RMC-04-108 A Proven Service for Contractor Cost Control

Description:

Contractor-performed shutdowns and on-going maintenance are costing the industry more than they should. This measurable loss always ranges from 2 –15%, or more, of project budgets. The issues discussed in this paper are not all the making of the contractors, either. Costs are typically reported and finalized after the fact, making their direct, active management impossible. Actionable cost control depends upon having “always on,” decision-grade data after the project starts incurring costs. That data is best captured where—and immediately when—the work is being performed. The methods and premise discussed herein hinge not only on cost savings, but also in unlocking the potential to do more critical work or empowering the organization to extract higher quality results while a project is still underway. The main Best Practice missing in nearly every modern refinery’s capital or maintenance methods is actionable cost control. There is a good reason for this: standard approaches and tools (i.e. software) are structurally impotent at driving a solution where third party contractors or joint venture partners are involved, coming to the table with their own independent, vested business interests. A viable and sustainable solution demands an approach that appeals to both owners and contractors alike, even when talking about the exact same data set. An easy, proven method for achieving the results discussed in this paper involves the use of a third party service which focuses on nothing else except the single issue of gathering and presenting project intelligence in a world class, dedicated fashion.