Last Mile activities are key for having smooth cash flow in EPC work

While working for EPC contractors, I have seen that there is not focus on last-mile activities. EPC contractors are very capable of core work but the last mile activities are not very important to them so they do not staff it properly or plan equipment for it in their budget. Some examples of last-mile activities are -

  1. giving electrical connections to the site

  2. connecting instruments with the central station

  3. putting insulation over the pipes

  4. Getting customers & principal customers for a walk around to give punch points & also the closure of punch points.

  5. Performing some special QC tests

Usually, EPC firms do not have a dedicated team for doing last-mile work. Even if they have, it would be no more than a one-person group. The customers see only 90% well slot completion and stop EPC firm’s payments. A cash flow problem gets initiated for the EPC firms. They keep grumbling with the customer for nonpayment. The solution to this problem is simple, follow the money even though it is not in the comfort zone of EPC firm’s capabilities. Plan proper milestones for last-mile and budget adequate resources for it.