Oil and Gas Contract Award & Execution
Once the responsible bidder for oil or gas project award has been determined, and approval has been received to award the contract, the general practice is that the bidder is sent the Agreement and other contract documents for signature.
After the duly executed documents are returned, and a pre-award committee determines that all required documents are acceptable, the contract is executed by the Customer, and the bidder becomes a Contractor.
The scope of work might include full Engineering, Procurement and Construction activities.
Oil and Gas Contract Award Process
Approximate set of documents required for the consideration of the award of the Oil and Gas contract are:
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A cover letter
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Application for participation in the competition;
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Bank document on payment of the participation fee;
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Bid
The Customer will require submitting as well names of all subcontractors, with necessary evidence of reliability, contract schedule, bidder qualifications, and other documents as per the instructions to bidders.
In order to check the bidder’s experience, referenced owners are contacted to determine the quality and timeliness of previous work.
If on the basis of the information submitted, the Customer determines that the bidder is not qualified to perform the contract, the Customer may disqualify the bidder and award the contract to another bidder.
After the Agreement signed by the bidder and other required submissions are found acceptable, the contract must be executed by the person delegated the authority to execute oil or gas contracts.
The contract should be awarded prior to the expiration of the bid bond.
If the time-frame does not allow awarding the contract prior to the expiration of the bid bond, a contractor should be requested to give a written assurance that it will hold its bid good for the additional days needed to award the contract.
The clients quite often have to review the necessary data applicable to awards, such as project description, original budget forecast, bid information, schedules, oil and gas contractors, other legal information and contract dates.
This review assists clients to establish a basis for evaluating the costs of the upcoming projects.
In order for the oil and gas contractor to start the project all the insurance requirements and the conditions prerequisites to the award are to be met.
Upon receipt of the Notice to Proceed document, the contractor can start the work on a specified date. The document states the number of days available to complete the work and the projected completion date.