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PROJECT MANAGEMENT CONSULTING

CONTRACTING STRATEGIES

REM Pipeline Consultants, LLC can provide advice on the most efficient strategies for contracting the engineering, material procurement and construction work to be performed on your project.

Contracting Strategies will vary based on the size and scope of a project, as well as a number of other factors which may include:

• Schedule
• Budget
• Cash flow
• Owner company’s tolerance for risk
• Material availability and volatility of pricing
• Permit timing
• Right of way considerations and availability of eminent domain
• Equipment availability
• Labor union and skilled labor availability
• Contractual issues
• Final completion date requirements
• Bonus/penalty clauses from shippers
• Competitive scheduling issues
• General pipeline construction and transportation market conditions

Strategies that may be utilized include the following contracting methods:

• Lump Sum
• Lump Sum/Turn Key
• Unit Pricing
• Time and Materials –T & M
• Engineer, Procure and Construct –EPC
• Engineer, Procure, Construction Management – EPCM
• Cost Plus – Actual expenses plus a profit
• Cost Plus-Not to Exceed

Each of these construction strategies may be further customized by the addition of such additional items as:

• Risk Sharing
• Early completion bonus
• Late completion penalty
• Hybrid variations of several methods

With many years of experience in pipeline and facility design and construction, REM Pipeline Consultants has worked with all types of contractual and bidding strategies and thoroughly understands the advantages and disadvantages related to each type of strategy. Our project managers will assist you with determining which strategy may be most beneficial for your project.

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