Engineering - If the intended project was carried out on a design and construct basis, our engineers apply preliminary designs from the engineering company and generate 3D spatial data models for procurement and construction engineering purposes. We determine work breakdown structures during the engineering phase and execute activity scheduling processes to compile project life cycle models. The methods above are applied to select the correct equipment size and construction resources.
Procurement - Our estimators compile project life cycle cost estimates using formal quotations from OEMs for the selected equipment during procurement using formal quotations from OEMs for the selected equipment. The above results produce a zero profit margin total project cost estimate of what it would cost the owner to execute the project. Concurrent with the owner project cost estimate, the contractor is earmarked with bills of quantities for conventional unit rate pricing. This makes it possible to analyse owner versus contractor comparisons (costs, equipment, production, milestones, etc.)
Commercial contract - By way of a tender analysis of the resources and associated costs proposed by the contractor, using the owner price as the benchmark, in collaboration with the Client, makes it possible to investigate various contract types with the contractor. This tried and tested process has several benefits over the conventional tender method, including but not limited to the following:
- if the contractor cannot secure the proposed equipment, it can be supplied via the EPC contract.
- the estimated project costs are known, and overhead markup and profits can be negotiated and are transparent.
- the project can be executed with a small owners team.
- the client has much more control over the contract than a conventional unit rate contract.
- from inception, the Client is in the position to execute the project on an owner-operator base.
- the project is not exposed to the risks referred to in our article "Adverse effects of small equipment.."
- the local contractor benefits from the training and experience to carry out projects with large and correct equipment sizes.
For more information on our EPC solutions for large bulk earthwork projects, contact one of our specialists.
