In and around the wholesale changes occurring in many different industries, it is important that the foundations for growth are solid. The housing, transport and communications industries are vital and implementing valuable infrastructure practices will provide a secure platform for a bright future.
Proper investment plays a huge part; it is estimated that to ensure the global GDP enjoys the same rate of current growth in 2030, $60 trillion will have to be invested in infrastructure. For such a large amount of money, it is important that none of it is wasted in unsuitable and unprofitable projects. There are social, economic and environmental variables that must be carefully balanced, and with no room for error, this is a task that requires wide industry knowledge as well as proven ability. Challenge Advisory has access to a wide range of functional practices such as strategy, organisation and sustainability, and we can also draw from vast experience with clients in the infrastructure industry.
Challenge Advisory will analyse the planning, construction and delivery of infrastructure projects in order to help clients develop excellent market strategies and to optimise their projects in terms of cost and delivery time. Our risk, strategy and financial teams work in tandem to ensure that every project, whether residential, commercial or industrial, can be built for maximum value and minimal risk. The financial team will work with our range venture capitalists, and financial companies to provide secure funding for a range of infrastructure projects, taking advantage of our deep knowledge of markets and our understanding of Public-Private Partnerships (PPPs).
For the more expensive projects that require funding, planning or even revitalisation, Challenge Advisory draw from any of its functional practices to ensure these large investments do not go to waste. We advise and support clients working on projects such as schools, universities and hospitals (both public and private) to preserve our social infrastructure and to ensure a strong basis for future stability. Finally, for a range of projects in the city, such as transport, waste management and roads, Challenge Advisory are a secure liaison for clients to ensure their economic and social objectives are being met and to address infrastructural needs.
Challenge Advisory work with clients from all throughout the industry, including engineering and construction, investors, operators and business owners, aiming to satisfy the need of each and every client. We also have various contacts in many relevant industries such as risk, travel or logistics so the client will always be privy to a wealth of information, ensuring they can always make the best decision possible.
Engineering and Construction Challenge Advisory help our clients construct and execute strategies for growth and development. This includes lean construction principles or assisting clients in building governance models, fostering continuous organisational improvement.
Real Estate Challenge Advisory work with clients in real estate development to develop sustainable and profitable growth and minimise risk. We help establish partnerships and develop sustainable strategies for our clients.
Investors Challenge Advisory help clients maximise their investment potential. We help clients to develop portfolio and financial strategies, establish PPPs and advise the client on how to develop and sustain them.
Transport Challenge Advisory provides support for clients dealing in risk management, project organisation, asset design, value engineering, procurement, lean construction, as well as commercial and organisational excellence.
Mega Projects Challenge Advisory help clients to turn their mega projects into competitive advantages by enhancing value, delivering predictable outcomes and aligning strategy to the client’s specific needs.
Social Challenge Advisory combine socio-economic development with financial expertise to provide assistance developing master plans for new and existing development zones.
Engineering and Construction
Challenge Advisory provides clients with assistance concerning cost, productivity and governance. With Challenge Advisory, the client can expect to benefit from our expertise in order to construct and execute strategies for growth and development, introduce lean construction principles or assist clients in building governance models, where continuous organisational improvement can be fostered.
We advise clients on portfolio management, growth, acquisitions, emerging market entry, and carbon-abatement opportunities along the construction value chain. To help clients deliver complex projects on time and within budget, we apply value-driven end-to-end project management, design-to-value, best-practice procurement, and lean construction principles. We help clients build governance models that balance cohesion with local entrepreneurship and at the same time, maximise synergies and account for portfolio risk.
Recognising the importance of project management, we help clients expand the skill set and accelerate the development of their project managers. We also support clients as they implement performance management and incentive systems that attract the best talent and drive continuous organizational improvement.
Challenge Advisory work in close collaboration with clients in real estate development in order to develop sustainable and profitable growth and minimise risk. Challenge Advisory assists clients in developing a strategy and establish the partnerships and capabilities for the client to sustain these strategies over several years.
Challenge Advisory help clients concerned with investments in the infrastructure industry to maximise the long-term potential of their investments, gleaning as much value as possible from each investment made. We help clients to develop portfolio and financial strategies, establish PPPs and advise the client on how to develop and sustain them, all the while helping our clients to improve their overall economic health of their assets by assessing procurement, supply chain management, risk and regulation.
Challenge Advisory aims to integrate our deep knowledge of transport modes with the best practices in strategy, risk, finance, project organisation, infrastructure development and operations. Challenge Advisory provides support for clients dealing in risk management, project organisation, asset design, value engineering, procurement, lean construction, as well as commercial and organisational excellence.
As transport infrastructure contributes to the economic output of a region, it is an important measure of productivity. However, developing efficient and cost-effective transport infrastructure is challenging. When deciding what to build, infrastructure planners and policy makers often need to balance complex political, economic, social, and environmental tradeoffs.
At the same time, transport infrastructure requires large capital investments, and public finances are increasingly strained. Stakeholders often face a difficult choice. Either they optimize an existing, flawed asset or they build something new; either they continue with a proven asset or they invest in sustainable technology. Transport projects that proceed often exceed timelines and budgets.
We support clients on asset planning and prioritization, financial projections—including demand modeling, and business and operating models. We also work with clients to define contracting strategies—including public-private partnerships (PPPs)—and to manage risk.
Drawing on our extensive experience serving transport authorities, government agencies, banks and funds, and other public and private entities, we work to ensure that stakeholders are aligned and project outcomes are mutually beneficial. In particular, we have strong experience advising clients on risk and regulatory management.
We help clients balance technical and commercial design considerations. At the same time, we support clients in building capabilities so that project leaders have the fact base and skill set to make the appropriate trade-offs going forward. We systematically apply design-to-cost and design-to-market principles. To maximize the value of transport infrastructure, we apply proprietary tools and methodologies, including engineering trade-off approaches, construction cost benchmarking, and clean sheet analysis.
We have developed multiple purchasing and subcontractor management best practices, such as our Category Consolidation approach and our Supplier Negotiation Academy, to help clients optimize costs and align the incentives of downstream suppliers and subcontractors.
To improve productivity and complete projects on time and on budget, we help clients implement lean construction techniques such as Critical Path Compression, Parallel Processing, and Last Planner System. At the same time, we consider potential organizational barriers to implementation and manage accordingly. Our detailed understanding of individual asset classes and their unique maintenance and operations enables us to understand the full cost of ownership at the outset of a project.
During the development phase of a project, we help clients balance short- and long-term considerations to minimise maintenance costs once an asset is in operation. By maximizing both fare and non-fare revenue we help clients achieve commercial excellence. We apply cutting-edge sales and marketing techniques to support our clients in understanding customers, developing pricing strategies to optimise yield, and brainstorming non-fare revenue strategies, such as retail shops in airports and real-estate developments near railway stations.
Challenge Advisory help clients to turn their mega projects into competitive advantages by enhancing value, delivering predictable outcomes and aligning strategy to the client’s specific needs. Challenge Advisory will work with both project owners and contractors to manage strategies and help deliver sustainable projects both on time and within budget. Infrastructure mega projects—multibillion dollar investments—often require once-in-a-lifetime commitments of resources and capital.
Yet, 85% of mega projects exceed budgets and schedules. The consequences for both owners and contractors can be disastrous. For owners, overruns not only affect their bottom line, but also lead to squandered business opportunities and compromised credibility. On the other hand, contractors who exceed budgets and schedules erode resources, profits, and perhaps most importantly, client trust. Projects of this size are naturally more challenging than smaller projects.
In our experience, carefully planned mega projects can succeed, if both parties’ objectives and incentives are properly aligned and communicated, and when best practices for simple project delivery are consistently applied. We support owners planning mega projects by developing business cases aligned with their long-term strategic objectives, by ensuring rapid and effective decision making and by performing key analyses to monitor the progress, economics, and risk associated with the project.
During execution, we take a hands-on approach to help select and manage contractors, optimize procurement and supply chain strategies, monitor the overall execution of the project, and drive productivity in the construction yard. All the while, we ensure the client’s objective—delivering this mega project on time and within budget—remains the top priority.
Drawing on our experience in other industries, we find that applying lean practices at every stage of a mega project can result in significantly higher margins, higher commercial win rates, and improved client loyalty and trust. Our Infrastructure Practice supports contractors in planning and executing projects according to lean principles. At the same time, we use our deep knowledge of mindsets and behaviors and our extensive experience in organizational transformation to embed these lean principles and change the project team’s way of working.
This event helps to implement economy and infrastructure in Hungary.
Head of Infrastructure