Added Jul 8, 2026Completed May 26, 2022
Company
Gulf Turbine Services
Client
Riverbend Energy
Source
MANUAL
Contract Type
LUMP SUM
Market Segment
STEAM_OVERHAUL
Public/Private
PRIVATE
Project Manager
Ray Daniels
Estimator
Phil Carter
Superintendent
Marcus Hill
Location
Jewett, TX
Margin Analysis
Original Margin
11.0%
$451,000
Revised Margin
7.0%
$331,000
Final Margin
-0.9%
$-40,365
Margin Fade (Bid)
-11.9%
CO Impact
$-120,000
Margin Fade (Revised)
-7.9%
Where They Land
Final Margin-0.9%
Break Even
-0.9%+24.4%
Gain / Fade-7.9%
As Predicted
-7.9%+2.0%
This project
Other projects
Zero reference
Revenue & Cost Summary
| Stage | Revenue | Cost | Profit | Margin |
|---|---|---|---|---|
| Original | $4,100,000 | $3,649,000 | $451,000 | 11.0% |
| Revised | $4,700,000 | $4,369,000 | $331,000 | 7.0% |
| Final | $4,700,000 | $4,740,365 | $-40,365 | -0.9% |
Cost Category Variance
| Category | Original | Revised | Final | Variance $ | Over/Under % |
|---|---|---|---|---|---|
| Labor | $1,269,301 | $1,532,013 | $1,746,495 | +$214,482 | +14.0% |
| Material | $1,096,585 | $1,115,214 | $1,137,518 | +$22,304 | +2.0% |
| Subcontractor | $1,063,136 | $1,095,448 | $1,112,080 | +$16,632 | +1.5% |
| Equipment | $271,501 | $308,094 | $333,974 | +$25,880 | +8.4% |
| Other | $109,470 | $318,232 | $410,298 | +$92,066 | +28.9% |
Labor Productivity
Original Rate
$69/hr
Revised Rate
$79/hr
Final Rate
$59/hr
Hours Variance
11,206
Rate Variance $
$-296,006
Volume Variance $
$773,200
Lessons Learned
What hurt
Steam majors are our hardest fade — LP last-stage blades had more erosion than scoped, and we under-price steam labor.
Client feedback
Riverbend understood the erosion was unforeseeable but wants tighter scoping next time.
Assumptions / what to do differently
Steam needs a different (lower) productivity factor than GT in the estimate; don't reuse GT labor norms.
STEAMPRODUCTIVITY FACTORFADE