IPA’s Equipment Cost Analysis systematically compares key equipment parameters of a project with IPA’s Equipment Database, which consists of over 1,000 pieces of equipment procured by 45 companies within the industry. The mechanism for comparison is a set of statistical models and database comparisons that are designed to evaluate the competitiveness of the procurement costs expended by a project team to purchase the required equipment. This type of analysis is intended to provide a better understanding of the equipment price escalation experienced by a project team relative to current industry norms.
This analysis provides our clients with a better understanding of how their procurement practices impact the prices they are paying for certain pieces of equipment. These findings are correlated with the individuals responsible for the procurement and the sourcing location for the products. In addition to identifying the aforementioned practices, the Equipment Cost Analysis reports cost trends for various pieces of equipment procured globally.