Project Control

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Standardize pump casings and piping around pumps. Send pipe designers to the field during construction to detail the routing of small-bore pipe, steam tracing, safety stations and servicestations. Include as much detailed engineering as possible in the scope of competitive lump sum subcontracts and purchase orders for mechanical packages: 1. Contract buildings on design-build basis. 2 . Have mechanical subcontractors do their own piping isometrics whenever feasible. 3. Have vendors includeas much piping and supports as possible on skid-mounted packages.

The detailed design involved will thus be done on a competitive lump sum basis and some savings will be realized. Detailed engineering is dull and often repetitive work. It does not often attract really imaginative engineers. When they encounter a design problem that requires innovative thinking they are usually inclined to take the least risky and frequently most expensiveapproach. In order to minimizecost the Project Manager must monitor their work toidentify these problem areas andreview their solutions.

Purchasing and Subcontracting

Effective purchasingandsubcontracting can provideopportunities forrealizing substantial cost savings. Savings can be realized through:

- Better prices

resulting from intelligent competitive bidding negotiating and subcontractadministration. and subcontractors.

and/or

- Better quality resulting from proper screening and inspection of vendors - Improved completion dates resulting from effective expediting.
Contracting construction work through lump sum competitive bidding can have a very significant impact in construction costs. However, in fast track projects, this requires a concerted planning and coordinating effort by the engineering procurement andconstructiongroupsto make it happen. TheProjectManager must take a very adamant attitude in insisting that all groups display the utmost ingenuity and flexibility toinsure competitive lumpsumcontracting without impairing the project schedule. Purchasing practices and procedures arean integralpart of the contractor overall organization and should not be changed by a clients Project Manager. The