Your expert for questions
Christian Elsholz
Partner for Capital Projects and Infrastructure at PwC Germany
Tel: +49 1511 6770951
Email
“From Strategy through Execution”
How we support you in executing your infrastructure projects
Whether transport, energy, water or communications, infrastructure projects are essential for a functioning society and economy. However, they are complex, politically sensitive and heavily regulated. The pressure to plan and execute quickly is increasing in the current context of climate change, geopolitical changes and scarce resources.
Time and cost overruns often occur owing to the scarcity of resources and the associated unmet demand for qualified workforce and specialists, the high level of project complexity and the large number of people and interest groups involved.
With comprehensive market knowledge, a strong network and many years of experience, we can support you in executing your infrastructure projects. Our diverse team of experts from various disciplines offers a wide range of expertise throughout the value chain of infrastructure projects.
“In order to implement sustainable infrastructure programmes, partnerships are necessary that optimally share their members’ skills and mitigate risks together. We support our clients in achieving their goals and executing large projects on time, budget and up to standard.”
Our approach: tailor-made and forward-looking
Success factors for project management disciplines
- Integrated programme control
- Commercial project management
- Supply chain management
- Contract and claim management
- Legal securement of land
- Real estate and property management
- Logistics and site management
- Digitalisation
Integrated programme control
When it comes to complex, large-scale projects, reliable planning and coordination are just as important as precise project control by everyone involved. Successful projects focus on the following success factors:
- A central project structure which serves as the basis of integrated processes and systems
- Developing and tracking a holistic project baseline
- A holistic and integrated view of schedules, costs, scope and quality
- Proven governance structures, role descriptions and an integrated process framework
- Reliable planning, coordination and project control by everyone involved in the project
- Establishing and operational implementing change management
- Establishing an integrated and transparent reporting
- Proactive stakeholder management and communication
- Managing the various contractors and suppliers with an aligned baseline for deadlines, scope and costs
- Identifying and managing measures to accelerate the project, and proactively dealing with obstacles
Commercial project management
Solid commercial project management also serves as an effective early warning system which can signal issues to leadership. Forward-looking project control is key.
The interdependency/correlation of costs and activities along the timeline of a project is an important factor for keeping focus on costs, as is monitoring opportunities and risks. Greater cost sensitivity also leads to economic doing/actions. Forward-looking project controls can be achieved by:
- Developing a detailed and structured cost baseline,
- Carrying out cyclical cost planning and forecasting, involving the respective departments,
- Using a continuous cost breakdown structure, and
- Comparing and analysing planned/actual costs against performance
The following success factors are essential for reliable risk management:
- Established processes for detecting risks in a structured manner
- Getting specialist departments involved in risk assessment early on
- Clear responsibilities for risk monitoring and mitigation
- Regular statistical simulations of potential scenarios
Supply chain management
Strategic purchasing and effective supplier management are essential guarantees of success for ensuring that demands are met in compliance with the law in terms of costs, quality and time. Key success factors include:
- Early involvement of purchasing in all relevant tendering and procurement processes
- Strategic demand planning with all relevant stakeholders and clear definition of responsibilities
- Ensuring and optimising the award of contracts schedule as well as preparing all documents relevant to the tendering process
- Determine, coordinate and implement suitable strategies for supplier, negotiation and procurement
Optimal (preferably digital, KPI-based) process control from demand to payment
Contract and claim management
The approach to contracts should be geared to the requirements of the project and market in question to enable robust management of contracts and change request. The following aspects are of particular importance:
- Using nationally and internationally recognised and common contract standards (e.g. FIDIC) – with a focus on suitable approaches for complex infrastructure projects (e.g. EPC)
- Using digital solutions (e.g. BIM or CCM tools) to optimise processing times and effectively control interfaces, especially when managing change orders
- Integration of proven conflict resolution mechanisms to find solutions quickly and constructively among the parties involved (e.g. partnering mechanisms, IPA, dispute resolution)
- Establishment of a digital information exchange system to process and document facts in cases of conflict
- Tracking quality deviations using a digital defect management process
Legal securement of land
Efficient planning that takes the regulatory framework into account and anticipates possible planning difficulties at an early stage is of great importance. In particular, the following aspects should be considered for smoother, faster progress:
- Performing necessary preparatory work early on and in a coordinated manner (subsoil investigations, archaeology, mapping, explosive ordnance, soil protection, early compensatory measures)
- Timely, exhaustive, legally compliant and amicable acquisition of all necessary property rights
- Structured, digital and legally compliant handling of public and private objections
- Clear understanding of the legal requirements, and of potential for acceleration by reducing or dispensing with environmental and/or land use planning assessments
Real estate and property management
Suitable logistic spaces and offices are necessary when implementing large-scaled infrastructure projects. In order to ensure careful and professional design of project offices and logistic areas, the focus should be on the following aspects:
- Early analysis of space requirements for each user, based on defined requirements
- Using market analyses to help with site selectionand identifying potential areas
- Conceptual development and professionalisation of structures for each location
- Timely planning and control of implementation as well as handover to users in due time
- Use of service providers and landlords to ensure operation
Logistics and site management
Close cooperation between all relevant stakeholders and careful coordinationof materials, machines and resources are the cornerstone of successful coordination of logistics and construction activities. The following are fundamental:
- Transparent provision of all information necessary for coordinating the various parties involved along the supply chain (construction supervision, rights of way,permission of construction, civil engineering) regarding the status of deliveries and materials
- Flexibility and room for manoeuvre in logistics plans in order to nip delays to the construction process in the bud
- Close communication with project management to ensure that plans for heavy and oversize loads comply with the law and are made on time
- Use of both traditional and agile planning tools (lean construction) to enable quick responses to changes and local events
- Consideration of health and safety aspects in day-to-day business by ensuring a smooth cascade of information, including raising awareness through tailored and target oriented work instructions
Digitalisation
Digitalisation plays a crucial role in implementing infrastructure projects more efficiently. The following points are important for a successful project:
- Specifying a complete and standardised data model for the overall project
- High level of integration of the necessary expert systems
- Data governance and quality assurance systems
- Agile platform development to implement emerging functional and system requirements
- Ensuring high usability (UX) for all users
How we support you with your infrastructure projects
We support you in setting up and implementing integrated project and programme management. Integrated management considers both the planning and the implementation of the relevant parts of the project in the overall context – for example, scheduling, expenses, risks and technical scope.
Our services
Integration combines the following disciplines:
- Scope/change management: we document a scope baseline to depict the entire scope of work, develop a change workflow and process the changes to the scope of work on an operational level.
- Scheduling: this involves creating, updating and managing integrated schedules, including regular schedule analyses (DCMA, MTA, CPA); we also carry out progress planning and measurement, and use these results to plan and coordinate detailed work packages.
- Reporting: here, we develop and maintain a central project reporting system using interactive online dashboards to integrate various data sources, along with preparing and moderating report discussions.
- Commercial project management: see next tab for details
We create trust with transparent cost management and forward-looking risk management for proactive instead of reactive action. This is the foundation for achieving goals together.
Our services
Project control:
- Organisation of commercial project management functions and development of project-specific cost planning
- Integration of SAP and cost control tools such as the Construction Hub, in alignment with established systems and processes
- Automated target/actual comparisons based on key figures using the reporting system
- Operational implementation of cost management processes, with the involvement of technical specialists
Risk management:
- Establishment of a (project) risk management system, including the process, a risk inventory and a risk management plan
- Support with recording, analysing and evaluating the financial/temporal extent of damages, dealing with impact of risk and assessing its probability of occurence
- Establishment of early risk detection systems using AI and big data analytics solutions
Establishing resilient and sustainable supply chains is a key challenge, especially for large-scaled infrastructure projects. The selection and management of suppliers by an efficient procurement department are of particular importance in this context.
Our services
- In procurement, PwC takes on the planning and strategic classification of requirements; technical implementation and support in tenders, negotiations and contract awards
- Establishment and optimisation of processes and structures for strategic (“source-to-contract”) and operational (“purchase-to-pay”) procurement; definition of KPIs for legally compliant and audit-proof documentation
- Establishment of central and efficient supply chain management
- Organisational design and tool implementation (eProcurement) as well as their application, e.g. through eAuction and Design-to-Cost
When it comes to managing contracts and change orders, we ensure throughout the entire duration of the project that justified claims are enforced and unjustified ones warded off.. Above all, we ensure that disruption to the project and processes are avoided and that legal disputes do not arise.
Our services
- Legal advice on contract initiation and contract award strategy
- Creating a tailor-made contract structure for your project
- Strategic and operational management of contracts and change orders
- Negotiation and dispute resolution
Efficient planning that takes the regulatory framework into account and anticipates possible planning difficulties at an early stage is of great importance. In particular, the following aspects should be considered for smoother, faster progress:
● Performing necessary preparatory work early on and in a coordinated manner (subsoil investigations, archaeology, faunistic/floristic mappings, investigations for explosive ordinances, soil protection, early compensatory measures under nature protection)
● Timely, exhaustive, legally compliant and amicable acquisition of all necessary property rights
● Structured, digital and legally compliant handling of public and private objections
● Clear understanding of the legal requirements and of potential for acceleration by reducing or dispensing environmental and/or spatial planning assessments
We advise you – all the way from initial ideas and development right up to the construction, operation and optimisation of the offices and logistics space you need for your infrastructure project.
Our services
- Conceptual development and professionalisation of structures for each location
- Development and operational implementation of innovative workplaces and ways of working
- Site selection and analysing location potential
- Commercial and legal negotiation of rental agreements and service contracts
- Introducing reporting solutions for cost optimisation, increased efficiency and construction progress
- Specifying, implementing and enhancing facility services in operation
- Conceptual development and consulting on sustainability and ESG issues, as well as further assistance with optimising operations and regulatory issues
Logistics and site management pose complex challenges that can lead to delays and increased costs. Proven methods and technologies enable us to reduce these risks and help ensure a coordinated project.
Our services
- Analysis of logistics processes and requirements on site
- Development of logistics strategies and plans
- Identification of bottlenecks and risks in logistics
- Development and implementation of tailor-made IT solutions to support logistics processes
- Planning and monitoring of technical interfaces during the construction and commissioning phase
- Developing and using digital measuring methods (e.g. drones) for determinig quantities and documenting the construction progress as a basis for cost-performance control
For efficient completion, large-scaled construction projects need IT platforms tailored to their necessities based on existing technical requirements and scale as the project progresses. Our goal: an IT platform that implements all best practices in technical security while enabling modern project management processes. To implement this, we get a wide range of necessary stakeholders involved – even exceeding company boundaries.
Our services
- Development of a target architecture
- Development of agile target operating models
- Structured requirements management
- Selection and introduction of IT software packages
Taking over responsibility on an operational level for your new solutions
Construction Hub
As a central collaboration platform for everyone involved in a project, PwC’s Construction Hub structures all project-relevant data and simplifies complicated processes. Using a central data and workflow engine enables efficient collaboration between all project partners throughout the entire project cycle.
Automated objection management
PwC’s Automated Processing Solution for Infrastructure offers you efficient objection management that analyses and evaluates objections to construction projects. The solution also supports you in the consultation process by creating response letters and placing objections alongside the relevant replies.
What our experts say
Interview on accelerating construction
Martin Zündorf, Director of Capital Projects and Infrastructure at PwC Germany, explains the options for accelerating infrastructure projects.
Interview on ESG
Robert Kammerer, Partner at PwC Germany, talks about the role of ESG in modern infrastructure projects.
Interview on Artificial Intelligence in infrastructure projects
Hendrik Reese explains the possibilities of AI and technology in infrastructure projects.
Contact us
Partnerin, Capital Projects & Infrastructure, PwC Germany
Tel: +49 171 7836-364
