Infrastructure and major projects are essential for the economic and social development of any country. According to the 2023 Infrastructure Australia report, for every $1 billion invested in infrastructure, Australia sees an estimated $3 billion boost to the economy.
These projects create jobs, stimulate local economies and enhance overall productivity. They provide the backbone for transport, energy, water, health, education and other public services. But, like every project, return on investment is important. And delivering these projects is not easy. They involve complex technical, environmental, regulatory and stakeholder challenges – as well as being costly in terms of finances and human resources. The challenge for project managers is this – how to deliver value to a client, while balancing project requirements and dynamic delivery timelines?
The common challenges
Managing projects in the infrastructure space presents several common challenges for teams to address:
- Scope creep or evolution resulting in delayed timelines: According to the 2022 Australian National Audit Office (ANAO) report, approximately 40% of major infrastructure projects in Australia faced significant delays.
- Cost overruns: A 2023 snap audit of 800 Australian infrastructure projects showed that their total estimated cost has blown out by almost 33 billion.
- Regulatory and environmental hurdles: Working in an industry regularly requiring compliance with (often dynamic) regulatory and environmental criteria can affect project timelines and costs.
Effectively assessing value
Given the scale and complexity of infrastructure projects, it is crucial to deliver value to both clients and society more broadly. Value encompasses more than just monetary returns; it includes the benefits relative to project costs and risks. To effectively quantify and assess value, managers should:
- Clarify project objectives: Clearly define what the project aims to achieve and align these objectives with the needs and expectations of stakeholders.
- Assess trade-offs and interdependencies: Evaluate the trade-offs and interdependencies between various project elements such as costs, supply chain, resourcing and construction.
- Implement performance metrics: Develop and apply performance indicators and metrics to track project outcomes in relation to perceived value.
The value solution
To deliver value to clients, a comprehensive and strategic approach is essential. This involves:
- Lifecycle management: Consider the entire project lifecycle from planning and design to construction, delivery and ongoing maintenance.
- Alignment with client vision: Ensure project objectives align with the client’s vision, mission and values. Continually engaging with clients and stakeholders is crucial for maintaining alignment and addressing concerns.
- Best practices and innovation: Employ best practices and innovative solutions to optimise project quality, cost, time and sustainability.
- Performance monitoring: Regularly monitor and evaluate project performance. Use feedback and lessons learned to refine and enhance future projects.
Infrastructure and major projects are crucial for societal prosperity and wellbeing but come with significant challenges and risks. Adopting a value-driven approach and demonstrating expertise throughout every project phase is essential for delivering value. By focusing on strategic alignment, effective management and continuous improvement, project managers can enhance client satisfaction, build a strong reputation and improve industry competitiveness.
