TECHNICAL SERVICES & NIGERIAN CONTENT

CONSTRUCTION AND PROJECTS DIVISION

CONSTRUCTION DEPARTMENT

MINUTES OF NEGOTIATION MEETING

DATE: Monday 8th October 2012

VENUE: ECP Mini Conference Room

TIME: 14:45HRS

SUBJECT: Negotiation Meeting for FSO Unity Replacement of Rotten Wood on Lay down
Areas Additional Works

PROJECT: REPLACEMENT OF ROTTEN WOOD ON LAY DOWN AREAS OF FSO UNITY

(ADDITIONAL WORKS)

Contract Ref.:

Participants:

Anthony ERONMWON (TEPNG) Onyeka EBIEM (SEACORR)

Otonye OBOM (TEPNG)

Copies Distribution: Participants +

- DGM, ECP
- Head Offshore ECP

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MOM: REPLACEMENT OF ROTTEN WOOD ON LAY DOWN AREAS OF FSO UNITY (ADDITIONAL WORKS)
 TECHNICAL SERVICES & NIGERIAN CONTENT
CONSTRUCTION AND PROJECTS DIVISION
CONSTRUCTION DEPARTMENT

Negotiation for Replacement of Rotten Wood on Lay down Areas of FSO Unity (Additional Works)

item MINUTES OF MEETING action date

1.0 AIM
To negotiate with Contractor on the additional works for the replacement of rotten
wood on lay down areas of FSO Unity.

2.0 BACKGROUND

2.1 Urgent notification 17060070 was raised and formal authorization requests for
the site work have been received by ECP from the ASSET.

2.2 As a response to anomaly raised, a survey was done on FSO UNITY Hawser
Tray Floor to verify the integrity of the wooden floor for the hose.It was
discovered that about 80% of the wooden floor has failed due to rot.

2.3 In view to close out these concerns, SEACORR was requested to carry out a
quick survey as they were on same platform executing similar jobs.

2.4 Detailed site survey was quickly conducted by an ECP and the contractor.

2.5 RFQ was requested from Builders Resources by TEPNG.

2.6 Contractor submitted a quotation for this work in line with company RFQ.

2.7 In order to close out the commercial aspects, negotiation meeting was arranged
with SEACORR by TEPNG ECP Division and C&P Contracts.

3.0 COMMENTS

3.1 BRNL representatives were welcomed to the meeting and brief introduction was
made.

3.2 TEPNG and BRNL reviewed the scope of work and identified the progress made
so far. The site work of the original scope and the additional scope had been
closed out

3.3 Total quote submitted by SEACORR according to TEPNG RFQ is US$ 80,000.00

Commercial Negotiation

3.4 A review of SEACORR quoted price for the scope of work was done and TEPNG
informed Contractor that her quoted price was too high. A discount of 30% was
initially requested by TEPNG.
3.5 SEACORR responded that she is not willing to give a discount from their
quotation stressing that the quote offered by them was just meant to do the work
3.6 TEPNG rejected such comment arguing that Contractor materials procurement
and other milestone charges sum are too high. TEPNG further requested that
SEACORR should take time to consider the request.
3.7 SEACORR took some time out to review its quotation and came with a reduction
of 5% of the entire some of 80,000.00USD.
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MOM: REPLACEMENT OF ROTTEN WOOD ON LAY DOWN AREAS OF FSO UNITY (ADDITIONAL WORKS)
TECHNICAL SERVICES & NIGERIAN CONTENT
CONSTRUCTION AND PROJECTS DIVISION
CONSTRUCTION DEPARTMENT

item MINUTES OF MEETING action date

3.8 TEPNG rejected the offered made by SEACORR of 5% discount of the original
sum.

4.0 CONCLUSION

4.1 This offer was highly negotiated and jointly agreed contract price now stands at
Seventy Six Thousand Dollars (76,000.00) for the execution of the additional works

4.2 The meeting ended at 15:45HRS

TEPNG SEACORR

Name: Anthony ERONMWON Name: Onyeka EBIEM

Title: Project Engineer Title: Project Engineer

Signature: Signature:

Date: Date

Name: Otonye OBOM

Title: Contracts Engineer

Signature:

Date

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MOM: REPLACEMENT OF ROTTEN WOOD ON LAY DOWN AREAS OF FSO UNITY (ADDITIONAL WORKS)