AVEVA ProCon was delighted to recently interview the chairman of the Improving Performance of Capital Projects conference in Houston, USA, where top industry experts gathered to discuss key issues for minimizing schedule and cost overruns.
This conference was a unique opportunity for industry experts to learn, network and share experience through a panelled discussion delivered by major project players in the downstream sector such as ConocoPhilips, Turner & Townsend, WorleyParsens, and King & Spalding, to understand what the project struggles are and how to deliver within the schedule and to budget.
We had the pleasure of interviewing the Chairman of the conference, Mr Jack Leahey, the Vice President of Sales for AVEVA ProCon and here’s what he had to say:
Q. What do you think are the 4P’s for building a successful capital asset?
A: Personable, Proactive, Pragmatic, and Professionalism.
Q. How do you think operators can better mitigate risk and uncertainty?
A: Through better understanding of what they are asking contractors for: Scope, contract type, schedule and cost. This requires more upfront planning. It’s also important to make sure engineering has near zero defects. This is done through improved contracts with EPC’s that are more realistic about the amount of time needed to undertake project engineering and cater for operators being appropriately involved in the review and approval of engineering changes. This will end up saving 10% on the total project.
Q. What do you think are often overlooked with contractor relationship building?
A: Heavy handed Owner Operator contracts never work out well because the relationship starts out on the wrong foot. If the parties can’t build a good relationship in pre-award they will never have a good relationship when things get tough in post-award. Communication and transparency is the key!
Q. How do you see capital projects evolving over the next decade?
A: I believe process and information management technology will change the way capital projects are executed in the future. I believe owners will perform portfolio optimization on a quarterly occurrence. This will result in better capital project selection, better operating asset determinations, and will result in higher profits. The cycle time for capital execution will also reduce. This should give the operator a longer runway to predict market conditions and make higher profits.
And finally, when asked how ProCon can optimize commercial outcomes in asset intensive industries, Jack commented, “Combining real-time analytics and technology provides you with the benefits of delivering cost savings straight to your bottom line and in turn, fewer claims, fewer incidents of cost overruns and maximum cost recovery!”.
Thank you Jack for taking the time to speak with us and sharing your thoughts and visions of the industry and where you see it evolving over the next decade.
Why not discover the 4P’s for yourself that experienced practitioners have found to be fundamental when building the relationships to deliver a successful capital asset. Read the whitepaper here: