CAPEX Planning & Justifications

This area of work often represents a small percentage of the overall project cost yet is critical to businesses realising their investment. Here are some common pitfalls that businesses face when doing this work in-house without having the necessary time or expertise available:

  • Lack of definition and/or alignment between project and business strategy and drivers.
  • Lack of advance planning, often leading to “last-minute” emergent maintenance or asset upgrades.
  • Project success criteria poorly defined making it harder to:
    • Differentiate between each option, highlighting benefits and risks.
    • Set framework for assessing technical and commercial viability of each option.
    • Monitor for cost and time overruns.
  • Harder to trace accountability of each party involved to achieve project goals.

Why RB Plant?

  • We are a leading consultancy in supporting clients in planning and sanctioning CAPEX projects.
  • We adopt a tailored approach that starts with reviewing the clients’ business drivers and ensuring that each CAPEX project option is aligned as closely as possible to these drivers.
  • We have executed CAPEX projects across a wide range of sectors and for clients of diverse sizes from small to larger “blue-chip” companies.

Our team of project managers and engineers have:

    • Helped clients to avoid all the above pitfalls and more.
    • Decades of expertise acquired from both a manufacturing/operating as well as a design office environment.
    • Led and participated in the influencing process to achieve alignment between and buy-in from client operations, projects and executive stakeholder’s teams.

Here are some examples of where clients have benefitted from our CAPEX expertise:

  • Reducing operating costs for example energy usage or shutdown frequency and duration.
  • Identifying and/or developing alternative manufacturing routes for example to reduce hazardous inventory or eliminate intermediate chemical from complex supply chain.
  • Developing a robust Basis Of Safety case for a process which has the potential to become a Major Accident Hazard (MAH) thereby satisfying the HSE.
  • Whether to refurbish and/or relocate existing process equipment or install new.
  • Integrating new process plant whilst having minimal impact on existing operating plant.

What we do

For each option we will typically present:

  • CAPEX
  • OPEX
  • Financial analysis including Return On Investment (ROI).
  • Technical risks and feasibility.
  • Proving or development work to confirm feasibility.
  • % Likelihood of success.
  • Project timescales, milestones and resources required with interdependencies.
  • Timescales required for existing plant to be out of service to allow interfacing with new plant.