Impact analysis of geotechnical occurrences in ECP projects cost control

Abstract Engineering, procurement, and construction (EPC) contracts are the most widespread way to carry out the execution of complex projects. Under an EPC contract modality, the contractor must must complete the installation at a guaranteed price and by a specific date, while reaching the agreed l...

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Autores principales:	Prendes-Gero,María-Belén, González-Nicieza,Celestino, Ordiales-Martínez,Víctor, Álvarez-Fernández,Martina-Inmaculada
Lenguaje:	English
Publicado:	Escuela de Construcción Civil, Pontificia Universidad Católica de Chile 2019
Materias:	failure regulations cost control rehabilitation penalty fee
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-915X2019000300418
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spelling	oai:scielo:S0718-915X20190003004182020-02-04Impact analysis of geotechnical occurrences in ECP projects cost controlPrendes-Gero,María-BelénGonzález-Nicieza,CelestinoOrdiales-Martínez,VíctorÁlvarez-Fernández,Martina-Inmaculada failure regulations cost control rehabilitation penalty fee Abstract Engineering, procurement, and construction (EPC) contracts are the most widespread way to carry out the execution of complex projects. Under an EPC contract modality, the contractor must must complete the installation at a guaranteed price and by a specific date, while reaching the agreed level of quality and performance for the installation. Failure to comply with any of the above requirements usually results in the application of economic penalties. Therefore, the main problem of a fixed price EPC contract is that any unexpected problem will be reflected in the final economic result of the contract. There are three main problems that can endanger the final result: a) Unexpected failure that does not represent a time delay but involves the rehabilitation costs; b) Unexpected failure that endangers the facility delivery date and therefore involves a penalty fee; c) Erroneous selection of the involved regulations in the design of the project. Since the exposed problems are quite common, the aim of this paper is to give an approach, in economic terms, of the unexpected costs related to geotechnical issues. This analysis will be carried out using three real EPC construction projects. The selected examples will cover different perspectives: Case 1; the main cost is the execution of the rehabilitation. Case 2; the main cost is the penalty fee due to start up delay. Case 3; the cost depends on the applicable regulations.info:eu-repo/semantics/openAccessEscuela de Construcción Civil, Pontificia Universidad Católica de ChileRevista de la construcción v.18 n.3 20192019-12-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-915X2019000300418en10.7764/rdlc.18.3.418
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	failure regulations cost control rehabilitation penalty fee
spellingShingle	failure regulations cost control rehabilitation penalty fee Prendes-Gero,María-Belén González-Nicieza,Celestino Ordiales-Martínez,Víctor Álvarez-Fernández,Martina-Inmaculada Impact analysis of geotechnical occurrences in ECP projects cost control
description	Abstract Engineering, procurement, and construction (EPC) contracts are the most widespread way to carry out the execution of complex projects. Under an EPC contract modality, the contractor must must complete the installation at a guaranteed price and by a specific date, while reaching the agreed level of quality and performance for the installation. Failure to comply with any of the above requirements usually results in the application of economic penalties. Therefore, the main problem of a fixed price EPC contract is that any unexpected problem will be reflected in the final economic result of the contract. There are three main problems that can endanger the final result: a) Unexpected failure that does not represent a time delay but involves the rehabilitation costs; b) Unexpected failure that endangers the facility delivery date and therefore involves a penalty fee; c) Erroneous selection of the involved regulations in the design of the project. Since the exposed problems are quite common, the aim of this paper is to give an approach, in economic terms, of the unexpected costs related to geotechnical issues. This analysis will be carried out using three real EPC construction projects. The selected examples will cover different perspectives: Case 1; the main cost is the execution of the rehabilitation. Case 2; the main cost is the penalty fee due to start up delay. Case 3; the cost depends on the applicable regulations.
author	Prendes-Gero,María-Belén González-Nicieza,Celestino Ordiales-Martínez,Víctor Álvarez-Fernández,Martina-Inmaculada
author_facet	Prendes-Gero,María-Belén González-Nicieza,Celestino Ordiales-Martínez,Víctor Álvarez-Fernández,Martina-Inmaculada
author_sort	Prendes-Gero,María-Belén
title	Impact analysis of geotechnical occurrences in ECP projects cost control
title_short	Impact analysis of geotechnical occurrences in ECP projects cost control
title_full	Impact analysis of geotechnical occurrences in ECP projects cost control
title_fullStr	Impact analysis of geotechnical occurrences in ECP projects cost control
title_full_unstemmed	Impact analysis of geotechnical occurrences in ECP projects cost control
title_sort	impact analysis of geotechnical occurrences in ecp projects cost control
publisher	Escuela de Construcción Civil, Pontificia Universidad Católica de Chile
publishDate	2019
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-915X2019000300418
work_keys_str_mv	AT prendesgeromariabelen impactanalysisofgeotechnicaloccurrencesinecpprojectscostcontrol AT gonzalezniciezacelestino impactanalysisofgeotechnicaloccurrencesinecpprojectscostcontrol AT ordialesmartinezvictor impactanalysisofgeotechnicaloccurrencesinecpprojectscostcontrol AT alvarezfernandezmartinainmaculada impactanalysisofgeotechnicaloccurrencesinecpprojectscostcontrol
_version_	1714206301067673600

Impact analysis of geotechnical occurrences in ECP projects cost control

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