Innovating contracting methodology
The Open Book method enables our customer to direct Chemstress for the selection of key equipment, materials and subcontractors for the installation of the work, amount and management of Project contingency.
Provides a single source of responsibility and accountability for the entire project process.
A unified Chemstress and customer team is in charge of all phases, from concept to final completion, including start-up, resulting in a time efficient project.
Streamlines the execution of the project, thus minimizing the overall project schedule and optimizing the resources from Engineering through the Construction. Transparency and teamwork between customer and Chemstress leads to efficiencies, which translates into cost savings.
Regardless of the origin of a defect, our customer is covered with an installed warranty. Equipment or material purchased by client is made part of the comprehensive contract.
Training & Maintenance
As part of the continual commitment to our customer, Chemstress will train the operators and will coordinate spare part services, and training.
Design Build Open Book (DBO) - Customer contracts with an engineering and construction management firm to have total responsibility for the engineering and execution of the project. Both Customer and Chemstress jointly determine the suppliers for the major components of the project. Our customer sees all costs for the equipment and subcontracts prior to purchase and jointly with the engineering and construction management firm prepare the design build contract (DB) inclusive of overhead, contingency and profit. Once the price is agreed upon the books are closed and our customer and the engineering and construction management firm proceed with the Project as a DB contract. This method allows for our customer to be in complete control for the both the cost (which is eventually fixed) as well as the scope and timing of the Project.
Alternative Contracting Methods
Traditional - Design-Bid-Build (DBB) - The Project is designed substantially prior to proceeding with material and equipment purchases and subcontracting for construction. The method requires that our customer play a major role in the management of the Project and must manage the interface of the material suppliers, contractors and engineers. This method takes longer and is generally more costly, however our customer will have full participation and control in all phases of the Project.
Design Build (DB) - Customer specifies the requirements of the project for general scope, schedule and performance. Chemstress will use its resources to procure, manage, construct and place in initial operation the new or upgraded facility and has overall Project responsibility to our customer. Our customer has overall control of the project, but is not involved in the details for material procurement, installation or engineering. Our customer would have significantly less control of the day-to-day progress of the Project. The contract is usually in firm lump sum basis.
Design Build @ Risk (DBR) - Customer contracts Chemstress to have the total responsibility for the engineering and execution of the project. The cost for this service is about 10% of the total installed value of the work. Essentially the engineering and management firm acts as our customer internal engineering and management department and performs to the responsibilities stated in the DB contract scenario. The risk for over run and under run of the project with the schedule performance lies with our customer our customer using this contract method would have the same control of the projects as with the DBB process but without the management and coordination of the interface points with the suppliers.
OPEN BOOK BENEFITS
- Lowest Installed Cost
- Shortened Schedule
- Contingency Joint Management
- Mark-up Established with Customer
- All Costs are Known
- Competitive Bids for Equipment & Sub-contractors
- Installed Warranty