Efficient program planning and execution of capital projects are top of mind for today’s energy and utility leaders. And, for good reason.

Whether building a new capital asset or upgrading an existing one, energy organizations are expected to meet cost, schedule, quality, and technical requirements, all at the same time. However, the task of meeting these goals is becoming increasingly challenging with each passing day. While other industries have re-invented their project delivery models, capital projects have seen little improvement over the years. The industry’s dismal performance can be attributed to its project delivery model that has largely remained unchanged. This model is plagued by poor performance and lack of an integrated approach, leading to project over runs, interoperability issues, and lagging productivity. For example, on average, cost overruns on capital projects approach approximately $1.2 billion, which accounts for 79 percent of the initial budget, and project delays can range from six months to two years.

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