The oilsands needs to get back to basics on project delivery so it can compete globally

Image: Joey Podlubny/JWN

Alberta’s heavy industrial construction industry is facing a crisis—unpredictable project management and delivery performance have reduced investor confidence to levels that threaten the marketplace. The dramatic and continued drop in crude oil pricing has exacerbated the issue.

However, industry can correct this course and become internationally competitive, asserts a new report from JWN and its partners, GO Productivity and the Construction Owners Association of Alberta (COAA).

“Stakeholders across the project delivery chain know what needs to be fixed and have the resources to do it, but it is a challenge to pull all the pieces together,” the report says.

Part of the solution is to get back to basics, where the report says many companies still have significant room for improvement. After that, it says companies should employ strategies such as stage gating and advanced work packaging.

“The stage-gate approach is expected to improve the precision of cost estimates from approximately 30 per cent to approximately 10 per cent before taking the project forward for approval,” the report says.

Advanced work packaging (AWP), which the report describes as the extension of front-end planning across the project life cycle, can result in a 25 per cent improvement in productivity and 10 per cent reduction in total installed cost.

JWN

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