More companies than ever are involved in capital projects. Increased industry specialization and project complexity means more interfaces and greater exposure to risk (and potential opportunity). “Flattening” the capital project supply chain in a similar manner to industries such as shipbuilding and aerospace will enable different risk pooling and monetization solutions for the stakeholders. Key to this transition will be the concept of disaggregating contractual responsibilities and achieving a high degree of collaboration underpinned by risk transparency and trusting relationships.
From design and “big data” applications to digitization and blockchain, improved transparency and collaboration is imperative.. Enabling technologies will drive positive change across the capital projects landscape. Streamlining data flow and business transactions eliminates significant waste in project and portfolio status provides a rapid, shared, single source of truth for all stakeholders. These technologies will unlock full digital twin capability, increase the velocity of cash flow throughout the project, and reduce overhead costs and contract leakage.
Reducing transactional waste improves the returns for investors, owners, contractors and other stakeholders involved in a project. This has multiple positive aspects. First, both the initial and operating expense of a facility may be substantially lower. Second, the margins for those who create the asset (for example, planning, design, and fabrication) may be substantially increased. Third, new and revitalized capital assets will drive value creation.