- PO Box Z5328, Perth St Georges Terrace WA 6831
Sector: Resources
Client: BHP
Location: Newman, Western Australia
Services Provided: Estimating, Scheduling
Background
The Newman FY23 dewatering infrastructure project comprises the development of seventeen (17) new bores in Eastern Syncline Pushback 2 (ES PB2), Orebody 30 (OB30) and Orebody 35 (OB35).
The Eastern Syncline Pushback 2 (ES PB2), Orebody 30 (OB30) and Orebody 35 (OB35) areas are located within the Whaleback mine site, approximately 5km west of Newman in the Pilbara region of Western Australia.
The Project is broken into three separable portions.
- Dewatering downhole equipment and trailers
- Dewatering pipework
- Raised ESPB2 borefield pad
WHAT WE DID
BHP Engineering Projects engaged MGA to prepare a Class 2 execution estimate, and construction schedule with an expected accuracy range within -10% to +15%.
The estimates were based on IFT detail engineering deliverables and material take-off, with 80% of material cost based on budget quotations. The installation cost was built-up in detail from first principles.
Contractor’s Preliminaries and Indirect costs were estimated in detail, based on the contracting plan and aligned to the execution schedule.
A detailed Tender Pricing Schedule was produced, based on the same structure as the Class 2 Estimate.
It is usual practice for projects in this portfolio to use returned tender information to prepare material for the gating (funding approval) process. However, on this occasion the team were sufficiently confident in the estimate which MGA prepared, that it was used to prepare the funding approval documentation, prior to the tenders being returned.
HOW IT TURNED OUT
The project gated successfully based on the Class 2 Estimate deliverables and subsequently the tender prices validated the Estimate accuracy.
The end result is a saving of 2 months in the overall project delivery timeline to date. The impact of this is that BHP can potentially access this area of the pit earlier than planned, thus positively impacting production and therefore revenue.