:: SA. Smith Management & Consultancy ::

Today :

[EPCM / Fabrications]

Why need EPCM service?

As an EPC management organization, we shall manage the strategic task of Engineering, Procurement & Constructions of each project that has been outsourced to us. When this happens, the customer can focus on their core business. Another significant reason being, since project is based on certain duration, it is not viable and practical for the customer to set up a full-run office or a subsidiary office in a foreign country. Once the project is completed, the customer will be left with many issues such as staff, office, furniture, etc which can become a burdensome to solve. Hence, it involves big investment to set-up an operation in a foreign country than outsourcing it to a reliable EPCM organization in that foreign country.

Advantages & Disadvantages of using EPCM services.

Advantages

1. Less costs since no start-up capital or investment required.

2. Since the outsourced or procurement location (in Singapore ) is away from the customer location (in origin country), legal structure issues may incur in the event of setting up a foreign subsidiary. Hence, it is more costly to set up a foreign-based subsidiary company.

3. No burden of closing the company once project is completed.

4. No retrenchment or deployment to be done with the existing staff once project is completed.

5. Can focus on core business since the procurement portion has been outsourced.

6. Maintain lean staff strength and overhead.

Disadvantages

1. Perceived as lack of control. Hence, customer may want to exercise more control over the activity.

2. Perceived as fear of deviating from the corporate strategic planning.

Note:
For more details on EPCM services, please email to Abdullah Smith at a.smith@sa-smith.com

Or email us your general inquiry to: batam@sa-smith.com or
sin@sa-smith.com

CONSULTANCY

Consulting is the most significant and challenging task prior to attempting any solutions. In the pre-tender stage, it is necessary to have a meeting with the customer in order to have macro and micro aspect of the project vis-à-vis engineering, procurement, and constructions job scopes. Questions such as: -

To determine what sort of engineering task that the customer plans to outsource? Is it civil engineering or M & E (mechanical and electrical) or both?
Next is to determine the job scope that the customer plans to outsource to us. Is it comprehensive EPC or only E & P or E or P or C?
If the job to be outsourced is EPC, then we shall plan the time line of the project backward from finish to start: -

Macro :

Date of project to be completed as agreed in the contract.

Micro:

Assuming our management services is contracted for M & E business, then, to determine date of M & E jobs to be completed for each task. For example, if fabrication is required, then we need to calculate the duration of the completion for each item. Consideration is to be made for planning of availability of materials (type and grade of steel to be procured whether readily available or not).
Procurement of each product and its availability from suppliers.
The logistical planning to ship the finished product Door to Door prior to the deadline.
Assisting the customer by proposing cost-savings SCM methodologies that resulted in 5 – 10% savings of budgeted amount per project.
Progress payment scheme to be implemented with suppliers.
Management fee to be charged per project basis.

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