Thomas Hundertmark, Andre Olinto do Valle Silva, and Jeff A. Shulman
Suppliers of energy and energy-intensive commodities are greatly increasing their investments in power stations, chemical plants, oil rigs, steel mills, and other capital projects.
By raising the cost of delay and missed opportunities, today’s supercharged environment has elevated the importance of first-rate contracting management.
Many asset owners, however, are struggling. Some fail to align the work of their project teams with their long-term capital strategies. Others choose inappropriate contracting models or underestimate the organizational resources they require.
Yet a few asset owners are benefiting from better project designs, lower costs, and fewer delays. By standardizing engineering activities, modifying boilerplate contracting models, and ensuring that project teams collaborate across functional boundaries, these leaders are creating a significant source of competitive advantage. An examination of their methods offers lessons for asset-intensive industries of all stripes.
View the rest of the article below.Managing-Capital-Projects-for-Competitive-Advantage