20-02-2026
Managing large and complex projects
When not managed effectively, large complex projects can badly affect the viability of small and medium-sized engineering companies.
In project-based businesses, large complex projects cannot be managed in the same way as smaller simpler ones.
This example illustrates what can happen when all projects are managed in the same way, irrespective of their size or nature.
In project-based businesses, large complex projects cannot be managed in the same way as smaller simpler ones.
Below is an example of what can happen when all projects are managed in the same way, irrespective of their size or nature.
Background
An engineering consultancy business was successfully delivering projects lasting typically less than a month. Most projects were delivered by a single senior engineer.
The business entered a new market where projects were an order of magnitude greater in terms of value, duration and complexity.
The main differences with smaller projects included: -
- The need for teams of multi-discipline engineers to deliver large projects.
- Project durations in excess of one year.
- Project values in excess of £1m.
- Inexperienced customers in a new market.
- Multiple customer contacts, both technically and commercially.
As the company entered the new market, it tried initially to manage large projects in the same way as small consultancy projects.
Issues with large and complex projects
This soon created serious issues:
- Loss of control of internal and external documents as several people worked on the same files simultaneously.
- Technical errors from inexperienced engineers producing work without any training, technical guidelines or support from senior engineers.
- Overspend against original project cost estimates by lack of reporting and monitoring.
- Project delays and overspend due to uncontrolled customer changes.
- Negative project cash flow affecting the whole business.
Changes introduced
Simple processes and procedures were introduced to address these issues.
- Introduction of a simple file management and version control system allowing multiple engineers to work together and simultaneously. This also helped to share knowledge across projects as file structures were standardised.
- Appointment of team leaders to raise the technical level in each discipline, documenting methods, training engineers and reviewing the work produced.
- Replacement of the previously broken timesheet system with a simple off-the-shelf system combined with the introduction of internal procedures providing timely and reliable project spend data.
- Appointment of project managers with the task of implementing newly defined processes designed to help them manage commercial, financial and technical aspects.
- Review and formalisation of the proposal preparation, review and approval process with increased focus on non-technical aspects such as terms and conditions, invoicing, payment and control of changes.
- Introduction of constructive “project retrospectives” with the whole project team to identify positives as well as areas for improvement for feedback to other projects and improvement of procedures.
These changes drastically improved the quality of the work delivered to customers, they made the business more competitive and returned large projects to profitability.
Help
Drawing on my experience I work with overstretched leaders of small and medium-sized engineering companies to help them prepare their business so they can achieve profitable growth.
To work out a strategy to address your specific challenges, please use the link below to arrange a FREE 30-minute conversation.