Meaning
Project management strategy that emphasizes heavy investment in planning and engineering before the start of construction. Using front end loading allows organizations to identify potential flaws in a design when they are still inexpensive to fix. This approach typically leads to better cost predictability and shorter construction schedules.
Risk Abatement
Systematic identification and mitigation of threats to the project budget or timeline. The practice of front end loading requires teams to analyze environmental and technical challenges long before any ground is broken. Addressing these issues early prevents the costly work stoppages that occur when unforeseen problems arise during the execution phase.
Maturity Curve
Relationship between the amount of engineering completed and the reliability of the cost estimate. As a project moves through the various stages of front end loading the quality of the information improves and the range of possible outcomes narrows. This progression allows management to make more informed decisions about which projects to fund and which to abandon.
Cost Influence
Ability of a project team to change the final price of an asset without spending a large amount of money. The concept of front end loading is based on the fact that decisions made early in the process have the biggest impact on the final result. Once the steel is in the ground even a small change in design can cost millions of dollars in rework and delays.
This high degree of influence early in the lifecycle means that spending time on engineering before sanction is the most effective way to control the total cost. Most successful companies use this period to lock in the scope and prevent late stage modifications. Investing in thorough planning reduces the likelihood that a project will require expensive emergency repairs or design changes after it begins operation.
