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How to win projects and influence clients

Desalination & Water Treatment. How to win projects and influence clients. First step to success in any type of the project – LSTK, EPCM, BOOT – is FEED (Front End Engineering & Design). FEED is the only way to decrease the project risks and avoid guesswork at the project costing.

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How to win projects and influence clients

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  1. Desalination & Water Treatment How to win projects and influence clients

  2. First step to success in any type of the project – LSTK, EPCM, BOOT – is FEED (Front End Engineering & Design) FEED is the only way to decrease the project risks and avoid guesswork at the project costing

  3. FEED is rarely done in practice due to the following reasons • Short time for the technical offer submission - a tendency gaining momentum. • Constrained engineering resources the EPC contractor may allocate on demand for bidding • FEED requires higher level of interaction and transparency with the Client (proprietary information leak?)

  4. Second step to success is FEM (Front End Management). It has clearly defined tasks. • Prepare the project schedule • Define the scope of outsourcing and the subcontractors list • Prepare the project cancellation charges • Identify parts of the project subject to price indexation

  5. Project schedule is the only way to negotiate project delivery times and penalties. In 2010 IDE Technologies decided not to submit an offer for the Ashdod seawater desalination plant of 100 Mton/year due to a short delivery time of 3 years. (Global Water Intelligence, 2010, vol.11) Very honest step, I think.

  6. FEM may be performed only by big companies if the offer submission is more than 4 – 6 months. Knowing this situation consultants intentionally avoid these requirements in the project tenders to keep the number of bidders high. At the same time bidders routinely include FEED & FEM in any project subsystem specification.

  7. Third step to success is including detailed ITP – Inspection & Test Procedures – into the project scope. Consultants start talking about ITP after the bidder issuing the equipment orders already linking ITP scope to the delivery times. ITP problems are listed first in the project delivery delay causes.

  8. Fourth step to success is a product quality. It is measured by a number of criteria. • Energy consumption • Reliability • Maneuverability • Controllability • Operability • Maintainability

  9. Energy consumption is the only criterion well understood by bidders. But winner is eventually defined by the other criteria. Historically the project technical offers are prepared by the process engineer that does not have any backgrounds in Controllability, Reliability, Operability and Maintainability. Now reliability analysis report is a legitimate part of the tender submittals.

  10. The only way to influence the client is to enforce transparency in the project execution. Ultimate transparency means the same level of the information access as that of the project team. EPC contractors avoid transparency for fear of proprietary information leak. It stems from wrong self-rating of competitiveness.

  11. www.projenex.com offers GBE - an information technology that makes this wish list come true. • Execute FEED & FEM • Prepare ITP documentation • Meet the product criteria • Provide ultimate data transparency • And much more….

  12. GBE is a global business environment for Project/Plant life cycle. The cycle includes the following phases. • Engineering • Detail Design • Procurement • Construction management • Commissioning • Operation & Management

  13. GBE boosts production rates by a factor of 10…100. This is a range where human imagination simply fails, giving way to perplexity and shock. 2 weeks are enough to prepare full technical and commercial offers for mid-to-large-size desalination project.

  14. What makes production rates so high? • business automation • data validation • data transparency Business spans all project disciplines and phases: engineering, detail design, procurement, construction, plant operation and maintenance. Data includes engineering and economic data, documentation, project activities and outstanding issues, order tracking, etc.

  15. Business automation examples • Quotation auto-generation • Auto-generation of the project schedule and budget. • Auto-sizing of the equipment items. • “Copy-and-paste” and auto-scaling of the plant subsystems. • Auto-generation of RFQ specifications and order packs & payment schedules • Power equipment and instrumentation auto-wiring

  16. Data validation examples • Information sufficiency for the equipment ordering • P&ID consistency • Good engineering practice rules usage • Document control • Project milestones

  17. Data transparency Transparency means immediate access to any data. Anywhere. Anytime. It is a cornerstone of any multinational project activity collaboration. Designers Users Read onlypermission Read/Writepermission

  18. GBE gives instant access to practical knowledge of the project engineering & management. Small engineering companies become competitive with big ones commanding superior resources.

  19. GBE drives radical redesign of business infrastructure • Marketing becomes internet-driven and service-oriented (as opposed to hardware sales) • Easily measured profitability of any activity allows quick decision to outsource or not to • Company know-how becomes immune to staff turnover and documentation sales (no experience sharing) • Business reaps benefits of unlimited resources

  20. GBE radically changes contractor-client relationships • The client effectively communicates his/her needs and sees in real time how these needs are met and associated problems solved. (Domino’s pizza tracking pattern) • The client is granted unlimited on-line access to the project execution metrics. • Through consistency checking GBE eradicates ambiguities in the project scope definition – major culprit of the project failure.

  21. GBE brings up to 7% savings in the project costs • Less manpower – 3% • No errors in equipment ordering – 2% • Shorter project schedules – 2% Savings may reach US$ 25 million for SWRO plant of 100 Mton/year

  22. GBE has been successfully tested in the Cape Preston SWRO project (Australia, 50 Mton/year)

  23. GBE is free for use. You may start learning and using it now! GBE is a result of 10-year R&D based on 5 SWRO projects, total of 365 Mton/year (US$1350 million). More information you may find on http://www.projenex.com

  24. Thank you for your time GBE is a result of 10-year R&D based on 5 SWRO projects, total of 365 Mton/year (US$1350 million). More information you may find on http://www.projenex.com

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