Major capital projects face four key internal challenges: 1) late or inadequate engagement of operational teams and unclear accountability transfers, 2) inadequate knowledge management and data transfer, 3) lack of basic project management integrity such as poor governance, controls, reporting, data management, and change management, and 4) poor team skills and integration, unclear technical and commercial drivers, and misalignment of risks and incentives in contracting.

1. PwC Capital Projects 1
What are our clients’ challenges in this space?
Key internal challenges facing major capital projects typically arise in four areas of
project development and execution.
• Late or inadequate
engagement of
operational teams.
• Unclear accountability
transfer.
• Inadequate knowledge
management and
data transfer.
• Lack of basic project
management integrity:
− Poor project governance,
controls and reporting;
− Inadequate data management
systems;
− Inadequate change
management & contract
management.
• Poor team skills &
integration.
• Unclear technical and
commercial drivers.
• Misalignment of risks and
incentives in contracting.
• Poor understanding of risks
and their commercial
implications.
• Ineffective value
improvement practices.
• Poor project definition &
unrealistic schedules.
• Lack of understanding of
capital markets and
investor requirements.
• Inability to bridge gap in
perceived risk.
• Poor CAPEX/OPEX estimates,
leading to over investment in
un-bankable outcomes.