BioNitrogen Holdings Corp. (BIONQ)

[traderwebb]

The below is quite educational and here is a link, you can find the below quote on pg. 4 of the document. http://crg.polytechnique.fr/fichiers/crg/publications/pdf/2005-10-21-860.pdf

The document is regarding "Managing Speed in Engineering Procurement
and Construction Projects"

It is somewhat enlightening about EPC processes, and I know we all "do" want the specs, process, etc. of "our" plant to be right on the money. Hope it gets there anyway....

One might think that in order to reduce the delay of the project decisions must be made as
quickly as possible. But at the beginning of the project, understanding is at too low a level
and it serves no purpose to make hasty decisions. There is a risk of getting off on the
wrong track, possibly resulting in costly and time-consuming modifications. Accelerating a
project thus requires taking time at the beginning to explore and prepare project options as
thoroughly as possible before deciding on them and putting them into practice. Then all the
parameters need to be frozen in order to move towards almost automatic realization. Figure
2 shows that increasing the average overall speed (i.e., reducing the overall deadline)
involves expanding the initial phase, synchronizing the decision phases and drastically
cutting the realisation phase.
Figure 2 Accelerating the project cycle
This analysis points to three important issues :
• The model identifies two different processes, learning and implementation, that have
to be managed from the speed point of view.
• Project management can be characterized by the speed of the three project phases :
preparation, freezing, implementation
• Efficient time-to-market reduction can be obtained through long and extensive
anticipation before going through an automatic realisation
Possibilities of action on the project Knowledge on the project

Possibilities of action on the project Knowledge

etc. etc.

And then, on pg. 6 :

The EPC project is “a complex transaction involving a set of products, services and
construction works designed specifically to complete a specific asset for a customer within a
certain period of time: a building, a turnkey factory, a power plant, a weapons system, or the
like” Cova [7].
These projects are above all characterized by:
• the specific, unique features of each product (a customized project mobilizing specific
supplier resources)
• great complexity (numerous players from various institutions, a large outlay that
occasionally requires complex credit arrangements, a long duration spread out over an
extensive period of time, and so on)
• a contract, set in the early phases of the project between a client and a contractor,
specifying the delay, the budget and the specifications.
Cost, specifications and delay are packaged in a contract between the contractor and the
client, thus ensuring a definite trade-off between the project parameters (determined jointly by
the customer and the contractor). Each modification of this trade-off necessitates many
negotiations of the contract.

So, bottom line is - The EPC contract is almost more important that the construction phase.
PS - Go NC State, and, good luck to all the North Carolina teams!!

Also, ps - my latest profile pic was taken in one of those old timey places at the beach this past weekend with other girls from work. Just letting you all know tht I do not dress like that.

:)