Info for suppliers

Trends in the major project market

Trends in the major projects market in the next 5 to 10 years will focus on:

  • Increased demand from the major projects market.
  • Increased global competition.
  • The re-emergence of skills shortages.
  • Increased use of technology.
  • Increasing regulation and complexity with all chain partners needing to improve management and systems to respond.
  • Innovation and process change to drive value.
  • Continued shorter delivery times.
  • Raising the bar on performance and seeking suppliers that value add.
  • A continued focus on relationship contracting and growth of early contractor involvement.

Major project supply chains seek to minimise their size as a chain, minimise risk and cost and maximise value to clients. Some important trends that will impact on the way local suppliers access work on major projects in the future include:

  • Increased use of early contractor involvement (ECI) that allows project proponents to involve potential chain partners to problem solve and develop a more effective design and program for the project. Work done at this stage delivers a more efficient, better quality and better value outcome for the project.
  • Alliance contracting which has helped to change the way in which all parties approach projects – creating a much stronger focus on a unified project team, aligning chain partners with clear project values, improving information sharing and collaboration.
  • Relationship contracting which raises the importance of the relationship, builds a customer focus with better communication and collaboration.
  • Global sourcing will increase for very large projects. Improved performance by lower cost manufacturing countries will generate increased competition for local suppliers.

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