In those days of low commodity prices, it is essential for Contractors to propose cost-saving approaches so as to help make developments economically feasible – and become more competitive on their market. The solutions to be deployed will be very different depending on the type of projects, in particular regarding size and complexity. Our new White Paper 2014-18 \’How to Be More Cost-Effective in Project Execution\’ explains the steps that can be taken, depending on project type.
Two very different approaches need to be implemented, one for small projects and one for large projects, because the drivers of effectiveness are significantly different.
For smaller projects of low complexity, a number of processes that are currently implemented repetitively in each project can be usefully transferred to the portfolio level; that will save cost, limit the supporting resources required and at the same time make those processes more effective.
For large projects, cost effectiveness needs to be sought in those activities that are not part of the critical chain, and on leveraging procurement savings.
It is as always critical to deal with small and large projects in different ways because their drivers are very distinct.
Every downturn is the occasion to review the work processes and seek more effectiveness. Small & simple projects need to be dealt with differently from large & complex projects, and the drivers for improving effectiveness will be notably different. It will go through the establishment of differentiated process – an additional complication that is warranted to make the organization more adapted to its markets. Find more about this topic in our new White Paper 2014-18 \’How to Be More Cost-Effective in Project Execution\’.
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