Black & Veatch's IOB approach combines a relentless focus on cost and schedule with the flexibility necessary for retrofits and for Owners of operational facilities. The IOB approach is characterized by the following fundamental components and objectives:

• Emphasis on understanding, applying, and pursuing Owner goals throughout the project.
• Significant Phase 1 engineering to define the project to the level required to achieve cost and schedule accuracy without excessive contingency or late surprises.
• Black & Veatch is responsible for integrating engineering, fabrication, and construction and achieving the total project goals established by the Owner.
• All costs and budgets are developed in cooperation between the Owner and Black & Veatch.
• A contingency pool, jointly managed by B&V and the Owner, is included within the total EPC target cost to manage change. This provides for mutual feelings of responsibility and joint decision making, and commitment to decisions.
• Formal team building sessions throughout with Owner, Black & Veatch, and key implementation contractors.
• Incentives and risk sharing linked to total project cost and schedule outcomes.
  • Incentive bonuses for delivering the project below EPC target cost and schedule.
  • Risk sharing for exceeding target EPC cost and schedule in project implementation.
  • Incentives and risk sharing potential are typically balanced.
• With cost incentives on both the Owner and Black & Veatch, the joint decision process offers opportunities for more open debate and better decisions to balance the costs and benefits to the project.

Proven Black & Veatch Success:

Black & Veatch has successfully completed 8 environmental retrofit projects utilizing the IOB approach, all achieving anticipated targeted costs, schedules, and performance guarantees while allowing Owner participation in decisions throughout to optimize the final solution.