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OPPORTUNITIES FOR SMEs IN LARGE PROJECTS

OPPORTUNITIES FOR SMEs IN LARGE PROJECTS. Mark Shrimpton Jacques Whitford. PRESENTATION FORMAT. Example Projects Opportunities and Benefits for: SMEs Companies developing large projects Others Getting Involved in Large Projects. EXAMPLE: HIBERNIA. Offshore oil platform construction

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OPPORTUNITIES FOR SMEs IN LARGE PROJECTS

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  1. OPPORTUNITIES FOR SMEs IN LARGE PROJECTS Mark Shrimpton Jacques Whitford

  2. PRESENTATION FORMAT • Example Projects • Opportunities and Benefits for: • SMEs • Companies developing large projects • Others • Getting Involved in Large Projects

  3. EXAMPLE: HIBERNIA • Offshore oil platform construction • Newfoundland, Canada • Construction: US$3.5 billion • Completed in 1997

  4. EXAMPLE: NORAL • Aluminum smelter, construction and operations • Iceland • Construction: US$3.1 billion • Under construction

  5. OPPORTUNITIES FOR SMEs • Direct supply of: • Labour • Raw materials • Services • Goods • Labour force requirements (e.g. housing, consumer goods, leisure)

  6. BENEFITS FOR SMEs • Understanding of industry: • Language, technology, requirements • Technical capabilities: • Equipment, experience, expertise • Organizational skills: • Joint ventures, bidding, quality, document control, accounting

  7. BENEFITS FOR SMEs • Relationships: • Clients, partners, industry groups • Attitude: • Performance, quality, self-worth • Competitiveness

  8. BENEFITS FOR OTHERS • Companies developing projects: • Access to local goods and services • Reduced transportation time and costs • Corporate reputation and social responsibility • Meet requirements of IFIs • Others: • Regional economic growth and diversification

  9. GETTING WORK ON LARGE PROJECTS • Organize: • Individual and group strategies • Supports • Learn: • Information requirements • Methods • Evaluate opportunities • Procurement and bidding • Market

  10. ORGANIZE • SMEs: • Single SME • Partnerships, alliances and joint ventures (local, national and international) • Supports: • Industry groups • Government agencies • Consultants

  11. LEARN • Learn about the industry and project: • Project proponent • Phases • Timing • Contracting process • Project requirements

  12. LEARNING METHODS • Review literature and web-sites • Presentations and workshops • Trade shows and conferences • Fact-finding missions • Meetings with proponent • Ensure information is current and relevant

  13. EVALUATING THE OPPORTUNITIES • Think strategically • Opportunities: • Direct supply to project • Requirements of labour force • Complement other local industry

  14. EVALUATING THE OPPORTUNITIES • SME capabilities: • Current • Opportunities for improvement • Duration of requirement • Certainty of timing • Contracting issues and process

  15. PROCUREMENT ISSUES • Who is the client? (contracting & subcontracting) • Location • Procurement process stages • Bid requirement specifics (what do they want?)

  16. PROCUREMENT ISSUES • Business requirements: • Quality • Accounting • Document control • Health, safety & environment • Bid packaging

  17. BIDDING FOR WORK • Pre-qualifying • Proposals: • Technical • Financial • Bidder debriefing

  18. MARKETING • Approaches: • Materials • Presentations • Relationships • Key issues: • Professionalism • Experience • Reliability • Competitiveness

  19. CONCLUSION • Hibernia: 6000 local contracts • Example SME contracts: • Light construction & electrical ($1.7 million) • Vehicle maintenance ($5 million) • Equipment rentals ($2 million) • Mechanical drawing • Security & camp services

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