Over the years the size of contractor compounds (welfare and office facilities) seems to have grown exponentially.
This has greatly improved the health and safety of workers which I fully support and probably helps Site Managers.
However sometimes they seem excessive, under utilised and difficult to find space for
Contractor compounds are no longer just rows of temporary offices and canteens. On today’s CAPEX projects, they’re expanding in size and complexity — and the impact on budgets and schedules is significant.
Why compounds are increasing in size
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More subcontractors and labour on site
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Higher HSE and welfare standards (larger dining, recreation, and medical facilities)
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Longer project durations
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Rising expectations for worker accommodation and amenities
The impact on CAPEX
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Cost: land, utilities, and temporary works add millions.
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Schedule: setup and maintenance can delay construction.
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Logistics: bigger compounds mean more traffic, security, and waste management.
Smarter strategies
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Plan compound needs early during the preparation of the front end engineering and estimating package (FEEP)
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Consider modular, reusable facilities
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Optimize layouts with digital tools
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Factor OPEX implications into CAPEX decisions
Bottom line: Contractor compounds are getting bigger — but with smart planning, they don’t have to become a hidden cost driver.