Not happy about EPCM. A really really good Project Manager is needed to control EPCM contracts, which I call Every Problem Costs Money. Basically these type of contracts over-run. All care and no responsibility. For example point out to me where the contractor is incentivised to save money and where time isn't infinite?
Whereas a fixed price contract there is every incentive, but of course has its own problems of shoddy results because of "get her done" and it needs a really good contract specification with nowhere that the EPC contractor can enter contract heaven, i.e. "Variations". But it does need much attention and time upfront by the owner to eliminate all issues and uncertainties. I understand why LMG went that way, they at least will have a schedule of rates to hand that does enable some discipline to be exerted.
I have no opinion about Mincore because I have no idea of their history. So the above comments are my opinion about contracting in general, nothing specific about Mincore. If they do a good job I would even consider using them down the track. I just don't like EPCM but it might have been all that was on offer.
LMG Price at posting:
1.6¢ Sentiment: None Disclosure: Held
