How is the cost calculated for hiring an external construction company to carry out the work?
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How is the cost calculated for hiring an external construction company to carry out the work? Should it be based on the budget quota for installation projects in the petrochemical industry, or on the cost quota for such projects? Which version from which year is better?
The construction unit can be asked to submit a quote based on the bill of quantities, with the pricing determined by the actual amount of work carried out； Or a fixed total price package ； Or as a turnkey service, priced per man-day.
If it’s small, sporadic projects, the cost based on fixed rates is too high. Wouldn’t it be better to agree on a total lump-sum price? Even tightening a bolt according to a set quota is charged.
Can the costs be calculated using various different methods, and then compared to determine which one is cheaper, so that that method can be used?
You can send the installation list to installation companies and get quotes from several of them for reference
It depends on whether it’s a long-term project or a short-term one; for long-term projects, fixed rates can be applied, while for short-term projects, labor costs can only be estimated as a flat rate.
The construction firms we hired – it seems we didn’t sign any contracts with them, nor did we ask them for quotes. We just sent them to work wherever there was work to be done, and the costs were calculated only at the end. There are various small projects everywhere: dismantling a reactor here, welding a steel platform there, installing pipes somewhere else – it’s all very chaotic. I currently calculate the costs based both on the amount of work done and on the number of workers they have per day. But calculating based on the number of workers isn’t very useful, because maybe 10 people come to work each day, but only three or four actually do the actual work; the rest are just wasting time, slacking off. It might also be due to the hot weather. . .
The type of work you’re referring to is routine maintenance; for such tasks, it’s possible to sign a service contract with a maintenance company and delegate all the routine work to them, agreeing on a total fee. The contract specifies requirements regarding service timelines (such as minor repairs to be completed within 8 hours, etc.) as well as quality standards. As for how many people come, it’s sufficient to complete the work on time and to a high standard; there’s no need to worry about how many people from the maintenance team show up.
A framework contract should be signed; you specify what work you want to carry out, and the cost is then calculated based on that work