Integration of the global cost monitoring system

CEMCP
ROSATOM

Administering the IT system and providing access to industry users

CEMCP's structural subdivision, the project office "Integration of the monitoring system for cost of material and technical resources" is engaged in implementation of the industry system of monitoring and updating of costs of construction resources for facilities erected outside the Russian Federation, including those of the industrial enterprises. Their methodological approaches were approved by the industry in 2018 (Order of Rosatom State Atomic Energy Corporation No 1/1032-P "On Approval of the Unified Industry Procedure for Monitoring of Costs of Construction Resources for Facilities Erected outside the Russian Federation" as of 14th of September, 2018; and Order of Rosatom State Atomic Energy Corporation No 1/990-P "On Approval of the Unified Methodological Guidelines for Monitoring of Costs of Construction Resources for Facilities Erected outside the Russian Federation" as of 6th of September, 2018), and got recognition from international experts.

Goal

Regular obtaining of the information on the cost of construction resources to assess and control the cost of construction of nuclear facilities, tracking of cost dynamics, and forecasting for the future time periods.

Tasks

collection of the information on changes in factory prices for construction materials
regular filling in of the database of construction resources with current positions and prices
integration of the construction resources price monitoring system into the cost and schedule control process in the ТСМ NC program
formation of the open database on prices of resources used in the project for participants of investment and construction activities
compliance of the formed system with the Russian legislation and international standards

Integration of the industrial system for monitoring and updating of costs for construction resources for facilities implemented outside the Russian Federation is an important stage for Rosatom State Atomic Energy Corporation. Within strong competition in foreign NPP construction, this system has become the tool for quick response to changes in project cost parameters within market pricing policy related to construction resources.

Data collection
Analytics
Tracking of dynamics
Forecasting

Integration of the cost monitoring system into business processes performed by Rosatom State Atomic Energy Corporation in order to manage foreign NPP construction projects

Pilot projects

In 2019, the Uzbekistan NPP construction project was selected as a pilot one for deployment of the industry monitoring system in terms of marketing research. In accordance with the approved scheme of the monitoring process, Rosatom's private institution (CEMCP) involving industry organizations and a consulting company conducted marketing research of the construction market in the Republic of Uzbekistan/ third countries with further issuance of the related research report. Marketing research was conducted in the Republic of Uzbekistan and 3 countries being considered as potential suppliers of construction resources to the construction territory: Qazaqstan, South Korea, Türkiye, and PRC.

Based on the results of marketing research, there was formed the knowledge base of the construction market of Uzbekistan/ third countries. It allowed reliable determination of construction costs when assessing them as per Class 4. This became the basis for the contract strategy and contractual position taken by Rosatom State Atomic Energy Corporation during negotiations with the Uzbekistan side. Also, there was formed the base to determine the localization of supplies and scope of works; this will allow arrangement of the Uzbekistan NPP project with the use of mixed prices taking into account the economic feasibility and industry interests.

Apart from that, there was carried out the market research with reference to the Republic of Egypt and the El Dabaa NPP project.

Marketing research process scheme for the El Dabaa NPP project was formed and approved establishing the roles of the project participants and assigning tasks and responsibilities
There was prepared the design assignment referring to marketing background of Egypt with definition of the research subject
There were certain activities organized with consulting companies to study the Egyptian market of construction products.
CEMCP carried out collection and processing of data received from consulting organizations, allowing formation and approval of the El Dabaa NPP project with minimum uncertainty so that Rosatom State Atomic Energy Corporation could start its implementation under minimum risks.

In 2019, there were formed the first cost guide books for construction resources to be used at the Rooppur NPP. They were approved by industry's business units of ASE JSC, which joined the implementation of the adopted industrial monitoring system. Resource cost indicators placed in these directories have undergone multi-stage verification of reliability in accordance with the requirements of industry methodological documents related to construction resources price monitoring. The accumulated experience and competencies of the participants involved in the formation of these directories will make it possible to extend this experience to all projects and increase the range of construction resources produced in the industry price directories up to the volume required to address the strategic goal of Rosatom State Atomic Energy Corporation, which is to determine the reliable cost of construction based on the resource-based method of determining the cost at all stages of construction project life cycle, since it is one of the main advantages over competitors at the global construction market.

The single framework for arrangement of cost monitoring and actualization processes

In addition to implementation of the industrial system for monitoring and updating costs of construction resources for projects implemented outside the Russian Federation, the project office "Integration of the monitoring system for cost of material and technical resources" is actively involved in carrying out of another important task: creation of the single information environment for monitoring processes and updating prices (development and implementation of the "Industrial information system of monitoring and updating of building resources’ costs outside of Russia (IIS MUBRC)".