Flashcards in Objective 05: Organization of the Project Deck (13)
What must the Construction Company building the Plant decide on vis-a-vis the workload?
How much work it should do in-house and how much to contract to other firms.
What determines how a plant construction project is organized?
1. Scale of the Plant
2. Requirements of the Owner
What are some different approaches used for design and construction?
1. Reimbursable Engineering Procurement Construction (EPC)
3. Lump Sum EPC
Reimbursable Engineering Procurement Construction (EPC)
With basic engineering 10% complete, an engineering company is selected to do the detailed engineering, procurement, and construction
How is the engineering company paid according to the Reimbursable Engineering Procurement Construction arrangement?
The actual cost plus a fee for each project phase.
What is a disadvantage of using the Reimbursable Engineering Procurement Construction arrangment?
The total cost for the project is not known until all phases of the project are complete.
With the basic design engineering about 20% complete, the owner selects a company to complete the detailed design, order the equipment, and construct the plant.
How is the construction company paid according to the Design-Build arrangement?
The entire project is based on a final, lump sum payment
What is an advantage of the Design-Build Arrangement?
Risk for the owner is reduced since prince is fixed upfront.
When is the final payment often made for the Design-Build arrangement?
After completion of the performance run of the plant
Lump Sum Engineering Procurement Construction
When basic engineering is about 20% or more complete, the owner selects a company to do the design engineering. After the design engineering is complete and with the scope well defined upfront for accurate cost estimation, each phase is put out for bids on a lump sum basis and a contractor is selected for each phase of the project.
Who are at the top of a typical Organizational Chart for a Construction Project?
1. Plant Owner
2. Resident Management, i.e. plant manager
3. Quality Control