A Lack of Engineering Consultant Oversight

By Varun Persaud

Certain types of consultants play an indispensable role in the complex and demanding world of mining projects. They bring specialized expertise, industry knowledge, and technical skills that are crucial for the planning and execution of these projects. However, while some consultants are vital assets, others can become liabilities if not properly managed. One of the most common and costly mistakes in the mining industry is the inadequate oversight of engineering consultants, which can lead to prolonged engineering phases, project delays, and significant cost overruns.

The Role of Consultants in Mining Projects

Consultants are typically engaged to provide expert advice, design solutions, and manage various aspects of mining projects. Their involvement is often essential during the planning, design, and early execution stages, where their technical insights can make the difference between success and failure. However, the reliance on external consultants also introduces risks, mainly if their work is not closely monitored and aligned with the project’s objectives.

The Consequences of Inadequate Engineering Consultant Oversight

Without proper oversight, engineering consultants can become disconnected from the project’s goals and timelines, leading to a range of adverse outcomes:

• Prolonged Engineering Phases: If not properly managed, these consultants may unnecessarily extend a project’s engineering and design phases. This extension often occurs when consultants are not held to strict deadlines or work is not closely integrated with the project’s overall schedule. Prolonged engineering phases can delay the start of critical construction activities, ultimately pushing back the entire project timeline.
• Increased Costs: Ineffective engineering consultant management significantly contributes to cost overruns in mining projects. According to a report by Deloitte, project costs can escalate by as much as 20% due to poor consultant oversight. This cost increase can arise from unnecessary design iterations, extended timelines, and additional consultancy fees.
• Misalignment with Project Objectives: Engineering consultants who operate without sufficient oversight may focus on delivering technically perfect solutions that do not align with the project’s budget or schedule constraints. This misalignment can result in impractical designs or too costly to implement, requiring further revisions and causing delays.
• Loss of Accountability: Without clear expectations and regular performance reviews, engineering consultants may not feel accountable for their contributions to the project. This lack of accountability can lead to suboptimal performance, missed deadlines, and a lack of focus on delivering value to the project.

By establishing clear expectations, conducting regular progress reviews, maintaining open communication, and implementing performance metrics, mining executives can ensure that their consultants contribute positively to the project and deliver the expected results. In doing so, companies can avoid the costly mistakes associated with poor consultant management and drive their projects toward successful completion.