Scovan Engineering offers lump sum engineering fees on our projects. The fee is based on the scope of work for a project and is calculated as a percentage of the estimated total installed cost. The benefits for our clients by offering lump sum pricing are:
- Confidence in the engineering costs from the project initiation stage through to project completion
- Alignment of Scovan’s goals with those of our client’s, there is no incentive for us to drag out a project or overload the project with unnecessary personnel
- Some of the project risk is shared between us and the client
- Efficient project close out processes
A common complaint with lump sum billing is project trending, or engineering scope changes, causing the fee to increase over the course of the project. Scovan has a track record of maintaining our fee for the entire project. On the Pengrowth Lindbergh SAGD Facility, there were no project trends that affected the engineering fee over the course of the three year project.
Scovan is confident in offering lump sum fees for the following reasons:
- Scovan is experienced with the projects we work on and confident in our ability to execute
- Scovan has an extremely low turnover, most of the senior staff on the project have worked together for many years
- The culture at Scovan encourages knowledge sharing and collaborative work
- Our flexible modular designs and execution strategy allows us to respond to changes as they happen
- Our innovative approach to projects continues to identify new ways to become more efficient and improve value for our clients
- Our experienced process team means that we have a solid process model from the onset of the project using information provided and previous experience to get project scope definition for the project estimate
- Scovan designs most of our own equipment packages reducing errors or surprises during shop and field construction
Lump sum billing gives our clients confidence that our engineering cost estimate is upheld throughout the project.
Written by: Sam Lamontagne
Originally published on LinkedIn.