SPECIAL REPORT
Building transparency and accountability can optimise project performance by Rob Bryant, EVP of APAC at InEight Like many other parts of the economy, the construction sector has gone through yet another harrowing year of pandemic-driven obstacles, including navigating government lockdowns, border closures, material and workforce shortages. As the pandemic and its impact on the sector continue to evolve, one certainty remains - the tendency for budget and schedule to overrun. There has never been greater emphasis on the need to improve productivity, profit and value for project owners and contractors. Improving project performance will come down to two things – enhancing transparency and accountability.
Shared risk between public and private There is a need to reduce the overall risk associated with infrastructure investment. While budget blowouts and project delays are common features of large projects at both a state and federal level, one way to deal with this issue is to foster an appropriate sharing of risk between the public and private investors. Government and the construction industry must work together to ensure proper risk
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analysis is built in from the concept phase to delivery, based on a long-term investment view and shared risk procurement model. By addressing the risk of these projects, owners will invariably help to attract external sources of financing, which will in turn, reduce debt incurred. To that end, we are starting to see a shift in contracting models and practice. There are more examples of shared risk in projects between owners and contractors, with contractors getting involved earlier and adopting a more open approach to delivering the best outcomes. There is also increasing recognition of the value of combining historical project data with risk assessment technologies to set more realistic expectations for project delivery upfront.
Transparent flow of data The ability to accurately forecast future outcomes, including project competition date and total cost is crucial to prevent project cost and schedule overruns. Project owners across many sectors are fast realising they can improve their viability of project performance by taking ownership of project data throughout the lifecycle and ensuring
the data and the insights derived are accessible to all project stakeholders. The more project team members who are able to see and use that data — particularly among trades that historically haven’t been privy to it — the more efficient the workflow. With stronger work relationships within and across the jobsite and back office, the odds of miscommunication and preventable errors are minimised. The right technology can empower project team members and stakeholders as a tool for real-time communication, risk management and safety. A large number of factors can influence capital projects as they grow bigger and more complex. The risk of project failures can come from unexpected places, as more third parties get involved. The increasing number of professional service firms and consultancies involved in service and project delivery means that owners have to stay vigilant and cognisant on how everyone keeps focused on the common end goal. They need to ensure this is reflected in how project performance data is being collected and not let that become diluted in value or directed by third parties.
