QP Launches Contracting Process Initiative
Qatar Petroleum (QP) said on 15 February it had launched an initiative to improve its contracting process, including the formation of a Contract Forum consisting of QP and the companies that it contracts with, and benchmarking of the QP contracting process against norms and practices in the international oil and gas industry. The purpose, QP said, was to “share ideas and information on possible improvements in contracting strategies, contract management and contract execution techniques in line with cost effective and best industry practices.” The first meeting of the forum took place in 1Q 2005, attended by delegates of local and international companies.
As a result of the initiative, QP decided on certain changes to its contract conditions for work and service contracts, including waiving the tender bond requirement for single source tenders; waiving tender fees for single source and classified tenders; reducing tender fees in general; implementing an early payment discount principle for selected contracts above QR50mn ($13.7mn); introducing an advance payment of 10% on all general tender contracts (GTC) against submission of a bank guarantee of equivalent value; implementing multi-currency payments on selected major contracts; waiving the retention money requirement for all contracts where the contractor can provide a performance bond.
