Improved Interface Risk Management Increases Investor Confidence
As offshore wind developers increase the size, scale and complexity of planned projects in order to maximize revenue streams, and with investors demanding cost and schedule certainty, the use of multi-contracting project management systems and processes is proving increasingly critical to economic and operational success.
The widespread adoption and improved focus on interface and risk management activities by developers and EPC contractors alike, to better manage multi-contracting risk, will significantly increase investor confidence, as well as reducing installation costs, thereby minimizing schedule delay and improving safety, quality and environmental performance.
That is according to TÜV SÜD PMSS, the global renewable energy division of the international technical services provider, TÜV SÜD.
“Our capital intensive projects involve complex interfaces and dependencies between a diverse range of parties, and a geographically dispersed supply chain. Whilst many project developers (and EPC contractors) have used these simple tools as a critical part of their project management process for some time, up until more recent years, the use of comprehensive interface and risk management tools combined with experience has not typically been viewed as a top priority,” said Rob Waddington, Director of Project Delivery at TÜV SÜD PMSS.
“Also with the shift away from utility balance sheet to project finance in Europe, and the same approach expected in the US market, it is essential for developers to demonstrate control in minimizing construction risk and demonstrating a robust approach to risk management to the risk-averse investment community.”
“In many respects, it’s perhaps no surprise that, as both developers and investors seek to shore up future confidence, there’s a increasing importance towards the adoption of these basic project management systems. Indeed, it is an area we are increasingly being asked to advise on or implement for projects. We’ve spent a long time developing our knowledge and services that provide what we think is an industry leading solution to this critical but often undervalued area of project management,” he added.
The most effective interface management systems capitalise on direct experience and industry best practice, combined with simple and effective systems for mapping and managing interfaces and project risks. They provide an early warning system for the identification of risk issues that can cause schedule delay and cost overruns.
Together, this blend of careful management and assessment of key project parameters and data provides all stakeholders with an increased level of confidence on financial risk.
TÜV SÜD PMSS will be exhibiting at EWEA 2014 in Barcelona, from Monday 10th until Thursday 13th March, Hall 7 stand B100.
Press release, March 10, 2014; Image: TÜV SÜD