80% value delivered by subcontractors – labour centric; even with large EPCS
Appendix
Structured Procurement
The most significant capex saving occurs by:
- assigning packages to expert sub-contractors,
- awarding works zone-wise for redundancy, and
- maximising direct material purchases.
Problems:
- Time-bound incentives & penalties,
- Nominated Sub-contractor clause, and
- Extra & new items only based on model.
Fail-safes:
- Administrative effort of tendering, and
- Coordinating through project delivery.
Advantages:
- Easier technology deployment
- Higher progress visibility, and
- Lesser macro dependencies.
Dry & Modular Technologies
25% Projects completed within deadline
The most substantial time savings come from, utilising specifications that assist:
– smart sequencing & dry assembly,
– In maintaining consistent quality, and
– to keep site dry, cleans easy-to-manoeuvre.
Problem:
– Time technology is tested in industry
Fail-safe:
– Offset cost of capital and risk.
Technology examples:
System Formwork – e.g. aluminium / slip-form/ table-form etc.
Hybrid / Steel Structure / LGS-ie. Low Grade Steel
Dry Walls – e.g. gypsum / cement / laminate (insulation filled)
MEP Cages -ie. pre-fab passage sections, built at table-top level
Toilet Pods – Le pre-finished toilet of under 10 Ton; fitted in-place
Digital Twins make pre-fabrication modularity simple. Kit-of-Parts for zones are pre-set, ensuring faster and more accurate assembly on-site.
Resourcing Culture
Construction is still labour-intensive; hence having an adequate workforce and maximising their productivity is crucial to meet deadlines.
Discipline through Health & Safety [EHS] is at the core of productivity.
Additionally, other considerations should include:
– Progress visibility [incl. digital screens]
– Productivity tracker [update schedule]
– Meals, events and Incentives
– Provide / assist with social benefits
Eye-catching banners and signage are standard in EHS. This principle should be extended with:
– markers for projected v/s actual progress and
– celebrating teams with highest productivity
The point is 100 labour cannot do the work of 150; however productivity can be improved:
+ 7-12% with HR development
+ 15-25% with tools & robotics