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Due to increasing power demand in North Carolina, construction of a new powerhouse to replace the existing one, built in 1919 was necessary. The project’s CPM schedule had to be coordinated with Voith Siemens’ CPM schedule because manufacturing of the mechanical turbines took place in South America.
Turbines had to be ordered 18 months in advance to allow for manufacturing and delivery time. The cost of storage and double handling on the site was very high, therefore all the necessary construction work to install the turbines had to be completed by the delivery dates. The project was cost loaded so that every monthly payment was based on the earned cost of the actual activities completed on that particular month. We were able to produce a projection cash flow for the amount of money the owner needed to spend every month, from beginning to end.
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