Major Projects Advisory Services

Why MPA?:Like many other industries, the construction industry was hit hard by the economic downturn. However, public infrastructure and large private projects are still moving forward and are continuing to create demand across the national construction industry. Unfortunately, a shortage of skilled project managers has resulted in a number of highly publicized issues. In some cases, projects launched with high hopes have crippled otherwise capable organizations. Failures in project visibility and accountability may have compromised relationships with key stakeholders. And weak governance processes and oversight have – in some cases - prevented organizations from delivering on promised project outcomes. As a result, project owners are turning to independent advisors to guide them through the complex capital project lifecycle.

Our Major Projects Advisory team (MPA) has extensive experience across the project lifecycle. Our global advisors have worked with both public and private ownership teams to help deliver on multi-billion dollar capital projects around the world. Our global team is augmented by an extensive network of regional team members who are on the ground and focused on providing project owners with real-time advice, delivery and project implementation. In fact, many of our professionals have worked with project owners, enabling them to deliver genuine insight and add high value. We know the pitfalls of project failure and the hallmarks of project success and have the skills to help you keep your project on track. As a result, you will be better placed to realize the full value of your project investments, enhance project predictability and transparency, and meet your defined project objectives

We provide our clients with focused industry knowledge, multidisciplinary teams, and substantive experience in managing both the financial and technical aspects of major projects and programs. Our professionals recognize that each project is unique, so we tailor our services to account for the client’s size, the complexity of the project, the experience of the project development team, and the client’s business objectives. Our ability to deliver quality services results from our team’s understanding of business processes, internal controls, and every client’s unique risk profile.

KPMG’s MPA team offers independent, global experience-based guidance and support designed to help clients navigate the complex capital project lifecycle.

Improving the performance of capital projects and programs throughout their life cycle:

— Program risk and controls assessment— PM maturity benchmarking— PMIS analysis— PMIS implementation support— Capital project tools/systems assessment

— Insufficient tools and project management infrastructure

— Resource shortages

— Inexperienced or unqualified project teams

— Organizational challenges

— Project management inefficiencies

— Lack of comparative benchmarking or performance metrics

— Troubled projects andperformance issues

— Cost and schedule overruns

— Quality issues— Project governance and control

issues

— Asset safety issues and concerns

— Asset nonperformance and reliability issues

— Regulatory issues

— Concerns over asset or system integrity

— Project assessments— Schedule diagnostics— Project monitoring— Construction claims and dispute support— Project cost analysis

— Asset investment and operational cost enhancement

— Asset performance and risk management— Asset data management and predictive

analytics

— Asset strategy and target operating models— Project delivery strategy assessment— Capital program staffing analysis— Capital project tools/systems assessment

— 5%–10% reduction in projectsupportcosts

— 10%–20%increase in accuracy of project budget forecasts

— 10%–20%increase in accuracy of project portfoliocostsand schedules

— 5%–10% reduction in project schedules

— 5%–10% reduction in project estimates/budgets

— 10%–15% reduction in project changes

— Average of 3.4% of recoverable costs

— 10%–15% increase in PM efficiency

— 10%–20% increase in recovery of PM project costs

— 5%–10% reduction in project support costs

— Increased return on assets

— Improved system performance

— Decreased emergency shutdowns and operational impacts

— Contract initiation— Vendor and subcontractor

selection — Resource and schedule

planning

— Negotiations— Works execution— Scope modifications— Payments and reports

— Documentation— Financial close outs— Handovers— Investment, operations and

performance enhancement

— Portfolio strategic plan— Portfolio charter— Selection criteria

Monitoring through the life cycle: When: Optimize project portfolios by assigning appropriate financial targets. Assess program against resource deployment and progress. Define interdependencies between programs and projects.

What: Document project initiation stage. Review processes and controls. Select and establish scope for all stakeholders. Analyze scope of work against schedules and resource planning.

How: Standardize contract terms and conditions. Schedule determination of cost allowances, overhead rates, insurance, payments, variations, claims and risk/claim management, payables/receivables cash flow. Optimize contractual communications and time and cost.

Why: Close out final accounts, variations and claims. Ensure proper documentation for dispute resolutions. Follow up on bonds, guarantees and retentions. Document end user handover, DLP, asset performance and risk management.

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An objective framework that meets your requirementsOur proprietary cloud-based MPA service offering provides a platform for objectively assessing an organization’s project management environment. A framework of five project management controls areas allows for consistent evaluation:

— Budgeting

— Payment – payables and receivables

— Project cost to complete reports

— Contingency management

— Cash flow reporting

— Value engineering

— Timely notifications and correspondence

— Reports and documents

— Procurement planning

— Source selection

— Tendering

— Contract negotiation

— Contract scope administration

— Materials management

— Contract closeouts

— Planning and monitoring

— Progress reporting

— Change management

— Schedule integration

— Reports and documents

— Change order management

— Variations, claims and disputes

— Design standards and specifications

— Regulatory compliance

— Quality control and inspection

— EHS and security

— Project self-assessments and audits

— Lessons learned

— Roles and responsibilities

— Communication planning

— Project infrastructure and systems

— Document control and record management

— Project approach and authorization

— Management reporting

An in-built benchmarking function enables instant assessment against a database of peers. The database currently contains more than 100 peer assessments – and is growing continually.

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KPMG MPA function is a global practice with over 250 practitioners worldwide in our global Centers of Excellence. Our global presence enables our team to provide resources on the ground to support our clients - where ever they may be engaged in capital projects.

How KPMG has added value:

Contact us:Partner | +971 2 401 4839raajeevbatra@kpmg.com

Director | +971 2 401 4840mshahatit@kpmg.com

Why KPMG?Our core team has worked with our global network of MPA professionals to provide construction advisory, cost auditing and contract compliance services for many of the largest global construction programs and infrastructure projects:

Advisory services for more than 40 Fortune 500 clients on major construction projects globally.

Our team includes contract administrators, planners and schedulers, financial analysts, risk managers, legal advisors and project management professionals.

We have worked with leading regional contractors and developers.

Our teams have helped reduce project schedules, estimates, budgets, support, overhead costs and changes, while increasing project manager efficiency and using technology to drive reporting and decision making.

We share industry-leading processes, tools, templates, databases and forms to manage large projects.

We were engaged to:

— Profile and assess the risks of 150 ongoing projects

— Find the projects (top 20) posing the highest risks to the portfolio

— Implement a risk mitigation plan

— Helped design delegations of authority (DoAs) to enforce controls while facilitating efficient project delivery.

We were engaged to:

— Comprehensively review the projects cost to complete

— Challenge current revenues, costs and profit margins

— Accurately calculated costs to complete projects

— Assessed recoverable risks

— Reviewed claims and variations

— Developed accurate five year cash flow forecasts

We were engaged to:

— Evaluate corporate policies and procedures for managing large projects on a US$3 billion, six year capital improvement program

— Develop PMOs and board level risk management procedures for large capital projects

The client quickly noticed the benefits and project management maturity levels are now significantly higher.

We were engaged to:

— Assess the quality of the company’s receivables

— Monitor cash flows through the escrow mechanism

The company’s banks benefited from improved:

— Pre-payment and procurement exception reporting

— Analysis of receivables

We were engaged to:

— Review the complete project life cycle

— Advise on cost and schedule impacts of modifications.

— Developed and maintained a system to illustrate plan and schedule hierarchies which helped improve overall project performance

Visit our page https://home.kpmg.com/ae/en/home/services/advisory/risk-consulting/internal-audit-risk/major-projects-advisory.html

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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Publication name: Major Projects Advisory ServicesPublication date: September 2016