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Case Study - Kinder Morgan Liquid Terminals-Nine Tank Project

Customer Challenge

Kinder Morgan was in the midst of a large civil engineering project to construct nine new storage tanks at its Perth Amboy, NJ facility. The project included piping, pumps, and steel supports. FM Sylvan had originally been selected to complete the pipe installation for the job, which required safe and effective installation of more than 20,000 feet of carbon steel pipe. However, a month into the project, a series of unforeseen events related to other aspects of the project threaten to derail the entire project from a time and cost standpoint. Based on the current contract and budget, Kinder Morgan was temporarily unable to proceed with the pipe installation.

FM Sylvan Solution

Rather than demobilizing from the job, FM Sylvan worked to renegotiate the terms of the contract and complete the work on an "open book" cost plus basis. This flexibility allowed Kinder Morgan to continue moving the project forward and allowed FM Sylvan to focus the resources in a way that would compensate for the delays that were previously experienced.

Results

By working with Kinder Morgan to come up with a more flexible arrangement, FM Sylvan redeployed quickly and completed the pipe installation in a timeframe that enabled Kinder Morgan to meet its customer commitments and project deadlines. This approach to customer relationship management typifies the way FM Sylvan works with clients to help ensure the on-time, on budget delivery of business critical projects-which has resulted in more than an 80% repeat business rate.