Commercial risk management and mitigation is critical to the ongoing success of a project, asset owner and EPC managing contractor.
Conflicts and commercial disputes are significantly mitigated at all levels of operations by the true value of IPD collaboration.
IPD solutions, systems and procedures enable robust commercial control and risk management solutions for the asset owner and EPC Managing Contractor well beyond the life cycle of the project.
IPD adds significant value and reduces costs to a project in terms of end to end superior controls.
- IPD introduces marginal indirect (overhead) costs for the project management structure that are in fact significantly offset by reduced project risks, economies of scale, supply chain efficiencies and duplication of effort.
- Duplication of effort is eliminated, reducing direct/indirect costs.
- The Vendors progress claims and tax invoices can be accurately verified /approved via the IPD vendor’s progress reports and central data base, subsequently expediting timely vendor payment functions.
- Human frustration /stress levels are significantly reduced for the entire project team.
- EPC and supply chain vendors relationship is measured, controlled and harmonious, commercial conflict is significantly reduced.
- EPC and Clients relationship is measured, controlled and harmonious, commercial conflict is significantly reduced.
- Project production activities commence either on time or ahead of schedule improving stake holder / shareholders commercial return forecasts.
- Beneficial asset owners (The Clients) project delivery expectations are met or exceeded.
- Accurate (realistic) project cost /budget controls and forecasting.
- IPD solutions significantly increase triple bottom line values in terms of quality, schedule and budget outcomes.
- EPC, Clients and suppliers reputations are elevated to a valuable position in the Industry by a successful project delivery.
- Repeat business for EPC and IPD supply chain vendors.
- IPD becomes the recognised solution of ‘first choice’ for major resource infrastructure projects throughout Australia, ultimately increasing local engagement and adding value to the Australian Industry.
- IPD has the power to make an EPC entity become an employer of choice.
- Early engagement of the steel detailer with the design engineer significantly improved the IFC design and detail phase of the project.
- Accuracy of WBS schedule is guaranteed by regular data base updates of vendor and constructors status.
Mitigation analysis is based on accurate data.