Introduction: From Development to Execution
In our 2021 article, “Project Development” (https://delgadoconsultores.pe/index.php/en/articles/projects-development), we emphasized the need for adequate and complete design to ensure the technical and economic viability of any initiative, whether a single-family home or an industrial plant. Today, we take that foundation further: how that design directly affects the proper execution of the work and, therefore, the success of the project. We begin with that methodological basis (FEL, stage gates, contract scheme selection) and move toward the phase where design materializes on-site, because that is where the initial projections are validated—or disproved.
1. Design as the Pillar of Execution
A good design is not just plans, calculations, and specifications. Its main purpose is to provide a sufficiently detailed roadmap so that, during construction, there are no technical gaps or ambiguities:
1. Consistency between scope, engineering, and planning
- The design must be closely integrated with the schedule and budget (PV, Planned Value). If basic engineering deliverables (FEL-3) omit interface details or site conditions, the PV curve will be based on inaccurate assumptions, causing early deviations.
2. Early identification of risks and constraints
- During FEL-2 and FEL-3, trade-offs between design alternatives should consider constructability variables—access, logistics, availability of specialized labor—that directly affect execution speed (EV, Earned Value) and resource consumption (AC, Actual Cost).
3. Standardization and document consistency
- A clear design package—narratives, drawings, material lists, technical specifications—reduces construction-phase queries, shortens procurement approval cycles, and avoids misunderstandings with subcontractors. The more airtight the information package, the lower the friction in the EPC phase (Engineering, Procurement, Construction).
2. How Design Influences Operational Efficiency
The link between design and execution is manifested in two main dimensions:
2.1 Productivity and Performance
Precise activity definitions: A WBS (Work Breakdown Structure) based on detailed design allows each activity to have clear quantity, resource, and duration parameters. This helps estimate performance more accurately—e.g., cubic meters excavated per day, square meters of lining per shift—and reduces the gap between PV and EV in early milestones.
Less rework: A design that incorporates constructability tolerances, weld details, mechanical joints, or piping intersections avoids having to redo completed work. Every on-site adjustment translates to cost overruns (AC > EV) and delays on the critical path.
2.2 Change Management and Variations
Synergy with project control systems: A well-defined design allows rapid quantification of cost impacts (new unit prices) and schedule adjustments (critical path analysis) when the client requests a change. This speeds up the issuance of change orders and reduces contractual disputes.
Contingency prevention: When the design includes geotechnical studies, load modeling, or archaeological/environmental reports, it reduces field uncertainty. For instance, knowing in advance about unexpected rock strata allows planning for specialized drilling equipment, avoiding unplanned stoppages.
3. Contract Scheme Selection and the Role of Design
How responsibility for design is transferred into execution can optimize (or compromise) the final result:
1. Design-Bid-Build
- Advantage: Clear responsibility split between designer and contractor.
- Risk: Disconnection during construction. If the design lacks “lessons learned” from similar projects, the contractor will face inefficiencies when requesting RFIs, creating bottlenecks.
2. Design-Build
- Advantage: Contractor leads design from a conceptual basis. This fosters coordination and reduces interface conflict.
- Risk: Owner cedes some technical control. If the contractor prioritizes margins over constructability, suboptimal design solutions may appear once risk is passed to subcontractors.
3. EPC / EPCM
- Advantage: Full risk transfer for design and procurement to the EPC contractor. If the design is robust, the contractor can negotiate better conditions with suppliers and subcontractors, achieving scale economies and on-time delivery.
- Risk: Contractor assumes redesign costs. With scope changes or unanticipated conditions, contract rigidity may expose them to claims.
4. IPD and PPP
- Advantage: Strong collaboration from conceptual design. Input from architects, engineers, contractors, and end users optimizes execution flow.
- Risk: Requires high participant maturity and complex contracts to align incentives. If stakeholder interests clash during design, integration benefits are lost.
5. The Value of DC&R Experience
As a complement to what we outlined in 2021, at DC&R we’ve found that the key difference between successful projects and those plagued by rework, disputes, or broken schedules lies in:
1. Engineering Package Quality: Designs with a “buildable” level of detail and early constructability reviews.
2. Early Stakeholder Integration: Involving operations and maintenance avoids surprises during startup.
3. Effective Control and Reporting Systems: Applying Earned Value Management (EVM) to monitor PV, EV, and AC in alignment with design.
4. Appropriate Contract Strategy: Selecting the right model (DBB, DB, EPC, IPD) according to project type, client risk tolerance, and technical uncertainty.
Our senior team, with over 30 years’ experience in mining, oil & gas, energy, and infrastructure, has applied these practices in projects of varying scale, quantifying the tangible benefits in cost savings, shorter timelines, and minimized disputes.
Conclusion
A solid design aligned with the execution strategy is not a cost; it is an investment that greatly increases the likelihood of success in any engineering and construction project. If in 2021 we explored “Project Development” from an approval-stage perspective, today we reaffirm that properly materializing that design in the field is the true challenge that separates profitable projects from those that become sources of loss.
If you want to ensure that your projects are built on integral design and executed without surprises, trust DC&R. Our expert team will support you with:
* Engineering package review and optimization
* Advisory on contract scheme selection (DBB, DB, EPC, IPD, PPP)
* Project control system implementation (EVM, WBS, daily reporting)
* Early stakeholder coordination and constructability validation
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https://delgadoconsultores.pe/index.php/es/
— DC&R: Your strategic partner in project and engineering management, turning designs into reliable results