Budget and schedule overruns have plagued infrastructure programs for decades.
McKinsey Capital Projects reports that distressed programs often lack adequate controls. These faltering programs do not have robust risk-management protocols – nor do they provide comprehensive reporting on budgets and timelines – ultimately hindering their ability to manage program delivery and control cost overruns.
Infrastructure projects continue to grow in complexity. Huge infrastructure projects in particular often have large project teams spanning many organizations across the globe.
Studies show that larger projects are more likely to incur budget and schedule overruns and that those overruns are significant. The increased risk, reporting requirements and government regulations make information and process management critical for today’s infrastructure projects. With so many different organizations and so much risk involved, the question looms: how do we manage the vast amounts of data and communication on these large, complex global projects?
Construction projects continue to grow in size, complexity and competitiveness. Team sizes quickly expand as a project moves into the construction phase. Schedules are tight and project processes are time sensitive. And with the volume of project information, communication across all of the different organizations ramps up as well.
With all of these moving pieces, understanding process performance, optimization, and standardization are crucial to success.
Standardization in construction has always been a struggle.
Once upon a time, construction projects were managed using stacks of paper, manuals, rows of binders, complex tables of contents, and piles of CDs. Efficient maintenance is often aggravated by personnel turnover, inconsistent formats from various contractors, and inaccessible information. These issues can lead to delayed repairs and time-sensitive calls to contractors. But these onerous struggles can quickly be addressed by shifting to optimization and automation.
We live in a time of both great opportunity and great risk for the construction industry.
In a recent Aconex survey conducted in August 2016, we learned that organizations face three key challenges:
- Establishing a single source of truth – a reliable source of information all project partners can draw from.
- Finding a flexible solution – integrated technology for an organizations’ day-to-day processes.
- Standardizing portfolio management and reporting – applying standardized processes and measuring performance across a portfolio of projects.