CMAS CH2M HILL Material and Subcontract Management System Paul Derrick CH2M HILL, Inc. Director Subcontracting CEP October 13 & 15, 2009

CH2M HILL TODAY 24,000 + employees 100 percent owned by our employees 2008 Revenue $6 billion Spend $4.7 billion Operations on all continents 3 Divisions, 11 Business Groups Delivering “really cool” projects: London 2012 Olympic Games Panama Canal Expansion Program MASDAR, the world’s first carbon neutral city Abu Dhabi ENEC - UAE Nuclear Program 3/18/09

WHY MANAGE SUBCONTRACTS ? Construction subcontracts can account for 30-40% of project cost Liabilities and risks remain with the Contractor and cannot be subcontracted Progress Measurement and Payment Change Management and Schedule Management is critical to project success Technical / Quality compliance Health, Safety, Security, & Environmental Risk Mgmt Historical Data, Good, Bad and Ugly

CH2M HILL Subcontracts Management CH2MHILL’s CHALLENGES AND GOALS CH2M HILL Subcontracts Management Engineering Procurement Construction Select and implement an automated system for planning subcontract requirements, performing the subcontracting process, administering subcontracts, and managing the performance of subcontractors. System must be capable of: supporting 11 diverse business groups being adaptable to international application providing direct access to CH2MHILL and its Clients and subcontractors performing the entire process electronically facilitate secure and remote web based access scalable to support the smallest to largest projects interface with other CH2MHILL business systems automated smart functions for $’s

CH2MHILL’S CHALLENGES AND GOALS Legend: Blue – External SubContractor Access Green – Internal CH2MHILL Access Only Subcontracts Planning Planning SOW and Requisitions Sourcing & Qualifications Inquiries & Addenda Bid Tracking & Evaluation Subcontract Agreement Subcontracting RFI Mgmt Work Directives Potential Change Orders Change Order Requests Change Orders Administration Quality Inspections Performance Tests Safety Violations Deliverables & Submittals Schedule of Values Progress Measurement NCR’s Notices to Comply Back-charges Applications for Payment Agreement Closeout Performance Evaluation Management 6

CMAS SYSTEM FUNCTIONALITY Subcontract Strategy and Planning. Automated Subcontractor / Supplier Profiles and Qualifications Review. Electronic Statements of Work / Requisitioning / Intelligent Schedule of Values. Automated Soliciting and Receipt of Proposals. Subsequent Bid Analysis based on Schedule of Values and E Signature Approvals. Agreements with E Signature and Schedule of Values incorporated. Automated Approvals and Alerts for timely Subcontract Administration. Automated Change Management and Back Charges with $’s and E Signature. HSSE Violations and Quality NCR’s automated follow up. Progress Measurement applying Schedule of Values. Electronic Notices to Comply. Applications for Payments using Schedule of Values. Agreement Closeouts using Schedule of Values, Change Orders and Back Charges. Subcontractor Performance Evaluations to compliment Qualification reviews.

E - PORTAL ACCESS Procurement http://goldrun.amr.ch2m.com/forms/frmservlet?config=mars_sup 8