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Investment Items: What is Forgotten

Gains:

  • Can count non-machinery items of total investment
  • Recognizes frequently forgotten costs
  • Can write clearly the scope limit of the proposal

In turnkey projects, most discussions arise from the question "was it included in the price?" Rewriting the scope is cheaper than repairing the relationship later.

Non-machine items

  • Steel construction and building: the mill has multiple floors, the supporting structure is a significant part of the investment.
  • Silos: wheat and flour storage capacity determines operating flexibility.
  • Electrical installation and transformer: the budget will be incomplete without calculating the installed power.
  • Automation and SCADA: process control and reporting infrastructure.
  • Aspiration and dust collection: for both product quality and occupational safety.
  • Transportation, customs, insurance: serious items in export projects.
  • Field installation and commissioning: crew, accommodation, duration.
  • Operator training: The facility delivered without training cannot reach the target efficiency.
  • First set of spare parts: without stock of critical parts, downtime becomes longer.

Scope limit writing

The proposal should include "what is not included" as well as "what is included". For example, it is clearly stated whose responsibility is the foundation concrete, field electricity main supply, and import taxes.

The list of excluded items is the most discussed, although not the most read, part of the proposal. Write short and clear.