Capital Design Optimisation

Most projects are based on good engineering but their capital value (guided by NPV/IRR or return on capital) can generally be improved and capital optimised by challenging key assumptions and the way sub-projects have been put together.

We have yet to be engaged on a project’s NPV or value review where we have not been able to work with the owners’ team, and the engineering, procurement and construction management (EPCM) to improve project design NPV, internal rate of return (IRR) and Capex. In the last four years, we have helped clients increase project ultimate return on investment by over AU$39bn and reduce capital by over AU$41bn.

We work closely with project teams (owners, consultants and contractors) to achieve higher lifecycle returns for their capital projects, in less time and with greater predictability. We aim to ensure that a project is suitably optimised before construction begins by:

  • Better aligning the project’s business case with overall company strategy and operational priorities.
  • Assessing all options against one common and comprehensive value model.
  • Engaging key stakeholders and third-party experts early in the process.
  • Optimising the design, from the start, for construction.
  • Developing the best contracting and procurement strategies, accounting for owner’s capabilities, contractor/supplier options and project risk.
  • Optimising the project schedule and ensuring early engagement of experts and suppliers to further optimise the project before change becomes too expensive.
  • Building a project team mindset for the continuous and early pursuit of improved value.
Utilising the hiatus in project progress, due to the loss of licence to operate, the project was re-evaluated from all angles. The result was a generation of a tremendous amount of ideas, with a substantial increase in [Net Present Value (NPV)]. Partners in Performance assisted in facilitating the Idea Generation workshops, but more importantly carried these ideas to better definition and creation of value. The way of presenting the various development steps allowed [for] easy visualisation, to all levels of the corporation.BERT, PROJECT DIRECTOR, MINING INDUSTRY

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