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Project structuring
 
 

With every new project or business acquisition comes the challenge of setting the structures.

 

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Defining a delivery structure

To achieve the appropriate business objectives, Enthalpy promotes the need to take an integrated approach to every issue in project structuring and hence delivery of the outcome. In fact, Enthalpy believes no single issue can be ignored in setting project structures - although many organisations still view issues as hurdles to be overcome rather than grades to be sought.

Instead, projects and acquisitions today need to be better planned, more transparently presented, and then to be monitored and reported on according to key performance indicators.

Likewise, the demands for speed and higher returns from a project are constantly growing, and so only the best-integrated, businessdriven structures are able to achieve the desired project outcomes.

By properly structuring a project, Enthalpy has the opportunity to link business and external influences into a project or acquisition process.

Enthalpy defines project structuring as a multifunctional exercise that selects the best implementation strategy, sets the scope according to a defined basis, selects the best contracting strategy, and then plans and schedules all business and project aspects from mobilisation through to ramp-up.

Project structuring should also:
  • Allocate scope and risks to the designated parties assessing risks and setting the mitigation strategies
  • Design the organisational structures needed
  • Evaluate resources and skills needed
  • Assign qualified personnel
  • Provide systems and procedures
  • Establish the management supervisor structures
  • Create the monitor and reporting loops

Highly experienced in setting structures

Enthalpy has extensive experience in a wide range of project structures created by different forms of project implementation strategies, financial structures, contracting plans and technology demands. As a result, Enthalpy has learned there is no preset, optimum structure - except that it must be the best for the stakeholders. Similarly, flexibility is also a key to success, with project structures having to change to suit project demands from time to time.

In Enthalpy's experience, organisations that structure projects a particular way often find that, as events unfold, the structures in fact create unfavourable responses.

However, project structuring has such a fundamental impact on projects that it should never be developed after a project is approved nor after a study is completed. Instead - with its impact on capital and operating costs, risk levels and management, schedules, commercial outcomes and organisation - project structuring should be considered at pre-feasibility study phase and optimised at feasibility study phase.

As part of its work, Enthalpy has now developed techniques for use in multidiscipline workshops to identify, evaluate and select the optimum project structures for any opportunity

 

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