This construction company found itself on the edge of bankruptcy with no current jobs and having failed to win new bids. The company leadership turned to us to bring the ailing company back to profitability.

We developed and implemented strategies that improved their contract administration and project management system. The result was a rapid turnaround of the company’s revenues and projects portfolio.

Overview

0%
growth in revenue in 3 years
0%
increase in executed contracts in 3 years
0%
reduction in construction wastes

The Situation

After completing paying projects they had at hand, RCco were unsuccessful in bids for several new projects. The company’s revenue had significantly declined and most of its workforce had become redundant. Added to these, the company found itself struggling to survive.

Other challenges they had included a declining ability to track costs and profitability all through the project life-cycle as reported from their past projects.

To survive and rebound, RCco had to quickly get paying projects and increase its profitability. The company’s turnaround had to include a long term strategy for improving its project portfolio.

Our Role

The management of RCco required us to rapidly turn the situation around by managing their contracting process so they can win new bids; and then to provide project management support services to execute projects successfully.

We tailored our services to perform the following critical functions for RCco:

1. Strategy development

2. Bid preparation

3. Project monitoring and control

4. Project management

Our Approach

Since RCco needed to develop a plan that will rapidly deliver results, our team worked closely with the CEO to achieve 4 main objectives.

1. Develop a business transformation plan that strengthens their operations and financial performance year on year.

2. Develop and implement an effective strategy for the growth of the organisation’s portfolio

3. Provide project management support for new and upcoming projects

4. Make recommendations that will improve organisational project management capability for long-term success

To achieve this:

1. Our team recommended and implemented a competitive bid strategy to replace the non-performing bid-by-volume strategy.

2. We supported the organisation to bid, negotiate and win the Zenith bank Ojuelegba project within a short period of less than 3 months. In winning this bid, we placed prices at the point all other 6 contractors would not go below.

3. During construction of the Zenith Bank Ojuelegba project, we mitigated issues between community and Zenith Bank that threatened the project schedule and cost.

By actively engaging stakeholders, we prevented an imminent law suit that could derail the project. This involved several meetings with community leaders and the Zenith bank legal team. In addition to these, we engaged the “community boys” on the site as artisans, security and for minor labor works.

4. Having lost a month to community issues, we kept the project within its timeline by crashing the schedule. This involved overtime and late night works for major work sections.

5. To monitor progress and costs on site, we established a procurements operations plan which included plant, labour and material schedules.

Furthermore, our team established estimated costs for every stage of work. This guided the contractor’s personnel in making procurements which resulted in significant improvements to the planning of resources.

6. We also supported the contractor’s team in prequalifying, selecting and negotiating with all subcontractors in order to keep within the planned budget.

Results

In less than 3 years, RCco completed a dramatic turn around, transforming itself from a company near bankruptcy to a major construction company in Nigeria.

1. The bid strategy we developed enabled RCco win its first project within the first 2 months of our engagement

2. Despite the tight project budget, we led RCco to deliver this project profitably and on time

3. As a result of the project performance Zenith bank plc immediately awarded 2 other branch developments construction contracts to the company

4. This project became a reference that won the contractor several new projects and clients besides Zenith Bank; thus transforming the project portfolio of the company

5. The company’s revenue soared by over 400 per cent in 3 years; thus getting the company back on its feet and thriving

6. With the new system and approach we helped establish, RCco reported significant increase in the profitability of their new projects

**We always prioritise the confidentiality of our clients.  Hence, their names are usually changed while the stories and results remain real.

About Toyin Filusi

Toyin Filusi is a seasoned cost consultant, contract administrator and project manager. His authentic passion for the industry has seen him acquire 20 years of construction experience, from quantity surveying and contracts management to practising as a professional builder. His focus is on helping clients realise maximum value from their projects.
November 27th, 2018

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