The Hidden Costs of Our Contracting Choices - Inside the Industry Contracting Strategies for Capital Projects

It is important for owner companies to understand the connections between industry contracting trends and their own deal shaping elements.

One most-often overlooked, though seemingly obvious, element of a successful industrial project is ensuring that every part of the contracting set-up supports not only the project’s unique characteristics and environment but also the unique capabilities of the involved stakeholders, from the owner to various contractors.

Many owner companies generally do not quantify the direct effects of...


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Despite Risks, Industrial Projects In Emerging Markets Can Be Competitive

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Without question, projects executed in emerging-markets are exposed to additional risks, including unstable market conditions, political distress, local procurement challenges, regulatory issues, uncertain labor availability and productivity, staffing challenges, and safety issues. These elements clearly call for a customized approach for managing these projects to account for the risks...


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Project Office Costs: The Right Mindset

How do the project industry’s best performers achieve lower owner costs? Through good project drivers and strong execution discipline.

More people fear flying than driving because, with the media giving much more attention to airline crashes, we tend to overstate the risks of flying and understate the risks of driving. The mind’s availability bias is our tendency to base judgment on information that is readily available or the easiest for us to retrieve. This common decision-making bias is also replicated in the project and...


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E&P Industry's Lost Decade

The oil crisis is an opportunity for the E&P industry to improve capital productivity and efficiency. Will industry executives make the necessary changes?

At the time of this writing, prices for West Texas Intermediate (WTI) crude and Brent crude were at $57.97 and $65.14 per barrel of oil, respectively—well off the lofty heights of around $100 per barrel­­­­ six months ago. As a result, exploration and production (E&P) industry executives—operators and supply chain providers—are adjusting their long-term thinking and project plans for the...


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UCEC 2014 Gets Down to Business, Estimating Efficiencies

The 2014 CEC highlighted the importance of relaying project estimating knowledge to business professionals, and techniques to streamline the estimating process.

Cost engineers found out how to enhance the cost and schedule estimating capabilities of their capital project teams at IPA’s annual gathering of project estimators near Washington, D.C.

Presentations and workshops held during the 2-day Cost Engineering Committee (CEC) 2014 conference, held Sept. 16 to 17, in McLean, Va., honed in on two general themes:

  1. The importance of effectively relaying...

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