Convertible Contracts:The In-house Counsel Perspective
Cristina Montanaro, Senior Legal Counsel, TechnipFMC, Italy
For its fast track projects, the Oil & Gas industry privileges Lump Sum contract types even in cases where definition of the project is not sufficiently advanced. “Fast-tracking” can be defined as a schedule driven approach where the different phases of the EPC project (basic and detailed engineering, procurement and construction) are compressed and overlapped to reduce the overall project duration. A faster completion of Oil & Gas plants without increased costs is extremely beneficial for Owners who, getting an earlier operation and production, obtain a quicker return of their investments. Schedule is one of the key factors affecting the overall cost of the Project and Owners often try to compress the schedule shifting all associated risks on the Contractors selecting Lump Sum rather than reimbursable compensation. A Reimbursable scheme, although more flexible to changes and unpredictable situations, is not giving Owner a clear vision of its final financial commitment while the Contractor may be not enough motivated to minimize the project costs.
Cristina Montanaro is an in-house senior legal counsel working for TechnipFMC. She received her bachelor of law degree from Rome University La Sapienza and is qualified as Italian Avvocato. During the last 15 years, she has matured an extensive international experience in the Oil & Gas industry across Europe, Asia, Middle East, Africa, Canada and Latin America, by negotiating and supporting onshore and offshore Turn-key projects.
TechnipFMC is a global leader in subsea, onshore/offshore, and surface projects. With its proprietary technologies and production systems, integrated expertise, and comprehensive solutions, is transforming clients’ project economics
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