Business Challenge
A new logistics and production building was constructed for an OEM car manufacturer. Various technologies were deployed during the project, including civil engineering and building construction, as well as water supply and sewage systems. Heating, ventilation, and air conditioning (HVAC) systems were also installed, alongside electrical installations and fire protection measures. Additionally, road infrastructure and parking spaces were developed, and landscaping was completed to enhance the surrounding area.
The success factors in the project included a comprehensive cost structure and potential analysis, along with a detailed examination of cost drivers. An intense and in-depth workshop was also conducted with the supplier to address key areas. Collaboration among the involved parties—Purchasing, Facility Management, and Production Engineering—was crucial in driving the project forward and ensuring its overall success.
Approach
- Lever details:
- In-depth estimating of material costs and man-hours for each task based on best practice hourly rates as well as standard lumpsum unit costs
- CE Invest assessment methods applied:
- Rough costing BPB calculation based on bill of quantities
- Cost workshops with suppliers and negotiation support
Results
- 22% cost reduction achieved
- Negotiated value determined after reduction
- Delta (difference) observed between the negotiated value and another reference
- ICO price indication provided for comparison
