Coordinating large and complex projects is a challenging task that requires expertise – and that is where your Main Automation Contractor becomes a vital part of your team.
Large complex projects have become increasingly commonplace with industrial companies seeking ways to minimise CAPEX and OPEX costs, prepare for scalable growth, and diversify their portfolios – all while avoiding schedule overruns and managing risk.
However, taking on large, complex projects comes with undeniable risk. Large projects are susceptible to budget and scope creep, leading to overspending and missed deadlines. The involvement of multiple vendors, consultants and internal stakeholders can lead to breakdowns in communication.
Despite comprising roughly 3% of a project’s budget, automation system design can disproportionately impact project outcome – accounting for as much as 80% of risk late in a project.
With this in mind, many companies involve a Main Automation Contractor (MAC) from the outset of large projects to ensure the project is designed, engineered and integrated for success.
Five benefits of using a Main Automation Contractor for your next large project
As a project owner, you know first-hand a large project’s complexity and sheer scope. From planning critical milestones to managing vendors and contractors to meeting safety standards, plenty of tasks must be done correctly for projects to proceed smoothly.
This is where your MAC comes in. By leveraging their expertise in the field from start to finish, you can experience a range of benefits aimed at reducing project risks and improving project outcomes, including:
- Savings on design costs with a comprehensive automation system design roadmap implemented from the start
- Streamlined engineering work with standardised hardware, software, network architecture and process libraries, leading to cost and time savings
- Coordinated skid design and installation seamlessly with multiple builders for a more integrated system
- Better alignment between the project’s outcome and the original vision
- Fewer delays and cost overruns as a result of miscommunications between stakeholders.
With a MAC in place, you will ensure a best-in-class automation solution that is readily accepted by operations, ensuring projects close out on time and within budget.
Main Automation Contracting can be a game-changer.
Unlocking the potential of large automation projects has become a top priority for end-users and engineering, procurement and construction firms (EPCs) who are now actively seeking partnerships with MACs to navigate complexities and mitigate risks.
And the numbers don’t lie – according to an analysis by Frost & Sullivan, early engagement with a MAC can lead to significant benefits. On average, it can save 30% for the project, streamline plant commissioning and ensure better alignment with planned startup schedules.
How the MAC can share risk for EPCs
When the MAC handles the complexities of automation systems, the EPC (Engineering, Procurement and Construction contractor) can focus on their project expertise. Experienced MACs know how to adapt their involvement to match the EPC’s skills and risk profile. MACs should strategically adjust their level of involvement based on the specific project and application.
Strategic engagement for Optimal Results: the importance of early involvement in Automation projects
In the past, automation vendors would come into a project during the management and interface phase and continue their involvement until startup. However, recent insights have highlighted the profound impact that early decisions can have on the entire project lifecycle.
As a result, forward-thinking companies recognise the value of involving a MAC early on and maintaining their engagement throughout the project. By doing so, they can unlock benefits such as seamless system integration and a highly optimised user experience.
Ten crucial components of an end-to-end MAC engagement:
Expertly managing a comprehensive MAC engagement involves ten critical components:
- Front-end engineering and design (FEED) studies
- Detailed design (control system, shutdown, fire and gas, instrumentation, and electrical systems)
- Project and interface management
- Procurement (as appropriate, mainly an EPC role)
- Coordination of the machine builders
- Commissioning and startup support
- Site installation management
- Training
- Operations Support (lifecycle)
- Construction support
The key to project success lies in quality planning. This is achieved through the earliest stage in a MAC with comprehensive front-end engineering and design (FEED) studies. These studies provide essential information such as project scope, budget, total cost of ownership, implementation timeline and initial risk assessment.
Considering these factors, we can effectively minimise risk and uncertainty during the detailed engineering and commissioning phases, resulting in long-term value throughout the production lifecycle.
When a MAC actively participates in the FEED analysis, they effectively manage the project. This reduces startup time and overall risk by focusing strongly on the project goals, scope, and budget. While automation may only represent a small portion of the project’s overall investment, MAC involvement in the FEED is one of the most effective ways to achieve a lower total cost of ownership.
Your MAC should bring with them the following FEED capabilities and experience:
- Process: specifications and selection performance
- Mechanical: methods and systems
- Power/Electrical: design, specifications and sizing
- Control and Network: preparation and assessment
- Instrumentation: specifications, selections and gap analysis reporting
- Safety: documentation, analysis and assessment
- Information (MES.MIS): evaluation and analysis
- Quality: risk assessment and documentation
- Third-party hardware and software: standards and integration
In summary
Today’s automated systems require a coordinated effort among multiple vendors and stakeholders. As the project owner, a vital piece of the puzzle is selecting the right Main Automation Contractor who can deliver the desired technical outcome with cost-efficiency, quality, and timely delivery.
With an experienced MAC like Mipac, you can rest assured that your large project will be delivered to spec while maintaining safety, functionality, flexibility and reliability. A MAC will work to provide unified engineering management across multiple teams allowing for streamlined solutions. Furthermore, it will help create better alignment between the initial vision and the final product, reducing delays due to stakeholder disconnects.
To experience all these benefits for your next large project, choose Mipac as your Main Automation Contractor today. Contact us and we’ll put you in touch with our MAC specialists who can share our experience as a MAC for projects like BHP’s West Musgrave site.
More reading
Mipac to provide Main Automation Contracting for BHP’s West Musgrave project
5 things to look for when appointing a Main Automation Contractor (MAC)
