The profitability and sustainability of opencast contractor mining often relies upon the application of an appropriate and controlled assignment of risk and reward.
CRMP offer full cost, risk and contract management solutions from junior minors to majors, across Africa, applied to the conception, feasibility study, enquiry, award, operations, close-out and rehabilitation of both bulk material and hard rock deposits.
The management of the unpredictable nature of underground mining is what differentiates a successful mine from a failed mine. The appropriate selection of mining methods, the resultant enabling infrastructure, the efficacy of labour, the method of recognition of work done and the identification, quantification and allocation of risk all significantly influence the sustainability and return on investment of the enterprise.
Tailings Storage Facilities
The proper operation and maintenance of Tailings Storage Facilities is pivotal to the mitigation of the environmental risks associated with these facilities. IPA offer the full cost, risk and contract management solution from junior minors to majors, across Africa.
Most primary mineral beneficiation consists of 3 main activities – communition, physical separation, and post-separation management. Whilst each can be specified, designed, constructed and operated independently, each is ultimately fully reliant upon the others, and each discipline thereof needs be fully considered prior to any business case being promoted. IPA understand the complexity of process plants, and the need for accurate measurement and estimating against each discipline (bulk earthworks, civil, structural steelwork, piping, mechanical, electrical, controls and instrumentation).
Whilst mineral extraction and beneficiation remain the primary focus of mining, these would not be possible without the enabling provision of services and facilities.
Be it the need for power, water, roads, structures, freight rail, passenger rail, airports or marine ports, IPA have the contract, cost, risk and project management capabilities to ensure that the right solution is delivered to enable the seamless exploitation of the mineral resources.
The complex nature of linear projects (considering land access and ownership, SHEQ, long lead times, cross border legislative adjustments. etc.) necessitates a pragmatic and detail-orientated approach to managing cost, contract, risk and schedule. The value of optimising capital cost rail estimates, without sacrificing the quality, longevity or bankability of the development, cannot be underestimated.
Roads, Bridges and Tunnels:
Road Transportation provides the crucial network upon which many goods and people interact with the world. Be it national highways or rural service roads, the terrain and resulting route constitute a major investment, and the application of strict standards and programme management will afford the project significant benefit.
Key to the development of most global economies, countries are investing in the expansion and upgrading of existing and the roll-out of new airport infrastructure. The efficient use of space is balanced against the airport user experience, and the application of proven, reliable cost and risk management in the feasibility stage can aid in access to funding. The accelerating rate of development, including new generation aircraft, new technologies, changing legislation, the increase in security provision and ever-rising customer expectation, adds to the complexity of the project and reinforces the need for strict commercial, schedule and financial policy.
Port & Marine:
Port and marine design and optimisation is often driven by factors other than the port layout, such as coastal geography, access roads and local stakeholder restrictions. A wholesome but controlled contract and risk management framework will afford the project owner confidence that the right solution is adopted, at the right price.
The high capital value of petrochemical projects necessitates the meticulous and comprehensive application of tried and tested contract management techniques, supported by detail-driven cost and risk management tools.
The complex nature of linear projects (considering land access and ownership, SHEQ, long lead times, cross border legislative adjustments, etc.) necessitates a pragmatic and detail-oriented approach to managing cost, contract, risk and schedule.
The value of optimising capital cost rail estimates, without sacrificing the quality, longevity or bankability of the development, cannot be underestimated.
The treatment and re-treatment of water for process, agriculture and human consumption is often a large and complex exercise, and is becoming increasingly critical.
Large piping, instrumentation and mechanical packages, supported by significant civil structures require proactive and comprehensive cost, contract, risk and schedule management.
As the world edges closer to the realisation of REN21, the rapidly accelerating pace of technological improvement yields a better and more efficient solution.
As these black boxes of technology steadily reach towards a fully renewable feed of power, the need for the management of cost, contract, risk and schedule, to the enabling infrastructure becomes more important.
Basic cost management services include:
• Steering cost and savings throughout the entire project life cycle.
• Fast and accurate measurement of construction drawings.
• Detailed monthly cost reporting for each construction contract.
• Regular cost meetings with the client.
• Accurate payment certification.
• Comparison of construction drawings with feasibility drawings prior to issue to contractor.
• Implementation of effective site variation procedures.
• Prompt final account settlement after construction completion by applying Running Final Account during the construction phase.
The strict application of the agreed terms and conditions of any contract affords all parties an immediate and mutual understanding of the project progress, anticipated delays, anticipated costs and the scale and nature of disputes.
Cost and Risk Management Professionals provide the following services:
Advice and selection of suitable contracting strategies.
• Advice and selection of appropriate conditions of contract.
• Vendor and Procurement support services.
• Pre-qualification of bidders.
• Contract tendering.
• Tender evaluation, adjudication and recommendation.
• Contract agreements.
• Change Management.
• Document Management.
• Contracts closeout.
• Contract correspondence register.
• Contract variation instruction management and costing.
• Attend meetings, record and distribute minutes.
The successful delivery of large, complex and interrelated projects is assisted by the deployment of appropriate, organised and controlled contract management structures that best balance the risks of the project against its actualisation.
• Project contracting and procurement strategies (lump sum, re-measurable, target model, activity schedule, etc).
• Selection of appropriate conditions of contract. (FIDIC, NEC2, NEC3, GCC, JBCC, Bespoke, etc.)
• Drafting of master enquiry documentation (generals, particular conditions, scoping, etc.)
Typical quantity surveying services for each project phase include:
Feasibility study phase
• Development of project Work Breakdown Structure.
• Conceptual, pre-feasibility and feasibility estimates using parametric factors, rough quantities or detailed quantities.
• Trade-off studies.
• Advice on tendering procedure and contracting strategy.
• Preparation tender documents.
• Bills of quantities of all types, from schedule of rates to lump sum.
• Commercial and financial tender evaluation.
• Contract negotiations and compilation of contracts for signature by both parties
• Contract administration, including costing and agreements of site instructions/variation orders, contractual claims assessment, negotiations and settlement, contract modifications/amendments.
• Cost management, including cost planning, budgeting and cost control.
• Monthly progress payment certificates.
• Facilitation of project cost meetings and reporting.
Often regarded as the less critical of the estimates, an operating cost estimate that is pragmatically founded in reality and inclusive of appropriate efficiencies can afford the delivery team an opportunity to undertake design optimisation prior to the commencement of construction.
The comprehensive first principles build-up to an operating model can report against primary and consequential cost drivers of fixed inputs (corporate allocations, amortisation, etc.), variable inputs (labour, consumables, etc.) and sensitivity inputs (risk, foreign exchange, etc.).
Accurate and appropriate cost estimation is fundamental to the development of realistic business cases and successful delivery of the associated projects. Aligning the accuracy of the estimate to the level of design completion will afford the project a relevant and reliable cost base upon which optioneering, optimisation and value engineering exercises can be levered.
• Review estimates from first principle.
• Formulate recommendations via detailed reporting.
• Recommendations of corrective action.
• Cash flow forecasting.
• Professional consultant interviews.
• Project controls review.
• Budget review.
• Commercial and contract review.
The comprehensive identification, quantification and prediction of project and operational risk can afford a project the difference between a bankable project and an un-fundable one. Cost and Risk Management Professionals, through years of project and operational experience identify and quantify risk utilising either a Risk Register or, where a more complex set of risks is present, a Probabilistic Risk Assessment, in the form of a Monte Carlo Simulation.