Nov 22, 2007

Guidelines to Reduce Cost of Tendering Process by Oil & Gas UK

Move has been made to simplify the contracting process between purchasers and suppliers in the oil and gas industry to make major cost and time savings for both parties by eliminating duplication of effort and information.
It is anticipated the process could save up to GBP50,000 per bid, which will translate into millions of pounds a year across the industry.
Oil & Gas UK has produced new guideline documents, known as "model ITTs" (invitation to tender), providing a standard lay-out for suppliers to follow when structuring their response to a purchaser's request for services and/or equipment.
The three new model ITTs, which have been drawn up by a team which included representatives of major oil and gas operators, contractors and trade organisations, cover marine construction, topside support and well services. A document is already in operation for the drilling industry.
Ian Donaldson, chair of the Oil & Gas UK supply chain forum, said: "There are significant resources being used which are costing this entire procurement process. You have a myriad of people on the contractors' side who are viewing and trying to respond to this invitation to tender and, likewise, when the tender is received by the purchaser a myriad of people on his side trying to extract information from different areas. It is a very time-consuming and costly venture and detracts from what we should be doing, which is looking for opportunities to add value to our process.
"Now they know where to go in the document to find something and they know what it is going to say when they get there."

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