Just one-third of projects -- that's how many large-scale construction projects come within 10 percent of their budget, according to recent findings from KPMG International. Additionally, the firm found only 25 percent come within 10 percent of their original deadlines. This no doubt points to the challenges and complexities inherent in managing capital construction projects.
For projects exposed to an uncertain environment, risk management is essential. This is especially true for petrochemical megaprojects in which risks pose significant physical, commercial, monetary and even political threats. Risk management provides a basis for strategic decision making by providing a systematic and transparent process to deal with potential risks. Effective risk management has been shown to significantly improve the probability that a project will be delivered on time and on budget.
To help moderate the complexity of risk management in capital construction, companies are looking to incorporate standard risk-mitigation tools -- like temporary structures -- in their project playbooks. Addressing certain recurring project risks with repeatable solutions allows project managers to focus more attention on the strategic decisions and critical issues unique to each project.
Temporary structures are a heavy-hitting risk-mitigation tool that has proven successful time and again in combating financial risks in capital construction projects, including significant delays and unplanned costs associated with material waste.
Seasonal rains, winter weather and excessive summer heat can take a major toll on your project timeline. Heavy precipitation and extreme conditions can wreak havoc on productivity, cause disputes with project stakeholders and tie up your workforce, keeping them from moving on to the next project.
Engineered fabric structures allow work to continue regardless of conditions that would otherwise bring production to a screeching halt. Temporary, climate-controlled, portable structures installed over a construction site give crews a safe place to work regardless of the weather, which leads to fewer delays and more revenue.
Temporary structures are also ideal breaktent solutions that can be installed close to the worksite. This maximizes workers' wrench time and reduces exposure to risks of trips, slips and falls associated with traveling long distances to and from break areas.
In addition to jobsite covers and break tents, fabric structures can be used as temporary warehouses to protect supplies and materials and reduce waste. Temporary warehouse structures can be installed on almost any surface -- asphalt, concrete or soil -- without the need of a permanent foundation, which allows you to keep materials close to the site without cluttering the process area. Industrial fabric structures can also be equipped with insulated panels, providing a semi-permanent solution that secures supplies from theft on big jobsites, serves as shelter for sensitive equipment that arrives early, and provides protection for weather-sensitive components such as insulation material or other specialized plant components.
Vetting your temporary fabric-structure provider is critical in minimizing risk before the job starts. When seeking temporary and semi-permanent industrial fabric structures, look for a provider with a documented history of innovation and excellence you can count on to provide safe and compliant tent solutions. Such a company should hold ISNetworld, HAZWOPER, TWIC, DISA (Defense Information Systems Agency), PICS (Pacific Industrial Contractor Screening) and OSHA certifications, as well as site-specific credentials, to ensure the safety of its employees and your workforce on-site. When time is a factor, ensure your provider has credentials already in place so there are no delays in structure installation.
Risk is, by nature, subjective. But managing risk subjectively, without proper planning, can put you on dangerous ground. Standardizing key aspects of risk management, like including temporary structures in your project-planning template, will set your project up for success and allow your team to maximize time on critical decision making.
For more information, call Camille Curry-Theis at (832) 459-0055 or email her at Camille@MahaffeyUSA.com.
