How to Ensure You’re Making the Right Moves to Reduce Costs
By Amy Fonzi
Capital projects are critical and often unavoidable necessities for your company’s success. But if you want to achieve a higher level of return, start looking at capital projects as opportunities instead of requirements. After all, they can be a powerful way to impact your brand, help reduce your overall maintenance spend, and can even lead to large tax write-offs.
Optimizing capital projects isn’t hard to achieve; it just requires a new way of looking at an old problem. Like finding the right service provider for the job. The trick is selecting one who can look at all the tasks, holistically, elevate the opportunities, and help with strategic planning across all locations.
All too often projects are executed as one-offs, and companies miss the benefit of bundling and scheduling labor or purchasing material in bulk. Because the reality is that your average service provider has limited experience with large-scale, national rollouts or programs to provide big-picture thinking to their proposals. You often wind up with multiple layers and multiple handoffs of field execution; a contractor is awarded a project, they subcontract the project, and that subcontractor then turns around and subcontracts it out again. Not only does this impact cost, it also hurts quality.
Instead, a true partner works with you to consider your options and applies data, analytics and in-house expertise to create a strategy that aligns with your overall goals. They’ll help optimize projects through efficient scheduling and leverage buying power to get the best rates on labor and material. They can even review assets to provide value-engineered solutions and recommend investments that have greater ROI potential.
And it’s not too good to be true—It just means knowing what to look for to maximize your capital project investment. Here are five factors that have always brought us success:
- Bundling: Combining and prioritizing multiple projects into formalized rollouts provides scheduling and project management optimization
- Scalability: Vetted, high quality trade service providers available on a national scale and at negotiated rates
- Speed to market: The ability to rollout multiple projects in disperse locations, simultaneously
- Business Intelligence: Data and analytics to re-enforce recommendations from in-house experts
- Transparency: Monitor where people, projects, timelines and budgets are at any given time
At FacilitySource, we pride ourselves in applying our vast business intelligence, deep expertise, and extended network to optimize your capital project execution and improve your outcomes. We also partner with high quality, loyal self-performers who are closely tracked and scored on their performance to mitigate disruption in store operations. That means your projects are done correctly and efficiently, so you can start realizing the benefits of your investment.
If you’re interested in reading more about our success with capital projects, read this case study that shows how we helped a novelty retailer complete annual construction, service and tear downs for hundreds of seasonal storefronts—on time and on budget at each location.