When creating a new industrial building, there are three things that matter: engineering, procurement and construction (EPC). Getting all of the things necessary in order to be delivered on time takes a skilled EPC contractor.
There are a lot of moving parts when it comes time to build. Between working with the government to get the necessary permits/training and human resources for the skilled staff, the logistics require a smooth delivery.
The EPC lifecycle is difficult to manage if your supply gateways are being blocked. Companies are investing in you to make sure that the bidding, tools, labor, training and supplies are in line for their project.
Risk management in oil and gas industry sector projects require an intense amount of planning due to the amount of government agencies involved with regulating this industry.
From oil roustabouts and roughnecks to hard hat managers and inspectors in three-piece suits, there are a lot of people involved.
Plan for safety first without harming the environment while not inconveniencing surrounding businesses for too long. This takes agile resource planning on a huge scale.
As a contractor, here are a few things that I have learned to work around that you should be aware of.
Pay Attention to Labor News
Whether you are for or against labor unions personally does not matter. When it is time to get the work completed, you need to have all of the pieces in place. It is good to know when and where there are labor negotiations that are heating up.
You definitely do not want to be in a position where your building materials are trapped in a port or train hub that goes offline due to labor strikes. That will make delays for other aspects of your project. And this all affects the bottom line of your services as well as your clients.
So, watch the labor news and be prepared to re-route your needed building materials around tumultuous areas where laborers are striking.Click Here To Start Accepting Credit Cards
Double-Check the Plans Completed by Engineers
As EPC contractors, we sometimes take for granted that educated engineers are people who make mistakes, too. It is a good idea to take any engineering plans to a second engineer to test for faults in the design.
Because a major manufacturer did not double-check one original design, there was a part that was designed 1/32″ too short. 1/32nd of an inch did not seem like a big deal at the time.
The result was that the piece was too small to connect and hold pressure properly.
Thousands of parts had been incorrectly designed and manufactured too small. This brought many other businesses to a screeching halt as they needed that specific part to fit correctly. It took 4 days to re-engineer the connector, manufacture and ship them all.
The loss of time and revenue was tremendous and unnecessary, and it just required to do a check and balance on the engineering design.
Follow the 2 Pizza Rule
When working on large projects, it is tempting to get everyone in the same room to discuss ideas. The problem with this is that people get bored with large meetings. Before long, they are daydreaming about other things. The result is a loss of productivity with your brain trust.
The solution for this problem is to not make any teams bigger than 2 pizzas could feed in one session.
This mixture of fun food with a smaller, intimate group allows for deeper discussion with more ideas flowing. It is easier to get people to talk in a small group because they fear being judged a lot less.
Keep your teams small and well-fed. This is an incredible return on investment.
Getting an EPC Contractor Merchant Account
One of the most important aspects of being an EPC contractor is being able to take credit cards. Credit cards allow for your clients to pay for large purchases up front. This helps your ability to work on their contract immensely.
There is one huge bottleneck with this process – the traditional banks. Because banks have been burned in the past from high-ticket contractors, they are shy about underwriting a contractor merchant account.
Working in the logistics of EPC contracts is difficult enough without having to worry about finances, too. Thankfully, there are businesses like High Risk Solutions that helps all types of contractors be able to accept credit cards from their clients.
Large-ticket items are not a problem as High Risk Solutions helps contractors lower their credit risk.
If you want to accept credit cards from clients as a contractor, you need to start by filling out this application below.Click Here Now