Turnaround Project Planning Primer

Contractor Bids

Sometimes you may elect to solicit fixed price bids for some or all of the work. If this is the case, you should still go ahead and prepare all of the work order estimates. Then prepare bid packages including copies of your work order task definitions (minus the manhour estimates). ATC Professional offers a "Bid Package" report for this. This package will show the work scope, indicating which portions are to be bid on, but does not show durations, manpower or manhours for any activity.

Issue a set of these Bid Package forms to all bidders. This will ensure a uniform approach to the contractor selection process, and allow you to compare prices in a rational manner. After a contractor has been selected, and before awarding the contract, you should make the complete work order information available to the successful bidder, so that he can review them to agree or revise the time (and manpower) estimates. This is important for two reasons:

  1. The durations will determine the schedule (which the contractor must accept and adhere to), and:
  2. To prevent any major surprises / misunderstandings with respect to the extent of the work scope (repairs) and the manpower staffing requirements.

After the successful bidder has reviewed and agreed (or revised) the work order estimates, you can award the contract. Be sure, however, to stipulate in your contract all terms and conditions for adhering to the schedule and reporting progress.

Time and Material ("Cost-Plus") type contracts should require all contractors to furnish detailed time sheets coded with the correct work order number and kind of work performed, name of worker, skill code, etc. A copy of this daily time sheet should be furnished to the turnaround planner so that he can prepare a productivity evaluation (earned value analysis) and manhour projection to determine if there will be a variance with the original manhour budget.

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The Turnaround Project Planning Primer is an abridged version of the STO Planning Handbook.

For further reading, we also recommend Joel Levitt’s Managing Maintenance Shutdowns and Outages.