Procurement

Challenges

When organizations look to reduce the cost of their projects, procurement is firmly under the microscope. New construction techniques are dramatically shortening shipping windows. Remote projects and those that lack existing infrastructure at the project site and can be logistical nightmares. The need for real time, accurate, digital information is increasingly important to reliably plan and execute in tight construction windows. Some have local sourcing obligations built right in the contract agreement, imposing requirements for project funding that rack up additional challenges.

Successful procurement teams must identify high-value, skilled suppliers early, and thoroughly control equipment and information quality and delivery to site. If they don't, procurement costs, lead times, and the overall project schedule can be put at risk. It's all about getting the right things to the right place at the right time. With all this to track and think about, procurement is more difficult than ever before.

Capabilities

Materials management

Materials and equipment supply or fabrication are the lifeblood of capital projects, representing more than 50% of total installed cost. Our integrated approach, working closely with our teammates in engineering and construction, removes isolated work practices and provides efficient, reliable management of material and its information throughout the project life cycle.

Purchasing

The value of equipment and materials is enhanced when purchase orders are placed with the right vendors. We work closely with you and project teams, confirming that they enter into agreements that effectively manage cost, schedule, and risk in an ethical and responsible manner.

Expediting

Delivery delays can drive up project costs and diminish the quality of materials. The right safeguards and controls are needed to support the delivery of all equipment, drawings, and documents—identifying and mitigating delays that threaten the project schedule.

Logistics

A well-designed logistics supply chain is fundamental to the successful execution of any project. We provide logistic solutions, and have experience delivering millions of freight-tons to projects in some of the most remote and difficult project locations.

Vendor quality surveillance

Sourcing materials from around the world has its challenges. Unlike traditional inspection and test organizations that only police compliance, we work closely with engineering and procurement teams, and cooperatively with vendors. It's assured that manufactured equipment respects standards and conforms to specifications.

Procurement management

Our integrated, robust process methodology is customized to match your specific procurement requirements. We explore new technological solutions and innovations to help save you money with strategies that go from conceptual studies right through to handover.

Contractor management

We put a solid, manageable contract in place with contractors and then administer thoroughly and in accordance with the schedule. Active, positive, and firm administration preferences help lead to robust and organized performance from the chosen contractors on your project.

Global sourcing

Asset owners are under relentless pressure. So we help drive the best value for money with suppliers and products from emerging economies. We develop, maintain, and provide sourcing expertise for projects including suppliers, sourcing categories, sourcing countries, project locations, and project types.

Blogs

Heavy-tailed risk events and how to deal with them

Pouya Zangeneh

Studying the tails of distributions is essential for risk management. Whether in probabilistic risk assessment or even in qualitative hazard studies, risk management aims to understand tail events. Risk measures such as value at risk or expected shortfall are essentially measures of the distributions’ tails. So, if you’re concerned about your project cost overrun risks, for example, you’re worried about the tail of the cost distribution.

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