EPCM. Project management for general contractor

Customer is general contractor who has been awarded bank-financed tender on reconstruction of republican subordinance road. Limited budget, tight schedule.

• Mistakes in design documents, discrepancies between design sections;
• Quotation calculated by general contractor did not reflect actual cost of construction;
• Low accuracy of profitability estimated at tender preparation stage;
• Lack of justified selection of project execution option;
• Lack of detailed works schedule;
• Intuitive machinery mobilization plan;
• Multiple external counterparties (suppliers, subcontractors);
• No clear distribution of responsibility between members of the general contractor’s project team.

• Assessed existing project design documents;
• Re-estimated works based on existing design documents (drawings);
• Compared drawing-based works estimates with tender documents;
• Developed project Work breakdown structure (WBS), then identified construction operations including works estimated based on drawings (over 20K items);
• Identified resources required for construction operations (employees, equipment) along with planned labour costs for specific construction works;
• Identified materials requirements and consumption;
• Calculated individual hourly rates of the resources (employees, equipment) for use in estimation of prime cost;
• Updated market prices for materials for further use in estimation of prime cost;
• Identified direct project costs based on planned volume of works, labour costs and materials consumption;
• Identified indirect project costs based on provided data and own estimates;
• Calculated planned (basic) project prime cost using resource method;
• Compared planned prime cost to the contract price, identified deviations;
• Compared planned prime cost with preliminary budget, identified deviations;
• Estimated four options of project execution, selected the most acceptable option;
• Identified project works sequence, developed detailed project schedule.

Basic project model (basic project plan) has been developed using Spider Project software, including all project parameters (volumes, resources, materials, schedule, costs) for further use in project monitoring including as follows:

• Planned project cost and revenue;
• Estimated risk reserves (rise of material prices, downtime, etc.);
• Planned schedule, resources flow (demand and mobilization).

Finally, the Customer was provided with full-scale project view enough for further successful execution.