The Role of an Engineering and Construction Contractor

A completed feasibility study executed by an independent agency can benefit a company in two ways. Inside the organization, it verifies the project staffs ideas and their concept of the facility. Outside the company, it can be utilized to obtain equity partners, debt financing, and other forms of credit. It is advisable to bring in a project execution contractor for the feasibility study. A project execution contractor is able to work with engineers to develop the project concept, process flowsheet, and best utilization of the site. By getting an early start on understanding a company's policies and working methods, a project execution contractor saves the company money since it does not have to go through the educational buildup twice. The contractor is a specialist in putting together a bankable document that can be taken to a financing source. It answers all the agency requirements on the first pass. In addition, the contractor can advise an owner on likely financing sources since he works on the worldwide market every day. A less obvious advantage of including the contractor in the study and predevelopment buildup stages is the importance of coordinating finance and technical input. The financing source influences equipment specifications, procurement, logistics, project schedule, cash flow, and liquidity. There are many surprises in store for any manager of a large international project involving worldwide financing and purchasing. The job does not have to be made more difficult by bringing in a contractor after all predevelopment steps are taken. The contractor can still work if the predevelopment steps have been done, even if he does not agree with them. But early contractor involvement is the preferable solution.