The Exciting Contracts Committee “Building the Foundation”

1. The Exciting Contracts Committee“Building the Foundation” Report to the 2006 Best Practices Conference Dave King and Jane Sidnell

2. 2005 /2006 Committee Members Len Addinall – Shell Darryl Baron – Dow Scott Burrell – Suncor Graham Campbell – CoSyn Suzanne England – Revay Jim Freiburger – Jacobs Damian Gannon – ATCO Mike Gordon – Bantrel David Hamilton – Enbridge Kathy Kendrick – Miller Thompson LLP

3. 2005 /2006 Committee Members (Cont) Bill Kenny – Miller Thompson LLP Dave King – Stantec Brian Lacey – Clark Builders Tim Mann – Suncor John Schadan – SNC Lavalin Les Shaw – Ledcor Jane Sidnell – Miller Thompson LLP Laura Sugimoto – AMEC Neil Tidsbury – CLRA

4. New 2007 Committee Members Jim Freiburger – OPTI Nexen (06 Jacobs) Don Guglielmin – CNRL Sean James – AMEC Catherine Sarsfield – Petro Canada Laura Sugimoto – Independent (06 AMEC) Dariel Suhan – Nova Greg Toth – Kinder Morgan Rick Watters – EnCana (COAA Board Member)

5. Guiding Principles Purpose: To enhance Efficiency, Profitability and Performance Develop standard forms of contract for use in Alberta Consistent approach to common issues Goals: To equitably allocate risk and responsibility to the party best able to manage the risk Implementation: Standard format and organization Standard or align definitions and terminology Proper ordering of subject matter Flexibility through use of schedules Follow up: Regular review and revisions Promotion of the use of the documents.

6. Scope and Progress Stipulated Price contract (SP): Published (1997) and one review cycle completed (2003) Engineer, Procure and Construct contract (EPC): Published (2005) Engineer, Procure an Construction Management contract (EPCM): Guiding Principles document – Completed November 2005 Philosophy document to be issued at 2006 Best Practices –Completed EPCM contract issued for 2007 Best Practices – On schedule Construction Management contract (CM): Viewed as a sub-set of the EPCM and will be developed after the EPCM is published.

7. 2005 / 2006 Activities Build a working committee that is representative of the participants: Owners, Contractors, Consultants, Legal Industry sectors: Mining, Petrochemical, Power, Pipelines, Infrastructure etc. Edit “Guiding Principles” to better reflect preferred sequence of deliverables: Document issued to board for comment November 2005 Develop “Philosophy Document” to provide guidance for development of the EPCM contract: Two review cycles complete Issued for comment: Draft 2 to Board; Draft 3 to Best Practices session Develop contract documents using EPC contract as template: Ongoing on schedule for delivery of document to 2007 Best Practices Establish subcommittee to develop Appendix B – Reimbursable Costs

8. 2006 / 2007 Activities Maintain a balanced representation of all sectors from members actively working on the Committee Continue the effort to ensure full active representation from all stakeholders Publish final edition of EPCM Philosophy document Complete development and issue EPCM Contract, together with all Appendices, including Appendix B – Reimbursable Costs Work with our colleagues on the other Best Practices Committees and COAA communications staff to gauge and promote the use of COAA contracts Establish long term plans for the Contracts Committee that ensures the development of best practices that are relevant to the needs of our industry

9. Closing