Budget/Estimate Reviews:
A project needs a realistic budget to stand a chance of success, and that opportunity can be lost before a tradesmen works a single hour on site. Poorly defined scope, optimism bias and ‘rose tinted’ memories of previous projects can all impact on the realities of setting a clear Budget and Schedule for a Project.
External and impartial review at a Pre-FEED or Concept stage can add significant value to the risks and probabilities of securing success in a challenging market. By engaging with a non-biased, impartial consultancy with a significant back catalogue of projects experience, both successful, and otherwise, our clients have the opportunity to set a budget/estimate with the risk profile to go with it.
Procurement & Tendering:
Many organisations without a recognised PMO (Project Management Organisation) or Project Delivery team are geared up and responsible for the manufacturing of products which are ultimately sold on. Taking on a CAPEX project for a plant/facility with the same team or mentality as delivering an organisations primary business output inevitably leads to challenges that can easily be avoided.
Over the years we have unfortunately seen many companies issue high impact, high value long lead vendor equipment packages on the same terms and conditions as they would for placing orders for their stationary.
At TVC we have years of experience in preparing, negotiating and delivering contractor/vendor workscopes on terms and conditions that are suitable for the scope of work/packaged items being procured.
The letting of subcontractor and vendor packages on bespoke terms and conditions can easily be tied into an organisations existing procurement and accounting systems and provides greater surety and risk mitigation should expectations not go to plan.
Commercial Strategy:
For clients engaging on a Capex project, the selection of contracting styles is often made based on the level of information available. Poorly defined scopes lead to reimbursable style contracts in a bid to get ahead early and make inroads into a challenging schedule.
Whilst early engagement is often a good strategy, the balance of risk remains solely with the client in these circumstances with little for the contractors to gain by exceeding expectations. Selecting the right strategy for each projects circumstances can save millions of pounds. TVC have written commercial strategies for a significant number of projects covering many unique and challenging projects. The strategy along with a well written contract can provide each client with the assurance that they have managed the risk profile of the project/task correctly from a position of clear understanding.
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