The Decommissioning Challenge: Key Lessons for Aging Asset Removal
Managing and removing aging assets on operational sites is rarely straightforward. It demands careful planning, practical methodologies, and a balance of innovation and safety.
At this year’s Aging Assets & Decommissioning Conference, our Pre-Contracts Manager, Oli White, Project Director, Scott Chalmers, and PERSES Group Managing Director, Stephen McCann, shared five lessons from their combined 50+ years of global demolition experience. They highlighted how early contractor involvement and practical risk understanding determine the best approach, drive cost certainty, and deliver safer outcomes.
Here are five of our key lessons with practical takeaways:
1. Bringing contractors in early reduces risk later
If there’s one lesson to remember, it’s this: bring your contractors in early.
Bringing us in early doesn’t reduce the safety risks, but what it does do is reduce the commercial risk. By understanding the project’s complexities upfront and having enough time to review the information provided, we can price more accurately and introduce innovative methodologies with fewer surprises along the way. It also gives us the opportunity to demonstrate that these innovations will be delivered safely, with the risks of both parties carefully considered.
Our Kalamia Sugar Mill project, removing two boiler stacks (74m and 65m) in a live processing facility, required precise sequencing and planning. Because we were involved early, we could plan the sequence of works alongside the client, ensuring the safest and most efficient method was selected. Importantly, the project budget was based on real, site-specific risks, not assumptions.
The takeaway: Price reflects risk
2. Trust the people who have the knowledge
The most valuable insights often come from the people who know the site best. For example, at the Nigg Oil Terminal, where Scott led a complex decommissioning project, there were workers who had been on the ground for decades. They knew the plant inside out, down to when each valve had last been cleaned, without ever needing to check the paperwork.
When presenting the proposed methodology, firsthand knowledge shaped what was realistically achievable. They highlighted risks that wouldn’t have been known about coming into an unfamiliar site, with efficiencies pointed out, that ultimately saved both time and money.
That level of practical insight is something no external contractor can replicate. Successful projects rely on recognising and respecting the expertise of every party involved, client, consultant and contractor, and creating the space for that knowledge to inform decisions.
The takeaway: Trusting the experts in their area leads to better outcomes
3. Collaboration isn’t optional, it’s essential.
Successful decommissioning is achieved through collaboration between multiple parties, from the client and contractor to consultants, external regulators, and traditional land owners. This ensures that each party has ownership of the process and accountability for the outcome. When roles and expertise overlap effectively, risks are reduced, decision making is faster, and delivery is more predictable.
Across countless projects, the pattern is clear: collaboration isn’t a nice to have, it’s the difference between projects that run smoothly and those that encounter unnecessary delays, cost escalations, or safety issues. When everyone is aligned, the project outcome is safer, more efficient, and more successful for all stakeholders.
The takeaway: Transparency → Alignment → Smoother Delivery
4. Align systems early to avoid roadblocks
Client requirements and contractor procedures will never perfectly match, but success depends on making them work together. Navigating multiple layers of safety, compliance, and operational systems can create bottlenecks.
It can be tempting for contractors to push back, saying a client’s regulations are too restrictive, but the real value comes from taking the time to understand how those rules can be integrated with the methodology to achieve the project safely and efficiently. Everyone on the project wants the same outcome: to complete the work successfully, on time, and without compromising safety or compliance.
The takeaway: Integration is key
5. The longer you wait, the more complex it gets
Delaying decommissioning can turn a manageable job into a high-risk, high-cost project. In North Queensland, following an extensive pre-qualification and tender process for the decommissioning and demolition of several tanks on site,, due to budget constraints, the work was postponed. Three years later, the tank had partially collapsed, and completing the job cost four times the original estimate, due to numerous factors including emergency, 24-hour working. Even partial early intervention could have reduced risk and costs. Considering the long-term implications of delay is essential.
The takeaway: Delay multiplies risk and cost
Â
Decommissioning aging assets will only become more challenging as industrial sites across Australia face renewal. Engaging contractors early, valuing local knowledge, aligning systems, and acting before risks escalate enables safer, more predictable, and cost-effective outcomes.
At DEMEX, we can help navigate these challenges and would welcome the opportunity to discuss your site in detail. Whether planning a decommissioning project, managing aging assets, or seeking guidance on best practice, our team provides practical, innovative solutions tailored to your needs
