Page 25 - Megaprojects Playbook

4 VENDOR PRICING

SOLID BID COVERAGE

◆ Insufficient sub coverage will result in increased risk. Plan to retrieve (not just solicit) five to seven bids
per scope of work. These aren't jobs where you can get one or two bidders from your VPPs.
◆ Form a relationship with your bidders, you will need their help during your estimating and buyout.
◆ Local and national vendors coverage.

ITEMS TO INCLUDE IN PRICING

◆ Warranty.
– Ensure duration and coverage meet owner requirements. This is especially important for equipment vendors.
– Extended warranties may need to be included in your estimate/GMP pricing to keep us and client covered.
◆ FATs
◆ Consumables for start-ups
◆ Mock-up costs
◆ Taxes
◆ Installation supervision
◆ Start-up costs
◆ Owner training time
◆ Freight
◆ Multiple mobilizations for different phases
◆ Seismic calcs for equipment & anchoring
◆ Additional funds for anything that needs to be up-sized for seismic after the calcs are done
◆ Overseas activities:
– FATs
– Plant visits
– Quality checks
◆ Sometimes equipment is fabricated by only a few companies; the vendors in this case
need to be vetted to make sure they will be able to handle our T&C's.
◆ Try to not limit specifications to certain brands/manufacturers in order to get a good spread for costs (vendors).
◆ Try to require common certain brands/manufacturers for consistency across plant (subcontractors).

VENDOR SELECTION

◆ Consider splitting up scopes if:
– The size of the scope is too large for one subcontractor
– The schedule requires multiple crews to work in parallel
◆ Consider off-site prefabrication capabilities to save cost, increase quality,
improve schedule and remove man hours from the job site.

22 MEGA PROJECTS PLAYBOOK | 2021
CONTAINS CONFIDENTIAL AND PROPRIETARY INFORMATION. FOR INTERNAL HASKELL USE ONLY.