
February 2, 2023
Somewhere, right now, a large engineering and construction (E&C) project is going off the rails in terms of costs. So common is this occurrence that in PwC’s 26th Annual Global CEO Survey, just 40% of E&C CEOs said that the final outcome of projects often or usually meets or exceeds targets for financial performance—the lowest of any of the 23 sectors the survey studied.
Manufacturing facilities churn out thousands of units a day, with processes that can be refined and optimised in real time or close to it. But E&C projects can span years from initial forecast until final delivery. Moreover, each project is unique. Even when a project involves installing capital equipment with standardised designs, there’s still a host of unique attributes, including government relations, permitting and environmental impact, among other factors. Total unit volume: one. It’s no surprise, then, that forecasting for big E&C projects is tough. Improving those forecasts requires progress on four imperatives:
No one can predict the future. But in terms of costs on large projects, E&C firms can use data, digital modelling, inventory management, and human capital to understand the range of possible futures for a given project. Doing so will mean fewer surprises and better financial performance.
Jiří Moser
Country Managing Partner and CEE Advisory leader, PwC Czech Republic
Tel: +420 251 152 048
Azamat Konratbayev
Managing Partner, PwC Eurasia Assurance Leader, PwC Kazakhstan
Tel: +7 727 330 3200
Mekong Territory Senior Partner and CEO for PwC Thailand, PwC Thailand
Tel: +66 (0) 2844 1000
Shirley Machaba
Regional Senior Partner, PwC South Market Area, PwC South Africa
Tel: +27 (0) 11 797 5851