Building the Contracting Strategy for a First-of-Its-Kind Geothermal Development

Geothermal Project execution model

Developing a new geothermal project requires more than selecting the right technology. Project teams must also determine how engineering, drilling, construction, and specialist services will be procured and managed to achieve successful delivery.

For a pioneering geothermal development in Southeast Europe, Langenberg Management was engaged to design and facilitate a cross-functional contracting strategy workshop. The objective was to bring together engineering, procurement, commercial, and project stakeholders to establish a common execution strategy.

From Separate Work Packages to One Execution Model

Langenberg structured the workshop around the project's major work packages. Participants evaluated alternative contracting models and assessed how responsibilities, risks, and interfaces could best be allocated between drilling contractors, EPC contractors, specialist service providers, and the client organization.

The workshop extended beyond selecting a contractual model. It addressed the practical decisions required to move into procurement, including:

• How should the work packages be structured?

• Which evaluation criteria should be applied?

• Which decisions require formal governance?

• How should the supplier market be approached?

Langenberg Management's Contribution

Langenberg designed and facilitated the cross-functional decision-making process, structured the available contracting alternatives, and guided the evaluation of commercial, technical, and execution-related considerations.

Outcomes

The workshop resulted in:

• A preferred procurement and contract packaging strategy

• Evaluated contracting approaches for the major work packages

• Defined evaluation criteria and governance principles

• A roadmap for supplier engagement and procurement

• Alignment on key project risks, uncertainties, and execution decisions

The engagement provided the project team with a structured foundation for entering the market with a procurement strategy that was aligned across all key functions and supported effective project execution.