Many companies have, in recent years, been disappointed by the returns from their substantial capital investments. Headline-grabbing cost and schedule overruns have become the norm for mega projects, destroying shareholder value and damaging management credibility. Regardless of whether the projects are mega in scale or site-based sustaining capital projects, excellence in capital management starts with project portfolio optimisation and moves through project design, procurement and delivery. Our consulting approach, a mix of practical tools, wiring and effective coaching, helps clients create an environment that enables them to design efficient and effective projects that finish on time and under budget, without compromising safety or quality.
What we do
PIP works with both owners of engineering and construction companies. This work spans capital portfolio optimisation, project value optimisation (using NPV/IRR or capital return as its guide), capital procurement, and construction productivity and assurance. Our Consultants are seasoned capital project professionals who are equally at home coaching senior managers, as they are building transparent performance reporting, or helping front-line crews to improve performance. They remain focused on the highest-value improvement levers and their extensive experience attunes them to the risks and complexity of implementing such change. PIP’s approach has the rigour required to identify the value and an implementation process that has successfully helped clients deliver tens of billions of dollars in capital value improvement in the past few years.
We work with client teams across most aspects of capital project improvement:
Optimising a portfolio of capital projects is critical and challenging. Avoiding distortions in the decision-making process is a key driver of value for capital-intensive businesses.
Capital design optimisation
Our experience shows that most projects are based on good engineering, but their return on capital investment can generally be improved and capital-optimised by challenging key assumptions, key value drivers and the way sub-projects have been put together.
Construction projects almost always have the necessary monthly contract reporting. Few have the well-structured performance/productivity management processes necessary to ensure they hit every milestone on time, and in full, as well as highlighting delays early enough to recover the schedule with minimum effort.
To ensure operational readiness across all workstreams, PIP works with clients to implement a detailed plan to foster and sustain a focus on timely in-full delivery.
Capital programme management and assurance
PIP supports management teams in building world-class capital project organisations by tailoring a comprehensive set of best practice tools to match the specific needs of each project or capital portfolio.
Sustaining capital portfolios
Excellent capital management processes are often targeted at large and complex projects. Meanwhile, the management of smaller, sustaining capital projects, required to keep existing operations on track, slips under the radar.
Selecting the correct contracting strategy and starting the contractor relationship on the right foot is critical to a successful project outcome. Furthermore, during the course of a project contractor performance may lead to decisions being revisited and, in many cases, contracts or contractors being changed.
Capital projects groups often exist as separate, largely autonomous entities within most corporations. With limited collaboration with operations and procurement functions, the projects seldom capture the full benefits from leveraging the corporation’s operating standards and purchasing scale economies.
To support and help companies and Boards understand the state of portfolios and projects throughout their life, and to identify key improvement opportunities, PIP has developed a series of capital project diagnostics to assess projects throughout their life.