develop a clear vision, communicate that clear vision, be consistent,
provide feedback and celebrate successes
Construction should depict level 2 or 3 schedule defining the ideal

relationship between engineering deliverables, construction craft
mobilzation and project completion. This must be done by deliverable
defining the % complete (deliverable) and getting consensus with engineering
disciplines and client.
Actions:
4. Clearly identify deliverable list and need dates
5. Define success factors
6. Communicate success factors
Page 18 of 26

IDEA CONNECTIONS:
How to make Engineering have a Sense of Urgency?
Ideas
Have engineers go through a project rotation to get a better feel of the
issues and problems facing the field prior to headquarter assignment

Have a training program taught by Construction on issues from the past,
to explain construction difficulties to engineering
Make them work faster
Provide bonuses for delivery of critical information provide recognition
for a job well done
Provide Engineers with bonuses tied to project start-up
Mobilize Construction personnel early in the program that have effective
interpersonal skills to work with engineering
Build a team unity concept where it is not Construction against
Engineering it is the teams goal
Develop a good relationship with the engineers treat them like you want
to be treated
When matters become urgent help the engineers with information and
possible solutions
Give the engineers as much time as possible, by knowing your project, so
potential urgent matters become less urgent
Provide better explanation of why deliverables resolution issue is urgent
Create a protected core engineering team that is not at risk of ROF when
they complete
Page 19 of 26

Big Idea
Open Team Environment
Take away the cubicle separation between client, engineering and

construction during the planning phases and while developing the schedule
Assign a senior planner in the early stages to help plan the plan. Have
this person report directly to Construction and Engineering Team
Allow all personnel to feel they are the key players to their portion of
the process and reward them for their accomplishments. S Bring in
outside consultants to assist in early teambuilding
Develop aggregate and individual recognition and award disciplines (i.e.
piping, electrical, structural, etc.) require all disciplines to participate in
the alignment training
Actions:
4. Develop open floor plan - communicate
5. Team buy-in to early schedule development
6. Recognition
Obstacles:
4. Cost
5. Resources
6. Time
Page 20 of 26

IDEA CONNECTIONS:
How to Ensure Timely Engagement of Engineering and Construction?
Ideas
Put construction representation into engineering office per discipline

Require engineering to interface with construction on a timely basis
Locate construction and engineering departments close together
Construction Manager assigned at time contract is awarded
Construction Manager participates in proposal process
Construction defines budget for pre-construction support of engineering
function
Review jointly the available installable quantities and delivery of the
balance of drawings and materials
Get buy-in from engineering, procurement, construction and client to the
mobilization of groups
Listen to procurement on cycle times for materials and deliveries
Assign materials representation coordinate with Engineering
Page 21 of 26

Big Idea
Ensuring timely engagement of Engineering and Construction must be top

driven. Project Management and Construction Manager must identify the
needs in the Execution Plan, communicate to all team members and monitor
progress at regular project meetings. Construction staff must be physically
located with Engineering on the task force. Successes must be celebrated
and recognized.
Recruit new leaders (converts) that support and aggressively promote the
Execution Plan and integrated performance requirements of the team.
Actions:
4. Have Project Execution Plan presentations to whole team
5. Include Project Execution Plan as a component of regular project
meetings
Obstacles:
4. Difficult to get team together at beginning of project
Page 22 of 26

IDEA CONNECTIONS:
How to have Engineering Buy-in for Deliverables?
Ideas
Show and explain the impact of late deliverables

Clear and achievable need dates
List, publicize and assign task to an employee as an owner
Monitor progress
Communicate
Project Manager and client must sell
Does engineering understand time to fabricate deliverables?
Add more personnel early to achieve goals
Engineering participants in the vendor selection process
Assign (quantify) a value ($) to the deliverable and connect to time
Late = Bad
Early = Good
Establish an Engineering and Construction relationship which promotes,
encourages buy-in because it is right
Let construction work with engineering to define the deliverable
communication will occur which will help
Teach engineers what construction activities require to accomplish task
Engineering and Construction teambuilding in small groups
Construction understanding of Engineering problems and constraints
Employ procurement (expediter) on-site with direct access to vendors
Ensure ownership and accountability
Shop monitoring being reported to construction and employed by
Construction
Page 23 of 26

Big Idea
Integrated Inspection Process
Engineering/Procurement buy-in can be enhanced by having our shop
inspectors report to the Construction Manager, rather than the
procurement group. This way we will close the loop of communication, so
that Engineering, Procurement and Construction all have a say, and get the
information at the same time. It is imperative though, that the shop
inspector report to the Construction Manager.
This inspection process will be defined as to which activities are directly
accountable to the Cost Manager and those which follow the
normal procurement cycle. Construction Manager, Procurement Manager
and Inspector shall review these requirements together before inspection
starts and as the work increases.
Actions:
4. Define the scope
5. Agree on which items are directly accountable to each participant
Page 24 of 26

IDEA CONNECTIONS:
How to Give Engineers Experience in Construction?
Ideas
Give engineers short term assignments in the field
Have construction personnel come to the engineers office to share their
knowledge
Have engineers to participate in workshop such as this one
Assign construction personnel to engineering office team during design
Construction develop execution plan as design develops
Hire engineers with construction experience or require engineers to work
with construction in the field
All engineers are drafted to spend field assignment in Chad
Give bonuses to engineers who are willing to go to construction
Kidnap engineers from their homes and put them on a ship to Quatar
60 day rotating shifts between projects prior to permanent assignment
Make a piping engineer work with a pipe fitter to understand his
problems, electrical, etc.
Help to develop engineers from trained field personnel
Rotate engineers in different construction departments on a project site
Make it part of PPR and job description to participate on project site
Construction to drive the process and identify areas and positions for
design engineers to work at site
Field support assignment
Interaction of engineering discipline leads with construction discipline
leads starting early as engineering develops their Execution Plan and
continuing until transition to field
Page 25 of 26

Big Idea
Project Performance Driven PPR Review
Develop a PPR process for EPC project management leadership teams PPRs
and job descriptions are tied to and aligned with mutual project successes
goal accomplishment. Construction feedback to Engineering PPRs keep
discipline alignment to ensure relevance of feedback Engineering feedback
on Construction PPR requires engineers involvement during construction to
be relevant.
Actions:
4. Create task force to establish format for PPR leadership team
5. Conduct quarterly PPR reviews
6. Require feedback from customer to deliverable owner
Page 26 of 26
SESSION #3 PROJECT TRENDING

Project Trending
IDEA CONNECTIONS:
How to better Integrate Engineering with Procurement and Construction?
Ideas
Do constructability reviews from preliminary 3D models (or the last
closest job)
Rotate people across EPC all the time
Bring in the vendors into engineering phase to co-engineer
Spend more time on projects
Better understand the needs of the project
Look for possible problems that could impact project in the future
Teambuilding
Realistic time frames by all parties
Commitments to perform
Procurement and Engineering teams would attend monthly project
progress/scheduling meetings
Page 1 of 32

Project Trending
Big Idea
Migrate Key Project Personnel to other positions on Project
non-traditional Engineering>Construction
Construction>Engineering
Employee rotation / meeting allows responsibility to be tied to the individual
or team. It also allows for knowledge to be gained on effects ones job has
on others.
List all possible impacts on a project tied to procurement and have a team
review actual project data weekly to identify those that have occurred.
Constructability reviews have always been as excellent tools anyway that can
be enhanced is a potential dramatic improvement.
An EPC team put together for the proposal and works the project together
to completion has the greatest chance of success try to commit people
from beginning to end.
Availability of all correspondence, memos, etc., that are generated on
project available to all personnel increases communication but also give
increase chances for recognition of problems, changes, innovation,
improvement, etc.
Actions:
4. Train or hire multidiscipline personnel
5. Proposal team becomes
6. Use Expedition
Obstacles:
4. Who pays for training
5. Reality of award schedules
6. Not in-house software
Page 2 of 32

Project Trending
IDEA CONNECTIONS:
How to Measure Impact of Changes on Schedule?
Ideas
Material deliveries
Slippage in engineering
Additional manhours to execute the change
Engineering deliverables
Scope changes by client-cost-schedule
Procurement deliverables
Update critical path and review float position
Evaluate, labor/materials and other costs required to maintain schedule
Recovery plan costs
Variance system
Establish change factors (new work = 1.0 change work = 1.5)
Re-forecast with change work included
Consider location and additional material requirements to satisfy the
change
While change activities are being undertaken, consider limitations of
manpower
Page 3 of 32

Project Trending
Big Idea
Assign People to Monitor/Report Changes - Trends
A person should be identified to receive trending; the information should be

accurate and received in a timely manner. Review all daily reports from
subcontractors and other groups.
The monthly EPC report should clearly show and identify all trends.
Management should at a very early stage based on this information should
issue a report that clearly outlines what steps if any, need to be taken or if
required request EPC to confirm or provide accurate backup to support any
or all of these trends.
Actions:
1. Have people assigned to update/monitor/report trending
2. Build historical database on trending
3. Train and align KBR method of providing accurate information
Obstacles:
1. Cost/right skills
2. Cost
3. Not a contractual obligation
Page 4 of 32

Project Trending
IDEA CONNECTIONS:
How to have a Standard Baseline for Productivity?
Ideas
Use our history on similar projects

Use probable unit rates for region, degree of difficulty, etc.
Find middle ground of best ever and worst ever performance
Do not have anything other than one document to track productivity
Create a bank of different types of baseline information. This bank
should have baselines to score form
A true baseline can only happen if accountability is accepted. (Dont
change to make site look better)
Believe we do adjusted for location/type of project
Normalize for different areas and types of projects
Make changes to base unit rates, after being established, hard to revise
Page 5 of 32

Project Trending
Big Idea
Use one initial document to measure productivity, and on no account during

construction should basis be modified, regardless of any outside pressure
from management or the client.
This initial productive measurement needs to be established prior to
construction starting and should take into account the region, the climate,
historical productivity on previous projects in that location.
Construction and Engineering should be talking at early stages of engineering
process to exchange ideas and identify problems that could arise during the
construction phase of the project
Actions:
1. Standard form
2. Training
3. Accurate information
Obstacles:
1. Someone dare not like form
2. No money or time for training
3. Quantities not report correctly (pipe fitters)
Page 6 of 32

Project Trending
IDEA CONNECTIONS:
What is the Best Way to Update Current Trending?
Ideas
Better feedback
Set a time line for information to be turned in
Have a person identified to get trending
Be realistic
Base it on actual execution to date and not on a miracle
Make the client part of the review and have him commit to key actions
Trained personnel
Critical review of correspondence
Critical review of subcontractors daily reports
Accurate information in a timely manner
Base on actual scope and schedule
Page 7 of 32

Project Trending
Big Idea
Linkage of Manpower Tool to Critical Path Tool
How to measure impact of changes to schedule?
First to be considered is material availability and schedule impact (neg.)
Once the materials are available, manpower has to be allocated to perform
the work. As this work was not in the original scope, manpower will be reallocated from other scheduled activities causing a ripple effect effecting
the schedule as a whole! What was initially considered to be a manageable
schedule change may in fact be un-manageable.
Identify the critical path to recognize how materials and their location vary
on the impact to the schedule. By doing so, priorities for management of
labor allocations can be sorted on.
The slippage to the schedule due to material growth has to be visible. Also,
there needs to be an allocation (contingency) prepared early-on to anticipate
that some growth will occur. This growth varies if the job is mature (has
been built before) or is a grassroots or revamp (where scope is less clearly
defined). This will allow some flexibility in execution.
Actions:
3. Linkage to Critical Path
4. Build a change contingency into schedule and cost
5. Bring in operators (clients) to model reviews, to minimize tail end changes
Obstacles:
3. Cost (people to link accs & P3)
4. Pressure to keep cost to a minimum during a proposal
5. Cost & availability
Page 8 of 32

Project Trending
IDEA CONNECTIONS:
How Do We Increase Communication of Changes that Might Happen?
Ideas
Get history of this area (changes that have taken place)
Create base/case history
Create evergreen process of changes, types of projects these changes
happen on
Catalog all expected changes by craft/product and send to affected
supervisor
Tie changes back to time sheets, line, PO, etc., and report weekly to
management as accruals cost or credit
Set up individual exception reports that would be created on all changes
and report to project management daily to create a problem log to
address
Develop a plan or work process to standardize procedures
Involve experienced competent personnel in forecasting
Insure line of communication with client project management
Use web based technology to identify changes
Have chat rooms and areas
Page 9 of 32

Project Trending
Big Idea
Earliest Construction Involvement in Initial Facility
Conceptualization
Extract from previous project predictions of what might go wrong

Make changes visible when they first show up to a senior person or
authority. The best time to kill a change is at the beginning. If a change
is bad kill it! If it is good Tag it as such and align behind it
Geographical linkages around the world are now possible for most job
sites at moderate costs via the Internet. We can have similar projects
or specialities linked so they can share information
Create a change management process across EPC that recognizes the
different aspects of these phases. Make the client an intrical part of
this process assign causes to each change
At the first clue of a change, notification and discussion with all
possible effected parties should be undertaken. This process
could/should determine if the change is required, or if it is feasible. It
may end-up that there are any number of reasons why the change should
not be implemented
Actions:
7. Obtain detail of lessons learned from previous similar projects
8. Thorough constructability review
9. Change management process which makes Eng/Const/Client accountable
Obstacles:
7. All projects are different
8. Unforeseen/new problems
9. Getting seamless interfaces between Engineering and Construction and
accountability or buy-in of client
Page 10 of 32

Project Trending
IDEA CONNECTIONS:
How Do We Execute What We Sold?
Ideas
Develop good project Execution Plan
Mobilize top performers into project team Project
Management/Engineering/Construction
Communicate & Communicate & Communicate The Project Scope/Plans
Have employees know what they are selling
Pass on clear information to the project
Have good project leadership
Integrate Engineering/Procurement and Construction early
Proposal group must pass on information from negotiations
Communicate!
Merge EPC schedule early!
Make sure salesmen know what is possible involve Construction
Have Construction involved in the selling
Have no secrets
Page 11 of 32

Project Trending
Big Idea
Sales and Realworld working together before we make the sales pitch to the
Client.
Sales
& Execution Upfront
Use information from the sales group when putting the project execution
plan together
Put project execution plan together as soon after award as possible so
nothing is lost
Make sure salesmen know what is possible Involve Construction during
promise making period
When using information from different departments we should use
people from those departments to agree or disagree with what will be
sold. When we are ready to sale the product, the sales group should
cover with someone (management) from the execution (field group what
will be sold and how much they will trim from the plan in order to make
the sale
Actions:
7. Sales should make a dry run over what will be sold to the execution
department
8. Sales made should have boundaries
Obstacles:
6. Sales takes place so far in advance execution team may not be available
to go over need to use people from projects to review
7. Hurting for revenue
Page 12 of 32

Project Trending
IDEA CONNECTIONS:
How to have Consistent Way of Reporting Quantities Earned?
Idea
Actual material quantities

Expended manhours to a known productivity measurement
Pre-set measurement by ft. # etc., tied to a specific function or action
Specific matrix to follow
Specific time required
Correct information from responsible craft
Develop plan / work process
Ensure system (plan) alignment and understanding with subcontractors
Train/Train/Train Communicate/Attention to detail
Use scanning technology to validation quantities
Measure deviation accuracy and reward good performers
Conduct selected real time audits (the next day) randomly to verify
reporting process
Palm Pilot in foremans hand to report
Page 13 of 32

Project Trending
Big Idea
Budget and Investigative Team to Research Available
Technology and Develop Implementation
Trained personnel is always key to any function

Review, test, develop technology to improve information flow, ease the
workload and improve efficiency and accuracy
Want to differentiate ourselves from our competition by our reliability
and our innovation
Develop standard basis of reporting manhours earned for measurable
work completed whenever possible
Be consistent on project and projects
Subcontractors must be equally involved, trained and involved as our
forces
Identify a process, manual, automated etc., that will specifically identify
each piece of material tied to a line and measure progress based on issue
and installation confirmation
Load print into hand held computers (PDT) per Forman and have each of
them check off work completed and down load at end of the day to main
computer system
Actions:
7. Budget for technology
8. Involve proper people on team
9. Identify test project
Obstacles:
7. Capital available
8. Client
9. Available technologies
Page 14 of 32

Project Trending
IDEA CONNECTIONS:
How do we get early recognition of changes impacting cost?
Ideas
Have the originator of the change send a notice of change to all affected
parties including construction

Identify potential areas where changes are likely to occur and notify all
parties
Have more accurate reporting of material and equipment expediting
results
Better scope definition up-front
Is this facility the first of its kind? If so, change is more likely so
recognize it
Get all the parties involved at the start specifically construction
Following the different schedule levels
Meeting to understand level of project heads
Look aheads forecast
Engineering must communicate all schedule/cost impact potentials to
Construction/
Engineering should concentrate on project scope (defined) and not
personal desires
Proper cost forecasting
More effective use of tools available
Page 15 of 32

Project Trending
Big Idea
Open Communications for All
Improve communication between

Engineering/Construction/Procurement/Subcontractors and Vendors
Better recommendation from all parties on changes and potential cost

impacts
Merge all schedules early on and baseline in order to identify any activity
slippage
Properly utilize all tools available schedule/cost/procurement
spreadsheets
Better scope definition
Develop line of communications to decision making client project
personnel
Get to know and understand the motives of subcontractors, vendors, etc.
Monitor and analyze project cost trends on standard issued documents
Actions:
7. Develop relationships/owner/client
8. Open communications between Engineering/Construction
9. Involve owner/client when potential changes are identified have buy-in
Obstacles:
4. Owner/client resistance
5. Improper documentation
6. Different for Engineering and Construction
Page 16 of 32

Project Trending
IDEA CONNECTIONS:
How to have historical trending of quantity growth?
Ideas
Collect project data for every future project on this item

Analysis of historical data
Implementation of trends to future projects based on analysis
Breakout quantity growth for each discipline
Breakout quantity growth for types of projects
Determine/analyze additional manhours expended for the quantity
growth
Use data from past projects
Have data so it is easy to use
Have data easy to get at
Page 17 of 32

Project Trending
Big Idea
Know Your Quantities
Develop and issue quantity reports early based on estimate versus

actuals as design progresses
Utilize historical trending data for quantity growth in the estimating

phase of the project
As engineering progresses track quantity growth vs. actuals
As construction progresses track quantity growth vs. estimate
Track impact of change orders on quantity growth
Develop and issue estimate vs. actual on quantity/cost curves as
engineering progresses
Managements commitment to communicate information to all parties
Actions:
7. Develop and issue quantity reports early based on estimates vs. actuals as
design progresses
8. Issue at a glance documents to communicate
Obstacles:
7. Engineering design does not have hours budgeted
8. Client does not wait to pay for progressive take offs
Page 18 of 32

Project Trending
IDEA CONNECTIONS:
How to have Engineering Progress based on deliverables not manhours?
Ideas
Milestone schedule for deliverables

Weight discipline activities to total percent deliverables
Create a relative account of hours to physical deliverables
Milestone each discipline not overall schedule
Have fee based on deliverables rather than manhours used
Let Construction determine whether milestone is met and not Engineering
Engineering to move closely respect the schedule
Loose the concept of Construction will make it up!
Engineering tasks assigned in packages (deliverables)
Measure progress on deliverables
Construction and Engineering to set/agree manhours for each deliverable
Page 19 of 32

Project Trending
Big Idea
Measure Engineering on Deliverables based on agreed
alignment between Engineering and Construction
Change progress measurement for Engineering to deliverables

Construction and Engineering to set/agree manhour budgets for each
deliverable
Engineering must lose the concept of Construction will make it up
Engineering must be aligned to Constructions requirements and
accountable for not meeting deliverable milestone schedules
Create a relative account of hours to physical deliverables
Have Engineering follow schedule closely to meet milestones
Actions:
6. Change measure of track to only deliverables
7. Engineering must be aligned to Constructions requirements for
deliverables
8. Have Engineering following schedule to meet deliverables
Obstacles:
5. Old way not open to change
6. Lack of communication of requirements need
Page 20 of 32

Project Trending
IDEA CONNECTIONS:
How do we handle management pressure effectively?
Ideas
Appropriate push-back
Provide data to support conclusions
Establish relationships
Change jobs
More support for forecast
Better guidelines for forecasting
Provide very timely feedback
Use historical data to provide evidence
Outline details of problems, issues and concerns
Solicit coaching from those applying pressure on how to execute more
effectively
Take it on as a challenge answer the challenge with action
Do what you think is right regardless
Create a relationship with one of the team members one that you can
share concerns of the job with
Respond to pressure with thought not your emotions
Remember there is pressure in all jobs. A lot of energy can come from
pressure, allow yourself time to think about the pressure
Page 21 of 32

Project Trending
Big Idea
Handling Pressures
By building a relationship with management that tends to place pressure on
us. We both will be able to handle being coached by one another. Coaching
allows for one to share his/her opinions and knowledge. Allowing this there
will be ideas shared on how to handle pressure and even how to resolve
conditions that have caused the pressure to be laced on someone.
Work on not taking the pressures personally usually the pressure falls
on the most
Coal under pressure creates a diamond
Work diligently
Actions:
6. Communicate problems up and down stream throughout the project
7. Deal with pressure objectively
8. Involve management in your problem solving
Obstacles:
4. Ego leave me alone/management resistance
5. Time
6. Individual not capable of handling pressure
Page 22 of 32

Project Trending
IDEA CONNECTIONS:
How to have early warning of delivery slippage?
Ideas
Identify required early vendor information to support engineering
schedule and prioritize

Weekly updates of equipment delivery schedules including engineering
activities
Develop at a glance equipment delivery motive indicating planned and
actuals and distribute
Define field need dates with additional buffer such that critical status is
earlier
Increase vendor surveillance/construction management in Engineering
Interface activities list
Any Engineering change that will impact material delivery needs to be
transmitted to Construction for any impact
Need to expedite the small items as well as the big items
On overseas projects material can be completed on schedule, however we
need to expedite packing/paper work and shipping (to many times
material has sat on the dock of a ship)
By following early schedules
Weekly meetings to identify problems
Central point of arrival time
Page 23 of 32

Project Trending
Big Idea
Weekly Meetings to Help Identify Slippage Prior to
Happening
All engineering changes that impacts material delivery must be conveyed to

Construction in order to make adjustments to schedule and manpower needs.
Weekly meetings must happen to help keep construction advised of needs
and slippage of deliverables. Updated schedules must be revised and all
deliverable slippages highlighted to Construction Management together with
their impact on the critical path. Potential delivery slippages need to be
highlighted to Construction Management before they happen and run
through the schedule.
Actions:
7. Past history of the vendor - research
8. Identify potential slippages prior to them happening
9. Better expeditor feedback
Obstacles:
4. Past history/database unavailable
5. Denial!!
6. Poor communication
Page 24 of 32

Project Trending
IDEA CONNECTIONS:
What needs to be done to have minimum changes in the plan?
Ideas
Hire good employees

Use better tools
Use a good check system
Build in realistic time sequences
Recognize critical path and aggressively attack it
Validate the plan before starting
Instil this concept early to the client
Investigate and utilize constructability early in design phase
Consider all impacts prior to excepting change
Regular schedule updates
Ensure Construction and Engineering agree on plan initially
Establish Engineering/Construction/Owner interfaces early on in
Engineering phase
Execute to schedule
Improve processes
Make realistic plans
Ensure plan is realistic and has buffer
Page 25 of 32

Project Trending
Big Idea
EPC Internal Contract
Agreement between Engineering and Construction can only be achieved by

establishing a detailed contract which includes bonus and liquidation
damages. One of the major causes for change is that there are no up front
effects/consequences i.e.: no change orders back to our
Because we are an EPC organization there tends to be pressure not to push
back on an equivalent level to what we would if the Engineering and
Construction group were competitors.
Actions:
4.
5.
6.
Engineering changes should pass through EPC group before they are
initiated
Change originator should explain change necessity to all downstream
customers
Peanalize for changes/reward for minimal changes
Obstacles:
4.
5.
3.
Because we are EPC Management and peer pressure not to push back
Very little opportunity for downstream customer to participate in
change process
Subcontractor dishonesty
Page 26 of 32

Project Trending
IDEA CONNECTIONS:
How to get accurate initial quantities?
Ideas
Historical data
Early downloads from model
Accept client quantities
Incorporate field personnel into initial take/offs and estimates
Accept limitations of local subcontractors
Tap heavily into historical data at the particular area
Competent personnel to do take/offs
Accurate and reliable information system to convey information
Compare with historical data
ACLS personnel in Engineering office
Use historical data to assume
Improper technology to achieve desired results
Wait on all or a great percentage of the drawings to be issued or until
the model is built
Double check the initial take-offs
Have them extracted electronically from the model
Page 27 of 32

Project Trending
Big Idea
Greater Percentage of Design Completion
Methods need to be developed to allow Engineering to advance to a greater

degree of completion before the need to develop quantities. The greater
percentage complete, the more accurate the initial take off will be. This will
require that we change the way we do business. It will require that we sell
the customer on the advantage of waiting for more information to do the
quantity take-offs and even to mobilize to the field. In addition, we need to
continue to search for ways to download a more inclusive quantity take off
from the model. We need to improve or use new technology not only to
retrieve data but to improve on tracking new data. We also need employees
that know how to use this technology.
Actions:
1.
2.
3.
Good information
Accurate take off
Review all drawings wait for greater degree of completion
percentage design
Obstacles:
1.
2.
All drawings not available

Cost
Page 28 of 32

Project Trending
IDEA CONNECTIONS:
How to get Engineering Approvals on time?
Ideas
Speed up availability of vendor data

Understand Construction is the customer
Correct priority of engineering effort
Construction to dictate schedule
Construction to work closely with Engineering in early stages to prevent
changes/old engineering
Improve Engineering/Client/Construction interfaces
Tie Engineering Schedule to Construction Schedule early to identify
requirements and baseline
Construction driven Engineering
Baseline Engineering Schedule early/get Engineering Management
commitment
Use more suppliers standards for non-critical items
Pre-package more (put on suppliers responsibility)
Give clients penalties for drawn out approval cycles
Expedite vendor data by sending Engineer to vendor shop
Utilize electronic tools to transmit data to/from vendors
Re-look at design efficiency requirements is it better to over design?
Eliminate levels of approval
Establish criteria with client early in project
Define Engineering items which really need approval
Page 29 of 32

Project Trending
Big Idea
There should be some thought given to contractual penalties for client

driven delays of engineering schedule, particularly when the issue is
timelines of approvals. This could also be applicable to changes in design.
This would certainly provide an effective measure on lump sum type
projects. Also to be considered are penalties to owners when changes occur
downstream of engineering i.e. Pre-commissioning, commissioning and startup phases. Penalties should equate to time of delay. If at all possible this
penalty should be predetermined such that the client has more appreciation
for what his delay in approval will cost him. This could be table of factors
which would be applied to the base scope of work. Depending on delay
period.
Actions:
4.
5.
6.
Must be in prime contract

Recognize when owner is making a change
Define penalty factors
Obstacles:
1.
2.
3.
Getting owner to agree to this language in contract

Scope definition and distribution within project of scope
Owner acceptance enforcement against owner
Page 30 of 32

Project Trending
IDEA CONNECTIONS:
How to trend material delivery effectively?
Ideas
Historic data
Material take off schedules
Construction driven interface with Engineering
Aggressively track each stage of process of one job determine check
points
Actual installed date versus original Construction need date and why
different
Review allowable durations in schedule versus actuals
Continuos track of material
Proper data and up-to-date
Continue to check durations
Better inspection in shops
Track drawing delivery against material schedule
Expeditors provide better information
Keep up with production in shops
Follow schedules very close
Have a specific way of tracking material
Page 31 of 32

Project Trending
Big Idea
Assist Vendor in resolving his Problems
Aggressively track each stage of process

Determine slow points
Have a specific way to track material
Have procurement people or a designee make shop visits to audit reported

progress of vendors. Revisit those where actual progress fails to measure
up to the progress reports. Spot-check the vendors suppliers to see that
their activities will support plans of the vendor.
Have progress reports issued bi-monthly from the vendors. Help vendors
solve the problems in meeting delivery expectations. Determine which items
are actually coming from the vendors shops or warehouses and which ones
are to be drop-shipped to the construction site from a point other than the
vendor and expedite accordingly.
Actions:
4. More aggressive expediting
5. Making the right number of shop visits
6. Assist vendor in resolving the problems he has
Obstacles:
4. Cost
5. Manpower/logistics
6. Vendors suppliers lack of interest in dealing with our expediters
Page 32 of 32
SESSION #4 CLIENT RELATIONS

Client Relations
IDEA CONNECTIONS:
How to get KBR and Client alignment?
Ideas
Hold joint contract review session
Set milestones jointly
Hold teambuilding sessions to build camaraderie
Written goals and objectives

Clearly defined success factors agreed to by all parties
Upper management participation in teambuilding sessions
Follow up meetings to re-establish commitments made previously
Following management agreements, conduct sessions with client
representatives at origination level for concurrence
Solicit periodic feedback from client concerning their perception of
fulfilling commitments
Teambuilding formal informal
Establish goals jointly
Ask for client evaluations input
Meet with client include lower level of staff on alignment issues
Have project objectives set and shown to total project staff with client
agreement
Start meetings after safety with client alignment issues include client
Develop better means to communicate and develop better relationships
Develop contract basis that does not promote negative relationship
during execution
Page 1 of 28

Client Relations
Big Idea
Client Alignment
Establish an early session with client to identify and set goals and objectives
jointly with client and obtain concurrence. In project execution, re-visit and
re-confirm goals and objectives oftenpromoting and obtaining buy-in from
new team members as they con on the project. Have frequent opportunities
for informal teambuilding among client and KBR such as lunch, golf, etc.
Reassure that team understands the driving forces that impact the client
particularly, schedule impact, maintenance impact, and operations impact.
Solicit feedback from team on own opinion of alignment.
Actions:
7. Complete joint goal setting process
8. Understand client financial goals of project and impacts
9. Initiate frequent feedback on alignment from team
4.
Establish atmosphere to promote alignment/communication
Obstacles:
7. Time not seen as productive
8. Client confidential information
9. Difficult to get feedback from all team members
Page 2 of 28

Client Relations
IDEA CONNECTIONS:
How to we overcome clients inability to schedule own resources?
Ideas
Identify requirements and resources needed by client to support the
project
Provide schedule for client to provide resources
Identify effects to the project, when client is not effective with
scheduling resources
Publicize needs to upper management of client
Quantify cost and schedule impact of delays
Emphasize teambuilding at individual level on project with client
Show them where they are impacting our efforts
Communicate their impacts in terms of $$$
Clearly identify their specific areas of interface up front
Educate ourselves on impacts to client ability to schedule personnel and
process they use
Page 3 of 28

Client Relations
Big Idea
Contractual Requirement for Client Support
Graphical representation of client input status by using charts and status

punch lists with exposure and review with whole project team including client
upper management. Develop chart/needs at beginning of project and
update/review on frequent basis (weekly). Emphasize working week-ends or
nights if needed to meet schedule. Do not accept not meeting schedules
without significant push back.
Provide data showing what the impact of late or erred input from client can
be
Actions:
4. Provide ways recognize (impact)
5. Identify criticality of issues
6. Provide contractual requirement
Obstacles:
4. Culture issues (not responding)
5. Client alignment (internal & external)
6. Resources
Page 4 of 28

Client Relations
IDEA CONNECTIONS:
How to pre-define schedule incentives in the contract?
Ideas
Incentives should be separate articles in contract

Incentives should be published and passed out to employees
Incentives should be attainable
Each incentive should be defined within the contract issued and not in a
change order
Reference Lessons Learned from previous projects for successful
incentives that may apply to your contract
Create corporate guidelines that will apply to each situation
Should be spelled out as clear as possible in prime contract
As soon as possible develop a change order after baseline of schedule for
specification called out items or milestones
Insist on this being a moral issue and address it with the appropriate
level of involvement
Commit to specific dates for periodic distribution of incentives
Leak a news release to the local paper regarding the water shed
affect for incentives
Page 5 of 28

Client Relations
Big Idea
At the time of contractual negotiations specific dates should be established

which will require Incentive payments to be made periodically through the
course of the project. These incentives become a part of contract tied only
to the calendar and percent complete billings. If work is complete enough to
bill on a before specified dates Paid. Develop incentives which allows KBR
the ability to influence the most.
Actions:
4. Discuss in negotiations proposed incentives to be included in the contract
5. Ensure that KBR is capable of meeting proposed milestones for incentive
payments
6. Share incentives earned back with client on an agreed split
Obstacles:
4. Some clients do not want to spend money on incentives
5. Size of project may not support the cost of an incentive plan
Page 6 of 28

Client Relations
IDEA CONNECTIONS:
How to make clients pay per the requirements?
Ideas
Relationship with customer

Excellent performance to billing requirements
Clear understanding of requirements
Make sure your backup for payment is error free
Keep good communications with client
Review contract with all project team and client together
Discuss progress informally with client representative
Ensure that the billing is reviewed to conform with the contract
requirements
Advise client that project will have to be stopped until payments are
made
Respond to questions client might pose on billings in a prompt and precise
manner
Understand completely reasons client fails to pay as required
Make sure they understand what their responsibility is and offer any
assistance required
Page 7 of 28

Client Relations
Big Idea
On Time Payments - Pays
Eliminate all conceivable reasons for the client not to meet their payment
obligations
Be able to demonstrate to client any negative impacts their failure to pay
per requirements will have on the overall success of the project
Document the impacts for later claims negotiation if it comes to that
Utilize previously submitted schedule of values as already agreed to
document for client payment
Offer client incentives for prompt payment
Keep track of Free Bs to client and remind him of them
Actions:
6.
7.
8.
9.
Document any late or no pays along with impact in case of future claims
Refer to previously agreed to payment terms
Late or non payment erodes mutual trust
Establish client discounts for early payment
Obstacles:
6. Non cooperation from client
7. Accounting System Restrictions (SAP)
8. Avoid verbals
Page 8 of 28

Client Relations
IDEA CONNECTIONS:
How to get client aligned internally with their own teams?
Ideas
Formal teambuilding
Written goals and objectives
Early upper management involvement and approval
Teambuilding meetings or dinners
Form Core Group
Client KBR meetings, schedules, milestones, visions and objectives
Facilitate client internal alignment sessions
Hold periodic project review of issues related to client alignment
Have client internal alignment program included in budget
Establish single point of accountability in contract for flow of
communication
Lock them in a room until they can figure it out
Promote client leadership toward the project goals
Page 9 of 28

Client Relations
Big Idea
Hold periodic project review of issues related to client alignment
Senior Management (client and KBR) work closely in monitoring team

performance and work together when alignment gets off course
Joint agreement on funding to support dean Day Away or teambuilding
functions
Educate team members to recognize when others seem to be altering
course
Award contractor and client members when they are found to be aligned
on an issue
Address alignment issues with staff weekly
Actions:
10. Award employees, when found to be proactive on major issue
11. Educate team members to recognize when others seem to be altering the
course
12. Teambuilding
Obstacles:
10. Funds for teambuilding
Page 10 of 28

Client Relations
IDEA CONNECTIONS:
How to keep client from micro managing?
Ideas
Hold regular management level meetings with client and KBR

Client has designated engineering representative and site representative
Form Core Group early client and KBR members
Meet early milestones to build client confidence
Advise client that continued input affects plan
Issue change order request for any changes that result from client input
Teambuilding with all parties up front
Challenge and push back at the first indication of micro management
Manage this issue quickly and firmly at anytime it happens to set a
precedence
Start the project with a clear understanding of expectations from both
client to contractor and contractor to client
Execute as expected
Meet the requirements of the project
Follow-up as promised
Do the micro managing yourself
Build confidence with client. Your ability to execute by set processes
Meet on set issues weekly with client be honest and upfront
Page 11 of 28

Client Relations
Big Idea
Eliminating Client Micro Managing
Start the project with a clear understanding of expectations from both

client to contractor and contractor to client. Follow up every month on
areas that need improvement
Build confidence with client your ability to execute by set processes
Meet with client weekly on set issues be honest and up front
Establish clear understanding of contract and execute requirements to
team
Ensure protocols are understood and that client respect same
Actions:
9. Establish work plan execution process with client front line supervision
10. Incorporate client operational requirements into work process
11. Daily meetings with client front line supervision and unit management to
establish clear understanding of work scope and mutual responsibilities to
conduct work
Obstacles:
8. Individual personal agendas
9. Failure to communicate scope changes and schedule revisions to all levels
of client management/supervision on timely basis
Page 12 of 28

Client Relations
IDEA CONNECTIONS:
How to get client cooperation in executing the job?
Ideas
Set prior joint milestone accomplishments

Keep client well informed on how much his input has affected progress
Clarify and explain early any deviations from scheduled plans
Build a relationship and trust with client
Have backup documents proving your position
Show you have the same concerns but help him understand your position
Convince them that this is for them, and not contractor
Ask for cooperation
Bonus/Penalties for both parties
Establish detailed list of interface points; conduct meetings to obtain
commitment for providing coordination and/or facilitation support
Refer to pre-approved job execution
Page 13 of 28

Client Relations
Big Idea
Cooperative Execution
Develop well though out project Execution Plan using basic KBR
guidelines. Know and include client requirements and recommendations.
This document is approved by both parties. i.e. procurement
responsibility matrix
Keep in mind that some client requirements/recommendations may be
adverse to our job execution, such as location of laydown areas, parking,
access and egress, temporary facilities, etc.
Establish list of interface issues; set dates/assign responsibilities to
obtain concurrence from client representatives
Actions:
10. Develop execution plans
11. Have client acceptance of plans and work the plans (define interface
points and establish client responsibility)
12. Monitor execution and provide client feedback
Obstacles:
10. Failure to accept project decision by other onsite client org/depts.
11. Individual personal agendas
Page 14 of 28

Client Relations
IDEA CONNECTIONS:
How to eliminate client rule by committee?
Ideas
Structure in client organization the client personnel have to understand

their role and be given the authority to make decisions
Bring the subject up at the beginning of the project as an area of
concern
Lead by example as the contractor and dont run your business in the
same manner
Use specific examples of how a particular decision could have been
better
Emphasize the advantage of allowing those in the boat left to do the
rowing!
Highlight contractual reasons against such a course
Establish working relationships with project management level + above
Make decisions easier to make for client suggest solutions/alternates
Help client understand cost impact of time delays
Demand single point of accountability from client
Page 15 of 28

Client Relations
Big Idea
Friars Club
Structure contract to specify single point of accountability within

client organization that will supply answer to project questions
Schedule meetings/teambuilding sessions to review the issue with client
management in order to gain acceptance of project decisions at all levels
of client organization
Establish working relationships with client project and client operations
personnel for periodic review of design decisions
Insist on project decisions are made designated management level people
keep communication flowing between KBR & client project managers
Actions:
10. Establish single point of accountability (permanent)
11. Enforce previously approved issues
12. Keep open dialogue throughout job at management level
Obstacles:
7. Lack of stability in client organization
8. Lack of documentation
9. Unrelated pressure on client (corporate policy)
Page 16 of 28

Client Relations
IDEA CONNECTIONS:
How to stop client making decisions about construction without construction
knowledge?
Ideas
Early relationship with key client person or persons to allow client
management internally
Train KBR staff watch and identify early signs of this and nip it in the
bud
Have periodic contract meetings with KBR and key parties from client to
educate
Back to a stricter control of client input to the project, i.e. put inplacefilters
Require construction involvement in decisions by client, that effect
construction
Improve communication between client and construction
Implement a No Change policy
Ensure KBR staff understands client driving force
Ensure KBR staff is aware that such decisions take place and must be
alert not to agree
Develop plan including approach process for client input i.e., changes,
instructions
Meeting schedule for client input
Page 17 of 28

Client Relations
Big Idea
Executive PDN Approvals
Develop a written process including approval document that would allow
client decisions. The client senior site representative and KBR senior site
representative would be the only two signatures accepted and both would
have to sign. Present this to the client representative and ask for his buyin, explaining that he and KBR do not need any of their employees directing
change without approval. If any of these decisions effected the already
submitted execution plan, initiate a PDN.
Relationship between KBR and client at all levels needs to be open and honest
Develop the written process in collaboration with the client. Ensure that
KBR/Client communication is open and encouraged at all levels, start the
integration early in the project cycle.
Actions:
1. Develop written client decision process
2. Enforcement of team integration and communication
3. Discuss reason behind all changes
Obstacles:
9. Us vs. Them
10. Time
11. Communication
Page 18 of 28

Client Relations
IDEA CONNECTIONS:
How do we eliminate unwanted client help?
Ideas
Increase their confidence in our ability to execute projects

Keep them in the loop so they know what is really being done on issues
Be honest and firmly let them know when their input is being detrimental
Address the concern at executive level
Address the concern in the contract and discuss at negotiations
Establish a relationship that client is comfortable with
Try to understand why unwanted client help is being applied
Fix whatever client is concerned about
Address client involvement in the Contract in execution of the work
demonstrate that we are addressing the concern areas
Form a joint team with client and KBR working together
Advise the client that the help is really not help by specific cases
Advise the client that the help is resulting in change orders to his
account
Page 19 of 28

Client Relations
Big Idea
Eliminating unwanted client help is a touchy subject! All project teams

should be totally integrated at all levels from executive level on down.
Where specific instances arise when KBR feels that a client is in the mix too
much, the concern should be addressed between executives of both
organizations. Ensure that all communications are open and honest. Dont
try and hide issues from the client; no B.S. Make sure commitments are
clear and concise. AS a team, the client would have employees in the mix,
primarily as cheerleaders, fact finders, and coordinators with existing plant
personnel. When the help got to be at the unwanted level, it should be
discussed between the two individuals first and then kicked up if no
conclusion.
Actions:
9. Meet with client and contractor key staff to discuss alignment on
responsibilities before mobilization
10. Teambuilding with same team
11. Communicate plans and ask for client input
Obstacles:
7. Not all key players available
8. Not all personnel will have agreement
9. Change in Management
Page 20 of 28

Client Relations
IDEA CONNECTIONS:
Ho do we improve client satisfaction?
Ideas
Discuss goals jointly to understand what the client expects

Meet early milestones to build client confidence
Listen when the client talks
Commence teambuilding session early in FEED
Meet contractual obligation or do what you said you would do
Ensure protocols are agreed and understood from Day 1!
Facilitating Payments IAN calibrate code of conduct
Workshop to gain alignment on project objectives
Be honest and trustworthy
Always ask is this satisfactory to you
Walk the talk in what we advertise early on and dont let off
Clear agreements and communications on all issues in writing with no
exceptions
Educate client via our processes and systems to minimum or eliminate
surprises
Page 21 of 28

Client Relations
Big Idea
Education for Client Satisfaction
Educate client on our process systems and reports/formats so they
understand and are not surprised or disappointed with our
products/performance
Listen to client they will often let you know what their issues are as you
move through the life of the job providing you with an opportunity to satisfy
them.
As conversations proceed take time to identify possible future disconnects
and discuss ASASP and come to a resolution to keep whatever the issue is
from becoming a time bomb at the clients control to push the button at
the same time damaging the KBR/Client relationship.
Actions:
9. Train clients on KBR processes/procedures/contract
10. Set milestones and communicate the criticality of meeting them with the
project team
11. Establish communication skills courses requirements on all projects with
focus on listening
Obstacles:
7. Alignment of who the client is and what really matters to satisfy them in
the long run i.e., (foreman doing things that are asked by lower level
client members when not authorized)
8. Cultural differences
9. Respect from client to contractor
Page 22 of 28

Client Relations
IDEA CONNECTIONS:
How to get favorable contracts from clients?
Ideas
Prior agreement on contractual obligations which constitute invoice mark

ups
Prior agreement on payment timing following submittal of invoices
Agreement by client to pre-fund next period cash flow requirements
Get them drunk
Give them free cruises
Bonus/penalty contracts
KBR needs to know our minimum requirements going into contract
negotiations
Build in realistic incentives
Put teams together that have the right chemistry
Be honest with client on KBR capabilities
Be selective in types of contracts pursued
Provide client with information to evaluate special skills KBR brings to the
project
Know what our costs are and dont negotiate away margin
Stay away from fee at risk
Negotiate fixed fee for OHD/IND staff (we can manage that)
Maintain accurate reporting and controls from first day of existing
contracts
Page 23 of 28

Client Relations
Big Idea
Catching the Big Fish
Start with honesty and layout what KBR t and s are in detail by showing
examples/samples of reports, pictures (progress) of successful project if
client shows an interest. Create and cultivate an atmosphere of clear
communications at the highest most possible level of accuracy. Dont try to
kid a kidder.
Provide client with data on the value to them to provide us with favorable
terms. It must be perceived as a plus for his company to give us something
different from our competition.
Actions:
10. Sales organization need better understanding of execution and
operations limitations and drivers. Exposures and orientation.
11. Develop better understanding of client drivers and their value to client
Obstacles:
7. Client trust
8. Market driver and client corporation culture
Page 24 of 28

Client Relations
IDEA CONNECTIONS:
How to avoid KBR errors on billing?
Ideas
Review invoice procedure with project team
Meet once a week to review invoice status with client and KBR
Address client concerns weekly with payment issues share with project
team
Training of KBR folks early on in project and explain the effect of errors
to bottom line
Structure simplicity into the invoicing process
Have more than one person capable of checking invoices for errors
Understand client requirements
Training of personnel processing billings
Audit process
Use Enron accounting techniques
Establish the proper procedure early
Hire laid off Arthur Anderson accountants
Allow Adequate Time for KBR internal check of invoices prior to
submittal to client
Ensure field staff inputs are accurate to project controls
Staff review meeting established prior to submission
Page 25 of 28

Client Relations
Big Idea
Balancing the Budget
Simplify the invoices to the least number of items to be submitted,

reviewed and approved. Communicate with client on the first billing
submitted and agree on the level of detail required for all future
submittals
The review of errors in billing should be at project management level to
support the significance of accuracy
Have to establish an approved example for everyone to go by
Actions:
7.
8.
9.
Include sample invoice at 1 to 2 weeks after award to create and open

a dialogue for a buy-in process between KBR and client
Train staff on invoicing process relative to project/control
Build some degree of flexibility into agreed upon sample invoice for
future minor changes with the correct parties from both sides of the
house
Obstacles:
6.
7.
3.
Not having proper parties available at early stages

Lack of knowledge on the client side of the house for client big
picture requirements
Lack of alignment in client organization
Page 26 of 28

Client Relations
IDEA CONNECTIONS:
How to get on time payment for clients?
Ideas
Ensure project controls representatives are well trained in understanding
client billing process

Provide client on accurate monthly invoice
Place in contract a time frame that invoices must be closed
Provide prompt accurate billings
Working relationship with customer
Management assistance
Bill what is due Credit what is due promptly
Establish relationship with invoice auditor as well
Be prepared and offer to fix invoices immediately
Have pre-payment terms in contract (wire transfer) with written invoice
to follow
Publicize status of client payments to daily client contacts
Stop work until paid or actually charge client interest at high rate
Give contractual incentives to client for timely payment or even advance
payment
Establish an understanding of the concern early on
Page 27 of 28

Client Relations
Big Idea
Incentives to Client for Timely Payment
If we dont do precisely what we are asking it will set a standard be it timely

responsive or delayed response. So immediately will have to be immediately
if we want the client to do the same.
Stop work may be extreme because of the trickle effect but contractually
agree that a higher interest rate or even advance payment is required
beyond a certain duration.
Actions:
4.
5.
6.
Identify specific payment procedure in contract

Identify how to earn discounts
Hold joint meeting to ensure both parties understand payment format
Obstacles:
3.
4.
5.
Restrictions imposed by client funding guidelines

All funds available prior to start of billing cycle
Client funding plan does not match project execution plan
Page 28 of 28
HOT WASH
Well (What went well in this session)
SESSION #1
Temperature
Quick Thinking
Interaction with co-workers
Good Communication with Controls
Diverse group to work with
Teamwork
Energy
Participation
Meeting people
Learned a good procedure for brainstorming for ideas/solutions
Interaction on work session
A chance to see how my counterparts looked at issues
Got Out of the Box
Learned new brainstorming process
Addressed real issues
Learned knew techniques
Got people to thinking
At least we are starting to try to innovate
Good conversation met new people and learned new technique
Interesting way for getting ideas out
New ideas on innovation
Demonstration of hands-on problem solving technique
Stimulated creative thinking in a group setting
Nothing covered information too fast
SESSION #2
Well structured and instructed

Coordination between people
A better way to brainstorm
Good interaction with individuals
Lots of good information
Shared basic concepts
Promoted creative thinking
Awareness of CPS (Innovation)
New approach
Clear presentation materials
Brainwriting
Coming to conclusion
SESSION #3
High energy, fast paced lots of moving meeting people

Staying on time
Learned new technique
Team participation
Enjoyed conversing with the others in the room on common problems
Interaction
Hearing new ideas
Exchange of ideas/solutions
Able to work in other areas of the business
Communication/Directions/Process
Lots of ideas/interaction
Progressed quickly through a lot of information
Unique ideas/interesting conversation/good interaction
Interesting topic/moved quickly/good exercise
Combining of ideas
SESSION #4
Thinking in a different way

Audience participation
Exercise of brain
Identifying big issues
Interaction with partners
Organized
Interaction
Communication within the group
Transfer of ideas
Exercises
Stimulate thought process
The presenters were extremely knowledgeable and moved through the
exercises smoothly
Chance to compare problems with peers about contractual
obligations/commitments on other projects
HOT WASH
Value (What value did you get from this session)
SESSION #1
Identified the possibility of opening our minds

New ideas
Introduced to a structured process
Effective tool for solving problems or seeking innovations
Ability to stretch the mind
Awareness of new technique
Learned resource to generate solutions to specific project problems
Think out of the box
Need to listen more to my employees
KBR commitment
Good interaction and idea sharing
Learned a new tool
Recharged in innovative thinking
Starts people thinking
Learned new communications
Partial understanding of process
Will likely try these techniques in future
Meeting new people and sharing thoughts
Exposure to method of problem solving plus other Construction personnel
Learned cognitive process of innovative thinking
Nothing very fast presentation
SESSION #2
A different way to brainstorm and to give a value/or to expand on each idea

Need to work through again
Exposure to organized process for innovative thinking
Thinking outside of the box
Gained more insight on construction concerns
New Tool/New Insight
Appreciation for techniques
Ability to capture some good ideas on EPC integration
How to brainstorm
Understanding the process
How to collect and select a good idea
Further establish goals
Further awareness to think through
SESSION #3
Sharing and exercising/meeting people

It showed us that we have many tools that we have not used
A way to come up with new ideas using other peoples input
Great value very useful and effective
Can take something with us to use in real life
A system of elimination to achieve an answer
Problem solving ideas
Express problems openly
Team agreement and working with other members
Another tool / shared problems awareness
A new technique
New way of developing ideas
Innovative means of collecting ideas
New tool to attack issues
Work with others
A way to think differently
Better understanding of the thought paths of others
SESSION #4
Refreshing way of approaching issues

Understanding an innovation (idea) generating process
Understanding for areas to be aware of and possible ways to work them
Possible new thought processes
In a very short time many ideas were gathered
Another way to approach serious issues
Other ways at looking at the same thing
Less than I hoped for
Started the process to think differently
New ways to think of things
Joint considerations produce greater results
Exposed to some new concepts which I plan to explore in more detail
Method of brainstorming ideas
HOT WASH
Insight (What Insight did you get from this
session)
SESSION #1
Divergent/Convergent
New methods
Need to seek input from team
Importance of interaction of ideas between team members
More open minded
Common goals
Think out changes
Better understanding of problems facing subcontract department
Not all subcontracts admins fault
I can change my mind about someone elses ideas
We have a long way to go
Additional ideas often come out during conversation
Looking at the different views of others
There are constructive ways to solve sticky problems
Understand that innovative thinking can be used effectively in this business if
given the opportunity
The ideas that I saw were the way we did things 15 years ago
SESSION #2
Quick way to brainstorm

Identified some innovative ideas and most of the things that have already
been tried
We have many different views on the same subject
Insight to brainstorming
EPC contractor personnel not challenged to think differently
Structured approach to problem solving
More awareness
Use education in form of buddy system to achieve EPC integration
Great ideas generated to improve communication
Teamwork makes it happen
Work through an issue
SESSION #3
You can do a lot in little time

Open up new ideas to be open
View into others ideas on same subject
Two heads better than one!
We all have the same problems solving some will reach around the world
This will instigate thinking out of the box
How others think about problems
The means of solving problems and being innovative
Look further than the line that makes the box
Resolution process/contacts/a new way of thinking
Problems others are having that are not problems to everyone
New work method
Very important to use collective knowledge in problem solving
Different people see same problems in different light
Look at things differently
Many issues are common for all projects
SESSION #4
No matter how self disciplined you are it helps to have these type of sessions
New ideas are always out there
A method to solve problems in my group that I didnt know how
How some others are thinking
There are several different ways to think bout a problem
Others ideas are useful
To better personal skills in the think process and aligned with KBR focus
Things are not always what they seem to be
Different minds see different ideas
Saw how we can learn to think differently
Different opinions on issues
HOT WASH
Different (What would you like to see Different)
SESSION #1
Clearer understanding of what innovative thinking process is all about

Provide a little more time to complete
Better explanation of process before the exercise
Use a better technique
More focus on a specific to work a process
More time to work ideas
Dont perform session like consultant. Allow more time
Nothing
Dont rush to finish
More time for exercises
Slow down a little
Understand meaning behind statements
Need more time and discussion
Clearer instructions on what/how to do it
SESSION #2
More time more exercises

Nothing
More control on team creation
Longer session
Too short for this kind of workshop needed to be just a presentation
In the timeframe given it was a good approach
Time only allowed for overview would allow more time
SESSION #3
Time and follow through can we pick an idea and bring it to this session?
More time
More time this type of sessions will help come up with some solutions
More time/preparation
Longer / electronic format
Liked it fine
More time to do exercise
Allow for presentations to others
HSE do not know much about this staff
Time allotment/explain course basis a little better
SESSION #4
Fine as was
More time
Clearer instructions
Slow down the process by allowing more time
Have coffee
Place name on top of sheet on original document you started with
Room set-up was not good for this exercise
More time to reach conclusions
Need a little more time to do exercises
Nothing, not enough time to expand implementation of brainstorming concept
in any other manner
Conversational approach

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KBR Onshore

Innovation Breakout Session

SESSION #1 SUBCONTRACTOR PERFORMANCE

IDEA CONNECTIONS AND BIG IDEAS

Onshore Construction Workshop

Onshore Construction Workshop

Onshore Construction Workshop

Onshore Construction Workshop

Determine what level of reporting is required.

What is wrong with the subcontractor control systems? Does subcontractor

Onshore Construction Workshop

Onshore Construction Workshop

Establish career path with training programs

Onshore Construction Workshop

Onshore Construction Workshop

Establish guidelines in pre-bid meetings

Onshore Construction Workshop

Onshore Construction Workshop

Onshore Construction Workshop

Onshore Construction Workshop

Comprehensive language training for our staff personnel

Onshore Construction Workshop

Onshore Construction Workshop

Onshore Construction Workshop

Onshore Construction Workshop

Include written KBR procedures, a process to evaluate and identify

Onshore Construction Workshop

Onshore Construction Workshop

Build sufficient time in the project subcontractor contracting execution

Onshore Construction Workshop

Onshore Construction Workshop

Use Internet based tools to gather subcontractor details prior to any

Onshore Construction Workshop

Understand their system

Onshore Construction Workshop

Subcontractor should be considered part of the project team at time of

Onshore Construction Workshop

Onshore Construction Workshop

Integrate subcontractor and administrator to a single system

Onshore Construction Workshop

Spelled out specifically in the contract

Onshore Construction Workshop

Onshore Construction Workshop

Onshore Construction Workshop

Share scope of work and KBR expectations

Subcontractor unable to staff qualified personnel

Onshore Construction Workshop

Address at contract award

Onshore Construction Workshop

Have KBR subcontractor admin personnel in place at beginning of the

Develop trust through good performance

Onshore Construction Workshop

Conduct a culture survey(s)

Onshore Construction Workshop

Visit with past clients of subcontractor

Onshore Construction Workshop

More people to review scope

Onshore Construction Workshop

Onshore Construction Workshop

Review subcontractors procedures

Onshore Construction Workshop

Require that subcontractor have a training program in place prior to

Onshore Construction Workshop

Bring subcontractors in earlier