Construction of heap leaching site at goldmine “X”. The engineering works are at the stage “P” of the design (about 30% completion), lack of documents for stage “RD” (detailed design), tight construction schedule.
Cases
EPCM. Construction of the gold heap leaching site
Baseline
Findings
- Mistakes in design solutions, discrepancies between sections of the design documents;
- Construction started before completion of design estimates;
- Insufficiently reliable contractor;
- Impossible to forecast schedule and costs;
- Lack of transparency in procurement: procurement standards and procedures, responsibility matrix, procurement plans etc.;
- Lack of standardized project management procedures;
- Discordant plans on different sections of the project;
- Project progress analyzed intuitively;
- Project data collected, consolidated and stored spontaneously;
- Diffusion of responsibility between employees.
Solution
Implementation of corporate project management system and personnel training:
- Implemented project planning and management tools, developed project management regulations;
- Developed consolidated project plan: estimated actual project schedule and budget;
- Increased employees’ competences.
Design monitoring:
- Corrected mistakes in design documents;
- Recommended alternative design solutions and equipment to reduce costs;
- Initiated replacement of design company due to its incompetence;
- Selected qualified design company to complete the design documents.
Procurement monitoring:
- Developed corporate procurement standards;
- Generated detailed procurement plan with comprehensive list of required materials, equipment and services;
- Monitored procurement plan, proactively identified supply risks;
- Selected suppliers of materials, services and equipment (market analysis, determination of low price limits, substantiated reduction of quotations);
- Accelerated procurement process through use of our own procurement personnel.
Construction monitoring:
- Monitored project execution plan and provided weekly progress reporting;
- Initiated replacement of general contractor;
- Tendered a new general contractor;
- Managed risks, in case of risk occurrence optimized schedule keeping to initial budget;
- Checked the contractor’s scope of works, submitted costs against arrangements, corrected advance payments;
- ANTAL GROUP specialist admitted the construction site to control the construction schedule; provide contractors with required design documents and technical solutions, check quantities of completed works according to completion statements, control measurements; participate in works acceptance; control use of construction materials; control construction works quality.
Outcomes
The facility has been constructed in short timeline with minimum downtimes:
- The project completed 2 times ahead of initial time of construction;
- 8% saving of assigned budget.
Such savings were due to strict control of project works by ANTAL specialists as well as due to implementation of innovative solutions during construction.