An ineffective commercial and contractual framework can lead to significant extra costs through the work life cycle. This can either be as a result of an unbalanced view on risk or direct costs through duplication of effort throughout the supply chain.
To positively improve this situation requires a general desire to align terms to the business need. The relationships require to be based on trust such that no overlaps exist through the chain but with clear accountability for delivery and with real ’stake in the game’.
Samphire has been involved with several examples where business need had driven a different contractual solution. Critical production was shut in at a Northern North Sea asset on failure of a manifold spool. The main subsea installation contractor was unable to secure and manage delivery of a spool in a compressed timeframe to minimise impact. Samphire stepped in to contract directly with a fabrication supplier and took a fit for purpose approach to the issue; shortened design life of spool through the use of standard weld procedure qualifications, aligned inspection and QA validation to key process risks and shared this with contractor, supported the contractor in alternative working practices to secure a quicker delivery and took a pragmatic approach to the contract terms. All this was delivered over the difficult Christmas period.
The spool was delivered within 12 weeks (including the Christmas break) from order direct to the DSV, this minimised the asset production outage with a 4 week saving from the alternative case.