Jun. 09, 2025
Posted: August 04
98% of mega-projects incur cost overruns and delays, find out how a data-centric approach holds the key to creating a resilient Capital Projects market.
There is no doubt that the business world is changing, becoming more competitive in this new digital age. Industrial companies must innovate to survive today and thrive tomorrow. A data-centric approach enabled through engineering in the cloud, holds the key to creating a resilient Capital Projects market that can flex and adjust easily to change both throughout a project’s lifecycle and wider changes that are impacting the market.
Facing a frontier of market challenges
There’s no doubt that these are the toughest times that the Capital Projects industry has faced. With recovery expected to be slower than that of the financial crisis, owner-operators and EPCs must pivot to protect both their short-term interests and longer-term future. As with all times of challenge, there are significant opportunities for those who are willing to embrace new ways. And now ever more so with the global pandemic, Capital Project companies are now feeling the pressure to up their game or risk being left behind.
A study from McKinsey* found that 98 percent of mega-projects incur cost overruns or delays. The average cost increase is cited at 80 percent of the original value, and the average slippage being 20 months from the original schedule.
Much of this comes down to data and how data is handled and stored in the engineering and design phase where errors contribute to 14.2 percent* of the contract value of a project alone.
The curse of document-centric systems
Many EPCs and Owners are still dependent on document-centric systems for both their capital projects and operations. Information is inefficiently shared by passing hard copy or electronic documents between people, disciplines, departments and even organizations.
Every exchange of information introduces a risk for error and inconsistencies that can propagate through engineering, procurement, construction and handover. This results in engineering and scheduling errors, material waste, rework, cost overruns and ultimately delays in start-up and full-scale operation of a plant facility.
What is required now is one unified, data-centric approach in the cloud, that keeps your information in one, secure centralized location to enable you to manage and validate change automatically.
By leveraging Industry 4.0 technology and work processes your workforce can collaborate and take control of the data, reducing the risk of errors, delays and increased project cost throughout the asset lifecycle.
At AVEVA this is what we call EPC 4.0. A strategy that enables you to take back control of your capital projects.
The advantages of migrating projects to the cloud
Major advances in cloud technology are revolutionizing data management – unlocking its potential and providing capital project teams with intelligent, actionable insights. Moving your engineering data to the cloud is the key to transforming project delivery. Having your data on the cloud is the next step towards a unified engineering approach and ultimately achieving Digital Twin. No matter their location, a cloud-hosted intelligent data platform works across your enterprise, bringing all stakeholders, teams, and individuals together.
With EPC 4.0, engineering data is stored in a single trusted data hub in the cloud, entire processes can be tracked in a digital environment from the engineering and design stage to procurement and execution, and through the final handover and construction phase and into operations and maintenance as the data core for the Digital Twin for your operating plant. We leverage these processes and workflows with three core pillars:
A cloud-hosted, data-centric strategy provides a single platform around which all engineering disciplines and stakeholders can align. By integrating all engineering tools users have access to a unified viewpoint project delivery is a more efficient and transparent project during every step of the project. Teams can better collaborate, and risks are identified earlier on in the process and mitigated.
This can have a significant impact on a project’s Total Installed Cost (TIC). The McKinsey study* estimates savings of up to 50% in capital projects based on the benefits seen in Manufacturing.
At AVEVA we have already seen a figure of 15% reduction in TIC for capital projects by leveraging a cloud-enabled EPC 4.0 approach. This means that on a $1 billion project you could cut cost by a $100 million. Just imagine what you could do with those savings...
*These cost savings are realized by mitigating capital investment risks at the process design stage, cutting engineering man-hours by 30 percent in plant design, reducing material costs in procurement by 11 percent, reducing field labor costs in fabrication construction by 10 percent, and using simulation learning to improve enterprise safety in the commissioning and start-up phase.
Digital transformation is here, don’t get left behind.
Read more about AVEVA Unified Engineering, AVEVA Unified Project Execution and AVEVA Unified learning to find out how these core pillars form the foundation for delivering an cloud-enabled EPC 4.0 strategy to accelerate your digital transformation journey.
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If you enjoyed reading this blog and would like deeper insight into our cloud-enabled approach to EPC 4.0 we invite you watch our On-Demand Webinar about remote working, collaboration, and security. Enabling the new norm for Engineering Projects.
Matt Halker is the founder and CEO of Halker Consulting, a multidisciplinary engineering firm specializing in energy and infrastructure solutions across the oil & gas, power, and environmental sectors. Since founding the company in , Matt has led it through nearly two decades of transformation — from designing early large-scale multi-well production facilities during the early shale revolution to expanding into utility and power markets through strategic acquisitions.
Today, Halker operates under the EOS model with three core business units and over 100 technical professionals. Matt serves as the company’s visionary, steering long-term strategy, cultivating emerging markets such as helium processing and off-grid power generation, and championing a culture rooted in adaptability, ingenuity, humility, and service.
Matt has guided the company through market volatility, industry transitions, and complex leadership changes — most recently overseeing a company-wide reorganization, implementing new operational systems, and launching a multi-year technology integration effort to increase engineering efficiency by up to 50%. He’s known for his collaborative leadership style, his willingness to listen to advisors and his team, and his enduring commitment to helping clients deliver energy to people.
Matt holds a degree in Petroleum Engineering from the Colorado School of Mines and is a licensed Professional Engineer. Outside of work, he’s a proud father of four, an avid traveler and dirt bike enthusiast, and someone who values freedom — in life, leadership, and thought.
Noelle Ford graduated from the University of Colorado (Go Buffs!) with a Bachelor’s in Psychology and also has her PHR and SPHR. Her oil & gas career began in with a recruitment firm specializing in the oil & gas and mining sectors. She joined Halker as the resident human resource and recruiting specialist in and has been a part of Halker’s growth and success over the last 10 years. Noelle brings a great balance of professionalism and a sense of humor to the office culture, which makes her both approachable and respected among her team mates.
Noelle is a Colorado native and enjoys spending time with her family and friends. She loves seeing movies, plays and travelling around the world.
Jeremy Montoya graduated from the Colorado School of Mines with a Bachelor of Science in Engineering with an Electrical specialty focus in . Jeremy is a licensed professional engineering in multiple states and has over 14 years of experience in consulting engineering and has working in nearly every sector or the business, from oil and gas to food and beverage, mining, pharmaceuticals, commercial and residential applications. Jeremy joined Halker in and has brought a passion to build up and support staff as they provide quality engineering and design services to every client we have the opportunity to work with. With an eye for detail, value and confident support- our EI&C group will continue to grow and be recognized for their expertise, attentiveness, and quality deliverables in every project. Jeremy has also volunteered engineering services abroad, helping with the design of water/wastewater treatment facilities and medical facilites in Kenya, as well as master plans for facilities in Mexico.
Jeremy and his wife Audrey have 2 children and love traveling and doing anything outdoors. Jeremy loves to hike, play basketball, or ride his electric skateboard.
Kathryn Goodman graduated from Texas A&M University with a Bachelor of Science in Mechanical Engineering in . She is a licensed professional engineer in the state of Texas and brings over a decade of mechanical and pipeline engineering experience to her role. Throughout her career, Kathryn has worked on both small and large-scale oil and gas projects in the upstream, midstream, and downstream sectors.
Since becoming Director of Halker’s Mechanical Department in , Kathryn has been instrumental in ensuring high quality of execution on all projects, drawing on her diverse background to enhance the team’s performance.
Originally from Austin, Texas, Kathryn now resides in Houston with her husband and three children. Outside of work, she enjoys spending time outdoors, playing games, and traveling with her family.
Steve Treadwell joined Halker in January . Steve previously founded SpareBox Storage and served for three years as its CEO. SpareBox is a pioneer in remote self storage management with 109 locations across nine states and proprietary software solutions for remote management. Prior to SpareBox, he spent six years with National Storage Affiliates (NSA), the publicly traded self-storage REIT, where he served in a variety of roles including Chief Operating Officer and President of iStorage. Prior to NSA, Mr. Treadwell spent five years in finance and treasury management with ProLogis, the world’s largest industrial REIT. Steve began his career with the US Air Force, where he served for 11 years as an officer and instructor pilot in the C-21 Learjet and the KC-10 Tanker.
He received his Bachelor of Science degree in Electrical Engineering at the United States Air Force Academy, a Master of Science degree in Aeronautical Engineering at the Massachusetts Institute of Technology and a Master’s in Business Administration degree at Harvard University. Steve is married with two kids, ages 20 and 16, and he has lived in Parker CO for nearly 20 years.
Cory Shattuck is the Vice President of Power Services at Halker, based in Centennial, Colorado. With a career spanning roles such as Director of Power Delivery, Utility-scale Solar Technical Manager, Substation Technical Manager, and various engineering positions, Cory brings a wealth of experience to the energy sector. Cory’s expertise includes substation design, medium-voltage underground collection systems, electrical studies, and relay settings. In his current role, he leads the Power Services division, overseeing project execution, technical excellence, and strategic growth. His leadership is grounded in a commitment to quality, safety, and innovation in power delivery solutions. He has served as a Quality Manager for a key client and contributed to both Quality and Safety Committees. Cory holds a Bachelor of Science in Electrical Engineering from the South Dakota School of Mines and a Master of Business Administration from Colorado State University. He is also a licensed Professional Engineer.
In his free time, Cory enjoys bowling, golfing, and woodworking. He and his wife have a child and enjoy traveling and trying new dining experiences together.
Jeff Wellen graduated from the Colorado School of Mines with a Bachelor of Science in Mechanical Engineering and a minor in business and economics in . Jeff is a licensed professional engineer with over 22 years of project management, project engineering, and mechanical engineering experience. Most of his professional career has been in the Oil & Gas industry with a wide range of experience across various types of projects including gas treating, LNG, well pad sites, cryogenic processing, biofuels, and more. He has also worked as a field engineer to support construction, as well as in a fabrication shop to oversee module/pipe-rack assembly. As a member of the Halker team since January , his breadth of involvement in various projects provides Jeff a strong basis to provide operation execution support for successful project execution teams through the trials and tribulations when executing any type of project ranging from technical studies to full EPC projects in the rapidly evolving midstream and upstream industry sectors. Jeff was named an Engineering News Record (ENR) Top Young Professional in for the Mountain States Region.
In his free time, Jeff loves all things outdoors including hunting, camping, and ice fishing. He has lived in Colorado since with his wife and twin daughters, who also love to go fishing and camping and root for the Nuggets and Broncos! Jeff’s biggest piece of advice for new college grads interested in joining the energy industry is to always work hard to grow and maintain a professional network!
Adam Zwickl is a licensed engineer and graduate of Colorado State University with a Bachelor of Science in Mechanical Engineering in . He has 17 years of experience in Engineering consulting firms working in the Oil & Gas and Nuclear industries working on a diverse set of projects. His experience spans Advanced Biofuels, Upstream, Midstream, and Gas Treating. He has brought his diverse experience to Halker’s Projects Department since ensuring that the projects group provides EPC clients with exceptional quality. Adam also serves as a PE/PM on various projects to help with their execution along all aspects of EPC.
Paul Brennan is an industrial automation specialist, PLC programmer, business manager and product development professional. He graduated from Colorado Mesa University in with a Bachelor of Science in Computer Science. Paul now has over 25 years of experience providing industrial automation solutions and large-scale automation integration projects for oil & gas, water/wastewater, irrigation, and greenhouse industries in the US and Eastern Europe. Paul’s career has been spent developing leading edge, revolutionary automation products, and in the process, he has obtained several US Patents. Paul has notably designed products such as PADPro, PADManager, PROView and QLogiX for upstream oil & gas facilities, utilizing state of the art technologies with PLC’s and high-powered single board computers to provide advanced data collection and data processing at the well head.
Paul has a knack for being able to create logical solutions for industrial processes, dedication to hard work, and his relentless drive distinguishes him as an industry leading expert. He describes his greatest achievements around his ability to identify, manage and drive talented individuals and contractors towards a common team goal. In his spare time, Paul is a hot rod enthusiast and enjoys building and restoring classic cars. You can also find him outdoors year-round hunting, fishing or playing golf.
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