Engineering & Construction: Opportunities Ahead

More than any other, this industry profoundly shapes our world.

The highways, bridges and railways we traverse each day, the airports and harbors from which we travel our homes and offices – even the water we drink – are outputs of engineering and construction ingenuity.

With this kind of impact, you bear a heavy responsibility and are faced with some unique business challenges. For the challenges you face… In today's fast-changing world, the business challenges are complex.

Whether you focus the energies on the private or public sector, the challenges remain the same. They include:

• Increased competition;
• Decreased public spending;
• Demands for lower-priced contracts;
• Niche players;
• Effective property management;
• Advanced technology;
• New forms of procurement driven by higher customer expectations; and
• The need for lower costs and shorter completion times.

In addition to these challenges, businesses like this one must continue to meet strict compliance, regulatory and tax requirements while maintaining high standards in environmental management.

Tough job! But, we can help.

Products and services to achieve this vision

We understand that you need to make strategic decisions in a business climate characterized by converging markets and changing industry structure. Let us help you focus on the issues that matter to you and your clients.

We have significant insight into the engineering and construction industry's fundamental business, financial, strategic and operational issues. In addition to our audit, tax, financial advisory and consulting services, we provide customised services to meet the industry needs.

These include:

• Construction Risk and Dispute Resolution Advisory;
• Strategic Planning;
• Performance Improvement;
• Tax and Assurance Services;
• Project Control;
• Capital Procurement;
• Technology Management.

Opportunities Ahead: Major opportunities continue to abound for companies in the engineering and construction-related industry.

Competition and Investment: Large construction and infrastructure projects are being commissioned across the globe. In Latin America and the Far East, for example, this is the result of attempts to increase the competitiveness of industry in the regions, and as a way of driving further foreign investment. In developed nations, the same factors apply, in addition to the need to upgrade or replace older facilities with modern ones.

Driving Factors What else is driving the industry?

• Pressure on public spending across the world is generating downward pressure on margins;
• Client demands for lower priced contracts are forcing construction companies to restructure and to change their marketing strategies and approaches to pricing.

There are also novel approaches to client handling through the use of partnering arrangements.

Niche Players: The global construction industry is relatively fragmented, with many companies attempting to become dominant players by focusing on specific niches. By focusing on the creation of an international network of contacts, these companies are alerted to job opportunities and can better target their marketing efforts.

As advisor to organisations in this sector, we can help you focus on the issues that are important to clients as well as you. For example:

• Good project management can help you improve efficiency and lower costs effectively to preserve margin;
• Quality and on-time performance are increasingly recognised as key drivers of client and supplier relationships;
• The use of partnering arrangements can improve the effectiveness of relationships between participants.

Property Management: For many clients, property is either a significant proportion of balance sheet assets or represents a major overhead cost. We can show you why the business strategy should have a separate property strategy, as both input and output, and how to include it.

It helps large users of property maintain effective control of property assets, and also helps them appraise, plan and manage capital projects effectively to control unnecessary risk for stakeholders.

Capital Projects: Large capital projects are central to the strategies of many of our clients. Badly managed capital projects lead to cost overruns and delays in revenue generation. Problems also absorb disproportionate amounts of management time and, at worst, can lead to disputes or corporate failure.

As advisor to engineering and construction organisations located everywhere in the global economy, we can leverage our strengths in services from tax and audit to mergers and acquisitions to help our clients succeed.

• Project Control Services;
• Co-Venturing;
• Real Estate/Corporate Facility Management;
• Capital Program Management;
• UK Private Finance Initiative (PFI)/Public Private Partnerships (PPP);
• Property and Project Risk Management;
• Program Management;
• Project Appraisal;
• Project Review;
• Contract Disputes;
• Mergers and Acquisitions.