Building of the second turn «VEKA AG» plant in the Novosibirsk region. - Анализ рисков, управление проектами IC&M Development

Second stage of «VEKA AG» Plant in Novosibirsk Region

February 2007 – September 2008

At this moment, the VEKA factory in the Novosibirsk region is the largest manufacturer of polyvinyl chloride casements along the part of Russia, lying to the east of Urals; the facility operates state-of-the art equipment and produces high quality commodities in full compliance with international standards. Read more

In 2006 top management of the company make a decision about expansion of manufacture in Novosibirsk area. And in February, 2007 together with company "IC&M" realization of the project of construction of the second turn of a factory has begun.

Read about building of the first turn VEKA AG plant.

The facility manufacturing area is 6 000 m².
Project finish time - 2008, September

The overall value of assets invested into the second production line totaled nearly € 10 million. The line annual productivity equals 11,000 metric tons. There are about 200 workplaces in two stages.

Services provided by IC&M company as part of the project implementation

Project Phase

Services provided

Obtaining official permits and approvals needed to start up the project; preparing terms of reference
Phase I implementation period - 4.5 months

1. Topographic mapping of the project site, identification of the site boundaries.
2. Obtaining terms of reference for all needed utilities that guarantees the required level of services (power, heat, water and gas supply, sewerage system, communications services).
3. Obtaining terms of reference and official approvals for extending of a railway siding.
Obtaining of all necessary permits (permit for dig up, building permits, etc.).

Construction project management
Phase II implementation period - 19 months

1. Selecting vendors of construction materials and building contractors to conduct the required construction and installation operations. Making a risk assessment, including consultations with the Project Site Expertise and Examination Department, the Novosibirsk Region Department of Industrial Development, as well with local construction organizations and developers as per the quality of the contractor companys job. Due diligence procedures are used to evaluate the contractors material and technical resources ( including financial situation), business reputation, and the level of experience in the area of industrial building based on the results of on-site visits with the purpose to evaluate the quality of already finished facilities or facilities in process of construction. Signing contracts with the selected companies on terms maximally beneficial for the client.
2. Supervising the ongoing activities of the contracted project site engineering, development and construction companies, that includes:

Ensuring the compliance with the contract terms throughout the entire contract period;
Monitoring the work progress, analyzing potential problems, submitting timely reports on problems and challenges already encountered;
Providing assistance needed to promptly respond to various situations emerging in the process of the project implementation;
Providing assistance in dispute resolution, including disputes with administrative and regulatory authorities;
Providing an adequate control over the project budget, including the right to suspend, resume or terminate payments, impose sanctions, exercise control over payment settlement with subcontractors, to avoid the slow dawn of the project implementation.

3. Obtaining required permits, approvals and licenses for an access railroad construction, concluding contracts for the access railroad design and building.
4. Obtaining required permits, approvals and licenses for getting an access to communications lines, and gas, water, heat, electricity supply; concluding contracts for new utilities lines design and building. Concluding power purchase agreements on terms maximally beneficial for the client.
5. Organizing and direct participation in the project staff meetings and meetings of the federal acceptance testing committee, providing necessary support and control over the process of putting the new facility in service.

Project results

Deadlines for every project phase were met.
Official document formalization and the process of obtaining necessary permits, licenses and approvals were completed within a very short period, in several cases - in record-breaking time.
High quality of construction and interior works was provided. The facility built in the Novosibirsk Region has been recognized by VEKA AG Board of Directors as number one among the company plants, regarding the quality of construction works, it has been decided, that the new facility surpasses the first company plant in Russia (located at the Naro-Fominsk district of the Moscow Region).

Reviews

Conrad Smandzich Technical Director OOO VEKA Rus

Any foreign company that is willing to enter the Russian market has more opportunities to succeed if it has a reliable partner. VEKA was fortunate to have such a partner - IC&M.

Our cooperation with this company started four years ago and since then VEKA has made a stride forward to the Siberian market and to the success of its products there, and in many ways IC&M has contributed to this. At present VEKA plant in Novosibirsk is a leader among the concerns enterprises by the rates of production growth.

To a considerable extent this was IC&M that has streamlined out effort to pursue the goals.

High professional level, responsibility and focus on the results allowed this company to tackle different problems regarding the construction of VEKA plant in Novosibirsk and to implement the project on the highest level and strictly on schedule.