1 / 4

7 Supplier Engagement models

7 Supplier Engagement models. Outsourcing. DBOM Limited Partnership. Level of Client / Market Engagement. Traditional. Supplier Engagement Models. Limited Partnership. Engaging. Delivery Partner. Alliance. Summary of each of the 7 Models (1).

vinnie
Download Presentation

7 Supplier Engagement models

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 7 Supplier Engagement models Outsourcing DBOM Limited Partnership Level of Client / Market Engagement Traditional Supplier Engagement Models Limited Partnership Engaging Delivery Partner Alliance

  2. Summary of each of the 7 Models (1) • Outsourcing: Lump sum fixed price whereby work is given to the market to develop, design and deliver with option to extend to maintain and/or operate (usually GRIP 2 or 3) • Traditional: Lump sum fixed price whereby NR manages the design development contract, the detailed design and construction contracts separately • Engaging: Contractor(s) brought in at GRIP 4 (or earlier) on reimbursable basis until risk and scope is defined enough to enable a target cost or lump sum fixed price to be agreed • Delivery Partner: Market partner is integrated into NR programme management team at GRIP 3 (or earlier) in order to bolster skills and is targeted with operating below opex target as well as incentivised (but capped) on all let contracts on pain/gain basis

  3. Summary of each of the 7 Models (2) • Alliance: Contractor(s) brought in at GRIP 4 (or earlier) on reimbursable basis until risk and scope is defined enough to enable a target cost to be agreed. NR staff are integrated into each contractor’s delivery organisation on ‘best man for the job’ basis. Development, design and construction risk/opportunity is shared across the alliance. All staff seconded into alliance are incentivised solely by the performance of the alliance/programme. An Alliance can be expanded into a Programme Alliance whereby some form of framework is established which enables joint performance targets between separate parties • Limited Partnership: This follows a similar approach to alliancing but usually involves integration of multiple parties into a single legal entity. All staff seconded into the partnership are incentivised solely by the performance of that entity within its terms of reference • DBOM Limited Partnership: This is an expansion of a limited partnership where the entity would also maintain and/or operate the built asset over a fixed period of time to an agreed budget, where all parties within the partnership share equitably the risk & opportunity. DBOM Alliance can also operate in a similar way outside of a legal entity

  4. Selecting the Best SupplierEngagement Model for each Project • DBOM LIMITED • PARTNERSHIP • LIMITED • PARTNERSHIP • OUTSOURCING • ENGAGING • DELIVERY PARTNER • ALLIANCE CONTRACT VALUE • TRADITIONAL Move by lowering risk and/or raising value by packaging with other projects BUSINESS RISK

More Related