Construction, Engineering, Thought Leadership

98% of all AEC projects suffer cost overruns greater than 30%. What are the 2% doing differently!?

Improving project control

Why this matters …

It’s a fact that many organisations find that large-scale capital project miss their targets, with estimates being as high as 98% of all projects suffering at least 30% cost overrun!

This is just a headline figure.  When we dig a little deeper, the average cost increase is 80% of the original value – and the average slippage is some twenty months.

These are scary numbers.

So, what’s the difference between an overly expensive, extremely late project to one that meets the desired standards of being quality-built, on-time and in-budget?  The answer almost invariably lies in the realm of project control.

What are project controls?

Project controls describes all applied processes for the tracking, variance-analysis and proactive correction of project performance (cost/schedule/quality).  The functions of project controls span the initiation, planning, monitoring/controlling, communication and closing-out of all related project information. By necessity, they need to involve all stakeholders (multi-parties) involved in the project – from senior executive decision-makers through to all involved delivery partners.

Ultimately, project controls are  embedded/iterative processes for measuring project status, forecasting likely outcomes based on those measurements and the proactive improvement of project performance if projected outcomes are unacceptable.

The Prize …

What is the role that digitalisation can play?

It’s a fair assumption to say that the adoption of digital tools and platforms within the AEC sector has been slow and often met with some change-hesitance resistance. While many sectors, ranging from public sector, automotive to manufacturing, have demonstrably reduced costs and schedule slippage by adopting digital solutions, the construction sector is still lagging.

With the adoption of platforms that capture and replicate best practice P3M processes and procedures, there is now the opportunity for AEC companies to move away from – often – atomised (e.g. Excel sheets) enablers or, worst case, manual paper-based approaches.

How we can help

Improved project control needs to span multiple P3M processes and to collaboratively-enable multiple roles to ensure project success.  In this context, once deliberate decisions are taken to improve this fundamental capability area – the choice of enabling platform/solution(s) is key.

Method Grid is a unique platform, designed for AEC companies, that integrates the core features of: knowledge/project/task and audit management.  We call this amalgamated practice: connected assurance. Our professional service team works with client counterparts to build out your company’s service frameworks/toolbox (as based on our library of industry best-practice also) and to support the embedment of an enhanced connected assurance capability generally.

 By embracing connected assurance, your infrastructure projects can be mobilised quickly – as based on the replicable fundamentals of project success and your company’s ever-improving, best-practice repository.  And when these project behemoths are in-flight, you’ll have – at your fingertips – all real-time insights and oversight as to how they are progressing – fuelling your ability to issue identify and resolve.

If you are interested in discussing how Method Grid can support your company’s objectives in this critical area, we would love to share our experiences with you.

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