Profit margin formation in selected power plant projects

Abstract

To construct or just supply main components and material to it, is a project which, have usually a definite constraints on completing it. Today’s harsh competition in the global power plant construction business has led the suppliers to focus on quality while providing profit left on the bottom line. To complete a project within (pre)defined time and cost constraints has been more and more difficult. There are many factors contributing to a risks in projects, including: complexity of project, geographical location, cultural differencies and people involved in the project. To complete the project in time, within budget and provide profit is as vital as in all businesses.

What fields of the projects tend to loose extra money and which produce savings? Does the geographical location of the project have an impact to the profitability? Is the project size having an impact to the profits? Are there other things having impact to the project success? The purpose of this study is to analyze randomly selected completed projects to find out some answers to those questions. The main data source is the CFU (cost follow-up), but also other reports will be utilized were applicable. The result of the analyze is supported by interviews for certain key persons over the subject matter. Results are to be shown in charts and diagrams with written specifications and conclusions.