Hydrocarbon Processing - June 2022 - 43

Plant Design, Engineering, Construction and Commissioning
sistently good performance and quality of
work, agreed-upon timeliness and cost factors.
With a carefully maintained long-term
collaboration, partners will have a stake
in working through inflation and supply
chain issues as a team. Rather than finger
pointing, there will be an understanding of
the difficulties and a team effort to move
the project forward with minimal impact.
Locked-in prices. With any project, an
effort should be made to finalize engineering
as soon as possible so material prices
can be locked in early. When executing
multiple projects with one or more customers,
it makes sense to review the common
bill of materials to obtain good bulk
purchase prices. The savings can be shared
with the customer, keeping in mind a longterm
relationship. Also, some synergies
and efficiency gains can be achieved by deploying
labor to project jobs that are similar
in nature or short-term repetitive tasks.
A project agreement with the customer,
whether on a lump-sum or cost-plus basis,
allows any foreseeable cost savings to be
shared with the customer, further opening
the transparency part of the relationship.
Multiple suppliers. A good procurement
policy and the team behind it should
work creatively to address materials requirements.
The availability of materials
during the pandemic, especially the longer
lead times, poses challenges. This can
be mitigated by exploring the availability
with multiple suppliers. Eventually, a supplier's
relationship can be maintained just
like the customer relationship. Strong supplier
performance is key to good project
execution and a satisfied customer.
Contract with escalation. Contracts
with an escalation clause can be agreed
with customers and should be mutually
favorable and win-win for both parties. A
due diligence process should be in place,
also adding to transparency.
Takeaways. Inflation and supply chain
concerns can be project development and
execution issues that are often ignored as
a project progresses-they can become
significant problems when they develop.
The pandemic has demonstrated the seriousness
of these issues as they relate to
successful project execution. As a result
of the pandemic, many companies have
been faced with a large disparity between
their bid prices and actual costs, with no
ability to pass on increases. Failure to take
the proper steps to address these issues
can have a dramatic effect on a company's
balance sheet.
Maintaining transparency is a good
to a guarded position relative to
start
inflation and supply chain issues. This
includes establishing and maintaining a
long-term relationship with vendors and
keeping an open book with the customer.
Buying in bulk and locking in prices early
are other positive steps. Maintaining multiple
suppliers is a safeguard to inflation
and delivery issues, as not all vendors are
impacted to the same degree. Having the
foresight to structure contracts with escalation
is the ultimate protection for inflation,
but this may not always be possible
in a bid situation.
Finally, open communication between
owner and contractor is the best means to
work through inflation and supply chain issues.
The best approach is always one that
ensures cooperation and understanding
during project challenges, and the sharing
of rewards when times are good.
LITERATURE CITED
Complete literature cited available online at
www.HydrocarbonProcessing.com.
CARL RENTSCHLER is the U.S. Sales Representative
for Al Bassami Industries, a premier global steel
fabrication company based in Jeddah, Saudi Arabia.
He has more than 40 yr of varied engineering and
management experience with Parsons, Air Products
and Linde in the power and petrochemical fields.
Mr. Rentschler is a licensed Professional Engineer,
holds a BS degree in civil engineering from Penn
State University, and earned MEng degree from
Cornell University.
ASHIM PARMAR is Head of project engineering at
MilliporeSigma, a Merck KGaA Company. He brings
28 yr of experience in project management,
operations and maintenance, reliability, and green
field startups. His primary responsibility is leading
projects from conceptual phase to successful
completion. Mr. Parmar is focused on continuous
improvement and is passionate about the Internet of
Things (IoT), automation and digitization with a valueadded
approach. He has international experience
and previously worked for Eastman Chemicals,
International Flavors and Fragrances, Symrise Asia
Pacific, Novartis and Pfizer Pharmaceuticals.
GOUTAM SHAHANI works as a Sales and Marketing
Consultant in the construction industry. He teaches
business and mathematics at area colleges, and has
more than 40 yr of experience in industrial marketing,
business development and asset management at
Air Products, Linde and ShureLine Construction.
Mr. Shahani has more than 50 publications and
patents in the energy and environmental sectors,
and holds BS and MS degrees in chemical
engineering, as well as an MBA.
NEW VERSION
InstruCalc
CONTROL VALVES * FLOW ELEMENTS * RELIEF DEVICES * PROCESS DATA
InstruCalc 9.0 calculates the size of control valves, fl ow elements
and relief devices and calculates fl uid properties, pipe pressure loss
and liquid waterhammer fl ow. Easy to use and accurate, it is the only
sizing program you need, enabling you to: size more than 50 diff erent
instruments; calculate process data at fl ow conditions for 54 fl uids, in
either mixtures or single components, and 66 gases; and calculate the
orifi ce size, fl owrate or diff erential range, which enables the user to
select the fl owrate with optimum accuracy.
Updates include Engineering Standard Upgrades and
Operational Improvements in InstruCalc Version 9.0
Please contact J'Nette Davis-Nichols
for more information at
Jnette.Davis-Nichols@GulfEnergyInfo.com
Hydrocarbon Processing | JUNE 2022 43
http://www.HydrocarbonProcessing.com

Hydrocarbon Processing - June 2022

Table of Contents for the Digital Edition of Hydrocarbon Processing - June 2022

Contents
Hydrocarbon Processing - June 2022 - Cover1
Hydrocarbon Processing - June 2022 - Cover2
Hydrocarbon Processing - June 2022 - Contents
Hydrocarbon Processing - June 2022 - 4
Hydrocarbon Processing - June 2022 - 5
Hydrocarbon Processing - June 2022 - 6
Hydrocarbon Processing - June 2022 - 7
Hydrocarbon Processing - June 2022 - 8
Hydrocarbon Processing - June 2022 - 9
Hydrocarbon Processing - June 2022 - 10
Hydrocarbon Processing - June 2022 - 11
Hydrocarbon Processing - June 2022 - 11A
Hydrocarbon Processing - June 2022 - 11B
Hydrocarbon Processing - June 2022 - 12
Hydrocarbon Processing - June 2022 - 13
Hydrocarbon Processing - June 2022 - 14
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Hydrocarbon Processing - June 2022 - Cover3
Hydrocarbon Processing - June 2022 - Cover4
Hydrocarbon Processing - June 2022 - GP-1
Hydrocarbon Processing - June 2022 - GP-2
Hydrocarbon Processing - June 2022 - GP-3
Hydrocarbon Processing - June 2022 - GP-4
Hydrocarbon Processing - June 2022 - GP-5
Hydrocarbon Processing - June 2022 - GP-6
Hydrocarbon Processing - June 2022 - GP-7
Hydrocarbon Processing - June 2022 - GP-8
Hydrocarbon Processing - June 2022 - GP-9
Hydrocarbon Processing - June 2022 - GP-10
Hydrocarbon Processing - June 2022 - GP-11
Hydrocarbon Processing - June 2022 - GP-12
Hydrocarbon Processing - June 2022 - GP-13
Hydrocarbon Processing - June 2022 - GP-14
Hydrocarbon Processing - June 2022 - GP-15
Hydrocarbon Processing - June 2022 - GP-16
Hydrocarbon Processing - June 2022 - GP-17
Hydrocarbon Processing - June 2022 - GP-18
Hydrocarbon Processing - June 2022 - GP-19
Hydrocarbon Processing - June 2022 - GP-20
Hydrocarbon Processing - June 2022 - GP-21
Hydrocarbon Processing - June 2022 - GP-22
Hydrocarbon Processing - June 2022 - GP-23
Hydrocarbon Processing - June 2022 - GP-24
Hydrocarbon Processing - June 2022 - GP-25
Hydrocarbon Processing - June 2022 - GP-26
Hydrocarbon Processing - June 2022 - GP-27
Hydrocarbon Processing - June 2022 - GP-28
Hydrocarbon Processing - June 2022 - GP-29
Hydrocarbon Processing - June 2022 - GP-30
Hydrocarbon Processing - June 2022 - GP-31
Hydrocarbon Processing - June 2022 - GP-32
Hydrocarbon Processing - June 2022 - GP-33
Hydrocarbon Processing - June 2022 - GP-34
Hydrocarbon Processing - June 2022 - GP-35
Hydrocarbon Processing - June 2022 - GP-36
Hydrocarbon Processing - June 2022 - GP-37
Hydrocarbon Processing - June 2022 - GP-38
Hydrocarbon Processing - June 2022 - GP-39
Hydrocarbon Processing - June 2022 - GP-40
Hydrocarbon Processing - June 2022 - GP-41
Hydrocarbon Processing - June 2022 - GP-42
Hydrocarbon Processing - June 2022 - GP-43
Hydrocarbon Processing - June 2022 - GP-44
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https://www.nxtbook.com/nxtbooks/gulfpub/hp_200906
https://www.nxtbook.com/nxtbooks/gulfpub/hp_200905
https://www.nxtbook.com/nxtbooks/gulfpub/hp_200904
https://www.nxtbook.com/nxtbooks/gulfpub/hp_200903
https://www.nxtbook.com/nxtbooks/gulfpub/hp_200902
https://www.nxtbook.com/nxtbooks/gulfpub/hp_200901
https://www.nxtbookmedia.com