Raja Sahulhameed
Major capital projects are fundamental to organic growth in resources sectors. When calculating the value of a major project, CFOs have traditionally provided a fixed capital cost to the market, but the cost of megaprojects is becoming increasingly difficult to estimate, which is causing budget blowouts. Supply constraints for building materials and metals, a decrease in global crude oil supplies, high freight costs, and labor shortages are all contributing to uncertainty with the planning and delivery of megaprojects. As a result, organizational leaders need to become more involved in supply chain management in the current volatile market of inflated costs.
