Leading the Capital Projects Industry Through COVID-19

The Global COVID-19 Pandemic Has Unsettled the Capital Projects Industry

Productivity in the capital projects industry has slowed due to the COVID-19 pandemic, as owner companies have quickly implemented travel restrictions, work-from-home directives, and other protocols to protect personnel. Supply chain disruptions are having a major ripple effect, with IPA clients reporting extreme delays in engineering work and equipment procurement. Project systems around the world are suspending, and in some cases, cancelling major capital projects and shutting down plants. Many companies have indicated they are or are planning to reduce capital expenditure. As a result, force majeure invocations on engineering and construction contracts are rising, some real and some not.

The COVID-19 pandemic crisis has revealed major flaws in the capital project industry’s delivery model. While the pandemic will eventually pass, success in the short-term depends on how well owner companies understand how to effectively mitigate the risks presented in the current landscape. The organizations that choose to be proactive now by learning from what they and their peer companies are facing will set themselves up for improved capital effectiveness in the long term.

IPA has been the global leader in driving capital effectiveness since 1987. Just as we have done during numerous global and regional crisis events in the past, we will partner with our clients to help them successfully navigate through the coronavirus pandemic and help them implement lasting change.

How is COVID-19 Affecting You?

IPA has set up a brief, anonymous survey to collect data regarding COVID-19 and the potential implications on capital projects. Click the “Take the Survey” button if you are interested in participating.

Photo of an official document being signed (photo cropped from original).

COVID-19 and Force Majeure—Real and Not

Photo of an official document being signed (photo cropped from original).

IPA Founder and President Edward Merrow offers three steps owner companies should take to protect themselves from false force majeure claims on capital projects.

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Responding to the Oil Price Drop Amidst COVID-19

Lessons From History

IPA Energy Practice Director Neeraj Nandurdikar reviews the oil and gas industry’s response to previous downturns, and what can be done differently now.

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IPA Industry COVID-19 Response Survey

Owners Report Major Supply Chain Disruptions

How is the pandemic affecting the capital projects industry? IPA’s COVID-19 survey of 20+ owner companies in various industrial sectors provides insights.

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