CONSTRUCTION SECTOR – NEW COMMERCIAL WAYS OF WORKING

THE BRIEF

Our construction client required our assistance to implement improvements in subcontractor procurement and cost management within the Midlands region and ultimately across the group.

With the business ramping up, commercial cost controls were not effective leading to a build cost overruns averaging 10%. We recommended and implemented the ideal organisational structure and introduced more effective ways of working.

THE IMPLEMENTATION

With Lean providing the framework, improved tools & structure to tackled problems faced by the organisation, allowing business wast to be identified and removed.

LEAN IMPROVEMENTS

  • Projects scoped out with delivery plans in place
  • Weekly governance
  • Teams engaged in creating the solution
  • New ways of working implemented
  • More on-site proactive surveying
  • Non-negotiable cost control processes implemented

THE SOLUTION

We worked closely with the commercial management team and the local regional managing director to build a plan including an operating model for commercial which was designed to link the essential and value adding/proactive activities to the business measures.

Using Lean tools and techniques we were able to map out what people were spending time on, the organisation structure was redefined, moving highly trained surveyors to more value-adding activities.

THE RESULT

Cost control across the group improved dramatically, reducing build cost overruns from 10% to 3%. The changes were underpinned by introducing new ways of working for the commercial teams and strict adherence to build certainty sign off levels drawing handover processes. Budget sign off controls and a monthly cost review processes were introduced.

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