Which of these stages would help your company improve profitability the most over the next 12 months?
Four Stages of Improving Project Execution
We approach improving Project Execution in four broad stages; many of which are approached in parallel:
Major Problems: The number one priority is triaging, then fixing key problems causing poor cash flow, gross margins lower than overhead, quality problems impacting the customer and significant safety issues.
Building Capacity: The second priority is to ensure that there is appropriate capacity available to reasonably execute projects to support the planned growth rate and Work Acquisition capacity. This basic capacity includes talent, tools, equipment, subContractors, vendors and support functions.
Streamlining: This stage is about dramatically lowering the total cost of project execution while improving quality, safety, schedule and scalability of the process. This stage leads to significant increases in both the top and bottom line.
Adding Capabilities: The final stage focuses on adding capabilities to support the contractor’s Market Strategy. These capabilities may include other geographies, other types of projects, design / preconstruction services, service and facility operations management. This stage requires investment with returns often delayed by 2-3 years but will setup the company for continued future growth.
Nothing will have a more positive impact on a contractor’s business than having a strong pipeline of quality work coming in. Improve your entire work acquisition process from relationship building through accurate estimating.
How much of a competitive advantage would you have if you could lower your total Project Execution costs by 5%?
What would it be worth if you could accelerate change order and billing turnaround time?