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Black & Veatch excels at integrating design, equipment, and construction to achieve demanding project implementation goals. Through strong relationships with top OEMs, constructors, and specialty firms, a total project solution can be tailored to meet a variety of Client needs. Experienced delivering major projects around the world, Black & Veatch is flexible in contracting approach and can help you develop and implement the project execution methodology that best meets your objectives. Basic approaches and their differences include:
Traditional Multiple Lump Sum |
Pros |
Cons |
Most Owner Involvement / Control |
Requires Diligence to Achieve Integration of Multiple Contracts |
Equipment & Contractor Preferences |
Price Certainty Achieved Later in Process |
Owner / Engineer Collaboration to Achieve Goals Most |
Owner Staff Required |
Opportunity for Lowest Cost (Owner Keeps All Savings) |
Potential for Christmas Tree Effect |
Opportunity for Shorter Total Schedule |
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Pros |
Cons |
Risk Assumed and Managed by a Single Entity |
Critical Importance of Early Definition |
Establish Expected Costs Earlier |
Capital Cost Premium for Undefined Scope & Risk |
Less Potential Scope Gaps |
Less Owner Control, Flexibility |
Preferred by Financial Community |
Slightly Longer Schedule |
Reduced Owner Staff Requirements |
Eliminates Many Contractors (Technical & Financial Strength) |
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Negotiate Changes |
Incentivized Open Book EPC |
Pros |
Cons |
Owner Decision Involvement / Control Throughout |
Price Certainty Later (But Target Established Early) |
Reduced Owner Staff Requirements |
Contractor Shares % of Savings (Incentives) |
Early Definition Less Critical |
Risk Is Shared |
Promotes Team Approach Between Owner and Contractor |
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Shorter Schedule |
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Proven Success Driving Down Costs, Meeting Schedules |
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Book Can Be Closed at Anytime |
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Risk Is Shared and Goals Aligned |
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