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Developing strategies for effective delivery of capital projects

Read Accenture’s global survey of the utilities industry and learn more about developing strategies for effective delivery of capital projects.

Overview

This report examines the wide range of challenges that companies worldwide face in delivering complex, large-scale projects. It also presents recommendations on how utility companies can improve their performance in the delivery of capital projects.

 

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Background

Nearly $17 trillion in capital spending is expected in the next decade as global demand for power surges and aging plants are replaced or life expectancy is extended. Investment is also being driven by the need to secure supply and meet environmental targets.

At the same time, the size and complexity of projects is growing, making the challenges to successful project delivery continue to mount.

Analysis

Effective project delivery is considered critical to high performance, yet many utilities companies say they are not meeting their own delivery targets. Delays, scheduling changes and project-to-asset transitions are problematic. Regulation, financing, talent availability and ineffective front-end planning are among the biggest problems.

Top priorities for the next three years. Availability of talent, improved front-end loaded planning and scheduling, improved contracting strategies and effective stakeholder engagement top must-do lists.

Leading Performers. A group of companies outperforms others in consistently meeting project targets. These companies have specific attributes and capabilities in common across people, processes and technology.

Returns on capital projects are likely to be improved through:

  • Comprehensive and rigorous upfront planning.

  • Developing and retaining talent.

  • Improving the transition from construction to an operating asset.