In our business, shaping our project portfolio is a delicate balancing act: ambition and return objectives on one side, risk and uncertainty on the other.
The BESIX 2025 Project Performance Analysis, which reviews 357 projects of BESIX Construction and €23 billion in turnover over the past decade, aims to equip our business development teams, project teams and general management with robust data analytics, empowering them to make better-informed risk-return decisions.
Throughout the analysis, our colleagues in Risk Management and Internal Audit have drawn a candid picture of what we’ve achieved, where we’ve stumbled, and most importantly, how we can build a more resilient future together.
Lessons from a decade: what the numbers reveal
The analysis puts our performance under the microscope, examining business units and sectors, as well as more specific performance drivers.
Here are some of the findings:
Over the past decade, BESIX Construction’s average end-of-project margins have hovered below what is needed to consistently cover overheads and deliver robust returns. This is largely due to a substantial drop between the initial margin (expected upon offer submission) and the final margin at project completion. This finding underscores persistent structural operational challenges that should have been avoided or timely addressed.
External shocks such as the COVID-19 pandemic and the invasion of Ukraine undeniably disrupted operations, introducing volatility in material prices, labour availability, and supply chains. Yet, in today’s uncertain geopolitical and economic climate, it would be overly optimistic to assume future shocks will not occur. A prudent outlook must account for continued unpredictability and prioritise resilience, risk-adjusted returns, and operational discipline.
On the positive side, BESIX has seen an encouraging rise in initial margins in recent years, without compromising turnover. This suggests clients increasingly recognise the value we bring. While it is too early to confirm, this trend should logically translate into better performance on more recent projects.
While the median project performs reasonably well (above overheads for all business units), a smaller number of underperforming projects drag down the overall average. This reflects the high-risk nature of our business, where downside risk often outweighs upside potential.
Sector analysis shows marine projects performing best, while building projects are least profitable. Other sectors (Infrastructure, Sports & Leisure, Industry, and Environment) fall in between.
Quantitative analysis also highlights correlations; for example, longer projects tend to perform worse, particularly in the private sector.
Practical steps for everyone
The story doesn’t stop at numbers. The report combines quantitative analysis with root-cause reviews of 11 recent projects, exploring the reasons behind both successes and setbacks.
This study’s recommendations are clear and actionable:
- Invest in better planning of human resources across BESIX Construction. Project success depends heavily on matching team expertise to project requirements and ensuring staffing continuity.
- Implement robust contract and claim management, with early notification and meticulous record-keeping.
- Track and manage project-specific risks (design, safety, organisational complexity) from day one.
- Assess design risk thoroughly as from the tender stage and mitigate immature designs.
- Optimise equipment costs by analysing total cost of ownership and local market conditions.
- Stay ahead of price volatility by including revision formulas in contracts wherever possible.
- Build strong relationships with trusted subcontractors, suppliers, clients, and partners.
From data to decisions
This analysis provides valuable insights, but it is not the conclusion: on the contrary, it marks the beginning of a journey. As we continue to gather and analyse project performance metrics, we will enhance our overall assessment capabilities. Achieving this will require improved data governance and rigorous data collection practices.
By embedding data-driven insights into everyday decisions, and combining them with the collective experience and expertise of BESIX teams, we can improve performance predictability, seize opportunities, take calculated risk, and gradually strengthen a culture of analytical excellence.
For further details or to dive deeper into specific findings, please contact Gaetan Auvray, Risk Process Manager or Stijn Vondeling, Internal Auditor.