Managing Major Projects During a Downturn Economy a Case Study, 1996 Engineering Conference Proceedings

James R. (Ron) Newberry

Champion International Corporation

The difficulties encountered during the course of a normal major project are extremely numerous and often complex in nature. Managing this project under severe spending guidelines brought on by an unusually persistent economic recession was an additional challenge for the project team. This presentation is a description of the changes required in purchasing as well as engineering and construction in order to maintain a productive and cost-effective project. The procurement activities become especially important as certified engineering drawings had to be obtained while spending as little as possible for this information. Construction had to be planned to get the most work accomplished for the money available. Economically delayed projects will in all likelihood benefit from a slowdown in that a greater engineering completion percentage will be obtained before construction. This should decrease the’ field errors and make it possible, usually, to save construction dollars using lump sum bids from the contractors. The newsprint recycle plant was installed for much less than would have been expected due to the economic recession, but not without many difficulties in managing the project. Many significant key learnings from the recycle project have been taken forward to be used on future jobs.