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PPEI’s Value Proposition:

Check Estimates:

  • PPEI offers unique solutions to Module Yards that maximize revenue by smart bidding and minimize cost by better control

  • PPEI's “NextGen Estimating” creates a full set of bid unit rates for each labor operation for every size and defining parameter that appear in the RFQ MTOs

  • PPEI’s ‘Bid Scenario Matrix’ coupled with insight of likely MTO growth areas provide ammunition to the Module Yard’s strategy team to create a range of scenarios for evaluation

  • PPEI generates a full set of bid unit rates for each scenario and also the job value for give RFQ quantities and for growth scenarios

  • Armed with such analytical insights, the bid team can evolve the right bid considering risks and opportunities

  • The work process naturally involves creation of sharp base budget to feed in to the Module Yard’s cost control tool

  • PPEI’s superior quality derives from “NextGen Estimating” work process, stakeholder alignment, meticulous planning and dynamic interactive estimate reports

  • Interactive reports package makes it possible to identify deficiencies in MTOs which drives selective modulation of bid unit rates

  • Mapping of PPEI’s code of accounts to that of the Module Yard and to their cost control structure leads to seamless integration of estimates and cost control base

  • Summaries generated by Module and by Construction Work Package (CWP)

  • Man-hours per Ton and Cost per Ton metrics are standard reports in PPEI Estimating for benchmarking purposes

  • Labor hours by Construction Work Package (CWP) including breakdown by prime account enables construction planning and integration of schedule and estimates

  • PPEI delivers very quick turnaround, typically less than half the industry standard

  • Comprehensive set of analysis reports enable thorough review and thus inspire high level of confidence

Status Quo:

Conventional bidding process:

    • Company standard unit rate tables with adjustment for escalation
    • Standard tables are sometimes very old and need over 200% escalation
    • Old tables sometimes may be out of sync with the current indirects and overheads
    • Merely adding escalation leaves full recovery of indirects and overheads to chance
    • Detail control budget for planning and control do not always get enough attention

Lost opportunities in smart bidding and setting sharp control base:

    • Conventional bidding process may entail lost opportunity to maximize revenue

    • Lack of good estimating and sharp control budget may mean higher cost and reduced margins

    • Old bid unit rates with large escalations may result in under recovery of costs and may not be apparent until very late

    • Poor prediction of module man-hours may lead to unrealistic schedules for complex modules and thus cost over runs / loss

    • Cost overruns invariably result in attempts in claims which sometimes could sour relationships

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