The U.S. midstream oil and gas AEC industry has experienced tremendous growth over the past decade, forcing industry stakeholders from across the nation to work together under extreme environmental conditions, compressed project schedules, persistent labor fluctuations and ongoing cost pressures. Though business remains strong, many oil and gas construction projects continue to be plagued by escalating cost overruns, project delays, mounting risks and declining productivity — particularly on mega-projects.

AEC companies across industry verticals can benefit from the advice offered in an article published in Pipeline and Gas Journal, written by FMI ( consultants Dustin Bass and Sabine Hoover.

The article is titled Midstream Oil and Gas Construction: Getting the Basics Right and it explores the challenges of working in a highly chaotic business environment and offers insight and straight forward tips regarding the basic preparations needed to get a company on track to tackle the next large oil and gas boom.

Matt Pfohl, Executive Vice President of Sopris Systems, contributed to the article which outlines five areas construction firms must focus on to remain competitive in the future

Getting the Basics Right

  1. Standardizing and integrating processes – Even if you are grappling with a multitude of project delivery models, tools and inconsistent reporting and billing mechanisms , standardizing, codifying and documenting project management practices across the organization is a critical step in improving productivity.
  2. Getting serious about the IT budget – Take a serious look at your company’s technology infrastructure and lead from the top in technology adoption.
  3. Rethinking the talent pipeline – Successful companies are developing comprehensive construction management training and knowledge transfer programs, shifting knowledge from senior (and soon-to-be-retiring) employees to the next generation.
  4. Building the next generation of leaders – Fast-track leadership programs are becoming critical as experienced craft workers move into leadership and mentor roles, with training of less experienced employees occurring within a very short time frame.
  5. Understanding “incremental economics” like revenue, margin and overhead – Understanding the total costs for each project, and getting a picture of how the costs break down, are the first steps in knowing where and how you can improve profit margins.

Read the article at Pipeline and Gas Journal or
download the whitepaper at