Eni Ghana Exploration & Production Ltd. Post Award Contract Management Addressing Vendor Payment and Invoicing Challenges Nov, 2019
Index Overview of Post Award Contract Management ▪ Key Contractual Clauses ▪ Challenges and Improvement Areas ▪ Q&A ▪ eni ghana 2
Contract Management Process Flow Procurement Department Finance Department Handover Goods Submission Call Off or Contract to Kick Off Receipt or Feedback of Final Payment Work Award Contract Meeting Certification Invoice Order Holder of Service Contract Holder/Technical Unit Contract Holder/Technical Unit 3
Post Award Contract Management Some key Post Award Contract Management clauses Contractor must pay attention to: ▪ Contract Duration and Termination ▪ Invoicing ▪ Payment ▪ Liquidated Damages ▪ Insurance ▪ Taxes ▪ Work order procedure ▪ Contract Administrator Contact details or Notices ▪ Applicable Laws ▪ Financial Securities All Contract Terms and Conditions must be adhered to by the Contractor eni ghana 4
Challenges and Improvement Areas ▪ ▪ Reading and understanding of contract payment terms modalities Contractors to read and understand the impact of cost ▪ related clauses in the Contract (e.g. insurances, taxes, Reading and understanding of contract Pro-forma and Invoicing etc.) at the pre-contract award stage before accepting modalities to sign the Contract ▪ Reading and understanding of Contract Compensation and key notes (e.g. documented cost with it supporting documents) ▪ Prompt submission of Pro-forma Invoices for ▪ Late Submission of Pro-forma Invoice along with relevant supporting certification and acceptance documents (e.g. field tickets/timesheets) ▪ ▪ Submission of Final Invoice instead of Pro-forma Invoice for Correctness of details on both Pro-forma and Final certification Invoices ▪ Submission of Final Invoice to wrong address not indicated in the ▪ Correct and unquestionable supporting documents Contract ▪ Incorrect information on Pro-forma Invoice or Final Invoice: ▪ Approved procedure for execution of work, submission ➢ Wrong quotations of contractual Rates of Pro-forma and Final Invoice must be followed at all ➢ Wrong Contract number on Pro-forma invoices and/or Final Invoice times ➢ Repeated mistakes or rejection of Contractor’s Pro -forma Invoice ➢ Incorrectness of Final Invoice with pre-approved Pro-forma Invoice ▪ Up to date BOG exemptions or inform COMPANY of any ▪ Performance of Service without approved Call off difficulties with BOG in order to pay in local currency at ▪ Contract Variations the agreed rates in the contract ▪ Issues of BOG exemptions for Vendor payments in foreign currencies (FOREX) ▪ 5 Issues with insurance certificates submission to COMPANY
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