The designing services in a wide range is a main activity of functioning of the Company. In 2006 the company expanded its activity to the development of project documentation on the activities of engineering-type EPC (Engineering, Procurement, Construction) (Design, Shopping, Implementation), otherwise the GRI, and thus includes the development of project documentation, purchases of capital goods, construction and start-up investment. Therefore, at present the sales revenue of the Company is divided to the raised income from typical design services and the income from the GRI implementation of the contracts. The revenues derived from the GRI in the total value consists of the revenues from engineering services and the estimated profit which Company would generate if implemented design dervices only without carrying out GRI contract.
Concerning design service the company is offering to the contractors the following:
• development of the concept (pre design, the modernization and the extension of the installation);
• preparation of one and multiple-branch projects (procedural, base, building, technical) in all industries (technological, of measurements and automation, bull-bars, building, architectural, electrical, installation and the environmental protection, construction and the structure of apparatus).
The methods used by the Company in the design process directly depend on the extent and type of order: whether order is a single or multiple branch, what is the complexity of the project and what kind of software should be used. From the economic point of view multiple branch orders are much more advantageous for the Company.
The company is trying to carry all received orders on its own using own human resources and equipment. Nevertheless, in the service of design the Company is also using the cooperation with subcontractors. It occurs This occurs when temporarily the sections of the Company are too workloaded, or there is lack of specialised specific area of the Company, or obtained orders are small and low complicated.
There is an average dispersion in Company’s income. Earlier the income from PKN ORLEN constituted over the 62% of the value of the income from the design, and in 2 last years income lowered to about 58%. Positive point is that there is less financial dependence on one main contractor on account of many contractors. However, on the other hand, it is connected with a risk of the cooperation with customers with poor economic condition, too strong dispersion of customers and fragmentation of orders.