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TECHNOLOGY Simple steps help minimize costs, risks in project contracts

Jan. 22, 1996

Jorge A. Camps Pace Consultants Inc. Houston Contrary to prevailing opinion, risks and project financing costs can be higher for lump sum (LS) project contracts than under reimbursable-type contracts. An element-by-element analysis of the risks and costs associated with a project enables investors to develop variations of reimbursable contracts. Project managers can use this three-step procedure, along with other recommendations, to measure the hidden project costs and risks associated with LS

Camps

Jorge A. Camps is a senior consultant at Pace Consultants Inc., Houston. He directs Pace's efforts in South and Central America. He has 27 years of experience in project evaluation, planning, and management, as well as process design, operations, site selection, market analysis, and plant safety and environmental studies.

Camps has held positions with Davy McKee Corp., Progress Water Technologies, and Exxon Corp. He also served as an adjunct professor at the University of South Florida, where he taught senior design in the chemical engineering curriculum. He hasan MS in chemical engineering from Louisiana State University.