How public agencies maximize the value of their infrastructure capital programs

March 23, 2022 | 4 minute read
Brian Wienke
Product Marketing Director
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Many public sector organizations have been moving to modern cloud platforms for planning and executing their complex capital projects. In the past two years, we’ve seen an acceleration into digitization initiatives as a result of the disruption caused by the pandemic.

Remote work forced rapid digitization in order to maintain progress and keep projects on schedule. For many organizations, introducing digital processes brought efficiencies in collaboration and an integrated field-to-office experience that drastically improved productivity.         

Build projects right to build value

Focusing on schedule and cost is important for program success, but there is much more to it. According to Werner Fourie, senior manager of capital projects with Accenture’s Industry X, “When program managers focus on doing the right things, they in turn build projects right, which in turn ensures you are building value.” 

In a recent webcast, Optimizing Public Capital Budgets, we demonstrated how public agencies can efficiently rank, score, review, approve, and prioritize their capital improvement program portfolio to choose the right projects. Bipartisan Infrastructure Bill funding could allow more projects to be added to plans.

A centralized portfolio planning solution also is more efficient than trying to manage your portfolio using spreadsheets while providing the standardization of criteria and process to support a decision you can defend.  

Environmental concerns, net-zero carbon goals, the pandemic, and other uncertainties play a part in the planning process––as do funding and a skilled labor shortage. The public sector is all too familiar with the phrase, “Do more with less,” which is why planning is a critical step in building value.

The next phase entails taking steps to ensure those projects are built right. Some of these steps might include optimizing sustainability, minimizing carbon emissions, and adhering to regulatory requirements.

Automate capital program management

Digitizing construction project management affords owners with a platform for contract management, collaboration, file sharing, business process automation, and change controls. Automating the process also helps maintain project momentum, and efficient and effective capital program management.

The public prefers delivery of infrastructure assets with minimal disruption and managed budgets that do not result in runaway costs and additional taxes or fees to pay for it. This can be a challenge with the increasing complexity of mega-projects.

Research by Accenture shows that the average dollar value of projects currently in the planning or proposal stage is 294% larger than the average size of a mega-project completed in the past 10 years. Nearly 70% of projects run over budget or past the scheduled completion date, with larger mega-projects having even worse stats.

“Something that is clearly becoming a priority to organizations is the movement toward modern cloud platforms for planning and executing these complex capital projects,” says Fourie. “Poor communication and lack of collaboration create delays and increase risk.”

Collaboration builds agility

Much of the problem lies in a failure to achieve true collaboration, both within companies and across supply chains. Smart technology, true collaboration, and business process automation can foster agility both within and across organizational boundaries, reducing risk and improving outcomes.

The good news is that public agencies are embracing technology to maximize the value of their capital improvement programs. Popular choices like Oracle Primavera Cloud Service and Primavera Unifier help improve efficiency, transparency, and sustainability in a wide array of processes like portfolio planning, budgets and funding, contract management and project controls, through operations and maintenance to assure performance throughout the full lifecycle of an asset.

“There appears to be a lot more optimism as the industry is starting to learn from others and embrace digitization,” says Fourie. 

Watch the Maximize the Value of Your Capital Programs webcast to learn more about Accenture’s research and recommendations for public agencies. You can explore Accenture’s Industry X Services as well as learn more about driving value from capital programs through Digital Transformation of Capital Projects.

Oracle Construction and Engineering, the global leader in construction management software and project portfolio management solutions, helps you connect your teams, processes, and data across the project and asset lifecycle. Drive efficiency and control in project delivery with proven solutions for project controls, construction scheduling, portfolio management, BIM/CDE, construction payment management, and more.

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Brian Wienke

Product Marketing Director

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