Managing risk plays a
key part in the strategy
to decrease uncertainty
and ensure project
estimates track to
project performance.
Flexible technology
manages E&Cs
through market storm
By Steven Kratsis, Vice President,
Engineering and Construction, EURA, AspenTech
w
ith the plunge
in oil prices, big
operators’ oil
& gas capital
spending is coming under
increased scrutiny. Therefore,
engineering and construction
companies (E&Cs) have a
greater need to be more
flexible, remain profitable
and manage their business
through market turbulence. To
survive and thrive, contractors
need to innovate dynamically
across all aspects of their
operations and deliver highquality services in line with
market forces. So, how can
E&Cs weather market storms
and address both operational
and commercial needs?
As the relationship between
E&Cs and owner-operators
changes, contract conditions
need to be more closely
aligned to the interests of
both parties to ensure project
scopes are clear and costs
do not overrun. Also, when
engineering expertise is
tight, the workforce tends
to be stretched to achieve
more with less resource.
Owner-operators consider
standardised designs as one
option to minimise costs.
Therefore, partnering with the
right technology vendors with
flexible business models can
make the difference between
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PECM Issue 14