[ case study ]
Multiple dredging vessels worked around the clock along the pipeline route to maintain the schedule. Source: Rohde Nielsen
for schedule-driven projects, as the sequential nature of EPC execution can lead to delays, limited flexibility, and slower decision-making – critical risks when schedule is a top priority.
With extensive knowledge of the market from having built similar offshore pipeline systems, STS engaged directly with individual contractors, each offering their specific area of expertise to the project. Separate contracts were awarded for each discipline, and over 40 contractors contributed to the project. The contract values followed a typical long-tail distribution, with a few large awards and a progressive decline in value for the rest.
By engaging with specialised contractors directly, STS ensured that each aspect of the project was executed by highly qualified specialists reporting directly to the project, rather than through an EPC contractor. This resulted in better control over capacities, ensuring mitigation strategies were implemented early for items on the critical path.
Procurement strategy
A flexible procurement strategy ensured a streamlined and efficient tender process. Extensive knowledge of the market ensured that qualified / competent contractors were approached directly and given short deadlines to quote; trading companies / third parties were not approached. Tender evaluations, clarifications, and negotiations were conducted immediately, and contracts / LOIs were issued as quickly as possible. Established contract templates were utilised to avoid protracted negotiations. Contracts were usually unit-price in nature to allow flexibility in scope adjustments. All contracts were managed directly to maximise control over the schedule.
Early engagement and capacity reservation of critical service providers ensured that the timeline was maintained despite key aspects of the project not being finalised. Benchmarking costs against previous projects kept prices aligned with market rates and ensured they were competitive. Despite the‘ ultra-fast-track’ nature of the project, the
Hydrogen Tech World | Issue 21 | April 2025 33