Mining & Infrastructure - Advisory, Delivery, Recovery

Mining’s Hidden Costs: Why Your Project Estimates Are Failing – And the Digital Path to Profitability

In our previous article, End-to-End Project Enablement for Owner Mining, we outlined how TacminMadini’s IPD model bridges the gap between feasibility and execution. But what happens when execution falters—not from lack of planning, but from flawed cost models, disconnected tools, and reactive systems?

 

This follow-up digs deeper into the root causes behind project drift—specifically, how estimating practices and planning silos undermine profitability—and introduces a digital path to cost control and delivery discipline through our embedded Digital Construction Management (DCM) approach.

 

This is where most systems fall short. Traditional estimating platforms, siloed planning tools, and reactive cost tracking simply weren’t designed for the intensity of modern project delivery. They assume steady progress, clean handovers, and consistent capital. The mining sector knows better.

 

At TacminMadini, we’ve lived this reality for decades — across startup mines, distressed sites, and remote infrastructure corridors. We’ve seen what happens when the estimating model is disconnected from execution, when procurement timelines collide with site conditions, and when rework becomes the project’s biggest cost driver. That’s why we don’t talk in hypotheticals. We built a solution based on what actually works.

Cut the Drift – Build with Discipline from the Start

TacminMadini’s Digital Construction Management system isn’t a bolt-on, it’s embedded. It’s been implemented across every one of our projects since inception, and it’s transformed how we approach cost control, planning, and delivery — especially on projects with limited capital and narrow delivery windows.

 

At its core, it links the three elements most prone to misalignment: cost, schedule, and resource logic. The estimate isn’t just a pricing tool — it becomes the execution model. Procurement doesn’t run ahead of planning — it’s built into the framework. And reporting isn’t an afterthought — it’s real-time, with forecast models that evolve alongside the project.

 

The result? Decisions grounded in data, not assumptions. A project team with clarity, not guesswork. And a commercial position that can be defended, audited, and delivered with confidence.

 

If You're Still Estimating in Excel, You're Already Behind

f you're still building tenders in Excel, you're exposed—both commercially and operationally. DCM transitions contractors from disconnected, manual workflows into a digitally structured environment where unit rates, resource logic, and delivery assumptions are not only visible—they're traceable, auditable, and live.

 

Instead of rebuilding models post-award, your tender becomes your execution framework—linking BOQ items to planning, progress valuation, and cost-to-complete models.

 

This enables:

 

  • Faster, more accurate pricing through structured templates and libraries.
  • Improved resource analysis across fleet, labour, and indirects.
  • Real-time scenario modelling and what-if analysis.
  • Margin transparency and traceability for claims, rework, and progress tracking.
  • Structured estimating becomes your defence line in negotiations and your control system during execution.

 

Turn Feasibility into Execution-Ready Logic

Feasibility studies often paint the ideal scenario—but what happens when plans hit reality? Without a structured delivery model, project intent gets lost in the transition from studies to site. This approach directly extends the principles shared in our earlier article, where we emphasised the importance of aligning feasibility with delivery. Now, we explore how that alignment becomes executable when estimating models are built with cost traceability and live delivery logic.

 

TacminMadini’s DCM is embedded in our broader Integrated Project Delivery (IPD) model. That means from early trade-offs to execution oversight, every cost model is built with performance in mind. Whether you're leading an owner-mined project or adjudicating contractor bids, DCM gives you the tools to test feasibility, validate pricing, and align capital to progress.

 

Across the project lifecycle:

 

  • Shadow bid your contractor estimates with real-world benchmarks
  • Inform feasibility studies with executable cost structures and delivery assumptions
  • Align estimates with procurement packages, execution schedules, and capital plans
  • Forecast variations, rework risk, and subcontractor exposure—before they land on site
  • Scenario testing (e.g. diesel vs diesel-electric fleet trade-offs) to optimise margin

 

This approach has delivered proven results—from greenfield startups to brownfield upgrades.

 

Proven Tools. Real Results.

No Excuses. What makes this system different isn’t the software — it’s the execution behind it. Our teams use this platform to recover failing contracts, guide feasibility-stage projects into execution readiness, and deliver full mine builds under strict capital mandates. It's how we’ve built our reputation — not by promising results, but by delivering them.

 

In an industry that’s long tolerated drift, TacminMadini’s Digital Construction Management offers something else: discipline. Not just in how you plan, but in how you execute.

 

We Don’t Demo PowerPoints – We Demo Projects

Contact us to arrange a walk-through of a real estimating model built using DCM. You’ll see:

  • The unit rate build-up with logic tied to tyres, fuel, GETs, repairs, service crews.
  • Direct linkages to planning, valuation, and change workflows.
  • How your tenders can become your control model from day one.

 

Contact: Kean Blaauw

 kblaauw@tacminmadini.com.au  +61 452 582 048  Kean Blaauw

 Digital construction management | TacminMadini 

 

This Isn’t Software. It’s Structured Project Intelligence. Digital Construction Management is a core service within Tacmin.ai, TacminMadini’s digital project intelligence platform. It replaces conventional, spreadsheet-based estimating with structured, system-integrated environments—built to improve bid accuracy, defensibility, and execution alignment. Developed from decades of project delivery in mining and infrastructure, this service links every estimate and cost model directly to real-world data, resource logic, and performance outcomes. It's not just about pricing—it’s about preparing tenders that can be confidently delivered, tracked, and defended throughout the life of the project. Applied on every TacminMadini project since inception—and powered by Schneider Electric’s AI-driven software, used by over 50,000 industry professionals globally—this structured approach enables contractors and owners to develop commercially sound, execution-ready bids, ensuring continuity from submission through to on-site delivery.