How to Get More Out of Value Engineering Through a Construction Driven Mindset

Resulted in a 9% Reduction in Total Project Costs (43% Reduction in OSBL Direct Costs)

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Description

A client was working with an EPCM on a brownfield project converting an existing refinery facility into a new oil related production plant in Central Alberta.  Once the preliminary engineering phase was completed, the Client contacted Pinnacle Project & Construction Management to see how we could help reduce the estimated costs of their project.

 

Opportunity

To reduce project costs without sacrificing the overall design or removing any portions of the scope. 

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Solution

Pinnacle Project & Construction Management was able to leverage our construction driven project management mindset through facilitated value engineering exercises identifying opportunities to optimize equipment layouts and piping & electrical runs associated with the outside battery limits portion of the scope (outside of the process areas) thus reducing bulk material quantities and unnecessary redundancies through process optimization and simplification exercises.

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Results

The total direct project costs were reduced by 9% (43% reduction in OSBL specific direct costs) compared to the initial estimate by applying this different approach to value engineering that resulted in the reduction of material quantities relating to civil, foundations, piping, steel, electrical infrastructure.