Abstract
Globally, including North America, most capital and sustaining projects have been impacted by COVID and resulting economic slowdown. Projects are also experiencing significant productivity impacts due to the new normal COVID working conditions, as well as increasing emphasis on safety, security, and regulatory compliance.
The need to maintain existing facilities still exists. Capital spend is still needed to maintain operability, safety, and capacity, all while certain commodity demand is still increasing.
Due to budget cuts, project and construction teams have been reduced by 30% or more. Across the board, our industry is also seeing increases in material and equipment costs due to COVID with commodity price volatility and supply/demand uncertainty presenting additional challenges.
To mitigate these issues the project team must further increase the use of the Front End Planning process, deploy industry best practices, conduct extensive value engineering exercises, as well as thorough internal and external risk assessment process. In doing so, the Construction Industry Institute (CII) has established through its industry research that a significant saving can be achieved and gain in productivity:
- Every $1 spent on Front End Planning saves $25 in Execution & Commissioning
- High use of Constructability results in up to 6% Cost improvement and reduces project Schedule by up to 7.5%
- “Fit for Purpose” Contracting & Partnering Strategy provide Owners with up to 9% in cost improvements
Join senior PTAG practitioners Feroz Ashraf and Michael Dubreuil for this session which will be direct and to the point providing practical and validated examples on the Importance of Front-End Planning and Leveraging Industry Best Practices.