How can the persistent issue of project overruns be addressed by CEOs of EPC project developers?
A revealing case study from Jordan, where machine learning models were used to predict project cost and time overruns, showed that every project had cost overruns: 76% due to incorrect estimations and 24% due to overstated estimates. This highlights the critical challenge of managing costs and timelines effectively.
Here, Progressive Design-Build emerges as a strategic solution offering a new direction for industry leaders. This blog outlines how the Progressive Design-Build approach can be a game-changer for EPC project developers.
Design-Build: A Strategic Approach for EPC Projects
In EPC projects, the Design-Build is a simple process. The reason behind this is that the combination of the design and construction stages is part of one contract.
This approach brings clarity and eliminates conflicts that are often present in the traditional Design-Bid-Build model.
Cost and Speed Advantages
Design-Build projects present a notable financial advantage, being at least 6% less costly than those using the Design-Bid-Build method and 4.5% less than those managed through Construction Manager methods.
This efficiency translates into direct savings for EPC project developers, underscoring the method’s financial benefits.
Moreover, the speed of construction with Design-Build outpaces traditional methods, being at least 12% faster than Design-Bid-Build and 7% faster than Construction Manager approaches. This acceleration ensures projects are completed within tighter schedules, enhancing overall project efficiency.
Progressive Design-Build: A Comparative Analysis
A comparison between Progressive Design-Build (PDB) and traditional Design-Build (DB) emphasizes PDB’s improved time performance. PDB projects have significantly lower time overruns (0.41% for PDB vs. 8.0% for DB), showcasing the method’s capability to keep projects on schedule. Despite these differences, both PDB and DB effectively manage costs, with no significant variance in cost performance between them.
End-Game for CEOs of EPC Project Developers: Zero Down Time and Cost Overruns
For EPC project developers aiming at efficiency, cost-effectiveness, and timely project completion, the Design-Build method, especially its progressive variant, stands out.
This approach is underpinned by strong statistical evidence showcasing its advantages in cost savings, construction speed, and market adoption.
Moglix Business emerges as a strategic partner in this context, providing customized solutions to meet the unique challenges of infrastructure development. Interested parties who want to learn more about it are encouraged to explore how Moglix Business custom fabrication solutions can elevate their projects to new heights of success and operational efficiency.
