DELIVERING MAJOR PROJECTS INA DIGITALLY ENABLED CONSTRUCTION INDUSTRY

THE ROLE AND VALUE OF AN INFORMED PROGRAM & PROJECT CONTROLS STRATEGY

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TABLE OF CONTENTS

03 Introduction04 What are Project & Program Controls?06 A catalyst for productivity improvements and cost savings07 A balance of process, people and technology08 Common pitfalls to avoid10 How to design a best-in-class PPC strategy and PMIS14 Case studies16 The future of project delivery in a digital industry18 Contact us

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Across the Middle East, construction projects are becoming increasingly complex, delivery timeframes are shrinking, and end user requirements are taking higher priority in the design and construction of new assets. Furthermore, the emergence of contemporary delivery models that require new methods of financing, mean that projects are required to satisfy the demands of a broader group of stakeholders. This is a potential cause for concern as until now, the industry has a mixed record when it comes to delivering major projects on time and within budget.

Recent McKinsey research also revealed that the construction sector has been comparatively slow to embrace innovations in process and technology, and typically reinvests less than 1% of total revenue into R&D, compared with the 3.5-4.5% seen in the automotive and aerospace sectors. With projects becoming more challenging, the need to do things differently has never been more compelling.

Fortunately, some of the enablers needed to drive this change are beginning to emerge. Digital disruption is gathering pace and already driving new ways of working in our industry. New skillsets are starting to permeate, and the technology solutions that enable process enhancement, are now a lot more accessible, flexible, and less cost prohibitive. This is especially relevant when it comes to Program and Project Controls (PPC); an evolving discipline that can significantly de-risk the delivery of major projects, through smart and data-driven processes, digital technologies, and data analytics that will enable the right people to make informed decisions at the right time.

However, to design and implement the digital-led solutions that are needed to support a best-in-class PPC strategy, the industry also needs to advance. This is particularly urgent when it comes to harmonising data structuring and project delivery procedures. The fragmented nature and complexity of the construction supply chain, and the fact that many projects have different delivery requirements and objectives, has meant that widely-adopted standards in delivery protocol and data structuring have been slow to emerge.

Whilst it could be argued that Building Information Modelling (BIM) is driving a greater level of standardisation in design related processes and data codification, insufficient attention has been paid to the project management processes that are needed, if digital tools are to become ubiquitous in the project delivery process. Indeed, overlaying a Project Management Information System (PMIS) on a poorly defined set of processes, remains one of the biggest delivery risks on a large construction project today.

If done correctly, there is a very real opportunity for Project & Program Controls to play a key role as the construction industry steps into a new era of digital and data focused delivery. However, like any significant change program, several conditions need to be in place for this to succeed; there must be a compelling case for doing things differently, common alignment around the desired outcome, change champions identified and in place, short term goals to measure progress, and a sustained commitment to drive the change.

This paper outlines a number of best-practise approaches that can be adopted at a project level to get the most out of a PPC strategy. It addresses key questions including; what does the PPC discipline cover? How can clients avoid the most common pitfalls when developing their PPC strategy? How can clients design a controls strategy that is flexible, responsive, and proportionate to business need?

With recent data from MEED Projects indicating there is more $3tn worth of projects currently planned or underway across the Gulf, the time is ripe for the construction industry to embrace the disruption being brought about digitalisation. Embracing PPCs may not be a quick win for some clients, however the end goal is compelling; a digitally enabled construction sector, with a vastly improved record of delivering major programs on time and to budget.

INTRODUCTION

“If done correctly, there is a very real opportunity for Program & Project Controls to play a key role as the construction industry steps into a new era of digital and data focused delivery.”

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WHAT ARE PROGRAM & PROJECT CONTROLS, AND WHAT VALUE DO THEY BRING?

“You run document control, don’t you?”

“They make me use systems that I don’t understand, and which make my job more di�cult”

“All they do is write up project execution plans”

“They make reports look good, with nice pie charts and graphs”

Within the construction industry today, one of the

biggest challenges that we see when it comes to embracing Program & Project Controls, is the lack of understanding

around the scope of the discipline. Some of the common

misconceptions that we’ve witnessed include:

Whilst there is no industry specific definition, the Project Controls Institute interprets PPC as follows;“The data gathering, management and analytical processes used to predict, understand and constructively influence the time and cost outcomes of a project or program; through the communication of information in formats that assist effective management and decision making.”

Further, they state that Project Controls encompass:“The people, processes and tools used to plan, manage and mitigate cost and schedule issues, and any risk that may impact a project.”

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PROJECT STRATEGYundertaking planningand methods studies

to help the PMoptimize future

outcomes

SCHEDULINGincluding

development,updating andmaintenance

PM METHODOLOGY ELEMENTS

that integrate thesefunctions within the‘controls’ domain

COSTMANAGEMENT

cost engineering /control and value

engineering

SUPPLIER PERFORMANCE MEASUREMENT

perfomance monitoringagainst defined

metrics

EARNEDVALUE

MANAGEMENT CPI and SPI

RISKMANAGEMENT

including maintainingthe risk register & riskanalysis / assessment

FORENSIC ASSESSMENT

for required diagnosisof schedule and cost

issues

DOC CONTROLdocument

naming standards& collaborative

platforms

REPORTING & ANALYTICS

Dashboard reporting,deep dive data

analysis, KPI’s &metrics

WE BELIEVE A BEST-IN-CLASSPPC STRATEGY CONSIDERS THE

FOLLOWING COMPONENTS:

AT ARCADIS

FIGURE 1

What does a Program & Project Controls strategy cover?

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Crucially, PPC supports proactive rather than reactive approaches to project management and as such, can act as a catalyst in unlocking a greater level of value from the project management delivery function. Whereas previously, the manual and labour-intensive approaches to data gathering, processing and analysis, may have resulted in reports containing information that was 4-6 weeks old, the use of new technology and processes enable decisions to be made based on real-time data, and allow reporting tools like interactive dashboards to be used by the entire team.

Coupled with the efficiency gains that can be secured through automation and standardisation, there is a growing view that an effective PPC strategy could help to unlock significant productivity gains, which translate into capital savings for clients and

Many of the individual components within PPC have always been central to traditional asset delivery. For example, we have always gathered information and analysed it to enable the escalation and reporting of issues to a client. However, the advent of new digital technologies and the introduction of contemporary project management skills now allow construction professionals to gather data, rather than static information that requires manual review to unlock the relevant insight. In this respect, the evolving PPC discipline is enabling the right decisions to be made, by the right people, at the right time, through the effective consolidation and analysis of output data from across the delivery team.

A CATALYST FOR PRODUCTIVITY IMPROVEMENTS AND COST SAVINGS

“Program and Project Controls is a discipline focussed on the over-arching objective of enabling the right decisions to be made, by the right people, at the right time, through the effective consolidation and analysis of output data from across the delivery team.”

“PPC initiatives could make a significant contribution towards the potential 30-40% productivity gains that McKinsey estimates are up for grabs on construction projects today. This in turn could lead to a 15-20% reduction in the overall capital expenditure on a project.”

less wasted effort. In a recent report, ‘Reinventing construction – a route to higher productivity’, McKinsey estimated that PPC type initiatives could make a significant contribution towards the potential 30-40% productivity gains they believe are achievable on construction projects today, and which could ultimately deliver savings of up to 20% on the overall capital expenditure on a project.

However, achieving savings of this magnitude will not come easily and will rely heavily on securing clear alignment between process, people (skills), and technology. If significant gaps or imbalances exist between these three core components, or if there is tension between them, it will result in an ineffective PPC strategy, a misaligned PMIS, and a subsequent unsuccessful implementation.

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A BALANCE OF PROCESS, PEOPLE AND TECHNOLOGY

PROCESS & GOVERNANCE TOOLS PERFORMANCE REPORTING + MONITORING (Output)

The definition and implementation of governed and assured delivery protocol and structured data requirements that

are needed on a project

The identification and implementation of the appropriate digital tools and

required skillsets to help meetthese requirements

The gathering, processing, and analysis of structured data reported in a manner

that enables pro-active decisions to bemade by project teams

CLEAR PROTOCOL CONFORMANCE APPROPRIATE TOOLS QUALITY REAL TIME REPORTING THAT CAN BE USED TO MAKE INFORMED DECISIONS

FIGURE 2

Key enablers to a successful Program & Project Controls strategy

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COMMON PITFALLS WHEN DEVELOPING A PROGRAM & PROJECT CONTROLS STRATEGY

1. INSUFFICIENT TIME SPENT ON FRONT-END PLANNING:

Too often, insufficient time is spent in understanding the client’s core business objectives and the requirements that sit behind a project. Having clarity on this is fundamental as it should define the delivery process deployed and the reporting and tools that are implemented.

The wider team on a program must be involved at the outset to ensure everyone is aligned on the objectives, and the systems that best support the delivery approach. For example, if innovation in design and construction is interpreted as one of the key strategic goals, protocol and systems need to be in place that encourage and accommodate creative thinking, and which allow for a high degree of change throughout the project.

Key performance indicators must also be identified to help monitor progress against defined objectives, with delivery procedures embedded to ensure that structured and assured data can be captured

that enables reporting against the performance measures that are agreed.

2. AMBIGUITY ON THE PURPOSE AND VALUE OF A PPC STRATEGY:

A PPC strategy will only succeed if the entire project delivery team buys into it. The strategy and controls measures cannot be developed in isolation, or without sufficient consultation with the various functions in a delivery team (cost, planning, risk, and design) who will ultimately use the system. Unless all parties are engaged in this process, there’s a risk they will view the system as ‘too difficult to implement’ and a resistance to new ways of working can quickly proliferate.

Critical processes, if defined specifically for the project, should be allowed time to mature prior to systemisation and there must be buy-in from the full team on how traditional approaches can be modified to help meet the core objectives. A project-wide culture of performance measurement informed by structured and

consistent data capture, also needs to be embedded from day one and supported by all functions in the team.

When done well, a Program & Project Controls team is viewed as providing an integrated, complimentary and value adding service, rather than a policing function, that is detached from delivery.

3. EXCESSIVE FOCUS ON THE TECHNOLOGY SOLUTION RATHER THAN DEFINING CLEAR OUTCOMES:

In some instances, we’ve seen a rush to purchase a technology platform before defining the project requirements that the solution ultimately needs to support. The risk here is that the technology solution ends up leading the project delivery method rather than the other way around.

For a simple project with simple processes, this risk isn’t as profound however for larger, more complex projects where a significant degree of process variability, complexity and reporting requirements

Based on projects that we’ve worked

on across the Middle East,

we’ve observed a number of common

pitfalls which can encumber the

development and implementation of

a successful PPC strategy:

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are present, a comprehensive requirements definition exercise must be undertaken at the outset. This exercise will help to define the right digital tool (or combination of tools) that can best support project delivery.

In our experience, there’s no ‘perfect product’ that can meet all project needs and if clients rush to purchase a solution that isn’t flexible or responsive to project requirements, it will ultimately fail further down the line. The subsequent change that then needs to take place, can add months to a construction program, additional costs, and heighten the risk of data loss.

4. THE LACK OF A ROBUST AND CLEAR GOVERNANCE REGIME:

Once a PPC strategy has been defined, and a project delivery approach endorsed by the full project team, strong discipline is required to properly implement it. In many cases, this may be managed by a Project Management Office (PMO) but this team needs to be empowered at the very highest level to ensure there is a suitable degree of compliance to data standards, procedures and reporting methods.

A governing function that ensures the correct documents, information, and data is being fed into a system also needs to be put into place. The increased systemisation of the project delivery process requires assured and consistent data entry to

facilitate reliable output reporting. Often, this creates a need to bring new skillsets into a team. Indeed, a fundamental resource in many contemporary project delivery teams is the role of the Information Manager (IM), who acts as a key interface between the various delivery stakeholders and ensures the appropriate and effective exchange of information on a project, that conforms with the process and system requirements.

The role of the IM is often misinterpreted as Document Control, however whilst some of the baseline skillsets are common, the IM is a more senior position and requires broader experience including; an ability to interface with other delivery functions, a solid understanding of ERP systems, and knowledge around the intricacies of data assurance and governance, process definition, streamlining and implementation.

5. SYSTEMS ARE EXCESSIVELY COMPLEX, AND THE LEVEL OF TRAINING PROVIDED IS UNDERESTIMATED

Ensuring a solution is simple, easy to use, and supported by accessible and discipline relevant training will ensure better adoption of the system. Unfortunately, systems-based training is often carried out as a one-off occurrence and the content is too generic to add real

value. After that, users are left to their own devices or pushed to learn the system by discovery. The success of this approach is highly dependent on an individual’s motivation to learn, and typically results in ineffective on-boarding, which leads to inconsistent PMIS adoption across a project.

To achieve a greater level of consistency in the knowledge, utilisation, and adoption of a system, we find a hybrid approach to training is much more effective. In practice, this means a combination of accessible online resources that address basic ‘must-have systems skills’, as well as face-to-face training for more complex, functionally specific PMIS components.

6. THE NEED TO MAINTAIN AND CONTINUALLY IMPROVE THE SYSTEM IS OVERLOOKED

As with the overarching PPC strategy, systems need to be flexible and responsive to the changing requirements of the project. A systems maintenance and continuous improvement team is therefore critical, and must be budgeted for at the very outset of a project.

For example, any change in an underlying process will require a corresponding change in the systems configuration. Every change needs to be clearly identified, managed, analysed in terms of the associated cost and benefit, and then tracked through to its final resolution. This

is particularly important on a major construction program which could take 5-10 years to fully deliver.

7. INADEQUATE IDENTIFICATION OF STAKEHOLDERS WITH SPECIFIC REPORTING REQUIREMENTS

One of the key components of any effective PMIS, is a reporting platform that can gather structured, reliable data, and then present it in a manner that is easy to interpret, and which facilitates informed decision-making. The ability to produce different reports for a variety of different stakeholders throughout the life of a project, is also critical however this must be considered at the very outset.

When there’s insufficient awareness of the reporting needs of stakeholders, reports generally end up being configured based on manually extracted system-held data and it’s very unlikely they will deliver what’s needed. As an example, the reporting requirements of a third-party fund monitor will be very different to the requirements of a specific business unit within the client’s organisation. To avoid such a scenario, a detailed stakeholder identification and reporting definition exercise must be undertaken by the PPC team as early as possible to ensure all the different reporting requirements can be accommodated in the system.

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FIGURE 3

A five-step framework on

how to develop a best-in-class PPC

strategy

HOW DO YOU DEFINE AND IMPLEMENT A BEST-IN-CLASS PPC STRATEGY AND SUPPORTING PMIS?

To help clients respond to some of these challenges, we have developed a five-step framework on how to e�ectively design and implement a PPC strategy (and supporting PMIS platforms),

based on the three core principles of flexibility, responsiveness, and business relevance.

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STEP 1 IDENTIFY

A key first step is to get the client to articulate the strategic intent behind the project, and how it fits within the overall strategy of their business. Understanding the key drivers for the client, whether it’s financial return or a desire to differentiate, as well as the cost, time and quality aspirations is crucial. This will help to define performance measures and the supporting delivery processes, governance, and assurance requirements.

As well as understanding the broader market context, micro-issues that may be specific to a client’s organisation or to an individual project must also be considered. As part of this initial assessment, it’s important to identify:

• The key interfaces the project will have with the client’s operating model and existing ERP systems

• The stakeholders that will impact the project throughout its lifecycle, at all levels of the supply chain

• The reporting requirements for each stakeholder, and how they will they input to the reporting process

• The degree of flexibility that needs to be built into the reporting platform, to avoid duplication of effort and enable real-time decision making

• The anticipated utilisation of BIM, number of BIM users, and the maturity and level of definition of the client’s BIM specific information and LOD requirements.

• The pre-existing delivery models currently in use by the client, and whether they will still be appropriate for this project moving forward

• The maturity of supporting procedures, internal delegations of authority and ERP systems that have already been put in place by the client.

STEP 2 DEFINE

When the high-level “identification” phase is complete, work can begin on defining the appropriate baseline delivery processes, information structures, guidelines, and system requirements.

At this early stage, some of the most important steps to consider include:

• Define the critical procedures that must be inherent in the first draft of the Project Execution Plan (PEP)

• Identify what procedures are required on the project and the critical points when these need to be in place and established

• Understand the extent of procedural maturity, and assess whether the procedure requires a period to mature so it can be refined and optimised prior to systemisation

• Prioritise the definition of business-critical workflows that have a client interface, multiple layers of governance, or which require time to evolve

Early on, it’s also crucial to establish a baseline for the project in terms of time, cost, and scope. Particular attention should be paid to the alignment between the Work Breakdown Structure (WBS) and the Cost Breakdown Structure (CBS). These should be modelled in a manner that meets the reporting requirements of various stakeholders, and which allows inherent flexibility in rolling up and breaking down information for ease of performance monitoring. Once the budget, scope, and program are agreed by the client, the CBS and WBS should be data loaded to form the initial project baseline.

Having identified and defined the key delivery procedures, the definition of the requirements of a systems solution (or combination of systems) comes next. Procedures should be grouped by function (cost management, schedule management, risk management), and the systems requirements of each group assessed in terms of the current and target state against a pre-agreed set of criteria. The outcome of this assessment can then be used to identify the most appropriate PMIS (or combination of systems tools) where systems functionality is matched, not only to existing systems requirements, but also how the needs of the project will evolve.

The recommended systems outcomes should then be assessed in terms of their “whole costs” to the project. These costs may include;

1. The level and access to training and systems support2. The potential disruption to the project due to the learning curve, on-boarding of

the project team, and the need for further key procedural foundation work 3. The level and complexity of systems integration required4. The number of licenses5. Systems vendor restrictions placed on data volume, and costs of data storage

upon project completion

If the view is that a group of functional procedures are best undertaken using manual, non-systemised means, and the costs and potential project disruption of systemisation outweigh the benefits, then it may be advisable not to systemise. The systems solution, like the Project Controls strategy that governs it, should be flexible, responsive, and proportionate to the business need.

Other factors to consider are the expectations around how the user will interface with the system. Is this through a user-friendly portal. Or will multiple points of entry be granted if the system comprises different tools specific to each function? This is one of the fundamental drivers of systems adoption and its importance should not be underestimated.

“The systems solution, like the Project Controls strategy that governs it, should be flexible, responsive, and proportionate to the business need.”

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The definition and configuration of the reporting platform, and the ways in which data held in the system will be communicated, visualized, and consumed by project stakeholders is also key. It’s helpful to agree the reporting output as early as possible, through the definition of performance measures (KPIs) that are aligned with the key objectives of the project. Different stakeholders will have different KPI’s which underlines the need to identify stakeholders at the very outset. By ensuring these KPIs are embedded in the reporting system and that supporting delivery procedures are suitably defined to enable structured data to be captured, these KPIs can be continually monitored to identify patterns that can support a greater level of pro-active decision making.

Whilst the preference would be to ensure the data coming from all delivery procedures flows into one systemised source (or “data lake”) to enable single point extraction by the automated reporting platform, compressed project timescales and the maturity of underlying delivery protocol may make this impossible. Multiple data sources may have to be accommodated and the automated dashboard solution allowed to evolve over time. If this is the case, an understanding of how the data sources will change over the life of the project is crucial, to maintain the integrity of the data and how it’s reported.

Now that you have identified your functional procedures and the potential tools that will be used to systemise them, this should be visualised in a PPC development roadmap. This is a high-level document that helps project stakeholders see the key activities planned or underway (i.e. data structuring standards and information requirements definition), and the anticipated introduction of new systems functionality. These can all be overlaid on the key milestones and lifecycle stages of the project.

STEP 3 BUILDOnce the development roadmap is in place, key procedures refined, and reporting and system requirements confirmed, it is time to build the solution. This is often delivered by a technology vendor however the coordination and management of the build process should not be overlooked, particularly on projects where multiple systems are being brought together. Continual monitoring of the system being built against a pre-defined set of requirements is critical, and should be led by someone with experience of asset delivery, business operations and IT solutions.

As the system evolves, it needs to be regularly tested by the various stakeholders of the project delivery team who will operate it. End-users are an integral part of the systems build and their feedback is crucial if the system is to meet the demands of the project.

Once live, the system will ultimately have different functional owners (i.e. cost modules will be owned by the cost team), so a controls and systems governance framework should be established that delineates responsibilities in terms of:

• Ownership and refinement of procedures against the requirements of the systems build

• Testing the system during the implementation phase and providing feedback to the systems configuration team

• Review and approval of training guides specific to the systems functions• Raising issues associated with post-system implementation and testing subsequent

systems refinement solutions

In conjunction with the systems build, training and adoption tools should also be defined. These are critical in on-boarding future stakeholders and, if sufficiently detailed and easily understood, will drive adoption. As well as the training content, it’s important to consider the right format. In our experience, a combination of face-to-face and on-line training over a sustained period is most impactful.

STEP 4 DELIVERThe PMIS, with its integrated controls, has now been configured, tested and is ready to use for project delivery. To ensure the solution is as effective as possible, there’s a need to establish a Quality Assurance (QA) regime that regularly audits the contributing procedures, adherence to data standards and inputting requirements, and the quality of output reporting. The insights that are gathered from QA reviews can then be applied to ensure there’s continuous improvement in the systems and procedures.

A truly flexible, appropriate, and responsive PPC and aligned PMIS solution will begin to breed a culture of pro-active risk and opportunity management, as more focus can be placed on the assured output information and value-added decisions required of the project. This culture needs to be reinforced and celebrated to ensure continual utilisation and adoption of the new way of working.

Continual refinement and performance measurement of the system is also important. The different functions within the project delivery team must be encouraged to do this through the implementation of an accessible system that allows them to feedback and make suggestions for improvement.

STEP 5 CLOSE-OUTAt the point of project completion, the system should have a rich body of asset delivery data. If stakeholders were adequately identified in the definition phase, this will allow a seamless transfer of information to the operations function. However, there are still some issues to consider; who owns the data? How will it be stored? If cloud based, will this data be transferred to the client if previously hosted by a systems vendor? Is an appropriate framework and security in place that will allow controlled access to this data in the future?

One of the most important value-added benefits of building a structured PMIS is the team’s ability to undertake meaningful post completion benchmark reviews. Undertaken correctly, significant lessons can be utilised to enhance future delivery protocol, the organisation of project teams, the definition of performance measures, and the effectiveness of procurement strategies.

“As the system evolves, it must be continually tested

by the various stakeholders

of the project delivery team

who will operate it. End-users are

an integral part of the systems build

and their feedback is crucial if the

system is to meet the demands of

the project.”

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A major developer in the UAE had seen their project portfolio grow significantly in a short period of time. The complexity of assets under their delivery responsibility had also increased. To manage delivery risk, the client recognized the need for a consistent and standardized approach to managing, sharing, communicating, and storing project-specific data, in order to drive efficiency and benchmark performance.

After a review of internal document control practices and associated workflows, it was clear that significant operational efficiency gains could be secured through the utilisation of a single Electronic Data Management System (EDMS). This platform would enable them to capture, manage and track critical project information in a single source location. A market-leading collaborative data management system was chosen as the predominant means of collecting project based data, and this was integrated with their internal ERP system and an automated tiered dashboard reporting platform.

To drive adoption of the PMIS across their portfolio of projects and to capture data in a consistent manner, the client restructured their organisation and created the necessary, collaborative supporting mechanisms to maximise adoption across their internal delivery team and external supply teams. Several centralized, client-led initiatives were also implemented through the internal PMO including;

• Creation of a “Standard PMIS Configuration” document - a standard PMIS configuration document was developed collaboratively between the client and systems vendor. This helped ensure that all project related data was collected and managed in a controlled, accurate and comprehensive

manner. It detailed the protocol for the distribution, tagging, numbering, and naming of documents, and was included in every tender released by the client, and incorporated in subsequent contract agreements with all delivery consultants and contractors.

• Align vendor contracts to ensure contractual buy-in - in conjunction with their contracts department and legal division, modifications were made to the standard vendor appointments to ensure data capture requirements were properly adhered to and defined in their contracts. The role of the “Information Manager” became a defined term in the contract and was identified as an empowered member of the delivery team on each project.

• Liaison with end-users on asset handover requirements - engagement between the internal PMO and end-users was initiated to ensure the requirements for project handover were adequately captured and acknowledged in the standard configuration document.

• Identification of user champions - the internal PMO established monthly user-group meetings in which a representative (“PMIS Champion”) from each of the internal departments on the client side, and key delivery organisations would contribute to the sharing of lessons learned, identification of emerging skillsets and training requirements, and offer feedback on the standard configuration document. The outcome of each meeting was shared to continually refine the configuration guidelines and PMIS.

HELPING A MAJOR DEVELOPER IN THE UAE TO BETTER MANAGE

THEIR PROJECT PORTFOLIO1CASESTUDIES

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We’re currently working with a large investor client in Saudi Arabia that’s responsible for a significant capital expenditure program that will play a central role in helping Saudi Arabia to diversify their economy, in line with the goals set out within Vision 2030.

Arcadis was appointed at the very outset of the program as the client was beginning to design their delivery strategy. Through our involvement in establishing the organisational and governance structures that will ultimately lead the program, and the development and articulation of best-in-class delivery protocol, we have been able to define a very specific set of PMIS requirements that are powered by a clear PPC strategy.

Using our proprietary systems selection tool, we have been able to further refine the program’s systems requirements by undertaking an analysis of the anticipated / target maturity of functional procedures, underlying systems skillsets, and the extent of integration that’s planned between supporting digital tools.

The outcome has been an extremely well-informed set of systems requirements that target the acquisition of the very best digital tools in the market. These will be optimally aligned with the program’s delivery process and assurance systems, and will create a system that’s flexible, scalable, and highly responsive to client need.

In parallel, we’ve developed a suite of policies and procedures for one part of the client’s organization, to demonstrate the value that this could bring to other parts of the business.

ADVISING A KEY CLIENT IN KSA ON HOW TO DEVELOP AN OPTIMUM DELIVERY STRATEGY FOR A HUGE CAPEX PROGRAM 2

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THE FUTURE OF PROJECT DELIVERY IN A DIGITALLY ENABLED CONSTRUCTION SECTOR

Trying to predict the future is always laced with risk however we can confidently assert that the way in which the industry currently delivers major programs, will change radically over the next five years. There are two key factors that will drive this change; a recognition by the industry that a ‘status quo’ approach will not enable it to meet increasingly challenging deliverables, and the emergence of a smarter, more efficient way of delivering complex projects based on new skillsets and advances in technology.

So, on a project level, what are some of the specific changes that we may begin to see over the coming years as we move towards a digitally-enabled construction industry?

1. NEW ROLES WILL BECOME INCREASINGLY PROMINENT IN DELIVERY TEAMS:

To manage large-scale construction projects in the future, there will be a pressing need for information managers, system designers, assurance experts, data analysts, and other technology-savvy professionals who can fill the void between project delivery and IT. Given the disruptive effect that digitisation will have on the construction industry, change management expertise will also be crucial, not just in helping functional colleagues to embrace new ways of working, but also in creating the right business environment internally within a client’s organisation, to enable a PPC strategy to succeed.

2. TECHNOLOGY VENDORS WILL BECOME A MORE PROMINENT PART OF THE ASSET DELIVERY ECOSYSTEM:

The move towards digital and data-led delivery processes, will see technology vendors become an integral part of a project delivery team. New relationships will begin to emerge between PMC’s and PMIS vendors, either through formal alliances or strategic partnerships on a project basis. This will be a fundamental step in helping clients and project teams to understand how digital solutions developed collaboratively, can help them to improve their ability to deliver projects on time and budget.

Furthermore, a greater proliferation and emergence of subscription-based software pricing models, will mean technology vendors have a vested interest in developing structured training programs and innovating their product in order to drive greater adoption of digital tools.

3. CONTEMPORARY DELIVERY MODELS WILL HEIGHTEN THE NEED FOR ASSURED CONTROL ON PROJECT DELIVERY:

As the region begins to embrace contemporary delivery approaches like public-private partnerships (PPP), the need for robust assurance and accurate project reporting will become increasingly important. PPP projects typically involve a wider number of stakeholders and more complex funding arrangements, and this in turn will require a more mature approach to risk management in order to safeguard investor return.

4. HARMONISED STANDARDS WILL ACCELERATE THE COMMODITISATION OF DELIVERY PROCESSES:

Across the region, more experienced clients are already advocating for and seeing the value in having a consistent approach to project delivery. The concept of a Common Data Environment (CDE), where all project data is hosted in the same place and structured in a consistent manner, will accelerate this transition as it will support the implementation of information extracting tools that can generate reports based on “real-time” information.

BIM delivery, automated reporting, and PMIS platforms will begin to integrate more seamlessly, and PPCs will become increasingly reliant upon extracting information from the BIM model due to its growing use as a 4D (time), 5D (cost), and 6D (FM) planning tool.

5. THE CHANGING ROLE OF A PROJECT MANAGER:

This gradual streamlining of the project delivery process will allow project managers to concentrate on those areas where they can offer greatest value to clients. With tools that provide accurate insights into true project performance, project managers can begin to make proactive decisions and pre-empt potential issues before they impact the overall delivery process.

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ABOUT ARCADISArcadis is the leading global Design & Consultancy firm for natural and built assets. Applying our deep market sector insights and collective design, consultancy, engineering, project, and cost management services, we work in partnership with our clients to deliver exceptional and sustainable outcomes throughout the lifecycle of their natural and built assets.

Our Project Controls team works with clients at all stages of a project and can draw on specialist knowledge from supporting business lines across the globe. This includes expertise in front-end strategic planning, creating the enabling conditions for the successful implementation of a project strategy, as well as detailed design, project, and cost management during the construction phase. We also support clients with the on-going management of their assets once built, to ensure they deliver on their strategic intent.

Across the globe, we employ 27,000 people across more than 70 countries and generate €3.3 billion in revenues. We have been active in the Middle East since 1904 and can call upon the skills and experience of 1500 colleagues based in offices across the region including the UAE, Qatar, Saudi Arabia, Oman, and Bahrain.

CONTACT US

ArcadisMiddleEast

@ArcadisinME

arcadis.com/en/middle-east

If you would like to discuss any of the points raised in this paper in further detail, then please get in touch:

Tim SheltonHead of Project Controls,Middle East+971 (0) 56 972 0561 tim.shelton@arcadis.com

Stewart CashHead of Project & Program Services, UAE+971 (0) 50 640 9061stewart.cash@arcadis.com

Derek SprackettHead of Business Advisory,Middle East+971 (0) 56 230 5857derek.sprackett@arcadis.com