Its getting harder and harder to move major projects from concept to execution, and when projects can range from millions to billions of dollars at risk, the feasibility of any major project is one of the keys to reaching funding approval, often referred to as a Final Investment Decision (FID). Cost blowouts and schedule delays are media fodder and frighten prospective investors from placing their funds into major resource or infrastructure projects.
Many of these issues are caused by the failure to mitigate otherwise foreseeable and therefore forewarned risks, and this is especially so when it comes to project labour availability, costs and utilisation.
The next wave of resource sector capital investment is underway and its clear to many seasoned veterans of the industry that we may be failing to learn from the past boom conditions that drove costs up and impacted schedules on a scale we’d never seen before….the old saying that ‘if you always do what you’ve always done, you’ll always get what you always got..!” is starting to ring in the ears of Project Directors and Owners alike!
Not to mention the increased risk adversity of Financiers, who are seeking definitive understanding of the people risks where, arguably, a definitive position has often been left to guess work!
Any Project Manager worth a penny will tell you that Front End loading is the key to successful execution….so one way to avoid repeating labour cost blow outs and people based delays, is to be as diligent with projecting the labour availability, cost, and realistic utilisation projections for the project, as we would be when forecasting the same for steel, equipment and other supply side inputs to a major project…!
SHR has learnt over many years that by working with the major players including Owners, EPC firms, Constructors and Sub-Contractors early in the project feasibility stage, we can help reduce the level of concern shown by project owners and financiers alike, surrounding the people component of bankable feasibility studies, from the planning stage all the way through to execution and operations. This also includes mitigation strategies and plans covering the industrial and employee relations risks with contractors and sub-contractors.
Some of the clients that SHR Consultants have helped with a range of feasibility studies include:
- Hancock Prospecting
- MSP Engineering (Tiangi)
- Arafura Resources
- Sheffield Resources
Before you move from Concept to FID (yes we missed a few steps!) consider the people implications on the key drivers of a successful project – COST – SCHEDULE – QUALITY – and if you can’t explain how the risks will be mitigated then achieving a successful FID may well be an issue….If you need advice contact SHR for a confidential discussion on how we can help you deliver a successful bankable feasibility study and ultimately achieve project success ….Belinda Honey 0438 992 483 or Steve Rayner 0418 923 981. Alternatively drop us an email at firstname.lastname@example.org