Case Study - Perth LNG
Contractor Transition on the Gorgon LNG Project
Following a change in market conditions, our client needed to focus on cost reduction.
Our client awarded a contract to their Joint Venture partner for the Engineering, Procurement and Construction Management (EPCM) of the LNG Downstream and logistics portion of the multi-billion dollar Gorgon LNG project.
Following this, market conditions changed rapidly which meant that our client needed to focus on cost reduction, resulting in many contract end dates needing to be brought forward. This meant that future roles would no longer be engaged under the Joint Venture, instead they would be contracted through our client, through their preferred agency partner.
NES Fircroft are a global supplier to the client and the largest supplier locally, and were engaged on this scope of work.
NES Fircroft has a network of offices across Australia and a wealth of experience in managing contractors in-country.
Our experienced teams devised and managed a transition and onboarding plan:
- We established a project team for this specific scope of work and appointed key contacts for each department, providing clear guidance to both the client and the contractors throughout the process.
- We developed a transition presentation which also detailed the payroll process and contractor benefits, and presented this in person to all affected contractors in each required location. Through attending the site in person, our project team could answer questions in real time as well as completing and administering onboarding paperwork, all of which helped the efficiency of the transition process.
- Key project milestones were put in place to ensure that the project remained on track and through working closely with the client we were able to ensure minimal disruption throughout the transition process.
The results of our support
The initial phase resulted in an additional 70 heads contracted through NES Fircroft onto the Gorgon project which delivered an annual cost saving of AUD $2.5M to our client.