Engineering, Construction and Industrial Industries

Are Your Indirect Project Outlays Exceeding 22%?

May 8, 2014

Factually based, many companies today waste nearly 15 cents or more out of every capital project dollar spent. This is a consistent finding in at least 50% of the S&P 500 operating companies and way beyond.

For example, if your reported capital project spending is approximately $2 billion, we would like you to consider examining how your capital projects programs are currently delivered.

If this were your case,

Your bottom line could be impacted by approximately $300 million per year in potential annual savings.

Moreover, your shareholder value could be improved by $1 billion over a horizon of 10 years, using an average cost of capital of 10%.

Furthermore, this also results in a positive impact to the ROI of each project undertaken, allowing for a greater margin of safety in the business case justification and the resultant impact on future earnings.

View the following spreadsheet for more examples / scenarios:

Capital Projects Spending, Annual Savings, Increased Shareholder Value in Millions of Dollars

Camargo Associates specializes in confidentially assisting companies with finding continuous improvement opportunities in the important areas mentioned above.

We often find that many major companies utilize very reputable third-party benchmarking companies to provide a report card on the various aspects of their capital delivery processes. Through our experience, we've discovered that while many of the benchmarked companies participate in and review the data, even understand the data, little action is taken to have any meaningful corrective measure.

Our company focuses on drilling into those benchmark results or otherwise, and analyzing them with respect to the impact of cost and schedule savings. We then recommend a prioritized, detailed action plan leveraging the most cost justified areas.

In addition, we can provide active change management support for your leadership to implement those changes across your organization and across different sites as well as different locations around the world.

We examine major areas of projects like:

Staffing / Organization
Craft labor
Construction Labor
Construction Management
Safety Processes
Construction Related Services
Equipment Rentals, Scaffolding etc.
Recognition / Metrics
And Others

About Camargo Associates, LLC

We are not engineering or construction related company. Camargo Associates is a unique business consulting company that focuses on how you deliver capital projects - mega, large, mid or small and have significant detailed experience in virtually all aspects of program and project delivery. We offer unbiased, professional help and believe we have a fiduciary like responsibility to you and you alone. Camargo Associates offers our allegiance to our clients. We are trustworthy, honest, hardworking and efficient.

We have many decades of experience helping clients in providing continuous improvement to their organization including reducing costs and providing for a safer workplace.

The business world continues to grow smaller and smaller, in which, only the most competitive will make their way. We assure demonstrable results with your support.

If you are interested in receiving and/or discussing our approach and our experience,

Email: or

Call: (240) 670-5552.