Success Story

Operations

CLIENT: COMMERCIAL DESIGN & BUILD PLUMBING CONTRACTOR

ANNUAL SALES(2014): $8+ MILLION

NUMBER OF EMPLOYEES: 60+

GROWTH RATE: 25% ANNUALLY OVER 4 YEARS

SITUATION CHALLENGES

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.

PURCHASING

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
  • Scheduling
  • 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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RESULTS

  • 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.

Like many of our clients, we are all being impacted by COVID-19. Luckily, we have been working remotely and virtually with our clients for years. Although we love to be on-site and work hands-on, we’re skilled at working with our clients remotely, allowing us to help when they need us most.

Have questions? Let us know how we can help support you and your business.