Added Jul 8, 2026Completed Apr 15, 2023
Company
Gulf Turbine Services
Client
Coastal Utilities
Source
MANUAL
Contract Type
LUMP SUM
Market Segment
GT_OUTAGE
Public/Private
PRIVATE
Project Manager
Ray Daniels
Estimator
Phil Carter
Superintendent
Marcus Hill
Location
Midlothian, TX
Margin Analysis
Original Margin
13.0%
$357,500
Revised Margin
10.2%
$297,500
Final Margin
3.1%
$92,165
Margin Fade (Bid)
-9.9%
CO Impact
$-60,000
Margin Fade (Revised)
-7.0%
Where They Land
Final Margin+3.1%
Break Even
-0.9%+24.4%
Gain / Fade-7.0%
As Predicted
-7.9%+2.0%
This project
Other projects
Zero reference
Revenue & Cost Summary
| Stage | Revenue | Cost | Profit | Margin |
|---|---|---|---|---|
| Original | $2,750,000 | $2,392,500 | $357,500 | 13.0% |
| Revised | $2,930,000 | $2,632,500 | $297,500 | 10.2% |
| Final | $2,930,000 | $2,837,835 | $92,165 | 3.1% |
Cost Category Variance
| Category | Original | Revised | Final | Variance $ | Over/Under % |
|---|---|---|---|---|---|
| Labor | $810,880 | $930,769 | $1,056,423 | +$125,654 | +13.5% |
| Material | $657,673 | $774,538 | $782,283 | +$7,745 | +1.0% |
| Subcontractor | $624,638 | $732,169 | $747,572 | +$15,403 | +2.1% |
| Equipment | $212,991 | $221,272 | $239,195 | +$17,923 | +8.1% |
| Other | $86,317 | $78,975 | $71,078 | $-7,897 | -10.0% |
Labor Productivity
Original Rate
$55/hr
Revised Rate
$76/hr
Final Rate
$74/hr
Hours Variance
-467
Rate Variance $
$271,228
Volume Variance $
$-25,685
Lessons Learned
What hurt
Lump-sum HGP without confirmed transition-piece lead time — parts arrived late, crew idled 2 shifts. The fade was schedule, not execution.
Assumptions / what to do differently
Don't take lump sum on an HGP until parts lead time is confirmed in writing; otherwise price the schedule risk.
LUMP SUMPARTS LEAD TIMESCHEDULE