The client had to invest in an upgrade of a production facility of 28mio€ within the premises of the factory and without disrupting the ongoing production. The old installation had to be removed, and new structural works were needed. Additionally the production method was a world class innovation, which needed R&D and constantfine-tuning during the investment process. As a result  the final specifications were not fixed during the tenderprocesses. The budget for this investment was very restricted and at least 15% of the budget should be reserved for unforeseen work. The production should be up and running before the fixed legal deadline to be compliant with renewed REACH regulations. The project timing was key to avoid losing important customers. There was a large technical project team, but the client needed additional experience concerning a structured CAPEX procurement process.

Blue Chain organized the project team with clear roles and focus on the ‘fit for purpose’ of the investment. As a result we defined and executed clear processes, such as RFI, RFQ, selection and award criteria tool, negotiation and contract approach, decision criteria. In addition a CAPEX total cost of ownership-model was developed combined with target costing. This helped senior management to calculate the return of investment, and gave a clear list of criteria for the selection and awarding of the suppliers. 

Due to the enormous risks and challenging time schedule, combined with the complexity of the technical installation and process technology, only limited suppliers were attracted. Blue Chain supervised the tender process to contract the best deal. Blue Chain also managed and executed the contracts with FIDIC.