Well Services Report 2014

8.3. EncouragingEfficient ContractingProcesses

1

The well services contractor sector continues to consider IMHH Agreements and LOGIC Standard Contracts as being themost effective initiatives for promotingefficient contractingprocesses.

2

In contrast, reasonable levels of liability, the reduction of bureaucracy, the use of risk/reward contracts and the well servicesmodel ITTare identifiedasbeingunderusedwithin the industry.

3

The survey has revealed a generally improving trend in the use of these initiatives, but there is room for greater commitment to them inorder to improveefficiency, by simplifyingprocesses and reducing costs.

Figure10: Initiatives toEncourageEfficient ContractingPractices

4

Useof LOGICStandardContracts Useof IndustryMutual HoldHarmlessAgreements ReasonableLevelsof Liability Reductionof Bureaucracy EffectiveUseof Risk/RewardContracts UseofWell ServicesModel ITT

Good

5

6

Neutral

7

AverageRating

8

Poor

9

Source:Oil&GasUK

Source:Oil&GasUK

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