Fluor 2007 Annual Report Download - page 36

Risk Management We believe that our ability to assess, understand and gauge project risk, especially in
difficult locations or circumstances or in a lump sum contracting environment, gives us the ability to
selectively enter into markets or accept projects where we feel we can best perform. We have an
experienced management team, particularly in risk management and project execution, that helps us to
better understand potential risks and, therefore, how to manage them. Our risk management capabilities
result in controlled cost and timely performance which in turn leads to clients who are satisfied with the
delivered product.
General Operations
Our services fall into five broad categories: engineering, procurement, construction, maintenance and
project management. We offer these services independently as well as on a fully integrated basis. Our
services can range from basic consulting activities, often at the early stages of a project, to complete,
sole-responsibility, design build contracts.
• In the engineering area, our expertise ranges from traditional engineering disciplines such as piping,
mechanical, electrical, civil, structural and architectural to advanced engineering specialties
including simulation, enterprise integration, integrated automation processes and interactive 3-D
modeling. As part of these services, we often provide conceptual design services, which allow us to
align each project’s function, scope, cost and schedule with the customer’s objectives in order to
optimize project success. Also included within these services are such activities as feasibility studies,
project development planning, technology evaluation, risk management assessment, global siting,
constructability reviews, asset optimization and front-end engineering.
• Our procurement team offers traditional procurement services as well as a new supply chain
solutions model that is aimed at improving product quality and performance while also reducing
project cost and schedule. Our clients benefit from our global sourcing and supply expertise, global
purchasing volume, access, technical knowledge, competitive pricing and attention to service. Our
activities include sourcing, material control, buying, procurement management, expediting, supplier
quality inspection, logistics and field material management.
• In the construction area we mobilize, execute, commission and demobilize projects on a
self-perform or subcontracted basis or through construction management as the owner’s agent.
Generally, we are responsible for the completion of a project, often in difficult locations and under
challenging circumstances. We are frequently designated as a program manager, where a client has
facilities in multiple locations, complex phases in a single project location, or a large-scale
investment in a facility. Depending upon the project, we may be the primary contractor or we may
act as a subcontractor to another party.
• Under our operations and maintenance contracts, our clients ask us to operate and maintain large,
complex facilities for them. We do so through the delivery of total maintenance services, facility
management, plant readiness, commissioning, start-up and maintenance technology, small capital
projects and turnaround and outage services, on a global basis. Among other things, we can provide
key management, staffing and management skills to clients on-site at their facilities. Our operations
and maintenance activities can also include routine and outage/turnaround maintenance services,
general maintenance and asset management, and restorative, repair, predictive and prevention
services.
• Project management is required on every project, with the primary responsibility of managing all
aspects of the effort to deliver projects on schedule and within budget. Fluor is often hired as the
overall program manager on large complex projects where various contractors and subcontractors
are involved and multiple activities need to be integrated to ensure the success of the overall
project. Project management is responsible for developing project execution plans, detailed
schedules, cost forecasts, progress tracking and reporting, and the integration of the engineering,
procurement and construction efforts. Project management is accountable to the Client to deliver
the safety, functionality and financial performance requirements of the project.
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