Implimenting efficiencies and greater operational flexibility have been two different, but equally successful, strategies used by engineering companies to secure major contracts in Western Australia.
Implimenting efficiencies and greater operational flexibility have been two different, but equally successful, strategies used by engineering companies to secure major contracts in Western Australia.
Design and engineering firm AMEC has taken on 100 extra staff after winning a $55 million contract for the Roy Hill iron ore project.
Finishing designs for the $10 billion mine, rail and port project is now the focus of 250 of its Perth staff, which represents 70 per cent of its office.
Heavy maintenance company Linkforce Engineering has grown from 10 people seven years ago to more than 1,000, mostly based in the Pilbara, after regularly winning contracts with WA’s major iron ore producers.
Linkforce managing director Luke Herbert said it had grown its core business year-on-year by at least 30 per cent.
He said Linkforce had achieved efficiencies in tune with clients’ needs by planning proactive maintenance reduced later unscheduled and costly work, helping take the pressure off clients already facing commodity price fluctuations.
“We are known in the industry for our focus on efficiency, quality and no rework,” Mr Herbert said.
A diversification into other commodities and a broadening of its complementary services has also helped it grow.
Linkforce has deliberately kept its core focus in maintenance to ensure access to a steady stream of projects.
AMEC regional director Australia west, Greg Hayes, said competition for dwindling construction projects was fierce.
He said UK-based AMEC won the competitive tender for Roy Hill by designing work to be prefabricated overseas more cheaply, having an understanding of business in the Pilbara, and being flexible in its approach to contracts.
AMEC was able to further cut costs by sharing design work with its Shanghai office and negotiating with shop detailers and fabricators to make the entire value chain process more efficient.
“If you’re going to stick to ‘we only do work in a certain way’, you’re going to probably rapidly die out in the current environment,” Mr Hayes said.
He predicted a tough next 12 months would lead to more mergers, joint ventures and partnerships.
“It will probably be companies trying to create some synergies in services,” he said.
“As these projects become bigger and more complex in terms of sharing risk I think you’ll see more of these joint ventures between various companies.
“Where some of the trends are is engineering companies and project management companies getting closer to constructors.”
He said AMEC was already in discussions with construction companies to partner for tenders for work in WA and South Australia.
