Under normal conditions, an engineer-procure-construct (EPC) project engages constructability and procurement early in the process to reduce schedule while driving up quality and safety. With budgets often reaching billions of dollars, precise engineering has long been considered the best way to avoid costly mistakes.
Now, according to Jeffcote and Podrebarac, this sequence is changing dramatically, with construction and procurement beginning even earlier in project development. Doing so achieves three goals:
- Increased efficiency in scheduling so that deliveries of material and equipment align with engineering and construction, requiring fewer craft and tradespeople on the job site at any given time. As efficiencies are realized, project delivery becomes more predictable.
- Earlier orders for critical path equipment and commodities, a step that is particularly important to secure specialized items in short supply now.
- Identification of scopes of work that can be modularized, fabricated in a shop environment and delivered to construction sites, reducing some of the strain associated with a tight construction labor market.
“Historically, we’ve placed most of our focus and planning around long-lead equipment,” Jeffcote says. “Now, long-lead equipment and basic supply house commodities have lead times that require planning and early buyout.”
For example, electrical steel, a key component of electrical transformers and equipment, is in short supply because it is also a crucial material for renewables projects. The exponential growth of clean energy projects is expected to continue, keeping demand for electrical steel high for the foreseeable future. Electrical steel is a specialized iron alloy that incorporates thin layers of silicon along with other metals to reduce power loss and introduce a number of other efficiencies in regulating electrical current.
“Electrical steel is one of a number of components that are being affected by the push for clean energy,” Jeffcote says. “It’s a domino effect pushing demand higher for a number of materials.”
Whether the contract calls for EPC, progressive design-build, construction manager at risk, or construction manager/general contractor, detailed execution planning must be even more precise. According to Podrebarac, plans must be flexible enough to adjust on the fly, allowing the team to move on to another project phase if unforeseen shortages occur or deliveries will not hit schedules.
“No question, this is a different way of doing things and forces some new thinking for all parties,” he says.