1 / 11

OUTSOURCING INDUSTRIAL WASTEWATER TREATMENT

OUTSOURCING INDUSTRIAL WASTEWATER TREATMENT . Jerzy Kołłajtis – jkollajtis@environ.pl Magda Trybuch – mtrybuch@environ.pl (+48 22) 833 09 36 Bytomska 5A, 01-612 Warszawa ADVENT-ENVIRON www.environcorp.com www.advent-environ.com. WHAT IS OUTSOURCING?. Replaces existing in-house function

yitta
Download Presentation

OUTSOURCING INDUSTRIAL WASTEWATER TREATMENT

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. OUTSOURCING INDUSTRIAL WASTEWATER TREATMENT Jerzy Kołłajtis – jkollajtis@environ.pl Magda Trybuch – mtrybuch@environ.pl (+48 22) 833 09 36 Bytomska 5A, 01-612 Warszawa ADVENT-ENVIRON www.environcorp.com www.advent-environ.com

  2. WHAT IS OUTSOURCING? • Replaces existing in-house function • Contractor will reduce industry costs • May provide better service • Contractual arrangements are key • Established in municipal market • Growing trend in industrial market

  3. WHAT CAN BE OUTSOURCED? • Staff • Services • Programs • Utilities (water, power, wastewater treatment, waste disposal) • Equipment (i.e. leasing) • All of the above

  4. DEGREES OF OUTSOURCING Process & Detailed Design Engineering & Construction • Traditional contract engineering services • Applicable to new plant or upgrades • Ensures smooth transition to client control • Can help safeguard warranties Startup Support & Operator Training Troubleshooting Problems • Emergency response • Not cost-effective if it becomes routine Technical Support • Identify and avoid/reduce problems • Ranges from data review to operator direction • Manpower service • Client management remains in place Operations Labor Contract Management • Assume control of all labor, budget, reporting • Establish performance criteria Purchase Assets, i.e Own/Operate • Can transfer more risk to operator • Detailed contracts needed to address risk

  5. REASONS TO OUTSOURCE • Go to your core competencies • Redirect management time • Reduce operating costs • Better performance • Capital upgrades can be annualized • Selling assets improves bottom line

  6. POTENTIAL PROBLEMS • Perceived loss of control • Resistance from in-house staff • Define performance specifications? • Upfront additional effort • Transfer of staff to contractor • Contract can reduce flexibility

  7. WHAT ABOUT COMPLIANCE? • Industry “must control” this • Contractor image versus yours • Responsibility for any violations? • Who is the permit owner/operator? • Contractor has core competency • More outside resources available

  8. PATH TO OUTSOURCING Determination of Need • Clearly define corporate or site driving force • Get preliminary buy-in from stakeholders • What is the upper & lower limit for contractor scope • Identify qualified contractors Decide on How to Implement Due Diligence • Open book or bid package • Prepare responses to bidder questions Business Proposal • Range on bids is proportional to info provided • Normalize bids based on your priorities • Scope is firmed up for contracting stage • Confirm handling of development costs Confirm Final Scope Negotiate Contract • Formalize the risk/reward equation • Very time consuming Transition to Provider • Provide qualified client liaison person • Contractor “A-team” onsite for short term

  9. TREATMENT PLANT BUDGET

  10. CONTRACTS • Payment terms • Establishing performance criteria • Extent of liabilities • Share risk & savings • Cost of termination • Can lock out creativity

  11. SUMMARY OF OUTSOURCING • Focus on core competencies • Lower operational costs • Annualize future capital costs • Contract is key • Can increase industry overall control • Needs commitment from all • Assess contractor performance

More Related