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PMC & DPR (detailed project report) consultancy mandates

Business Model & Unit Economics · Contracting & revenue model

What it is

Detailed Project Reports establish feasibility, design and cost for a proposed project; Project Management Consultancy supervises execution on the client's behalf. Both are fee-based mandates awarded by government authorities and public agencies

A DPR typically precedes the project by years

Impact on industries

  • DPR work is a leading indicator of the construction pipeline, and gives the consultant visibility and positioning before contractors even bid
  • PMC fees are annuity-like across a project's build period with minimal capital employed and no construction risk
  • Fee values are small relative to project cost, so revenue scales with mandate count rather than project size
  • Many DPRs never become projects, so the conversion rate from study to supervision mandate is well below one

Industries affected