What is an Early Work Agreement?
An Early Work Agreement is a contract governing any preliminary works to be carried out prior to the finalization of a full contract package (FCP). It represents a limited area of defined works to proceed. It has become an element of project strategy nowadays more frequently used than in the past.
Why? Because schedules are getting shorter and time is never enough. We see this trend in the wind, solar farm, semi-conductor and oil & gas construction projects.
It is advisable early in the planning or pre-construction phase to de-risk schedule risk in the construction phase by mitigating time constraints, cost and scope risk through the delivery of early works contract packages prior to the commencement of the main construction works.
Manufacturing and delivery of core items or equipment has often spoiled the schedule causing project delays. The outcome of the defined early works process plant projects for example has the purpose to be able to place purchase orders early. More than 90% of all projects encounter delay because of late placement of purchase orders for long lead items.