2021 RETA Breeze Nov/Dec

COMPLETION GUARANTEES: A CONTRACTOR’S PERSPECTIVE

Vern M. Sanderson RAI, CRST, CIRO; Safety Services Group Leader; Wagner-Meinert LLC

I was recently asked about completion guarantees. Well, asked may be the wrong term. “What do you think of these new B@#@ S$#$ completion guarantees that have popped up since Covid?” Personally, I think they are great. Yeah, I said it! I like them. Let’s face it. When dealing with a facility my greatest opportunity for failure is in failing to meet their expectations. The better I know the expectations, the better it is for me. If the facility needs to start a new process by June 1st. Then it’s best that I know as soon as possible. Then I work the schedule backwards. Every project is different based upon

complexity, but as an example: June 1st = Production begins, system operation turned over to the facility. May 15th = Pull down begins May 1st = commissioning crew onsite April 15th = final prefabs on-site February 15th = Construction crew on site February 15th = First prefab truck to site January 1st = shop fabrication begins November 1st = valves and controls P0s issued. October 1st = evaporator P0s issued. September 1st = Vessels Approval drawings signed August 15th = Vessels POs issued. July 8th = Preliminary Design Complete August 1st = Compressor POs issued July 30th = PHA complete July 15th = Preliminary Design Complete June 21st = Design team assigned

I can guarantee a June 1st completion. Where’s my Pen. LOL But if it’s already after June 21st. Then a completion guarantee becomes an issue. Now everything must go right to get done on time. Delays are crucial. Delays beyond my control can’t be made up if the schedule is tight. So, when would I enter a completion guarantee? When I review the schedule and am confident that the job can be completed on time. Also, I need my suppliers and sub-contractors to agree to the same time frame. And unfortunately, I need my suppliers under a completion guarantee as well. If “Everything has to go right” to be done on time. I won’t sign a guarantee. Now for the dirty little secret. If I’m bidding a project with a completion guarantee. I want the penalty for non-completion to be severe. Extremely severe. Too many times an honest contractor will

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