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How to accelerate project delivery and minimize risk in an increasingly complicated technical and regulatory landscape: HIPP's strategic CapEX project insights

To identify the best value proposal when bidding your next project be sure to use the following insights to improve your business outcomes: 

1

Ensure the capital project plan for each site accounts for large capital projects in the vicinity. We often see companies fail to account for large projects which have a regional impact on cost.  As a best practice,  for each project we recommend a Front-End Engineering Design (FEED) effort with a budgetary cost estimate from a CM with a successful track record in your industry and knowledge of the regional market which includes the availability of local trade contractors. 

2

For new equipment, be sure the vendor provides the information necessary for your end-of-life program in a format which can be directly imported into the CMMS. A little initial planning could save you thousands of hours and countless headaches in the future. 

3

While performing existing equipment end-of-life assessments, be sure to identify single points of failure and equipment upgrade opportunities which support your companies green initiatives. A small investment beyond the cost of your end-of-life assessment can have a huge payoff by addressing sustainability requirements and mitigating system failure risks.  ​

4

Don't forget to include the cost and schedule necessary for commissioning, qualification and/or validation if they are required for your industry and project.

5

If your in-house CAD/BIM department is understaffed compared to the project workload, adding a budgetary line item to each project to spread the CAD/BIM cost of using a 3rd party resource oftentimes results in a better ROI than a fulltime hire.

6

Always plan for expansion.  Because costs and complexity always rise, see near-term design decisions as opportunities to make future expansion efforts easier.  Small investments in things like sizing headers for future capacity increases, adding tie-points for expansion and performing site work for additional buildings can provide an enormous return on investment. 

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