Hello Mr. Peyman, Looks like you have a clear evaluation of your surroundings, so I would say 70% is safer, even 50 - 60 % would keep you starting and after two months you get more clear picture and order the rest, discuss with your vendor to hold and be able to supply all materials but in two stages. Good Luck.
BOQ always needs verification one of my project there was floating foundation in the design but they forgot to put the Styrofoam in the BOQ imagine, but that was easily available to rush in before pouring concrete even with frequent discussions with the consultant to specify the required thickness.
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1 reply by Peyman Mokhtarzadeh Sharabiani
Oct 21, 2017 5:01 PM
Peyman Mokhtarzadeh Sharabiani
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Hi Mr Riyadh, Yes I agreed with you but not less than 60%-70% because 50-75% of the most of projects value is material and price is vary depend on oil, steel and copper prices mostly so very difficult to keep price and budget safe.
I had a project in Turkmenistan then we have ordered some cables before two weeks holiday then after holidays we ordered the rest material with 200,000 USD dollars loss unfortunately because copper price suddenly raised up.
BOQ is always tricky and client purposely not willing to be much clear, enable them to save and dump on contractor head, need to have a good team on tender stage to get clarification during biding stage and keep some margin for such items. At least they should keep consideration for Styrofom for floating foundation but the thickness could be sent RFI....!
Hello Mr. Peyman, Looks like you have a clear evaluation of your surroundings, so I would say 70% is safer, even 50 - 60 % would keep you starting and after two months you get more clear picture and order the rest, discuss with your vendor to hold and be able to supply all materials but in two stages. Good Luck.
BOQ always needs verification one of my project there was floating foundation in the design but they forgot to put the Styrofoam in the BOQ imagine, but that was easily available to rush in before pouring concrete even with frequent discussions with the consultant to specify the required thickness.
Hi Mr Riyadh, Yes I agreed with you but not less than 60%-70% because 50-75% of the most of projects value is material and price is vary depend on oil, steel and copper prices mostly so very difficult to keep price and budget safe.
I had a project in Turkmenistan then we have ordered some cables before two weeks holiday then after holidays we ordered the rest material with 200,000 USD dollars loss unfortunately because copper price suddenly raised up.
BOQ is always tricky and client purposely not willing to be much clear, enable them to save and dump on contractor head, need to have a good team on tender stage to get clarification during biding stage and keep some margin for such items. At least they should keep consideration for Styrofom for floating foundation but the thickness could be sent RFI....! Saving Changes...
Hello Mr. Peyman, Thank you for your feed back
You're absolutely right and I agree with you, that 200 K was a big hit, wasn't there any way to freeze prices for you on outstanding orders. Just wondering
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1 reply by Peyman Mokhtarzadeh Sharabiani
Oct 22, 2017 12:10 PM
Peyman Mokhtarzadeh Sharabiani
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Hello Mr Riyadh, That time we never expected, please check the chart, during end of 2008 and beginning of 2009, price within 6 months from 3.9 usd reached to 1.3 and again go up to 3.4 usd, nobody could guess...
Hello Mr. Peyman, Thank you for your feed back
You're absolutely right and I agree with you, that 200 K was a big hit, wasn't there any way to freeze prices for you on outstanding orders. Just wondering
Hello Mr Riyadh, That time we never expected, please check the chart, during end of 2008 and beginning of 2009, price within 6 months from 3.9 usd reached to 1.3 and again go up to 3.4 usd, nobody could guess... Saving Changes...
Hi Mr. Peyman, Yes, I remember those years 2008, many people lost big money and many people made big money it all depends on what side you're taking position, riding the Bearish or Bullish market. May be linear regression channels forecast would help little bit or even Bollinger bands
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1 reply by Peyman Mokhtarzadeh Sharabiani
Oct 23, 2017 2:27 PM
Peyman Mokhtarzadeh Sharabiani
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Hi Mr Riyadh, Very Nice comments... Exactly Market condition is affecting directly to project and PM needs to know very well about market trend and risk management to get out from such condition otherwise even you mange project well but market may affect on success / result...
Hi Mr. Peyman, Yes, I remember those years 2008, many people lost big money and many people made big money it all depends on what side you're taking position, riding the Bearish or Bullish market. May be linear regression channels forecast would help little bit or even Bollinger bands
Hi Mr Riyadh, Very Nice comments... Exactly Market condition is affecting directly to project and PM needs to know very well about market trend and risk management to get out from such condition otherwise even you mange project well but market may affect on success / result... Saving Changes...
Hello Mr. Peyman, That's right,now we can not hide our self from all economic and political issues surrounding us as you mentioned it will effect the success of project, actually this might have big impact on international projects, and working on big project it worth it to buy future contract or options for raw materials like cement re bar, lumber, or even you might see that your profit will be reduced a lot by $ exchange rate etc. so to hedge fund is not a bad idea to protect against fluctuations.
Thanks for your compliments. Saving Changes...
Hello Mr Riyadh, After Compliment ! Thanks for comments, exactly hedge fund is the best idea also need procurement manager to have financial and market knowledge to know the best time of purchasing material or best time of exchange rate to predict in advance even he shall get some extra 5-10% for future projects for lumber, consumables, etc. when the price is down. Saving Changes...
