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Always Escalate, so as not to Escalate

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Languages are such wonderful medium of human expression, because words can have such myriad meanings. There are many words which mean quite different things, taken in context. Unfortunately, here we are not talking about languages, but about project management. ??lways escalate, so as not to escalate??may sound, at first glance, like a meaningless play with words, but it is really not so, in our context. Check out these meanings: Escalate ??To increase in intensity or extent, or Escalate ??To become more serious, or be amplified.

Here, in this column, I mean to say that one must always escalate issues and problems to higher levels at the earliest opportunity, so as to avoid escalation of project cost and time. From my exposure to Project successes and failures, this is a very core issue in project management. Project cost escalation (time and cost are inextricably connected) is a very dreaded word in project management parlance. Not only dreaded, but also hated! But as long as there will be projects, there will remain the possibility of time/cost escalations. Unforeseen things happen, unprecedented situations develop, circumstances spin out of control, and these tend to delay projects and increase costs.

But in almost all cases, there are ways to manage and reduce the impact of these unforeseen things, provided we decide on a solution and act quickly to implement the solution. This is where we fail, because we do not highlight these events, rather we tend to push these below the proverbial carpet, as if they will vanish on their own. Why does this happen? There are two very interesting reasons, one hierarchical, and the other behavioural, and both act in tandem.

No organisation is absolutely flat, and there are levels. This is true for project teams also. In all cases, there will at least be three levels. There are operating people in the field, there is a manager who is responsible for leading and guiding the team, and then there will be so called ??op management?? which could be a CEO, or a Board, or a similar body assigned for review and/or oversight. Now, nascent problems in a project, such as insipient causes for delay, are likely to be known first to the operating level, who have their ??ars glued to the ground??

Think of it, who is most likely to get early signals of possible delays in designing of a building, or manufacturing of a critical component, or construction of a crucial structure, or a key regulatory approval ? who will know first, about a strike in a supplier?? factory, about an agitation at construction site, or about resignation of a key member of sub-contractors??team ? First to know will be the ??oot soldiers??of a project team. Now, this is very powerful information, with far-reaching consequences. However, sadly, officials at this level are not empowered to analyse the impact of such delays, leave alone evolve a solution. The knowledge to do so, and the authority to do so, lies one or two hierarchical levels higher up. And, more often than not, the information is not escalated upwards. Why not? That brings us to the second interesting reason.

This has to do more with psychology than project management per se. We all have an instinctive tendency to hush up bad news because we feel if we pass on these information, it will be taken as our failure. We try to resolve the problem at our level, and in the process waste precious time for intervention. What we do not realise, is that small adversities, when suppressed, may well become huge irreversible setbacks for a project, and that in these matters, speed of escalation and transparency always pay.

The sooner the bad news is known, the better it is, because the corrective actions can be taken immediately. But such rational thinking is often layered by the fear of immediate and short term outcomes of so-called failures. This is a cultural issue, this has to do more with our minds, than with our sense of logic. In larger project organisations, this phenomenon may also be driven by some nuances of internal politics. In any case, the project suffers. To get round this well-known issue, sometimes top management deploys informal and alternative channels to ensure flow of such information directly from field to boardroom. This is a crude workaround, because this kind of strategies undermine the formal organisation structures and dilutes accountability.

– SUMIT BANERJEE

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Concrete

UltraTech Cement FY26 PAT Crosses Rs 80 bn

Company reports record sales, profit and 200 MTPA capacity milestone

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UltraTech Cement reported record financial performance for Q4 and FY26, supported by strong volumes, higher profitability and improved cost efficiency. Consolidated net sales for Q4 FY26 rose 12 per cent year-on-year to Rs 254.67 billion, while PBIDT increased 20 per cent to Rs 56.88 billion. PAT, excluding exceptional items, grew 21 per cent to Rs 30.11 billion.

For FY26, consolidated net sales stood at Rs 873.84 billion, up 17 per cent from Rs 749.36 billion in FY25. PBIDT rose 32 per cent to Rs 175.98 billion, while PAT increased 36 per cent to Rs 83.05 billion, crossing the Rs 80 billion mark for the first time.

India grey cement volumes reached 42.41 million tonnes in Q4 FY26, up 9.3 per cent year-on-year, with capacity utilisation at 89 per cent. Full-year India grey cement volumes stood at 145 million tonnes. Energy costs declined 3 per cent, aided by a higher green power mix of 43 per cent in Q4.

The company’s domestic grey cement capacity has crossed 200 MTPA, reaching 200.1 MTPA, while global capacity stands at 205.5 MTPA. UltraTech also recommended a special dividend of Rs 2.40 billion per share value basis equivalent to Rs 240.

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Concrete

Towards Mega Batching

Optimised batching can drive overall efficiencies in large projects.

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India’s pace of infrastructure development is pushing the construction sector to work at a significantly higher scale than previously. Tight deadlines necessitate eliminating concreting delays, especially in large and mega projects, which, in turn, imply installing the right batching plant and ensuring batching is efficient. CW explores these steps as well as the gaps in India’s batching plant market.

Choose well

Large-scale infrastructure and building projects typically involve concrete consumption exceeding 30,000-50,000 cum per annum or demand continuous, high-volume pours within compressed timelines, according to Rahul R Wadhai, DGM – Quality, Tata Projects.

Considering the daily need for concrete, “large-scale concreting involves pouring more than 1,000–2,000 cum per day while mega projects involve more than 3,000 cum per day,” says Satish R Vachhani, Advanced Concrete & Construction Consultant…

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Andhra Offers Discom Licences To Private Firms Outside Power Sector

Policy allows firms over 300 MW to seek distribution licences

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The Andhra Pradesh government will allow private firms that require more than 300 megawatt (MW) of power to apply for distribution licences, making the state the first to extend such licences beyond the power sector. The policy targets information technology, pharmaceuticals, steel and data centres and aims to reduce reliance on state utilities as demand rises for artificial intelligence infrastructure.

Approved applicants will be able to procure electricity directly from generators through power purchase agreements, a change officials said will create more competitive tariffs and reduce supply risk. Licence holders will use the Andhra Pradesh Transmission Company (APTRANSCO) network on payment of charges and will not need a separate distribution network initially.

Licences will be granted under the Electricity Act, 2003 framework, with the Central and State electricity regulators retaining authority over terms and approvals. The recent Electricity (Amendment) Bill, 2025 sought to lower entry barriers, enable network sharing and encourage competition, while the state commission will set floor and ceiling tariffs where multiple discoms operate.

Industry players and original equipment manufacturers welcomed the policy, saying competitive supply is vital for large data centre investments. Major projects and partnerships such as those involving Adani and Google, Brookfield and Reliance, and Meta and Sify Technologies are expected to benefit as capacity expands in the state.

Analysts noted India’s data centre capacity is forecast to reach 10 gigawatts (GW) by 2030 and cited International Energy Agency estimates that global data centre electricity consumption could approach 945 terawatt hours by the same year. A one GW data centre needs an equivalent power allocation and one point five times the water, which authorities equated to 150 billion litres (150 bn litres).

Advisers warned that distribution licences will require close regulation and monitoring to prevent misuse and to ensure tariffs and supply obligations are met. Officials said the policy aims to balance investor requirements with regulatory oversight and could serve as a model for other states.

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