June 11, 2018 by David Bowcott
Your construction project is made up of several sources of capital that turn concepts dreamt up on paper into tangible structures. Without these sources of capital, and the people behind that capital who believe in your project’s success, your project would not be built.
These sources of capital have internal and external gatekeepers that review all aspects of your project and render a decision on the terms you will be required to meet in order to gain access to their reality-making capital. Further, once that capital is committed, the sources will sometimes monitor the progress of your project to ensure things are progressing as per the plan.
This monitoring is what I’d like to focus on in this article as it can hold tremendous value for all project stakeholders and can be used to more effectively prevent and/or mitigate risks from manifesting that can ultimately take a project off-track.
The three primary sources of capital include:
As mentioned above, each source of capital has gatekeepers that approve the deployment of their capital (underwriting) and, further, will sometimes oversee the execution of the project to ensure that all aspects of the project related to their commitments remain on-track. For the purposes of this article I want to focus on this project monitoring process. Specifically, who does this monitoring and how can this monitoring be utilized to prevent and mitigate risks?
These players perform the monitoring roles for most projects:
All of these monitors tap into progress documentation related to the project. Often these monitors are given direct access to a project enterprise technology that provides varying levels of transparency into the project’s progress. These project platform technologies also manage documentation flow and communication amongst all key stakeholders. Project monitoring services provided by the above sources include: general consultancy services, milestone monitoring, budget monitoring, quantity surveying, schedule monitoring, audit, quality assurance/quality control, testing and commissioning monitoring, material testing, general documentation and photo reporting services.
Transparency can be intimidating to design and construction stakeholders, but it can also be very helpful as some of these sources of capital will gladly mitigate their risk through early commitments to solve problems. Couple the monitoring sources referenced above with new technology that stakeholders can access and you have the ability to see the train coming from a mile away and thus take the necessary steps to avoid catastrophic impacts.