Energy

Over the past years Cost Engineering has been involved in many projects in one of the most crucial industries for our society. After all, this is the industry of which price changes always make the news. For that reason it is a necessity to obtain the best ratio between cost and quality.

Cost Engineering has been active on the side of both owner as well as EPC contractor. Through series of projects it has become clear that the biggest gains are in the difference between the first estimates and the execution stage. Careful analysis of current and previous projects and the market knowledge of Cost Engineering combine to deliver an advantage to your project organization.

      "The power behind cost reduction"

In the past Cost Engineering has worked on projects for combined cycle power plants. The time that elapses between accepting a bid and the final construction is one of the major issues we have found in these projects. It is quite common to find a gap of two years between these two stages. However, if this gap is not taken into account when preparing the estimates, there can be a significant difference between the calculated cost and the as-built cost.

Another factor which greatly influences this difference is the fact that accepting the bid does not cover all the cost involved in obtaining a working combined cycle power plant. Depending on the project this can be as little as 75% of the total cost involved in the plant. The best way to face this problem is to carefully draw up functional specifications for all the additional tasks that are needed during the project and then including them in the estimates. Cost Engineering has done this for power plants ranging from 400 million Euro’s to plants worth well over a billion Euro’s.

In a related field, Cost Engineering is currently working on a project for underground storage of natural gas. As more and more energy companies are switching to gas for their power plants for environmental reasons, there is a bigger need for gas storage to cover the peaks of gas use in winter. Underground gas storage is a natural choice for energy companies worldwide as it limits risks and gives a potential capacity of millions of m3. Cost Engineering has been involved with these kinds of projects from the feed phase up to and including doing cost control during execution.

Obtain the power of controlling your cost from feed to finish by working with the knowledge of Cost Engineering on your project.