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Critical oversight of quality and safety in EPC contracts

18th July 2024

     

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By Jaco Viljoen :Project Director at TDS Projects Group

Due to the complex, often dangerous nature of mining operations, selecting an expert engineering, procurement, and construction (EPC) partner with a strong track record is the first, and arguably most important step to successfully completing a project. However, many companies continue to consistently overlook two vital metrics when appointing an EPC: quality and safety.

Neglecting to interrogate track records and contracting a substandard EPC can wreak havoc on mining project timelines, budgets, deliverables, and, ultimately, the company’s bottom line. The first round of the vetting process should therefore emphasise whether a contractor excels in these two crucial areas, or whether they may be prone to cutting corners or simply lack the necessary expertise.

Although these metrics may seem obvious, many EPCs only meet them superficially. On the scale from mediocre to exceptional, mining companies need a partner that exceeds expectations, and these two golden metrics are the benchmarks for determining that – which is why it remains concerning to see them neglected so often on tenders and procurement requirements.

Quality that exceeds expectations

Quality shouldn’t be a checkbox exercise. It should be present throughout every aspect of the project’s lifecycle, ensuring that deliverables meet, if not exceed all requirements. At TDS Projects Group, for instance, this means constantly scrutinising every detail from the initial design through to final implementation.

A reputable EPC partner distinguishes itself by adhering to stringent quality control processes that guarantee superior craftsmanship, durability of installations, and adherence to client specifications. From materials sourcing to execution or implementation and commissioning, a focus on quality ensures that deliverables meet and exceed client expectations, enhancing project longevity and operational efficiency.

Innovation plays a major role here. For example, by integrating advanced technologies and industry best practices, TDS has consistently enhanced efficiency and raised the overall quality of our deliverables, ensuring that clients receive cutting-edge solutions tailored to their specific needs. Moreover, involving all stakeholders from the outset helps us to better align on expectations and objectives.

Superior craftsmanship is also hallmark of a quality-focused EPC partner. Teams must be equipped with the expertise to implement innovative solutions that optimise performance and minimise maintenance needs. Rigorous testing and inspection protocols further guarantee that installations meet stringent quality benchmarks prior to project handover.

Moreover, a quality-driven EPC partner continuously evaluates and improves processes to deliver superior outcomes, embracing feedback mechanisms and lessons learned from past projects to refine methodologies and enhance delivery capabilities.

In summary, companies need to invite EPCs to submit past performance reviews with case studies, or provide detail on inspection and testing procedures, feedback mechanisms, and quality assurance plans as evidence of their commitment to quality.

Safety excellence

A capable EPC partner prioritises the health and well-being of all personnel involved in project’s execution, both on the contractor and client sides. This commitment begins with comprehensive risk assessments that identify potential hazards and establish proactive mitigation strategies. Top-tier EPC firms then go beyond regulatory compliance, implementing sound safety protocols tailored to specific project requirements and environmental conditions.

Additionally, regular safety training ensures that all team members are equipped to handle challenges safely and effectively, minimising the risk of incidents and creating a culture of safety that’s present throughout every aspect of the operations.

State-of-the-art safety equipment and technologies further enhance workplace safety, providing added layers of protection against potential hazards. By committing to safety at every level of the organisation, leading EPC partners work to mitigate risks, protect project continuity, and uphold their reputation as responsible industry leaders.

Yet all too often, companies overlook safety as a metric by failing to consider indicators such as Total Recordable Incident Rates (TRIR), or Lost Time Injury Frequency Rates (LTIFR) as evidence of EPC providers’ safety track records.

Ultimately, procurement processes need to begin including and emphasising clear, measurable benchmarks for quality and safety. The ‘bare minimum’ on these fronts is simply not acceptable within the mining sector, especially in underground operations, given the risks to lives and livelihoods.

EPCs play an essential role in ensuring project successes and boosting long-term productivity and profitability. This is why they should be selected with the utmost care, and measured against strict metrics to ensure they have what it takes to get the job done to the highest professional standards.

Edited by Creamer Media Reporter

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