Capital Project Management Software: Definition, Types, Benefits, and Solutions

Capital projects are widely discussed in a financial context, but not as commonly discussed in their practical application.

As you explore capital projects that come up in asset management, you are probably curious to hear about examples.

After all, you need to know what a capital project is before you can manage one effectively.

To get everyone on the same page about what a capital project is, we will cover industries that commonly have capital projects, examples of capital projects, and how capital projects are classified.
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What is a Capital Project in Asset Management?

Capital projects are key to infrastructure development, requiring extensive planning, resources, and investment. From constructing highways to installing new manufacturing plants, these large-scale projects require precise execution to stay on time and within budget. This is where capital project management software comes in, offering a digital solution to streamline and simplify the complexities of project planning, execution, and oversight.

In this guide, we explore capital project management software in depth—what it is, its benefits, and the different types of solutions available. You’ll learn how these tools help organizations improve communication, allocate resources efficiently, and mitigate risks, ensuring smoother project delivery and better outcomes for all stakeholders. Whether you are embarking on a new construction project or managing a large-scale infrastructure overhaul, you’ve come to the right place.

What are Capital Projects?

Capital projects refer to large-scale construction, renovation, or infrastructure projects that require significant investment and resources. These projects typically involve the creation or improvement of physical assets such as buildings, highways, bridges, or utility systems.

Upon successful completion of a capital project, a business will gain capital or a new asset that they will be able to then depreciate or capitalize.

Depending on the scope and size of the project, the time it takes to plan and execute a capital project can vary greatly. A "typical" multi-billion-dollar capital project could take around 3-5 years. Other capital projects ranging from $100-500 million could take 1-2 years, or sometimes 1-3 years. In more extreme cases, huge projects can last up to 10 years.

If you do not plan and execute your capital project efficiently, it can cost you more money and lead to longer shutdowns, turnarounds, or outages.

On the other hand, a well-managed capital project can save money and increase the capacity of your production/operation.

Capital project management software plays a crucial role in planning, executing, and monitoring these projects. This software helps streamline project workflows, track budgets, schedule tasks, and collaborate with team members. By using capital project management software, organizations can effectively manage resources, minimize risks, and ensure projects are completed on time and within budget.

Choosing the right capital project software is essential for successful project delivery. It's important to select a software solution that aligns with the specific needs and requirements of your project. With the right software in place, organizations can enhance project efficiency, transparency, and overall project success.
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What Industries Have Capital Projects?

Almost all industries have capital projects in some shape or form. To name a few, here are some industries that commonly have capital projects:

Oil & Gas

Mining & Metals

Utilities & Power Generation

Chemicals & Petrochemicals

Public Sector, Municipalities, & Transportation

Pharmaceuticals & Life Sciences

Food & Beverages

Pulp & Paper, Forestry

Manufacturing

Facilities Management

Military & Defense

Shipbuilding

These projects differ greatly in scope, with some involving multiple stages of planning, while others being more straightforward. For instance, adding or replacing a machine in a manufacturing facility will usually have a more straightforward scope than adding a new offshore oil rig.

However, that is not to say that a more straightforward project doesn’t still interfere with your daily operations or require thorough planning. If you are replacing an existing machine that you actively use for production, you will still need to assess what will be affected and for how long.

What are Examples of Capital Projects?

Capital projects are large-scale initiatives that involve significant investments in infrastructure, facilities, equipment, or other tangible assets. Examples of capital projects include the construction of a new office building, the installation of a new manufacturing plant, the purchase of a new fleet of vehicles, or the development of a new software system.

When managing capital projects, organizations often rely on specialized capital project management software to help plan, track, and control project activities. This software, also known as capital project software or capital projects software, provides tools for budgeting, scheduling, resource allocation, risk management, and reporting. By using capital project management software, organizations can improve project visibility, collaboration, and decision-making, ultimately leading to successful project outcomes.

As we mentioned above, there are a few industries that commonly have capital projects, so let’s cover an example for each:

1. Oil and Gas Industry

As an oil and gas company grows, the company may need to add or replace oil rigs on land or offshore. Some oil and gas companies will need to create LNG terminals, which are big and complex, requiring detailed execution management.

2. Mining and Metals

To sustain the operation of their facility, mining and metals companies that focus on processing materials may need to expand mines or create new mines.

3. Utilities and Power Generation

Utility companies that provide water to the public may need to add dams, reservoirs, or canals to efficiently deliver water to their customers. As power generation companies expand, they will have capital projects like adding new natural gas power plants (also referred to as combined cycle plants).

4. Chemicals and Petrochemicals

To maintain the level and quality of production, a chemical and petrochemical company may need to add a new polyethylene plant.

5. Public Sector, Municipalities, and Transportation

In the transportation business, new public train lines with all-new stations may be created, in order to offer more efficient routes and accommodate transportation needs.

6. Pharmaceuticals & Life Sciences

As pharmaceutical companies expand, they may need to add more laboratories or expand existing laboratories to increase their production capacity.

7. Food & Beverages

A beverage company could choose to add or replace bottling lines to increase their site’s production rate or capacity, and meet higher production demands.

8. Pulp & Paper, Forestry

To diversify offerings and increase production capacity, pulp and paper companies could add pulp recycling facilities and new paper machines.

9. Manufacturing

For businesses manufacturing construction materials, they may add additional manufacturing machines or expand their current facility to satisfy increasing demands.

10. Facilities Management

As a university expands and their need for student housing increases, they could add dormitory buildings and new classroom buildings to better accommodate their new class of students.

11. Military & Defense

In the military and defense realm, a capital project could include expanding a storeroom or adding another building to a military base.

12. Shipbuilding

Creating new civilian and military ships is complex, and requires capital project execution management.
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How are Capital Projects Classified?

Capital projects are generally classified in two main categories: greenfield and brownfield projects.

Greenfield Projects

Projects on land that has never been developed before are considered greenfield projects. These projects require the developer to design and construct underground infrastructure like electrical and plumbing, since the site is completely empty.

Greenfield projects may need the terrain to be leveled or adjusted to meet the specifications of the project. However, while greenfield projects require starting from scratch, they also offer a lot of flexibility in comparison to brownfield projects.

If a project is complex or specific, most developers will start with a greenfield to ensure that existing infrastructure does not interfere with the project.

Brownfield Projects

Brownfield projects generally include stranded projects that have been taken over by new organizations. Due to that, they will start with a site that already has buildings or existing infrastructure like electrical systems, plumbing systems, and roads.

Some brownfields were previously home to factories, which could mean that they need to be decontaminated before development begins.

In some cases, developers will be able to build upon existing brownfield structures if they are structurally sound. In other cases, they will have to demolish existing structures, and may even need to make changes to electrical and plumbing connections for their project needs.

Importance of Capital Project Management

When it comes to managing large-scale projects that involve significant financial investment, capital project management plays a crucial role in ensuring success. Capital project management involves overseeing the planning, execution, and control of projects that require substantial financial resources.

Challenges in Managing Capital Projects

One of the key challenges in managing capital projects is ensuring effective communication and collaboration among various stakeholders, including project managers, team members, vendors, and clients. Without a centralized system in place, project details can easily get lost or miscommunicated, leading to costly delays and errors. This is where capital project management software applies, offering a solution to streamline project workflows, track progress, allocate resources efficiently, and ultimately, ensure successful project delivery.

Solutions for Effective Capital Project Management

To successfully manage capital projects, organizations need tools that go beyond basic project tracking. Effective capital project management requires software that addresses the unique challenges of large-scale initiatives, including:

Integration with Existing Systems
Customization Options
Training and Support Services
Scalability for Growth and Expansion
Data Security and Compliance Measures

What is Capital Project Management Software?

Capital project management software is a specialized tool designed to help organizations efficiently plan, execute, and oversee large-scale projects. This software enables project managers to allocate resources, track progress, monitor budgets, and collaborate with team members effectively. By utilizing capital project software, businesses can streamline their project management processes, improve communication, and ultimately achieve successful outcomes for their capital projects.

What are the benefits of Capital Project Software?

Utilizing capital project management software can streamline processes, improve communication, and enhance collaboration among team members. By having all project information centralized in one platform, project managers can make informed decisions, track progress, and allocate resources effectively. This ultimately leads to more efficient project delivery, cost savings, and increased return on investment. With the right capital project management software in place, organizations can achieve their project goals more effectively and efficiently.

Enhanced visibility into capital project progress.
Improved communication surrounding project phases.
Decreased unnecessary and unexpected costs.
Increased capital project timeline adherence.
Automated reporting and notification capabilities.
Increased data accuracy and tracking.

Prometheus Group offers Four Capital Project Management Software Solutions:

Effective capital project management requires tools that can streamline complex processes, enhance communication, and minimize risks. Prometheus Group’s capital project management software solutions are specifically designed to meet these needs. Whether you’re managing construction, commissioning, welding inspections, or document control, Prometheus Group’s software equips you with the tools to optimize project delivery.

With solutions such as Construction Management (CM) for centralized project portfolio management, Commissioning Management (Co-Console) for efficient commissioning workflows, Weld-Console for simplifying large-scale welding projects, and Doc-Console for document control, Prometheus ensures seamless integration across all phases of your capital project. These solutions help you maintain visibility, improve collaboration, and keep projects on time and within budget.

By leveraging Prometheus Group’s comprehensive suite of tools, organizations can significantly enhance project performance, reduce costs, and ensure data accuracy. Each solution aligns with the core benefits highlighted earlier, from improving resource allocation to automating critical tasks.

1. Construction Management (CM) Software

You can easily manage your portfolio of projects in a centralized system with CM. With CM, your team can submit project ideas, view project status, forecast project budgets, evaluate project risks, update project information, and more.

2. Commissioning Management (Co-Console) Software

Co-Console is a solution built to streamline the commissioning process and provide you with one single source of truth as you perform inspections. Manage multiple projects from the system to stay up to date on real-time statuses across yards.

3. Weld Management (Weld-Console) Software

Weld-Console enables you to turn complex welding projects into simple daily instructions, to ensure every weld is completed, verified, tested, and packaged for welding project turnover. Keep project subcontractors and stakeholders up to date with automated notifications and reports.

4. Document Management (Doc-Console) Software

Doc-Console (a Co-Console add-on) integrates design documents in existing document servers with tag numbers in Co-Console. Doc-Console allows viewing, printing and analyzing the available and required documents based on construction, commissioning, and start-up requirements. Doc-Console unlocks the latest drawings for efficient use at the site and adds great value to your current document server.

Know What Capital Projects Are and How to Successfully Manage Them

When you understand what a capital project is, you can see the value in how it can transform and sustain your business when carried out successfully.

However, not all capital projects are completed on time or according to budget, which is why it is key that you manage them properly.

To learn more about how Prometheus Group’s capital project management software can drive your project’s success, schedule a free, personalized demo today or check out our Capital Project Management Evaluation Resources:

Prometheus Group September 13, 2022

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