1. PLANT-BASED LARGE PROJECT ORGANIZATIONAL ALTERNATIVES Mickey Collins Pathfinder, LLC

2. Outline  Introduction  Background  Organizational Alternatives  Looking Forward  Q/A

3. Introduction

4. Paul M. (Mickey) Collins  Senior Executive Associate with Pathfinder, LLC.  Has more than 30 years of management, project management, planning, project controls, procurement and contracting experience in the manufacturing, fabrication, engineering and construction industries.  Has held progressively responsible supervisory and managerial positions in the Process and Manufacturing Industry in both domestic and international project environments.  Earned B.S. in Civil Engineering, Minor in Structures and also completed Graduate Studies in Engineering all at Texas A&M University.

5. Background

6.  The North American process industry has evolved over the last 2 – 3 years  Larger projects are more prevalent now than in the past 15 to 20 years.  Petrochemical companies are taking advantage of the abundant supply of less expensive natural gas; pipeline companies are having to move more product; receiving terminals are being converted to export terminals; etc.  This is putting a strain on the already stretched owner capital project development and execution organizations.

7. Background  Owners today are re-evaluating their existing organizational structures based on this influx in capital project activity.  Should owners staff up, outsource more, rely on pieced-together project teams or hire Project Management Contractors?

8. Organizational Alternatives

9.  Design Options  Build Your Own (Direct Hire)  Outsource  Pieced-Together Project Teams  Project Management Contractors (PMC)  Challenges

10. Organizational Alternatives  Build Your Own  Directly hire full team  Owner’s Team provides all Owner functions  Trained, and function as directed  Takes time  Must have sustained capital program

12. Organizational Alternatives  Outsource  Let your execution contractors manage themselves  Many Owners believe this should be the case  No Owner oversight  Less than desirable results

13. Organizational Alternatives  Pieced-Together Project Teams  Pick the ‘Best of the Best’  Can work well  Must have defined Work Practices  Can developed relatively quickly  Costly

14. Organizational Alternatives  Project Management Contractor (PMC)  Acts on Owner behalf  Mobilizes quickly  Slightly more costly than direct hire  Comes with own processes and tools  Owner provides oversight and assurance  Potential conflict with other contractors

16. Organizational Alternatives  Challenges  Owner must recognize their roll in Project Planning and Execution and be willing to fulfill this roll  This comes at a cost  Hiring someone else to fulfill this roll cannot be successful without Owner direction  Be cautious of PMC but should be considered

17. Looking Forward

18.  Projects will remain active for next 5+ years  Future Owner portfolio needs must be considered  Consider fiduciary responsibility  Marketplace has a huge impact on this evaluation  Consider all business drivers  Build your selected approach into your Project Execution Plan

19. Q/A

20. Contact Information Paul “Mickey” Collins Pathfinder, LLC consulting@pathfinderinc.com www.pathfinderinc.com Corporate Office 11 Allison Drive Cherry Hill, NJ 08003 P: (856) 424 – 7100 F: (856) 424 – 6414 Gulf-Coast Office 16225 Park Ten Place Suite 500 Houston, TX 77084 P: (281) 292 – 5655 F: (281) 419 – 9977 Calgary Cherry Hill Houston Mexico City