The Manufacturer’s Guide to Running More Valuable Capital Projects

Key takeaways

  • Treat capital projects as a full asset-lifecycle strategy, not just a construction task.
  • Use centralized data, lifecycle costing, and asset management software to make better planning decisions.
  • Engage owners early with BIM, clash detection, and cloud collaboration to cut rework and claims.
  • Standardize naming, approvals, and workflows in a common data environment to improve speed and consistency.

How can manufacturers unlock value and propel growth with capital projects?

Manufacturers can unlock more value by managing capital projects as a connected asset lifecycle, not as isolated construction work. That means linking planning, design, construction, and operations with shared data, digital tools, and clear stakeholder alignment.

Today’s manufacturers need a more robust, catch-all solution for the full asset lifecycle—from design through operation—that can integrate with a project’s various processes and stakeholders. Manufacturing owners also benefit when the built asset, such as a factory, is closely integrated with the product line to improve efficiency, innovation, and data-driven decisions across the factory value chain.

Technology is a major differentiator. The source says the biggest difference between top-performing owners and lower-performing owners is the innovative use of technology that provides real-time insight into projects. Digital technologies can help manufacturers create more value and grow faster, but only when they are matched with skilled staff and company-wide buy-in. The source also notes that a lack of skilled staff is one of the greatest barriers to integrating data-driven insights into business processes.

The current market makes that discipline even more important. Manufacturing construction demand spiked after the pandemic, helped by legislation such as the CHIPS Act and the Inflation Reduction Act, but demand for new builds is leveling off. Manufacturing construction starts rose 75% in December 2023 compared with the previous month, yet construction starts for all of 2023 fell 20%. High material costs, labor shortages, and the regulatory environment continue to pressure project delivery.

What are the four ways manufacturers can create more value with capital projects?

Manufacturers can create more value by focusing on four connected phases: plan, design, build, and operate. Each phase improves the next one when project teams use consistent data, clear workflows, and digital tools.

The four value levers in this guide are:

  • Use past and present data to make informed future decisions
  • Get the best results with active engagement from the start
  • Hit project goals quicker with a standardized approach
  • Increase operational efficiency

How should manufacturers plan capital projects more effectively?

Manufacturers should plan capital projects with past and present data, lifecycle costing, and asset management software so they can make better decisions before spending begins. Strong capital planning helps manufacturing owners account for current conditions, future requirements, financial constraints, and long-term asset performance.

The source highlights a serious data problem in construction and operations. It says 95% of data generated through the construction process is lost and not shared downstream in operations, while 12% of time is wasted through fragmented data. It also states that 87% of facility managers will use more data and analytics to shape decision-making.

Tools that support better planning include:

  • Centralized data platform: Keep performance and cost information on a single platform so stakeholders can find information easily and compare options side by side.
  • Lifecycle costing: Evaluate not only current market cost, but also operating cost, depreciation timing, decommissioning cost, and residual value.
  • Asset management software: Maintain a detailed inventory of assets, understand current condition, and identify what needs maintenance, extension, or replacement.

Autodesk customer Pure Salmon used data and collaboration tools to improve project delivery for two new facilities under development in the United States and Brunei. Pure Salmon used Build and Forma Design Collaboration, formerly Autodesk BIM Collaborate Pro, to streamline processes, reduce costs, and focus on value-adding activities.

“Not only can we highlight issues earlier during the build phase to resolve things quicker, but we can learn from past mistakes and build these into our decision-making practices for the future.”

— Azza Nureldin, BIM Lead, Pure Salmon

How should manufacturers design projects to avoid rework and claims?

Manufacturers should engage actively at the start of design, define expectations clearly, and use BIM and cloud collaboration to catch problems before they reach the site. Early involvement helps owners avoid costly errors and difficult changes later in the project.

The source identifies several design risks:

  • 69% of construction projects exceed the original budget by more than 10%
  • Incorrect designs are the second most common cause of claims or disputes
  • Less than a third of construction projects are completed within 10% of their original budget because of poor communication

Tools that improve design quality include:

  • Automated clash detection: Upload multi-discipline, multi-format models so clashes can be detected automatically and resolved before construction.
  • Cloud collaboration tools: Work from a single source of truth, speed coordination workflows, and increase accountability across teams.
  • Building information modeling (BIM): Create a digital representation of the physical asset so design teams and field teams can align on the same project information.

Manufacturers should also outline design intent before work begins and get everyone on the same page. When stakeholders understand the project output and communicate effectively about design changes and plan updates, teams can identify issues earlier and reduce costly errors.

Autodesk customer MQDC used a single secure source of truth to keep the Forestias project aligned. The development budget was almost US$3.5 billion, the site covered 158 acres, and more than 500 contractors worked across 11 project types and more than 50 sub-projects.

“We can now track all dimensions of data in one place, such as the project progress and coordination of 3D models, document control, schedules, CAD, and BIM approvals.”

— Phakorn Phattrapornpisit, Assistant Vice President, MQDC

MQDC also used tailored access permissions so internal workers and external contractors could see only the information they needed.

How should manufacturers standardize the build phase?

Manufacturers should standardize the build phase before work starts so contractors can operate efficiently and project teams can avoid confusion, rework, and delays. Uniform processes also improve data quality for operations after handover.

The source recommends setting standards for:

  • Naming conventions
  • Punch lists
  • Asset data requirements
  • Change order processes
  • Request for information documents

It also recommends aligning teams early by:

  • Communicating project scope and the business impact if the end goal is not met
  • Aligning on the construction schedule and the activities needed to support smooth operations
  • Streamlining processes with integrated digital tools
  • Fostering collaboration by encouraging contribution, outlining expectations, and celebrating successes

A common data environment is the single source of truth for all project stakeholders and the basis for automated workflows. Project management capabilities help keep timing, cost, and quality under control, while customizable forms streamline data gathering and make information easier to analyze.

Autodesk customer Dat Xanh E&C used Build and BIM 360 for complete project management. The team shared and approved design drawings, construction plans, and machinery and equipment specifications much faster in the new system.

Dat Xanh also used Reviews within Build to automate review workflows, review Revit models and 2D PDFs directly in Build without converting to IFC, and identify design issues with markups.

“The use of technology has made project management more efficient and faster than conventional methods. Now, we’re focusing on the further value of digitizing workflows and project data.”

— Le Hao, CEO, Dat Xanh E&C

The source reports these results from Dat Xanh:

  • 30% reduction in design conflict
  • 55% reduction in cost of paperwork
  • 2 to 3 hours saved per document approval
  • 20% reduction in management costs

How can manufacturers improve operating efficiency in the asset lifecycle?

Manufacturers improve operating efficiency by keeping day-to-day operations under control, including regular equipment maintenance and proper safety checks. In the source, operating efficiency is treated as the final stage of a connected capital-project lifecycle, where the value of planning, design, and build carries into long-term asset performance.

The same discipline that improves planning and delivery also supports operations: use reliable asset data, maintain clear ownership, and keep processes standardized so teams can respond quickly when conditions change.

Frequently asked questions

How can a manufacturer make capital projects more valuable instead of just more expensive?

By managing capital projects across the full asset lifecycle, using shared data, standardized workflows, and digital tools that improve planning, design, build, and operations.

What are the best ways to reduce waste in factory expansion and plant construction projects?

Centralize project data, catch clashes early, standardize project processes, and use cloud collaboration so teams can avoid rework, delays, and disconnected information.

How do digital tools help teams deliver capital projects faster under labor and schedule pressure?

Digital tools create real-time project visibility, automate repetitive work, improve coordination, and help teams resolve issues earlier with less rework.

How can centralized project data improve decision-making across planning, design, build, and operations?

A centralized data platform gives stakeholders one source of truth, makes side-by-side comparisons easier, and keeps asset information available for future planning and operations.

What standardized workflows should manufacturers use to keep capital projects more consistent and predictable?

Manufacturers should standardize naming conventions, punch lists, asset data requirements, change orders, request for information documents, and review workflows before construction begins.

How can owners manage the full asset lifecycle more strategically when building a new plant or replacing equipment?

Owners should use lifecycle costing and asset management software to evaluate current cost, operating cost, depreciation, decommissioning cost, and residual value before deciding whether to build, replace, or maintain.

How can construction, engineering, and facilities teams work together more effectively on capital programs?

They work better together when they share a single source of truth, align on scope and schedule early, use cloud collaboration, and follow uniform processes for data, approvals, and change control.