Project design and risk assessment

Project design and risk assessment

Projects in plant construction are always associated with a certain investment risk. The risk that the plant manufacturer bears cannot be compared with the risk that the client, i.e. the later operator, bears. Every plant manufacturer is faced with the risk of getting into financial difficulties when accepting an order due to the possible losses. There are many reasons for these losses, but they usually originate before the actual order processing. So these are planning errors that are only discovered when it is too late to avert these errors or to take them into account accordingly. An order must therefore never be offered on the basis of an incomplete calculation basis. It is important to avoid such a planning error, which is usually made for reasons of time. Both the plant manufacturer and the client are required to create a solid planning basis for each project, which can then be followed with good project controlling.

What effects can a planning error have on the client?

A planning error means for the later operator of the plant that he bears the risk of accepting production losses. Even if there is a legally binding default claim against the supplier, the planned parts or products will not be manufactured! The monetary damage is therefore a long-term risk for the operator at this point. However, the incorrect design of the systems and thus the increase in operating costs are often an economic threat. The responsible persons will be aware of such topics, but here there is often a lack of the right type of communication between the plant manufacturer and the operator. It does not mean that we have to manage to get everyone around the table, rather it is crucial that the facts for an investment are recorded in a suitable form. The information must be available to everyone involved in a way that is as transparent as possible. 

So what is the basis for proper investment planning?

A solid basis is provided by detailed documentation in the form of a project book right from the start! This project book gives everyone involved the opportunity to gain an overview of the project.