Digitalising operations and integrating advanced technologies can lower the operating costs of industrial companies and manufacturers as they strive to optimise productivity.
During construction, however, technical and contractual conflicts are prone to occur, not least: in design work, which is often incomplete when construction is fast-tracked; in interface management, typically at second- and third-tier levels of the supply chain; and when existing structures are being re-purposed for new, sophisticated plant systems.
Construction and engineering projects in this sector are prey to the common and recurrent problems we see on other large and complex projects, but outturn costs tend to be worse.
We analysed more than 88 industrial and manufacturing projects worldwide with a combined CAPEX of more than $81.9 billion for our Sixth Annual CRUX Insights Report. Based on our own consultants’ expert investigations, we ranked the underlying causes of claims and disputes. CRUX also revealed that disputed costs were higher, on average, for industrial and manufacturing projects than in any other sector, at 49.9% of project capital expenditure.
Claimed extensions of time would typically prolong schedules also by more than half (54.5%). Oil and gas project owners and contractors can mitigate this colossal toll by adopting proven best practices at each stage of the project lifecycle.
Why HKA’s industrial and manufacturing expert, consulting and advisory services?
HKA has advised on major construction and engineering projects across the world. Our clients benefit from the insights gained through this first-hand experience of working on diverse complex projects as well as our integrated research programme and analysis.
The lessons learned, for owners and contractors, range from pre-planning and procurement methods to project management and dispute resolution. For example, we have seen how EPC and EPCM (Engineering, Procurement, Construction / Management) contracts can be misunderstood and mismanaged, and how variations and claims are maximised in this adversarial environment.
How our experts, consultants and advisors help
Our industrial and manufacturing experts, consultants and advisors help you navigate risks, the complexities of contracting, and the rapidly evolving technological and digital landscape.
Sophisticated expertise is required not only to anticipate risks, but also in investigating how projects have been executed and assessing the losses and damages that arise. We deploy multi-disciplinary teams to decode this complexity. As well as delay and quantum experts, we call on process, civil and structural engineers, and 3D modelling or other specialists, including assessors of losses and damages, as required. Our clients are assured the most robust basis possible for a negotiated settlement or the detailed analysis required to support litigation.
We provided a range of expert, claims consulting and advisory services on industrial and manufacturing projects in many sectors, including:
- automotive;
- aerospace;
- chemicals;
- defence;
- energy and resources;
- food and drink;
- electrical and electronics;
- mining and metals;
- pharmaceuticals and life sciences;
- research and development;
- rolling stock; and
- shipbuilding and marine.
