| > Stainless steel costs much more, but total project cost goes up less than 10%. I think people are often surprised how little materials cost affects the total cost of a job. I'm having this argument at work, where I want some more expensive cabling installed in a bunch of offices across Scotland so it doesn't need to be done again in another ten year's time, but "that stuff is so expensive, do we really need it?" is what I'm running up against. So as it turns out today I'm giving them a breakdown of the cost of the job. Guess what the expensive bits are? Did you guess "wages for two guys, hotel rooms for two guys, 800 miles of diesel, and a couple of ferry tickets?" Well, you're way ahead of today's crowd then. |
1. (Design) Building floorplate and architectural complexity (i.e., divergence from 'big box')
2. (Construction) Schedule adherence. Almost any one-off expense to stick to the schedule is worth it, but to your point, these are often challenged or delayed. Building and testing equipment on skids off-site is almost always worth it.
3. (Design/Commissioning) Schedule adherence. For commissioning this is typically driven by design choices (did you pick a high-TRL process, or if not, do all the work required to mature it in parallel to construction?) and by building the right commissioning team (knows their job, knows the plant).
If more expensive plant & equipment gets you ahead on any of these 3, 99% of the time that is an overall optimisation.