February 2000

Project & Plant Management

Alliance contract sets standards for teamwork

This successful approach for a refinery revamp uses shared benefits and losses based on aggressive schedule, cost, quality and safety goals

Bamber, J., BP AMOCO; Covert, C., Fluor Daniel

Despite their best intentions, owners and contractors often struggle during the execution of large integrated capital and maintenance revamp projects. Conflicts occur due to difficulties with scope definition, change management control, budgets, schedules, manpower and equipment. However, using an optimized alliance contract execution approach can significantly reduce these conflicts and their associated costs. In 1996, BP Amoco began planning a major modernization project to reposition the Toledo refinery to process heavy sour crude. A unique alliance contract execution approach was used, with BP Amoco and six contractors collaborating to maximize project efficiencies and value. The origi

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