Turnkey model for an EPC services provider
The global transition to clean energy and low-carbon/circular products and will require mega and large capital projects to expand electric vehicle and battery manufacturing, wind and solar power generation, lower impact chemicals, carbon capture, liquified natural gas (LNG) exports and infrastructure.
For example in Europe, the 2023 Renewable Energy Directive has set a target of 42.5% for energy consumption by renewable sources by 2030. This target is nearly double that of 2022 estimated levels (23%) and will require large deployment of energy transition projects.
In the U.S., major legislation, notably the Infrastructure Investment and Jobs Act and Inflation Reduction Act, has provided significant funding and tax incentives to accelerate growth in these industry sectors. Executing these major growth projects to advance clean energy and lower carbon derived products will provide growth opportunities for engineering, procurement, and construction (EPC) firms and industrial companies over the next decade.
To successfully execute these projects, leading companies must be prepared to navigate new challenges in construction, such as the disruptive effects from post-pandemic supply chain challenges, labor availability issues, and rising inflation rates. All of these factors, combined with the lump sum turnkey (LSTK) contracting mechanisms for many capital projects, have presented challenges to meeting project budgets.
AlixPartners’ global team collaborates closely with EPCs, energy, chemicals, mining, and other industrial clients to develop and implement strategies to improve capital effectiveness and project success. We help companies across all stages of the project lifecycle, including capital strategy and portfolio allocation, project planning and development, project execution and delivery and commissioning, and to set up robust capital planning systems, processes, and tools to ensure a high return on investment.
How we can help
Portfolio Strategy, Allocation, and Management
We help companies perform a strategic realignment of their capital project portfolio with medium- and long-term goals, and select the right projects to maximize return on capital employed.
Capital Process Enhancement
Our approach ensures robust processes for project proposal, evaluation, stage gates, and annual capital cycle excellence.
Project Assessment and Turnarounds
Across complete project turnaround assistance and interim roles, we lead and collaborate on strategic interventions, including identification and implementation of cost and schedule improvement levers and assessment of project risk.
Capital Budgeting, Forecasting, and Reporting
We help companies to implement clearly defined project categories and economic justification requirements for budgeting, as well as standardize cost tracking to enable improved forecasting and reporting.
Project-led Organizational Setup
Clear roles, responsibilities, and decision authorities within project organization are vital to a project's success; we create a mandate and assist in transformations.
Effective Project Delivery
Our tools and teams ensure project delivery excellence and controls--that means ensuring capital projects are delivered on time and on budget from initial planning through commissioning.
M&A Support
We work on mergers, acquisitions and divestitures associated with capital projects, as well as post-merger integration and value capture.
Next-gen Digital Solutions, including AI & Machine Learning
Our technology experts perform integration and project improvement using digital tools, AI and machine learning.
Operational Excellence
From identification and implementation of cost reduction to operational improvement levers for key areas including engineering, project execution, procurement, SG&A, we assess and act on opportunities for operational improvement.
Customer Price Recovery & Claim Management
Companies benefit from improved organization, tracking, and processing of claims through our rigorous approach.