CLIENT: COMMERCIAL DESIGN & BUILD PLUMBING CONTRACTOR
ANNUAL SALES(2014): $8+ MILLION
NUMBER OF EMPLOYEES: 60+
GROWTH RATE: 25% ANNUALLY OVER 4 YEARS
Client had reached a point in their growth stage where their:
- Annual sales were increasing but net profits were decreasing
- Project Managers were overworked, inefficient & struggling to keep up with the increasing workload.
- Project Managers were inadequately trained for effectiveness and efficiency in managing an increased workload.
PROJECT HIGHLIGHTS AND RESULTS
Ascent Consulting implemented a multi-faceted approach to resolving the efficiency and profitability issues they were facing.
Using their existing software technology, Ascent designed and implemented a new purchasing methodology which reduced workload and redundancies in project management and administrative functions by approximately 75% within 30 days
BUDGETING & FORECASTING
- Created a project level budgeting and forecasting system with real world data input to show true financial picture and accurately reflect profitability on projects.
- The net effect of these initiatives on five action construction projects yielded an average of approximately 150% increase in project profitability and a decrease of 20% in company overhead costs.
- Implemented a dynamic forecasting system that could accurately project the financial outcome of projects based on current metrics
- Revealed a blend of material, labor and productivity problem areas within the project so that corrective action could be taken before negative financial impacts were realized.
- Set project level overhead budgets for effective cost controls and reduced impact to overall company overhead.
TRAINING & IMPLEMENTATION
Ascent implemented a six-month training and development program that included structured classes and workshops in the following areas:
- Understanding General Contractors
- Subcontract Law
- Purchasing and Supplier Management
- Change Order Management
- Project Documentation
- Executive Coaching
- Team Building
- Employee incentive program
- Company culture
- SMART goal workshops with executive management team
- Operational budgeting and forecasting
- Financial and operational KPI’s
- Enhancement of the budgeting and forecasting system for new projects
- Review and fine tuning of service department operations
- Ongoing training and development for the project management staff
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- Client reported the most profitable year in the company’s history, while securing one of their largest construction contracts to date.
- Project managers reported a drastic increase in overall job satisfaction as well as a sense of empowerment to control project costs and profitability.
- Ownership reported less time spent managing Operations and an increased flexibility to allocate more time & resources towards Business Development, resulting in an increase to service division revenue, as well as a record construction project backlog value in the company’s history.