How Project Advisory Services Stop Projects from Falling Behind
Managing complex large-scale projects represents one of the most significant business challenges of our time. The scale of expertise and coordination required is staggering, with global investment in energy, infrastructure, mining and real-estate-related projects reaching about $6 trillion in 2013 and projected to reach $13 trillion by 2030.
Current project management capabilities often fall short, with McKinsey research showing that 98% of megaprojects suffer cost overruns of more than 30% and 77% are at least 40% late.
This project management challenge manifests differently across sectors, each facing unique obstacles and opportunities. Construction productivity has remained flat for decades, while manufacturing productivity has nearly doubled over the same period. This productivity gap highlights the crucial need for better project management and advisory support.
Finding the right advisory support is key to the success of any high-risk project. Not hands-off report writing and high tower consultancy, real hands-on proactive management to change the tempo of a project.
What are project advisory services?
Project advisory services provide active management, informed by strategy and experience, to get a project done—no more, no less.
These approaches have proven particularly successful, as demonstrated by a utility company that achieved significant cost savings by adopting a minimal technical solution approach for their substation building, requiring much less time and money to build compared to traditional methods.
Managing risk
Advanced advisory models help developers think harder about worst-case scenarios and build flexibility to cope with the unexpected.
For example, wind projects – based on estimated capacity or production profiles – benefit from thorough evaluation of alternative scenarios that could affect asset payback or require additional maintenance CAPEX.
Project advisors conduct in-depth risk assessments at the planning stage. They identify potential risks, analyze their impact and develop mitigation strategies. This proactive approach helps businesses prepare for uncertainties.
Financial structuring
Advisory teams play a pivotal role in supporting project financing.
Through a combination of financial modeling, fundraising strategy and market sounding, advisors help mobilize capital through various financing partners. Leading advisory firms have provided billions in financing support over the past decade (GIA has been involved in over $2bn+ of financing support), demonstrating the substantial impact these services can have.
Regulatory support
Projects must comply with local, state and federal laws. Legal requirements vary depending on industry, location and project scope. Missing a regulatory step can lead to fines, delays, or even project shutdowns.
Advisory firms bring onboard local and international law firms to guide businesses through necessary permits, contracts and environmental regulations. For example, the Biodiversity Net Gain (BNG) scheme introduced under the UK Government in 2023 now enforces all developers to have a minimum BNG by 10%.
Bringing onboard legal support at the right stage can avoid costly regulatory complications and keep their projects on track.
Reducing waste
The structure of a project affects its efficiency, budget and timeline. Poor planning can lead to resource wastage, miscommunication and scope creep.
Project advisory services help businesses design a clear project framework. Advisors assist in defining objectives, assigning roles and setting governance models. With structured planning, companies can optimize resources, streamline operations and meet deadlines.
Stakeholder communication
Large projects involve multiple stakeholders: investors, government agencies, contractors and local communities. Branded yet temperate communication maintains transparency and alignment.
Advisory firms develop stakeholder engagement strategies to ensure smooth collaboration. GIA can assist in preparing reports, conducting meetings, managing politics and addressing concerns.
Access to rare data
Many businesses rely on experience and intuition for project decisions. Through experience on projects in various sectors, GIA has access to a wealth of information and expertise.
Project advisors use data and in-house information to model feasibility, forecast trends and benchmark performance. This enables project developers and investors to evaluate their assets in the market and make decisions with real, historical data rather than assumptions.
Crisis management
The business environment is constantly evolving. Economic shifts, new regulations, or technological advancements can impact project execution and companies must be prepared to adapt.
Project advisory services help businesses stay ahead by monitoring industry trends and emerging risks. Advisors provide strategic recommendations that allow companies to adjust their plans and remain competitive in changing market conditions.
When should you hire a project advisor?
Most developers and investors bring onboard project advisors such as GIA when things start to go wrong. Budgets begin to dwindle, commercial discussions have stalled and uncertainty surrounds the future of a project.
Businesses should bring project advisory services onboard as early as possible, at any of the following stages of development:
Real projects require expertise
Managing a megaproject involves a myriad of challenges. The saying goes that a project must die at least 3 times during development.
Project advisory services transform project outcomes through rigorous planning, financial optimization and proactive risk management. Research shows well-managed projects can overcome the systemic challenges.
For organizations seeking specialized expertise, GIA delivers hands-on support to drive results. Our seasoned professionals work directly with project teams, providing targeted guidance on financial structuring, risk management and regulatory strategy to help clients realize their strategic vision with confidence.
Talk to our team
Get in touch with our team at info@gi-advisors.com.
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