Introduction:
In this five-part series of blogs, our Capital Projects and Infrastructure (CP&I) team discuss PwC Middle East’s Capital Project Controls managed service, part of the firm’s Infrastructure Managed Services platform.
Part 1 of the blog series begins by providing an overview of what makes an ideal project controls managed service, before taking a deep dive into the technology-powered, human-led and outcome-focused approach that differentiates PwC managed services from traditional project controls services. In the era of the giga projects, many regional projects are facing common challenges.Therefore, PwC's new approach to Capital Project Controls can play a role in keeping Vision 2030 projects on track and ensuring successful outcomes.
Part 1: What does good look like?
Given the criticality of capital project delivery for achieving KSA’s transformation objectives, it is concerning that our 2022 Capital Projects & Infrastructure survey in the Middle East has found ongoing challenges in the delivery of such large scale projects. I have also seen this first hand from our project review work across a number of the giga projects in the region. Avoiding challenges, such as poor risk visibility and timely access to accurate performance data, will require fresh thinking and an open mind to adopting the latest people and technology approaches, as traditional approaches employed in the region are not always effective.
So, if you could design your ideal capital project controls and performance management approach, what characteristics would it have? Here are a few suggestions from me:
- Tech powered, underpinned with AI and advanced analytics. The most effective project controls solutions I’ve seen are digitally enabled and provide project, programme and portfolio-wide insights that are forward looking and predictive. Many of these solutions use advanced artificial intelligence (AI) technology. When applied properly in the domain of project delivery, AI can provide insights and automation with an ease and efficiency that were previously unimaginable, even just a year ago.
- Human-led with the right talent deployed efficiently and effectively. Attracting a sufficient number of capable professionals to achieve Vision 2030 is one of the most critical challenges that decision-makers face in KSA. This issue is particularly critical in project controls and delivery, where the supply of qualified talent is limited. As many projects move into their design and construction phase this problem is set to get exponentially worse. In my view, for the KSA market, an ideal project controls solution should involve a combination of on-site and off-site human resources. This approach would enable easier access to talent while centralising key back-office project functions in delivery hubs, thereby improving efficiency.
- Supported by trusted alliances. The pace of change within project controls and project delivery is rapid and the giga projects are hugely complex. No one organisation will have all the answers. My view is that an ideal capital project control and performance management approach needs to bring you an ecosystem of partners and alliances that give you the best possible chance of success.
- Outcome not input focused operating model. All too often in the region, project control and project delivery services are contracted using traditional time and materials based approaches. I’ve seen first hand that these traditional approaches provide limited incentives to suppliers and do not deliver results. A better approach would be to contract project controls services against outcomes, with payments linked to KPIs, performance and results. Not only will this drive value for money but outcome focused commercial mechanisms are also proven to deliver better results.
So how can we help solve these problems and deliver the solutions?
Giga projects, due to their scale and complexity, require advanced project management and project controls techniques, where Capital Project Controls Managed Services can contribute significantly. At PwC Middle East, we have delivered all of the above across a number of projects in KSA. Our solution leverages the latest technology from both us and our alliance partners to provide:
- Visibility through consolidated dashboards and visualisations
- AI-based intelligence that provides predictive analytics and dynamic simulation that drives systemic improvement
- Actionable insights through integration of data sources driving rapid response
- End-to-end integration through potential connectivity with supply chain partners driving information collection and dissemination
As well as the technology, the human component of our Capital Project Controls Managed Services is also a differentiating factor. Having spent the last 15 years in our Capital Projects and Infrastructure practice, which has a multi-disciplinary team of industry experts and technology professionals that bring unique perspectives and challenge established norms, I’m excited that our team is now supported by back office project controls and functional teams in our dedicated delivery centers across the region.
For us, this will drive the on-site/off-site model that will be critical to overcome the resource challenges I discussed above.
The time is now
This is the era of the giga-project, and these developments are bringing investment and an unprecedented project pipeline to the sector. But such projects are big enough and complex enough to demand integrated, data-driven insights for delivery certainty and investor confidence across large scale capital infrastructure projects, extending traditional services into delivery and run.
As part of this blog series, we’ll be providing more insights and further details about our exciting new Project Controls Managed Service, with a focus on the following key topics:
Part 2: Tech powered, underpinned with AI and advanced analytics;
Part 3: Human-led with the right talent deployed efficiently and effectively;
Part 4: Supported by trusted alliances; and
Part 5: Outcome not input focused operating model.
Stay tuned!
