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The Effect of Contracting and Procurement Strategies on Subsea Competitiveness

HDR of Offshore Jack Up Rig in The Middle of The Sea at Sunset Time

WHAT ARE THE BEST PROCUREMENT AND CONTRACTING APPROACHES FOR SUBSEA PROJECTS?

Independent Project Analysis (IPA) is pleased to announce the launch of a new multi-client research study to determine which contracting and procurement models yield the best performance in today’s subsea market.

STUDY AREAS EXPLORED

Given today’s rapidly escalating cost environment, owners are asking which contracting and procurement models yield the fastest and most cost competitive results. This study seeks to answer this question by testing the various procurement and contracting approaches used in Industry against performance outcomes for subsea projects. This IPA study will examine:

Performance of integrated subsea solutions
Degree of industry standardization in the subsea market
Use of frame agreements
How portfolio-level procurement stacks up against project-level procurement
How offshore renewables affect the subsea supply chain
State of the owner project organizations in delivering subsea projects
Effect of subsea complexity on procurement and contracting practices

THE NEED FOR SUBSEA COMPETITIVENESS MEASURES

The subsea supply chain has changed much over the last 10 years. Historically, owners managed most of the interfaces and were heavily involved in the design and specifications of subsea systems. Following the oil price crash in 2014, we saw a shift toward supplier-led, standardized solutions, an approach that dramatically lowered costs for owner companies.

However, at the same time, the subsea industry, which was already heavily concentrated, experienced significant consolidation. Mergers and partnerships developed that now offer wholesale “optimized” solutions aimed at driving efficiencies through integration of the supply chain.

Today, we see owners taking highly varied approaches to the subsea supply chain, with some companies still managing most of the interfaces and others testing the integrated engineering, procurement, construction, and installation (EPCi) offerings.

WHAT SETS IPA’S STUDY APART?

Extensive Subsea Projects Database: IPA’s Subsea Database includes over 600 projects located around the globe, with over 350 of these projects completed.

Comprehensive and Proven Normalization Methodology: Normalization of all data enables a direct comparison of costs and identification of drivers and metrics.

Secure, Accurate, and Transparent Data Collection: IPA has a 35+ year history of collecting and aggregating data securely and accurately using standardized cost and schedule structures.

REQUEST MORE INFORMATION

For more information on this study, complete the web form below.