Infrastructure development and consulting engineering in the new normal” – the future leaders perspective

Covid-19 Impact on Infrastructure Development and Consultancy and The Covid-19 pandemic has disrupted the majority of the world’s economies, and the infrastructure industry is no exception.

It is estimated that Covid-19 is putting pressure on Engineering and Construction value chain to the tune of between a 14% to 28% revenue decreases.

Under such scenarios, projects face acute labour shortages, health and safety risks, interrupted supply chains, schedule delays, financial issues, liquidity issues, and effect on ROI.

The most likely high impact areas for consulting business are business development, workforce management, finance and cash flow, supply chain & logistics, contract & claim management, health and safety and site supervision and quality.

The research aforementioned, suggests the following potential innovative solutions and opportunities for infrastructure development and consultancy and engineering businesses in the new normal

1. Work force management: in the new normal post-Covid 19 era, the management of the workforce typically requires a change of mind-set and a greater extent of self-discipline. Social distances, staggered shifts and work from home are new norms.

Such measures, whilst having been forced upon employers could result in reducing employers' costs of production and labour (e.g. real estate cost). More attention is therefore needed for the adoption of technology, community partnerships and risk mitigation programs for on-site employees. Companies should invest in training programs to create awareness and minimize the spread of the disease by taking preventive measures.

2. Workforce and gap assessment will be the key to identifying skills shortages, up-skilling, stretch roles, physical customer contact, engaging senior management in recovery, addressing immigration issues, improving absenteeism management processes and flexible compensation models.

Process, product and supply chain improvement through accelerated technology adoption: organization can implement new technology for optimization and remote working by focusing on local development of pre-engineered structures, equipment manufacturing, pre-cast engineering and construction centres, offshore design engineering centres, modularization, 3D printing, construction simulation and modelling, building information modelling integration, worker safety by smart sensors, artificial intelligence and alternative delivery models will lead to high productivity and reduce rework.

3. Remote working through Digitisation for transformation and collaboration: Organisations will need to embrace a new organisational culture to match this new reality. The virtual workplace, remote collaboration via digital platforms, is non-negotiable.

Organization will need to set up a command and control system for the centralized operation and monitoring of contracts. This will help them to improve consistency and slash cycle times by providing real-time intelligence-based engineering and reporting. Standardization with automated tools will also help to drive reduce, and recycle. improved productivity with innovation to reuse,

4. Pain points will need to be identified within the management and response to customers: consulting organizations should be versatile for the re-implementation of value engineering and construction methodology to mitigate losses from the delays. It is important we utilise the collective wisdom of the industry to mitigate conflicts between owners, contractors, unions, and to unify their contractual relationship.

Contracts should continue to evolve and encourage the amicable resolution of force majeure, cost escalation, delay damages, risk assessment & mitigation, claims avoidance and financing arrangements.

5. Financial structuring, tax, and trade: organizations may need to reassess existing contracts with low profitability, to convert fixed monthly costs plus margin-based contracts instead of milestone-based payment to ease out cash flow, collaborate with lenders & stakeholders to avoid losses, allow for potential debt, tax and transfer-price components restructuring and liquidation of non-core or under-performing assets. Mergers and acquisitions are also likely to take place going forward as one of the measures to manage such issues.

The Covid-19 pandemic has shown itself to be a truly global threat and the world is trying to keep its financial wheels spinning, whilst ensuring the wellbeing of individuals. Businesses therefore need a paradigm shift that adapts a good balance of priorities to these new norms such as rapid digital transformation, technology adoption, collaboration, capabilities, rational decision-making and financial restructuring to revive and thrive in the post-Covid 19 world.

Mr Gautam Chheda, India

Mr. Gautam Chheda, PMP® is a seasoned professional having More than 15 years of experience from concept to commissioning of project life cycle/Turnaround of New Business in multiple sectors for Business Analysis, Fund Raising, Financial Simulations, International & Domestic Business Development, Product & Services Management, Go to Market Strategy, Sales & Marketing, Budget, Cost & Change control, Contracts & Compliance, Event, Portfolio, Program, Project & Construction Management, PMO, Hands-on Operation Management along with P&L Responsibility.

Currently working as an Associate Vice President at BVG India Ltd and heading International Business Development & Operation and Special projects in India & abroad. BVG India Ltd is well diversified in all Essential Services i.e Facility management, Solid Waste, Waste to Energy & Emergency Medical & Police Response, Agriculture & Food Processing units, Solar & Renewable Energy, Alternative Medicines & affordable Health care sector.

Previously Gautam has worked with TATA Group, TATA Consulting Engineers Ltd for more than 13 years as a Head International Business for PMC Business Unit. Gautam has travelled extensively and developed cross boarder business relationship in more than 24 countries.

Mr Ravindra Shrivastava, India

Mr. Ravindra Shrivastava is a seasoned professional having more than 12 years of academic and industrial experience. He was associated with Tata Group, Tata Consulting Engineers Ltd and involved in the IT park development project from concept to commissioning in the area of project planning and controls. He is M. Tech. in Construction Management from Veermata Jijabai Technological Institute (VJTI) Mumbai, BE in Civil engineering from Government Engineering College Ujjain and also, Pursuing PhD in management (Infrastructure) from University of Petroleum and Energy Studies, Dehradun.

He is currently associated with National Institute of Construction Management & Research (NICMAR) as Assistant Professor and in the past associated with University of Petroleum & Energy Studies, Dehradun. His area of expertise in teaching includes Construction Management, Project Risk Management, Contract Management & Tendering, Quantity Surveying, Infrastructure Development Projects, Management of Public Private Partnership and Primavera software.