ARM’s Value Engineering Approach Saves E&P Company Hundreds of Thousands of Dollars in Construction Costs

Using a proprietary value engineering approach, ARM engineers have saved one Exploration and Production (E&P) Company operating in the Appalachian Basin over a million dollars in construction costs in just the last 9 months.  ARM’s innovative approach involves the performance of a subsurface or geotechnical investigation of the proposed well pad, impoundment (if applicable), and access road(s) prior to construction.  The information from the subsurface investigation is compiled and evaluated by ARM engineers to determine options for enhancing the strength and stiffness of the earthen subgrade to allow for a reduction in the amount of costly aggregate imported to the construction site.

Many E&P companies do not perform pre-construction subsurface investigations choosing instead to deploy a standardized aggregate section using a fixed stone thickness.  ARM’s approach allows for the development of a site-specific earthwork strategy that optimizes the use of the native earthen materials and enhances the engineering properties of these materials, when necessary, with various subgrade reinforcement technological solutions.

ARM’s design optimization approach accounts for the anticipated loading and trafficking that the various features will experience over the lifespan of the installation and uses select modelling tools to ensure that the design will meet the long-term performance requirements of the facility.

ARM’s recommendations are presented in a geotechnical memorandum and summarized in a cost savings table, which presents the monetary implications of the various design alternatives that were evaluated as part of the value engineering approach.  All of the geotechnical data collected from the study, technical specifications, and the preferred subgrade enhancement options from the value engineering assessment are integrated into a comprehensive Geotechnical Construction Plan (single sheet) that is provided to the bidders to ensure accurate bids with minimal contingencies required by the Owner.

On average, and depending on the size of the facility, ARM’s value engineering approach is saving between $50, 000-$150, 000 per site.  For more information about this unique cost savings strategy, please contact Bryan Wehler, P.E., P.G. at 717-533-8600.

Installation of subgrade reinforcement and subbase aggregate at a well pad site.