NedMobiel

Contract and Risk Management

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Tendering practice in the construction sector has been changing in recent years. Alongside the traditional tendering process which is based on the triangle of principal, architect/consultant and contractor there are other, more integrated tendering forms developing such as D&C, DBM or DBFM. These forms are also referred to as innovative contract forms. These new contract forms are characterised by the fact that the market is given more responsibility and tasks through one single agreement. The principal is therefore putting more out to tender in the market. This is a challenging development for the construction sector since this offers opportunities for innovation and entrepreneurial thinking. This automatically also brings with it uncertainty i.e. risks. Good risk management is therefore needed for the correct allocation of risks between the different parties. NedMobiel has a great deal of experience with these new contract forms and the associated allocation of risks and thereby supports public and semi-public principals, contractors and financial institutions.

NedMobiel helps principals to develop a tendering strategy for projects or for the purpose of the organisational strategy. NedMobiel thereby facilitates the process of choice on the basis of an assessment framework developed by NedMobiel in collaboration with PSIBouw.

On PPP (Public Private Partnership) projects the big question is what added value the market provides to a partnership with a public sector principal. NedMobiel answers this question using a PPC (public private comparator). One important tool when developing the PPC is establishing the business case for the project. There is thereby a need to establish what risks will be managed and particularly what opportunities are utilised within the project. The choice of the form of tendering and contract form follows from this analysis. For financial institutions and/or privately financed projects NedMobiel also carries out Due Diligences as Technical Assistant (TA) in order to determine the risk profile.

For the next phase NedMobiel provides the contract management, whereby the contracts are refined further and placed in the market through a tendering procedure. Risk management thereby plays an important role in the allocation of risks within the contract. In order to be able to establish what risk the market can bear, NedMobiel also regularly organises market consultations and uses risk management as part of the dialogue phase between principal and contractor. For the actual management of the contract NedMobiel can provide experienced contract managers.

With the aid of the risk dossier NedMobiel also ensures risk-led assessment of the quality in the context of External Quality Assurance or System-Oriented Contract Management.

Risk management

Risk management plays an increasingly important role in the management and control of business operations and projects. Risk can threaten the objectives of an organisation or a project to such an extent that it becomes unachievable or loss-making. NedMobiel analyses the risks and opportunities using the RISMAN method. Communication about and taking responsibility for the risks is the key factor for successful business operations and project management.

NedMobiel therefore views risk management as an integral part of the business operations and/or the project management. As an ambassador for RISNET NedMobiel also promotes this approach beyond the construction sector.

NedMobiel also provides in-depth analyses of risks relating to time and money. NedMobiel thereby makes use of uncertainty analysis by means of Monte Carlo simulations. This makes it possible to calculate the percentage probability that the project can be achieved within a given budget and/or timescale.

 The projects which NedMobiel has carried out for this:

  • Setting up DBFM contract for the A59, with a total project size of 400 million euro, on behalf of the Province of Noord-Brabant;
  • Setting up and managing the delegated commissioning for construction, operation and maintenance of the Westerscheldetunnel, with a total project size of 750 million euro, on behalf of NV Westerscheldetunnel;
  • Developing and preparing the DBM contract for the N261 for the Province of Noord-Brabant;
  • Risk management and uncertainty analysis using  Monte Carlo Simulation (PPI/PRI) for ProRail, HSL-zuid, NV Westerscheldetunnel, N57 and MOBZ (Modernisering Objectbediening Zeeland);
  • Carrying out risk-led System-Oriented Contract Management for the execution project N57 Walcheren, Zeeweringen, Major variable maintenance of OSK (Oosterscheldekering);
  • Due Diligence for the BRABO tram and road project in Antwerp. On behalf of Scott Wilson.