Water & Wastewater Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/1223154
www.wwtonline.co.uk | WWT | APRIL 2020 | 35 Could a whole hire cost procurement strategy achieve savings? Steve Handy, business development director at Sykes Pumps, discusses how a 'whole hire costs' approach to pump hire procurement could help generate savings over the hire period. L ike so many aspects of procure- ment, pump hire contracts are increasingly awarded based on a price-driven strategy to accept the lowest bid considering only the rate of hire. Oen, however, the savings that look good on paper can mask a whole array of potential hidden costs over the hire period. Moreover, the longer that hire period is, the more those hidden extras can add up. A more considered approach to understanding the real cost of hiring the assets involves taking into account the suitability of the pumps for the required application, man hour costs for set up and maintenance, fuel costs, environmental risk, flexibility, and the potential impact of any downtime. When these criteria are factored into a whole hire cost calcula- tion; the 'real' cost of the project can be very different from the quote submitted. Running costs While it's the price of hiring the pump equipment that oen drives the purchas- ing decision, up to 80 per cent of the total costs incurred during the hire period for diesel pumps can be fuel consumption, so it's essential to consider the fuel efficiency of the hire asset. The pump hire provider should be able to provide details of the fuel consumption that can be expected for the duration of the hire period, based on the specification of the equipment, the applica- tion and the anticipated run time each day. For applications where pumps will be in constant or frequent use it is oen more cost-effective to opt for a higher- priced more fuel-efficient model than to opt for the cheapest hire price and increased fuel consumption. Right first time Of course, there may be ways to reduce fuel consumption and value engineer the pump specification to maximise the value of the installation while gaining cost- efficiencies. tion between the pump hirer and the hire provider. This should continue throughout the hire period, so that changes can be made if required. For example, there may be an opportunity to switch to lower capacity, lower cost equipment during the hire period or to exchange diesel pumps for electric alternatives as the project progresses. Avoiding cost and operational risk The ultimate cost risk that could poten- tially occur during the pump hire period is downtime. Not only can this cause costly delays, but it could also present a health and safety hazard. Once again, there are numerous ways that the hire specialist can add value that could reduce the risk of downtime. Including an installation service in the pump hire contract will ensure that the as- sets operate correctly and as efficiently as possible. Training for site teams provided by the hire company is another added value service that could ensure downtime can be avoided. To prevent the risk of call outs, regular servicing and maintenance visits through- out the hire period ensure that the pumps operate at maximum efficiency. Given that a diesel pump running 24/7 for one week is equivalent to a car driving over 10,000 miles, routine servicing should be carried out on a fortnightly basis, regardless of whether any faults or drops in flow rate have been noted. Using a hire specialist with a na- tional depot network will ensure that any replacement or additional pumps can be brought to site quickly and easily, and that call out times are minimised should there be any issue with the pump equip- ment. It is unexpected costs that are the most onerous on any project and the risk of incurring them as part of a pump hire contract can be significantly reduced by adopting a value- rather than price-based strategy for assessing whole hire costs. Pumps & valves: opinion The pump hire specialist should carry out a site survey to factor in any logisti- cal or technical challenges involved to inform the specification. They should also accommodate any need to reconfigure the pump set-up during the hire period or manoeuvre pumps to different locations on site. Standby equipment requirements should also be discussed at this stage. Oen, mission-critical operational or safety requirements result in hire costs for standby equipment that is never used. While this is sometimes an appropriate risk management strategy, there may be other ways to reduce risk while saving cost, such as the use of fault monitor- ing equipment or designing a solution that builds redundant capacity into duty pumps to allow for additional flow rates. Only by understanding both the opera- tional need and the physical environment involved can the pump hire specialist recommend a solution that delivers on ef- ficiency and whole hire value. To achieve this, there must be effective collabora- "The ultimate cost risk that could potentially occur during the pump hire period is downtime."