The Nexus approach ensures that the Project cost estimate were completed ensuring that the project scope and execution plan are thoroughly and accurately reflected.
A Project cost estimate is an informed opinion or judgement of eventual final cost given a particular set of project criteria. A high-quality project cost estimate developed following industry standards and best practices is critical for owners in selecting which projects to move forward with, capital and expense planning, setting project budgets and checking contractor estimates.
A major refining client was experiencing reliability issues that arose from damage to equipment during a previous installation. This damage also put the client at risk of emissions violations and environmental fines. Nexus was tasked with evaluating the current structures, equipment, and piping to improve reliability for the client’s operation and to develop the project cost estimate to help the client determine an accurate budget for the project.
This project was especially difficult to design and estimate because all of the work had to be done at a high elevation and the estimate would have to account for many indirect costs such as scaffolding, materials, and proper safety measures. Nexus was recruited to correct these issues and ensure that unexpected shutdowns could be avoided. A high quality total installed cost (TIC) estimate was a critical input for the client’s key decision makers for this project.
The Nexus team overcame these design and estimating challenges by coordinating a preliminary design review that involved all the disciplines working on the project. The collaborative review allowed the team to stand back, assess the various challenges of the project, and understand how each discipline would be affected by the various challenges.
This approach helped the team identify costs and risks that could have easily been overlooked. Accounting for these risks and costs in the early project planning stages increased the estimate accuracy for the client, and prevented unexpected costs or deviations from occurring later during the project.