I have no doubt it’s in Mincor interest to do a good job.However...

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GARETH78

8,318 Posts.

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26/02/21

14:35

Post #: 51364416
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Originally posted by setfire2thehive: ↑

I've both tendered FEED designs and been involved in building them. Sibling of mine still works at a firm.
This is fairly typical. Going rate for the eng is typically charged out anywhere between $100-$125.

Project Manager would either be flat charge or a higher rate. Same as senior/principles who review are paid more but less hours involved juniors/mid level do most the grunt work.

Be a full few time people involved in the project start to finish inclusive of the project lead/principle and then a bunch of other people providing various levels of input etc.

Do the math. 12weeks x 5 days a week x 10hr days = 600hrs @ $125p/hr = 75k. Equivalent of 4 and a bit people work full time everyday all day for 3 months on this project. Also, that's the hours on paper. They then would have juniors/mid level doing to grunt work. i.e. more hours being done than reflected juniors paid less than the costed rate. It'd be closer to 6-8 people on the project but only a few full time.

Remembering that whilst the charged rate seems high, typically in their pocket they might get half that. The rest is the companies margin, the various overheads of the business and relevant support staff for the business etc etc.

Irrespective of all that, the fact it's shares is good. Company has vested interest to deliver best outcome and on time and that 300k fee can turn into multiples thereof. Bugger it up or cause delay and your fee goes down.

Spilt milk this conversation but thought i'd weigh in.

SF2TH

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I have no doubt it’s in Mincor interest to do a good job.

However they will be able to sell their shares once issued as they are not going to be held in escrow, they are guaranteed their money on the date of the Final invoice if the contracted work is completed, however if they decide to leave as an investment they could well do very well.

In essence they are assisting AVZ with cash flow with this deal.

AVZ Price at posting: 17.5¢ Sentiment: Buy Disclosure: Held
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I have no doubt it’s in Mincor interest to do a good job.However...

Top Stories

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Buxton projects new graphite province discovery at WA Narryer play

BCI reaches close of funding facility for salt-first part of Mardie project

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Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

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