Klean Industries can provide complete turn-key facilities. Times are changing and the market is demanding more transparency in project costs. Under these conditions, Klean is now transitioning the vast majority of its projects to be constructed using a Design, Build, Contract (“DBC”) method vs the more traditional style of contracting using complete engineering, procurement, construction (“EPC”), and management (“EPCM”) method. While both DBC and EPC are similar in terms of what gets done, the order in which they get done and how they are done is different. In order to control costs and reduce risks on all levels of a project, the more work done upfront in terms of feasibility and engineering the more you know your project’s cost and the more you can control your costs which enables project owners to deliver better projects with less capital, in less time with fewer risks.
In our experience, it makes more sense and provides stakeholders with greater visibility and cost controls throughout the project development process. If there is a downside, it requires more capital to be spent and time to be committed up front to work through the basics of design and project specifics before engaging in awarding construction contracts. The payoff is significant, and once you do a project in DBC format you ask yourself, why didn’t we do this before?
With a traditional EPC style of contracts, less is known prior to engagement with the EPC, and more often than not, lots of learning takes place after contracting, the unknowns lead to increased costs and ultimately project change orders which may also lead to possible delays. This is why EPC projects are more costly because the best estimates are often just that, and to make sure a project gets done, done right, and on time, the unknowns become a line item of costs for the project owner. Someone has to cover these risks and therefore EPC contracts are typically a far more expensive way of building projects in today’s cost-conscious business environments.
However, for some project-specific opportunities where timing is of the essence, Klean and/or our engineering partners will perform as an EPCM. This is typically done on projects where we have a strong presence and feet on the ground either ourselves or through one of our preferred EPCM partners. For these projects, Klean, in conjunction with its partners, performs all engineering, purchases all of the equipment, manages the construction using local labor, commissions the facility, and trains the operators. The projects are typically executed on a firm lump-sum non-escalating price basis. Klean provides the customer with a single source of responsibility for the entire project including all performance and equipment warranties and guarantees, this part is the same for both DBC and EPC.
For a typical project, Klean assembles the BCAT (Best Commercially Available Technology) to meet the customer’s particular needs. Our approach enables us to evaluate standard industry technology and apply it uniquely, which has led us to execute several first-of-a-kind projects.
If you have any steam, power, resource, or waste problems, Klean Industries can help. We would welcome the opportunity to discuss your particular needs and assist you in finding innovative, cost-effective solutions to building your project on time and within budget.
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