Being a Credible Business Partner

CH2M Global Project Operations Group

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Agenda

• Safety Moment

• Corporate Overview

• Background

• Global Project Operations

– Global Mobility

– Global Project Support

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Safety moment

Road traffic injuries: the facts

1.24 millionRoad traffic deaths occur every year

3 out of 4Of all road traffic deaths are among

pedestrians, cyclists, and motorcyclists

50%Road deaths are among men

#1Cause of death among those aged 15—29

Nearly 3,400 people die on the world's roads every day. Tens of millions of people are injured or disabled every year. Children, pedestrians, cyclists and older people are among the most vulnerable of road users. Prevent road traffic injuries and promote good practices by wearing your seat-belt, don’t drink and drive, don’t speed, and be visible in traffic.

World Health Organization

Turning challenge into opportunity

Corporate overview

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A promise to our clients

At CH2M, everything starts with building relationships of trust and confidence, and with complete commitment to our clients.

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Company facts

24,000Employees worldwide

$5.4Billion in revenue

50+Countries we

work in

8Years on world’s

most ethical companies list

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The way we do business

At CH2M, everything starts with building relationships of trust and with complete commitment to our clients. We aim to bring integrated solutions and future thinking wherever we work.

Safety

Our goal: Zero safety incidents, injuries and environmental impacts.

Ethics

We are committed to acting with integrity and faithfulness in everything we do, every day.

Sustainability

Meeting the infrastructure and natural resource needs of a growing world while balancing environmental, social and economic priorities.

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What we do

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Side-by-side, we help solve our clients’ biggest challenges

We begin by listening, by truly knowing our clients and their goals. We take their needs and challenges and make them our own. We anticipate obstacles and spot new opportunities. Above all, we focus all our knowledge, skill, and creativity on what our clients need to achieve — big or small, complex or straightforward — and help them find a way to get it done.

Governments Cities

Transportation WaterNuclear Energy

Industry Environment

We take pride in the projects we deliver with our clients, but we never forget what our work is really about: clean water to drink, affordable energy, sustainable cities for families now and in the future, more closely connected communities and so much more.

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We provide a broad array of services to clients in government and industry around the world

• Delivering safe, innovative approaches to managing high-risk, technically complex projects

• Providing comprehensive solutions across the energy value chain to develop and deliver the world’s energy resources

• Supporting decisions at every point in the water cycle to help clients balance economic, social and environmental needs

• Protecting public health, preserving the environment, restoring natural resources, and advancing safety and security

• Moving people and goods, connecting communities, and advancing global commerce through efficient and effective systems and facilities

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Case studies

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London, United Kingdom

Crossrail

• 10 percent capacity increase of London’s rail-based transport network

• More than 10,000 workers will be employed at more than 40 worksites throughout the course of the project

• An estimated £42 billion pounds will benefit the UK economy

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“Crossrail is a renewal for London, a new set of heart and lungs for the City. Few people have yet to gauge just what a difference it’s going to make...”

John PeltonCH2M’s Strategic Projects Director for Crossrail and Director of the Programme Partner Transcend

Dramatically reducing journey times and adding an additional 10 percent rail-based capacity to London's transport network

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Abu Dhabi, United Arab Emirates

Al Hosn Gas Shah Gas Development

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“In the Middle East, developing strong client relationships is critical to success. So when Al Hosn Gas’ venture partner on the Shah Gas Development unexpectedly withdrew during the project, we stepped up. They knew they could count on us to support them and make sure the project was kept alive. And now, it’s completed.”

Alex ShakarchiCH2M’s Deputy Regional Manager, MENAI; VP Outside Sales, Oil, Gas & Chemicals

• Processing one billion cubic feet of sour natural gas per day--enough to fill about 10 huge blimps--and turning that into 500 million cubic feet per day of safe natural gas and generating 10,000 tons of sulfur

• 40,000 staff and workers at peak

• 50 million hours worked with no injuries!

• The end result is more affordable electricity for the UAE that helps drive a stronger economy

Developing dangerous and difficult sour natural gas for a rapidly growing economy and population through a strong and lasting partnership

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Centennial, Colorado, United States

City of Centennial

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“The City of Centennial’s evolving public-private partnership with CH2M continues to improve the quality of services provided to our residents. Together we have found ways to save money, streamline processes and develop innovative ideas…”

John DanielsonCity Manager

• An award-winning partnership, recognized by APWA, ITE and NCPPP, delivering public works, code compliance and facilities/parks/fleet maintenance services

• Most-recent public works survey indicated 79% rate services as good or excellent

• CH2M brings leading-edge technology and innovation to ensure the community gets exactly what they need, when they need it

• 106,000 people are better connected to their city government and able to voice concerns 24/7 to the citizen response center

A collaborative partnership, working together to provide efficient and innovative services to the community

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Washington, D.C., United States

Anacostia Waterfront Initiative

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“More than anything, community and stakeholder involvement has been a key component of the initiative. Especially the highly-engaged collaboration between federal and District of Columbia government agencies working to bring this complex and intricate vision to life.”

Kathleen LinehanPrincipal in Charge

• Integrating multiple transportation, land use and land development initiatives and bolstering neighborhood livability in the nation’s capital

• Unprecedented partnership among 19 federal and District of Columbia government agencies

• More than 50,000 District residents live within a 10-minute walk from the Anacostia River

Revitalizing river waterfront and urban neighborhoods in a nation’s capital

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Shendra-Bidkin, India

Shendra-Bidkin Industrial Area Smart City

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“CH2M was really able to bring our full depth of technical experience to the program, drawing from our local and global experts to develop game-changing processes and systems to handle this complex project together with the client.”

Avinash PatwardhanCH2M Global Technology Director and Senior Technology Fellow

• The largest infrastructure program in India’s history

• 333,000 jobs to be created

• Situated along the historic Silk Road, one of antiquity’s most important routes for international trade

Promising India’s residents new pathways to economic vitality and vibrant urban living, with creative reconnection to its golden past

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Gdansk, Poland

Deepwater Container Terminal 2 Expansion

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“Construction of Terminal Two is of strategic importance to us, and we decided to entrust the Contract Engineer’s role to CH2M thanks to their strong, global experience in maritime ports infrastructure. They provided a great team with both local and international experience who are working closely with the DCT team, providing us with high-quality deliverables, timely communication as well as expert advice. I’m glad we made this choice.”

Maciek KwiatkowskiCEO, DCT Gdańsk

• EUR€90 million (USD$97 million) project aimed at expanding the existing, largest and fastest growing deepwater container terminal in Poland – DCTGdansk

• The new terminal will increase DCT Gdansk’s handling capacity by 1.5 million TEU (twenty-foot equivalent unit), doubling its current capacity to 3 million TEU

• Only deepwater container terminal in the Baltic Sea able to serve the biggest container ships in the world

Maintaining DCT Gdansk's competitive advantage and supporting a growing economy

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Down to Business

Global Project Operations

Global Project Support and Global Mobility

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Overview

OneHR’s Global Project Operations Group was established as a trusted

partner to the firm’s business development, operations and project

leadership teams. It is designed to provide specialized services in three

distinct areas:

Global Project Support

Global Mobility

Domestic Mobility

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Centralization of these services leads to enhanced strategic global business support.

Mitigate risk associated with having an internationally mobile work force

Propose cost savings and value-add solutions to help win and deliver work

throughout the world

Enhance staging and planning efforts for intelligent staffing and deployment

execution

Reduce the risk of not delivering on as-sold project gross margin

Provide subject matter expertise for all mobility related needs, including expatriate

assignment administration, immigration, tax, relocation and local labor law

Offer a highly optimized HR platform of systems, processes and tools for global and

domestic mobility.

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Global Project Support and Global Mobility assist in several areas of subject matter expertise

HR bid and

proposal

support

On the ground

project start-up

support

Expatriate

Administration

US & UK

Immigration

UK Right to

Work

US Temporary

Duty

Assignment

Cost EstimatesVendor

Management

Recovery of

Payment

Intra/Inter

region

relocation

Risk

Assessment &

Staff Planning

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Director, Global Project Operations

David Crosby

Global Project

Support

GPS Manager-Environment &

Nuclear; I&UE

Global Mobility

Team SupervisorSr. Mobility Advisor

March 20, 2015

TDA Consultant

Global Mobility

GPS Manager-Oil,

Gas & Chemicals

GPS Team Supervisor

GPS Manager-Water &

Transportation

TDA Consultant

Immigration/

Reporting

Relocation

Expat ConsultantTerms and Conditions

Consultant

Technology

Expat Consultant

Expat Consultant

Expat Consultant

Organization

24 Presentation Title

Global Mobility(GM)

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Global Mobility Mission

To maximize business and project results through strategic, compliant, and

effective full-service deployment of employees internationally.

• Aligned with policy supporting our business strategyStrategic

• Within Legal (tax, immigration) and Policy requirementsCompliant

• Employees receive the care and support neededEffective

• Global services and support via Global Mobility, HR Delivery, global vendorsFull Service

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Global Mobility Mission and Deliverables

OneHR Global MobilityCore Deliverables

Expert counsel, guidance, and solutions in the areas of immigration, tax, relocation, and local labor law including engaging third party providers

Assignment cost estimates to support proposal efforts and project accounting accrual needs

Terms and conditions, and the support infrastructure for creating assignments to new countries

Assignment agreements aligned with policy, applying consistent variables that properly balance the needs of the employees and the needs of the project and the firm

Expert Counsel and guidance in all elements of global mobility policy, authorized allowances, reimbursable expenses, benefits, and associated incentives to set Assignee's expectations

Ongoing formal and informal assessments of the satisfaction of expatriates with services and support

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Proposal

• Assess project requirements• Develop Project terms and conditions• Develop Cost Estimates• Determine new entry requirements, if required

Pre-Mobilization

• Confirm package and duration• Brief employee and confirm acceptance• Create specific cost estimates

Prepare assignment letter/contract•Brief employee on mobility policy and process

Initiate Immigration

Mobilization

• Obtain Visa • Initiate and deliver services (moving, health, tax, security, etc.)• Benefits enrollment•Request Certificates of Coverage• Calculate and initiate pay elements • Update employee records• Monitor and confirm time to boots on the ground

Assignment

• Annual Medical• Audit and process mobility payments• Coordinate vendor payments• ISOS Cases • Ongoing check-ins•Annual compensation process• Tax equalization process (compliance and payments)• Monitor expiration dates

Demobilization

• Determine end of assignment treatment• Brief employee on repatriation approach• Discontinue services and global benefits• Cancel Certificate of Coverage• Employee Records Update• Process Gratuity

Trailing Liability

• Tax support and follow

• Tax Equalization

• Final Reconciliation

International Assignment Lifecycle

Ongoing

Manage and report on

mobility data

Respond to employee

questions and issues

Respond to project/HR/business questions

and issues

Policy governance

and exception management

Vendor management

Program development

and benchmarking

Expatriate Administration

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Global Project Support(GPS)

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Enable project delivery as a single HR point of coordination from Pre-bid

to Start-up to ensure optimal coordination of people and resources on

major global projects and programs.

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Early Engagement

Core Deliverables

Expected Outcomes

OneHR GPS Mission

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OneHR GPSCore Deliverables

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Deployment Execution Planning (DEP) & Implementation

Strategic Staff Planning & Implementation

Create best practice systems, processes and tools

GPS Client Services

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Staffing Plan Development

Review RFP for any identified positions and

requirements

Key vs. Non-Key

Expat vs. Local

Internal vs. External

Penalties

Staffing Contacts

Market staff manager

Key discipline leaders

TADC

Create Staff Plan

Identify Candidates

Selection

Offer

Mobilization Tracking

Recommended for 5+ expatriates

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Identify responsible

parties for each task

HR Project Management

Own, update and utilize

for internal HR & other

GES meetings

Develop and analyze

DEP risk table for

staffing and deployment

Deployment Execution Plan Development

33 Presentation Title

Areas of Risk

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Potential risks

Is the project in a “territory” or similar location (e.g. Guam; Jersey;

Greenland; etc.)?

Does this location have an active payroll?

Is this a Nuclear project or are any potential employees coming from the

Nuclear Market?

Can the host entity sponsor foreign workers?

Is there a local HR presence?

Does this project require the use of expatriates; TDAs or other non locals

and has CH ever provided this type of labor to this project location/area

in the past?

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Will “Craft Labor” be used?

Are there Unions or Work Councils?

Is this a Joint Venture or similar?

Is the project in an approved location in accordance with Policy 501?

Is the project considered “FED” (project falls under a US Gov’t or “like”

client)?

Potential risks

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International Working Group and New Country Entry

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International Federal Working Group (IFWG)

• Was formed to support CH2M international federal programs in researching country requirements and providing the results to program teams.

• Experts from tax, treasury, legal, finance, audit, accounting, contracts, subcontracts, compliance, HR, security, insurance.

• Core members will reach out to other groups as required.

• Initiative is designed to proactively help the programs receive knowledgeable consolidated answers (in a timely fashion), reducing the unknown margins impacts and to ensure that management as well as the programs are clear about risks and requirements related to country specific performance.

New Country Entry

DepartmentLegal

ConsiderationsEntity timelines will differ

from country to country. It is important to engage with

the legal department as soon as possible to understand if entity

registration is required. If so we must then

understand the business registration requirements, set-up time, set-up cost, close-out costs for the

entity.

Timeline Anywhere from 2 weeks to

1 year depending on the country.

DepartmentTreasury

ConsiderationsThe process for opening a bank account, if required, cannot be started until an

entity is established. Requirements differ from

country to country and thus so do the timelines.

Contact treasury as soon as possible to identify a

suitable local bank and understand the timeline

and requirements such as set-up, deposit, minimum

balance, etc.

Timeline90+ days to open from the

day the entity is set up.

DepartmentHR

ConsiderationsThe total timeline to get set up and mobilized will

vary greatly depending on the host country, our current presence, the

scope of work, and duration of the project. Engage GPS as early as

possible in the go/-no-go decision to start identifying

the potential roadblocks early and to coordinate

efforts within the business to mitigate risk.

TimelineVaries depending on

multiple factors.

\

DepartmentHR/BG Staff Manager

ConsiderationsIdentify the staff mix; local

hires, other country nationals, and expats. Each employee type will have an

impact on the entity set-up, payroll, immigration, cost, taxes, and support.

TimelineVaries depending on local

market, staff mix, and availability.

Entity

DepartmentPayroll

ConsiderationsEngage Global Corporate

Payroll to assess and make recommendations for payroll options in the

project country. Options to consider include setting up

payroll internally versus using a third party

provider. The business must also understand any

payroll and wage requirements based on

local labor law.

Timeline60-90 days from the day

the bank account is set up.

Bank Account Payroll Staffing Mobilization

ConsiderationsPolicy 501 Country

Approval is required before operations can be performed in any country. Appropriate due diligence

must be exercised to assess risk in several areas, including but not limited to

tax, entity and licensing, delivery, insurance,

security, finance, HR, corruption, and regulatory issues. Levels of approval will vary based on scope, duration, frequency, and

depending on time from due

diligence team.

501 Approval

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Thank you

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