This post discusses unique project planning and management challenges associated with projects that are owned by single asset owners. Examples include power plants, large commercial facilities and process plants. These assets tend to be project financed using the single asset as collateral. The financing typically relies on revenue generated from operation of the asset. Hence, delays in achieving revenue generating status can be extremely problematic. Our conclusions and recommendations are based on decades of experience with many such projects.
Revenue generating facilities (e.g. power plants, chemical process facilities) are sometimes owned by a standalone entity. The design, engineering, procurement, construction, commissioning, startup and turnover of these plants and facilities can be particularly challenging for both owners and contractors. The planning, scheduling and execution of these requires attention to some unique and compelling factors. [Read more…]