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The Warsaw Voice » Other » July 9, 2008
Greenfield Investment
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Greenfield Challenges and Solutions
July 9, 2008   
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Artur Dziubak, Business Development Manager at Bovis Lend Lease, talks to Beata Gołębiewska.

Greenfield investment developments are usually a major challenge for investors. These are usually big and complex projects, with lots of traps for those who undertake them. Is the Construction Management method widely used in this sort of investment project worldwide?
Greenfield investment projects require a thorough analysis and detailed planning as challenges resulting from undertaking such a complex project are specific. For example, a construction design quite often needs to follow the process requirements, and therefore design flexibility is crucial for smooth project development. An integration of process equipment installation with the appropriate sequence of construction works is a challenge in itself. A large number of investors worldwide understand the need for using professional services capable of supporting this type of project, which is why Construction Management became a popular solution to many challenges occurring during the preparation and execution stages of such a project.

Has Bovis Lend Lease managed such projects on the Polish market?
Bovis Lend Lease has gained an extensive experience in the construction management process dedicated to greenfield projects. As an example of our work, I would mention the Pilkington float glass mill in Sandomierz, cement production lines at CRH in Ożarów, and Lafarge in Kujawy, two paper mills, a plasterboard plant for Saint Gobain/British Gypsum in Stawiany, as well as production plants for Electrolux, LG Electronics, Nestle and Philip Morris.

Why was the Construction Management method applied in the case of these projects? What were the specific benefits for the investors?
Production facilities nowadays are often very complex projects that involve thousands of tasks to be managed and executed at a different time, but in the right sequence. Therefore construction work optimization is an important process because time and cost are closely interrelated for all clients and the overall period from commitment to completion can have a considerable impact on the project's financial outcome.

Experience has shown that one of the most important periods in a project's development is the pre-construction phase, during which design, materials, the construction technique and construction strategies are established. For that reason, it is so fundamental to monitor the design team's performance against the pre-agreed schedule, local conditions, construction practice, and "project buildability."

Industrial investment projects require many planning approvals, work permits, provision of basic logistics, water, electricity, access to roads, and other efforts to meet all of the building obligations. Moreover, in the case of greenfield projects, we can't forget about environmental requirements and regulations.

Obtaining all the administrative permits and setting up the site for the commencement of the construction works is an extremely time-consuming process. Therefore investors are eager to start construction as soon as possible and complete the project without a delay. That's where Construction Management becomes a solution with its "fast-track approach" and early start of works-often before the design process is completed.

With Construction Management an investor is offered an excellent cost control system, minimizing the increases in the budget resulting from unexpected circumstances. The purpose of such cost control systems is to eliminate the element of surprise at the end of the project, when all too often unknown variations and claims are suddenly produced by contractors. The possibility of this happening is more likely on a process plant where operational requirements may not be known during the early design.

Finally, we know from experience that major process plants contain many quality issues, which will require to be considered by designers and contractors. Quality may affect briefing, design and construction, and operation of the completed facility, and can be implemented within all of the disciplines and management services that apply to the project.

It is important that the proper level of expertise in appropriate disciplines complements the client's specific requirements. Through the management procedures and regular review during the project we check if the achieved quality of the service is in accordance with the required standard.

This means we make sure that the client achieves ''value for money'' and that any savings on both time and cost are not at the expense of quality.
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