Project Evaluation and Analysis

Projects large and small all present businesses with a risk either in terms of investment cost or schedule. OSL can manage this risk using tools and techniques appropriate to the project stage, from inception to final investment decision.

OSL projectflow

Business Case Risk and Evaluation 

OSL’s specialist risk consultants provide expert risk-based project economic evaluations and risk-based project development analysis to help our clients make informed decisions. OSL’s approach supports project selection and analysis from different perspectives:

  • Financial - commercial (sales & revenues), cash flows, capital structure, markets and potential clients, etc.
  • Operational - Engineering Design, Project Management (Cost & Schedule), OPEX and CAPEX options, Asset Management, HAZOP & LOPA and Risk Registers

Our consultants deliver valuable insights to support early stage decision making such as techno-economic project option selection and advisory support on the wider economic benefits of projects and financial investment decisions.

Later, during the execution stage of projects, the risk techniques support project planning decisions by evaluating schedule risk. Alternative execution scenarios can be studied, and project activities prioritised to give confidence of meeting project deadlines. Importantly, whatever the project stage, appropriate risk management mechanisms can be implemented.

Our analysis and client insight is supported by software tools. We are the exclusive owner of the powerful ROV (Real Options Valuation Inc.) software suite that delivers critical insight for clients in a clear presentation format.

Project Execution Planning 

Meeting a project completion date is a key deliverable for everyone concerned. The date is dependent on many aspects of a project and the critical path is always a focus of attention. OSL’s specialist consultants provide early analysis of project schedule risk. By mapping the discrete activities within a project, alternative execution scenarios can be studied to evaluate dependencies and risks to the project schedule. Alternative execution strategies can be investigated, and mitigation strategies implemented to give confidence of meeting that all important completion deadline.

Cost Estimation and Value Engineering

Depending on the design stage, the recognised industry approach is to develop a corresponding cost estimate to an accepted tolerance +/- %. OSL adopts estimating methodologies based on standard industry practices:

  • AACE International Recommended Practice No 18R-97 for Cost Estimate Classification System (as applied in Engineering, Procurement, and Construction for the Process Industries)
  • Construction Industry Institute (CII) Project Definition Rating Index (PDRI).

Additionally, using our specialist software tools, OSL can perform a project Cost Risk Analysis (CRA) which will provide a risk-based analysis of cost estimates and schedule to give deeper insight of project sensitivities that enable informed decision and mitigation strategies to be implemented.

For more information on OSL Risk Management’s extensive services and CQRM training please follow this link to our dedicated site.

Next: Design Development and Implementation

Case Studies