Time Compression
Note: 1) Project outcomes will vary. 2) Achieved results without changing current stakeholder software solutions. Aconex, Procore, Trimble, Auto Desk, Blue Beam and all other solutions continued to be used by stakeholders on projects during delivery. 3) A connected ecosystem is not the same as achieving the impact stated. 4) Stakeholders experienced a significant increase in profitability 3x-plus, increased labor productivity while decreasing overall latency.
5) The savings through the implementation of our system(s) pays for itself while protecting ROI, increasing IRR to capital, reducing insurable risk, delivers gains on ESG impact goals and quantifiable sustainability outcomes within the carbon provenance chain. 6) A significant time compression solution that achieved measurable impact in an industry that has seen efficiencies decline for over 60 years and further stressed from losing nearly four generations of labor know-how after the 2008 financial crisis.
HOW IT WORKS
Example "Toll Road" is worth $1B with a debt-to-equity ratio of 80/20 and an equity payment pro rata with debt, calculated with an IRR of 12%. McKinsey confirms what many already know, that average projects end up 27% over budget and 1yr behind schedule. With this average overrun, the example project “Toll Road” produces the following metrics:
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An additional $270 Million in costs.
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IRR decreased from the planned 12% to 5.24%.
Our processes offer real-time operational awareness of a project's financial health, mitigating the net present value impacts on operating costs. Specifically,
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Using KiRegistry, the net present value (NPV) calculated upon one year of investment and operations based on planned/baseline revenues without delay equals $254M.
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Under classic and siloed project delivered method, the NPV of revenues calculated upon one year of investment/operations deferred by delay equals $226M.
The mitigation loss of NPV revenues in year one due to delays is $27M. In this example, the cost savings would positively impact the "Toll Road" project by 82.38%, or NPV $297M. A 30% positive impact to any portfolio-level or infrastructure investment to start with.
The Covenantz Effect compresses time, hedges completion risks and helps mitigate cost overruns from the early stages to successful close-out. We convert your committed costs into managed risk and opportunity for capital redeployment or financial return. We take a fee of project disbursements, capturing the avoided costs and passing the savings on to our member/clients.
Other benefits include carbon provenance and reduction starting at 15%, depending on the project. KiRegistry facilitates carbon credit management and reduction by identifying material componentry, tracking, monitoring, and logistical optimization.
Let our team help your team achieve higher returns.