1. Multiple Partnering Consortium A Case Study Greg Holthouse, Fru-Con Dwayne Wilson, Fluor A Case Study Greg Holthouse, Fru-Con Dwayne Wilson, Fluor CPI Conference 2001

2. Multiple Partnering Consortium Greg Holthouse Fru-Con Greg Holthouse Fru-Con CPI Conference 2001

3. Multiple Partnering Consortium Dwayne Wilson Fluor Dwayne Wilson Fluor CPI Conference 2001

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

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

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

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

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

9. 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. 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

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

11. 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. 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 Partnering

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

13. 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. 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

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

15. 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. 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 Team Building

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

17. 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. 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

18. Objective Improve productivity. Objective Improve productivity. CII Best Practice Constructability

19. 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 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 Constructability

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

21. Actions and Results Pre-employment and random substance abuse testing -Ninety-four percent passed. Behaviors observed -Practically 100 percent commended for safe behavior. 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

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

23. 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 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 CII Best Practice Zero Accident Techniques

24. 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 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

25. Implementation Session Panelists John MoseleyProcter & Gamble Dwayne WilsonFluor Pat SandersFluor Greg HolthouseFru-Con Construction Bill GregersonFru-Con Construction John MoseleyProcter & Gamble Dwayne WilsonFluor Pat SandersFluor Greg HolthouseFru-Con Construction Bill GregersonFru-Con Construction