Pricing Structure for Heat Exchangers maintenance Services long term Contracts Master Agreements MSA

let me learn from you how are you doing it in your organization?

What shall you improve in it if you are doing it ?

It is an amazing experience to create "Heat Exchangers maintenance Services long term Contracts Master Agreements MSA" scope of work , collect and consolidate 16+ companies focal having 35 plants , get inputs from each one to consolidate a fine document of scope of work with mutually agreed terms & conditions.

Do SWOT analysis for the need of the services contract.

Develop next ten years plan of cost of need of services as per published business plan, keeping in view of the last 10 years money$ spent trending.

Brief Procurement services focal about the need and potential services. Do make it a learning session for buyers to let them know what an HX is , how it works, types & basic construction of it.

Develop a list of potential suppliers and ask for their "expression of interest" to participate in bidding with submission of list of experiences & facility details.

Plan site visits to witness qualification of services and validate claim.

Have a brief meeting with all the stake holders , subject matter experts SMEs of technical, commercial and procurement services. Develop action plan & be open to make necessary improvements whenever feedback is logical and mutually win-win for all stake holders.

Believe in "Less is more". it is a lesson learnt to minimize number of services under one contract, better to have dedicated contracts for special services. work on minimum dedicated scope to meet 100% needs & drop special services for dedicated contracts where utilization is expected below 15% of over all 10 years business plan.

Develop "Charter" of the contract project. Define boundaries & premises of the contract, mentioning clear roles & responsibilities R&R with tentative timeline mutually agreed & endorsed by buyer, contract focal, procurement services director alignment is mandatory to keep things on track.

Contract Content shall be

1. Clear set of work activities for each type of exchanger defined by TEMA
2. Supplier responsibilities
3. Client responsibilities
4. Zones & sub zones suiting geography
5. Planning & monitoring guidelines
6. Communication plan
7. EHSS plan
8. QA/QC Quality assurance plan
9. Equipment inspection plan
10. References of client guidelines along with international standards and Rebates

For the ease of understanding mention Types of Exchanger class & develop Bill number for each scope & line item such as shown below

For Blinding / De blinding services develop a table mentioning Sr#, Nominal pipe size mentioning in each line to ask for $rate vertically with columns of pressure rating (150#, 300#, 600#, 900# 1500#) next it to capture $ price for each blind size in each box

Note 1 : Do mention separate pricing structure for execution at client site and second pricing structure for execution at contractor workshop. other wise contractor shall charge you heavy rates of site works while you send to their in house workshop for servicing which costs much lesser to contractor

Note 2 : Do have normal planned services mobilization rates as per given bill, planned Shutdown mobilization %age (such as 3~5%) & emergency Shutdown %age (10~15%) based on resources need impact on defined rates.

Bill # A for Rigg out services shall be $ per metric ton $/Ton :

Dismantling of all components such as Piping spools, channel covers, Bonnet, pull out of tube bundle in case needed as per written site instructions agreed. it shall be measured in units of Metric ton & pricing shall be $/MT.

Bill # B Cleaning as per surface area cleaned

Rate shall be measured in currency per square meter ($/m2)

further classify cleaning into

Manual soft cleaning by water wash with normal plant water

Pressure Cleaning with Machine capacity up to 5,000 PSI = $/M2

Pressure Cleaning with Machine capacity up to 10,000 PSI = $/M2

Pressure Cleaning with Machine capacity up to 15,000 PSI = $/M2

Pressure Cleaning with Machine capacity up to 20,000 PSI = $/M2

Pressure Cleaning with Machine capacity up to 40,000 PSI = $/M2

Alternate cleaning rate :

some companies choose to have cleaning rate of $/tube as per sizes given by client teams instructions. define tube sizes and minimum number of scope given per mobilization.

Bill # C Hydrotesting

Price of Hydrotesting up to 50KG/CM2 shall be measured in units of cubic meter M3 = $/m3

Price of Hydrotesting above 50KG/CM2 shall be measured in units of cubic meter M3 = $/m3

Kindly note that do not pay supplier twice for blinding of EXCH for isolation & blinding needed for hydrotesting as hydrotesting rate includes everything needed for it.

Bill # D for Rig in services shall be $ per metric ton $/Ton :

Installation, erection, including making of flange connection of all components such as Piping spools, channel covers, Bonnet, pull out of tube bundle in case needed as per written site instructions agreed. it shall be measured in units of Metric ton & pricing shall be $/MT.

Bill 2 # Retubing Services

Retubing services shall be measured in Inch Meter (in-m) where tube dia shall be in inches & length of tube shall be measured in meters

Retubing of material carbon steel (CS) tubes Unit measured in Inch meter & rate $/In-m

Retubing of material Stainless steel (SS) tubes Unit measured in Inch meter & rate $/In m

Retubing of material Cu / Ni / A1 / Br B111 tubes Unit measured in Inch meter & rate $/In-m

Retubing of material Titanium tube Unit measured in Inch meter & rate $/In-m

Bill 2.1 # Weld Build up layer $ per square meter = $/m2

mentioning unit rates in each row for materials of CS, SS, Cr Mo, Cu Ni, AL Br, Monel grades of your choice as per site inspection recommendations

Similarly grinding and seal welding of tube to tube sheet joints including NDT & pneumatic tests shall be measured in Dia-inch rate for each of material type mentioning in each line item such as CS, SS, Cr Mo, Cu Ni, AL Br, Monel grades of your choice as per site inspection recommendations.

I write this to learn from the reader experience.

What could you improve if you are doing it ?

How are you doing it in your company ?

Looking forward to have you insights soon. lets have a learning journey together.

#oilandgas #Shutdowns #Maintenance #Contracts #MasterAgreements #Buyer #Procurement #ProcurementServices

Rashid Mahmood ???? ?????