JV Driver Fabricator’s “single site, single source” model benefits our clients in two important ways: by one, giving them the best value possible and two, creating schedule certainty.
In the Alberta market, with module and pipe projects (most module yards do their own pipe fabrication, but not steel), their products have to be transported to the primary module assembly facility to be assembled after fabrication. This model creates a number of risks and issues.
First, there is a transportation risk, as pieces must conform to government transportation regulations and be of a certain size to be transported over back-country roads and highways.
Second, when you aren’t working with the “Single Site, Single Source” model, there is a schedule risk. When a steel fabricator falls behind on a schedule, there aren’t many consequences to their shop, since they don’t have to worry about the end-assembly. At our site, when one aspect of assembly falls behind, we feel it on all aspects, and we make it our duty to keep to schedules, which creates a level of schedule certainty. With our model, there is an unparalleled level of accountability at all stages of assembly that you won’t find with our assembly models.
Third, there is a risk of rework. When there is an issue that can only be solved by reworking the product, the fabricated piece of steel must be sent back to the original fabricator for correction. This adds unnecessary costs for double handling, material receiving, man hours, and transportation.
Last, this all adds up to higher costs: costs for joining smaller pieces due to transportation rules, costs for delays due to schedule uncertainty, costs due to rework, double handling, and added transportation. But beyond those costs, our model removes what we call a “double markup scenario.” This means the clients will pay not only the sub-contractors markup, but the primary contractors markup on on that markup, because of the extra administration of the subcontractor. This also creates additional inspection costs, as their own people have to travel to the facility to perform inspections or sign off on completed work before transportation.
Our innovative “single site, single source” approach, with all components of a module built in one location, resolves 99% of these issues and creates better value and schedule certainty for our clients.