Engineering, detailed contracted

Analysis, Inc.,. 32d Annual Engineering Construction Contracting Conference, Sept. 28-29, 2000). These conclusions are depicted by Fig. 9-31. A major late change is defined by IPA s data to mean changes made after the start of detailed engineering and involving impacts greater than either 0.5 percent of the total project capital investment or 1 month in critical path project schedule. 

NOTE In practice, when taking over a new water treatment program account, it is almost impossible for a field representative to know the full history and engineering details of the cooling system(s). As a consequence, a survey involves considerably more than merely filling in a standard company survey sheet. Some degree of investigation is required, relevant to the size and complexity of the plant. In addition, it is a fundamental principle that in the early days of a new account contract the water treatment company personnel will spend considerable time on-site so as to be fully conversant with the plant and operator practices. 

Let us focus primarily on the Supply Industry needs, we can start from the prospective of seeking to win a contract whereby our needs are powerful and effective estimating tools which draw on readily available historical performance data and engineering detail. Recent new innovation in his area is the RAMIS product which has been specifically developed to support engineering estimating for track renewals and is currently being developed to meet the more extensive requirements of the Infrastructure maintenance business. 

Many oil and gas companies do not consider the detailed design and construction of production facilities as part of their core business. This is often the stage at which work is contracted out to engineering firms and the client company will switch manpower resources elsewhere, although some degree of project management is commonly retained. 

Company). The product of the FEL process is a design-basis package of customized information used to support the production of detailed engineering design documents. Completion of the FEL design-basis package typically coincides with project AFE (Authorization for Expenditure) or project authorization. Project authorization is that point in the project life cycle where the owner organization commits the majority of the project s capital investment and contracts. 

Fluor Engineers and Constructors Inc., under contract with EPRI has completed a rather detailed study (8 ) of the cost of producing power via Texaco gasifiers and advanced design gas turbines and steam turbines. They conclude investment costs (mid-1976 dollars) to be 815 million for a plant gasifying 9600 T/D of moisture-free Illinois coal and producing 1150 megawatts of net power. 

Contractor Selection Detailed Engineering Procurement Construction Management Project Control Contract Administration Communications Regulations Compliance Startup... 

The most cost-effective way to execute the construction work is through competitive lump sum contracts. Engineering, on the other hand, should be performed on a fixed-fee reimbursable basis to ascertain that the level of engineering effort and details is sufficient to insure a sound and safe design as well as minimal field questions and extras. 

A bid package must address commercial terms as well as technical details. The preparation of the commercial selection is the responsibility of the Contracts Engineer. The Project Manager assembles all the technical details and is responsible not only for the technical section but for the overall completeness of the package. After all, it is the Project Manager who has to live with the contractor and make it perform. 

The Project Manager and the Contract Engineer must have a good understanding of the scope and the cost of the work in order to evaluate bidders and analyze the bids. To do so, they need a good cost estimate with detailed or semi-detailed takeoffs. 

Frequently, all the detailed engineering, and even purchasing, is contracted with a single engineering firm. In that case, it becomes very important that the contractor understands that the scope of the contract work is strictly detailed engineering and procurement and that the Owner will assume the project management and control responsibility. 

The Project Manager is not expected to do a detailed audit of all invoices and backup materials, but only to monitor the critical items and point out to the accountants those areas where close scrutiny is warranted. The detailed audit is the job of accounting. It behooves the Project Manager to sit down with the Contract Engineer, at the beginning of the contract work, to review the contract, to understand all the critical provisions, and to summarize them for the benefit of the members of the project team. 

The equipment account and all civil accounts, as well as the Electrical Account and the Contract Engineering man-hours can be estimated with the respective semi-detailed procedures in Chapter 19. 

The design engineer leaves all contracts to the legal department but, for purposes of acquainting himself with limitations that may later arise in the fulfillment of his design project, he should recognize the detailed contractual relations that must be promulgated for actual commodity production. 

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