ABB signs Strategic Supply Agreement with Fluor
23 November 2009
ABB has signed a long-term cooperation agreement with Fluor Corporation, the major US based engineering, procurement and construction (EPC) contractor, giving ABB a preferred status in the supply of automation, communications and electrical supply systems during the planning of Fluor’s contracts. Read more
Fluor is a Fortune 500 company that delivers engineering, procurement, construction, maintenance (EPCM) and project management to governments and clients in a wide range of industries around the world.
By designating ABB as a trusted and competent partner, the agreement allows Fluor to provide a better contract offering to its clients, reduce total cost of ownership control risk, and cut total project time, increasing Fluor’s ability to meet clients’ stringent capital project requirements.
Early involvement of Fluor’s suppliers promotes timely specification development, thus allowing parts and materials to be ordered earlier, helping control both schedule and cost. This agreement covers the supply of ABB’s complete range of products, including full electrical systems from 400kV Pylon to Low Voltage Distribution, Automation and Safety Systems, Power Management, SCADA, Telecoms and Instrumentation Systems. This allows Fluor to select known compatible products to reduce interfacing costs, risks and project change requests.
As well as supplying products to Fluor, ABB is also able to operate as a Main Automation Contractor (MAC), taking total responsibility for the management of the automation and electrical design, selection, manufacture, installation, commissioning and after-sales support. It maintains contact with all contractors involved in the project, reducing the need for the client or project management contractor to co-ordinate and pass information between many different parties. Just as with Fluor’s supplier integration activities, clients ultimately benefit from a more efficient project at all stages by using a MAC approach, reducing the risks of exceeding schedules and planned costs.
As one of several preferred suppliers, ABB will be chosen to supply particular contracts based on its footprint in the relevant country and any existing agreements with the end users. As a global company with offices and establishments all over the world, ABB would be suitable for a large number of the contracts that Fluor propose to become involved with.
As well as offering benefits to Fluor and its clients, the agreement benefits ABB by offering globally negotiated terms and conditions (always a time consuming function in any project), a standardised way of working with Fluor and its clients, and the sharing of prospective project intelligence to greater benefit both companies and their clients.
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