Typical capital projects and turnarounds are chronically prone to cost escalation and budget overruns. More than 80% projects fail to meet cost and budgetary targets. The project costs are now being further challenged by price escalations, labor shortages and poor productivity. Here are some of the reasons for project cost escalations:


• Companies have marginalized the Cost
• Management by substituting it with accounting
• and finance functions.

• Turnaround staff continually strive for schedule
• performance at the expense of cost function.

• Field staff has always been driven by field execution and have lacked accountability related to
• cost impact or efficiency

• Different departmental agendas may not support the cost efficient execution goals.

Solution
Institute a Cost Containment and Optimization Program form the earliest project planning phases so that all the project work scope and support services are properly scrutinized and their costs optimized.

Major Benefits
• Create a project environment based on cost accountability and ownership where project staff is
• fully committed to cost savings

• All support services are continually reviewed to ensure their functions are value-added and cost
• optimized

• Project success rate increases significantly through optimized use of resources and elimination
• of redundancies and waste


For more information, please contact Project Assurance by calling 281-496-0100 or email us at excel@projectassurance.com