CHEM-E0115 Planning and

Execution of a Biorefinery
Investment Project
(5 cr)
Lecture 3:
Investment Implementation Phase – Project Controls:
Risk, Contract, Change and Claim Management
Jarmo Jäppinen
Agenda
Introduction
1. Project Functions
2. Risk Management
3. Contract Management:
• Administration,
• Change Management and
• Claim Management

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1. Project Functions
 Project Functions
AFRY Supervisor
Project Owner

Project Staff Mill / Plant Staff

Project Management

Security Quality
Management Management

Health, Safety and Permitting and

Environment approval Assistance

Project Controls Engineering Management Procurement Management Construction Management Commissioning Management

Time Management Project Risk Management

Cost Management Contract Management
• Administration
Resource Management
• Change Management
• Claim Management

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2. Risk Management
Risk Management

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Risk Management

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Risk Management

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Risk Management

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Who Carries the Risk (ref. also Lecture 2)
CAPEX

Potenti al EPC Premi ums/

savi ngs fees

Increased Reduced cl i ent

cl i ent ri sks ri sks

EPCM EPCM EPCM/EPC EPC

Mul ti ple Open book Hybri d Turnkey
Package

Risks with client Risks transferred to EPC

Contractor

Limited freedom for

Full freedom for equipment &
equipment & sub-contractor
sub-contractor selection
selection

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Risk Management Process

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Risk register development and monitoring

Project Risks
Identifying & Assessing

Project Risks
Control Process

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Risk Management - Co-Pilot™ - application

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Risk Management - Co-Pilot™ - application

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Risk Management- Co-Pilot™ - application

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Co-Pilot™ - application - Qualitative Analysis

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Case Example
ELDORADO PULP MILL – BRAZIL 2013

separate slides

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Benefits of Risk Management

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Successful Investment Project (ref. Lecture 2)
Development Implementation Production

Criteria Project
• The plant is completed within schedule closing
• The plant is completed within budget
• Production starts / develops as planned
regarding product quality and quantity
• Product sales begins according to the market
preconditions
• Operation & maintenance runs reliably

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Conclusion (ref. Lecture 2)

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Lesson Learned

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3. Contract Management
Contract Management

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Contract Management Objectives

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Contract Administration

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Change Management

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Change Management Tasks

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Change Management

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Typical service types

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Claim Management

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Common consultant scenarios

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Claim Management

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Claim Management

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Claim Management

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Claim Management

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Claim Management

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Claim Management

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Claim Management

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Questions from students

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Thank you!
Jarmo Jäppinen
Senior Contract Manager, Industry Business Group
AFRY Finland Oy
jarmo.jappinen@afry.com
www.afry.com