Multiple Partnering Consortium A Case Study Greg Holthouse, Fru-Con Dwayne Wilson, Fluor CII Annual Conference 2001

Introduction Project Client Contract Value Tissue & Towel Plant Cape Girardeau Jan. ’98 – March 2000 Client Procter & Gamble Contract Value $350+ million

Presentation Outline Introduction and video Use of CII Best Practices Partnering Team Building Constructability Zero Accident Techniques Conclusion

Project Organization Chart Fru-Con/Fluor Daniel Joint Venture Valmet New Site Consortium Procter & Gamble

CII Best Practices 7.2 Partnering 7.1 Team Building 2.1 Constructability 11.1 Zero Accident Techniques

CII Best Practice Partnering Objective Partners invest unique strengths to contribute to project success.

CII Best Practice Partnering Actions and Results Value engineering, collaborative measures Avoided more than $50 million in capital costs. Integrated start-up plan Gained an additional $20 million in revenues. Set new benchmark for start-up.

CII Best Practice Partnering Objectives Achieve continuous feedback in all directions and focus on continuous quality improvement.

CII Best Practice Partnering Actions and Results Feedback incentive program: Improved cost, safety, quality, and schedules. “5G” — owner’s most productive paper machine. Blended, spelled out work processes from JV. Fewer contractual, procedural disputes.

CII Best Practice Team Building Objective Focus, align, and motivate team.

CII Best Practice Team Building Actions and Results Consultant-led alignment meetings Ensured working toward common goals. Five milestone celebrations Motivated team to accomplish all goals. 50/50 joint venture by two contractors Ensured common financial objectives.

CII Best Practice Team Building Objective Remove roadblocks to project success.

CII Best Practice Team Building Actions Regular meetings at job site and with joint venture, consortium, and client. Internal and joint alignment sessions held at critical times. Results Dispute resolution process streamlined. Challenges proactively resolved; team remained aligned.

CII Best Practice Constructability Objective Integrate construction input into planning, design, and field operations.

CII Best Practice Constructability Actions and Results Start-up driven, resource-loaded schedule Project milestones reached before contract dates. Changes in scope and change orders limited Project delivered under owner-established cost goal.

CII Best Practice Constructability Objective Improve productivity.

CII Best Practice Constructability Actions and Results Schedule flexibility Enabled early training for plant personnel. Some operations started prior to finish. Early release from owner for site work Enabled completion of project ahead of schedule. Utilized lessons learned from similar project

CII Best Practice Zero Accident Techniques Objective Provide safe environment for all workers.

CII Best Practice Zero Accident Techniques Actions and Results Pre-employment and random substance abuse testing Ninety-four percent passed. Behaviors observed Practically 100 percent commended for safe behavior.

CII Best Practice Zero Accident Techniques Objective Instill zero-accident mentality.

CII Best Practice Zero Accident Techniques Actions Pre-job training, on-site orientation for 7,200 Over 2,700 weekly safety meetings Trained 455 supervisors Results Zero lost-time accidents Over four million safe hours worked OSHA recordable rate of 0.42

Conclusion A commitment to utilizing the CII Best Practices will aid in establishing a win/win result for owner and contractor. Partnering Team Building Constructability Zero Accident Techniques

Implementation Session Panelists John Moseley Procter & Gamble Dwayne Wilson Fluor Pat Sanders Fluor Greg Holthouse Fru-Con Construction Bill Gregerson Fru-Con Construction