Reducing costs to build retail banking centers by 26% …Now that’s smart.TM
A construction company in North America specializing in managing the design and construction of retail banking centers needed to reduce operating expenditures across their projects organization while maintaining employee staff.
Need for Project Support
Utilizing Darby Consulting’s cost analyzer, the company identified project support as a key component to achieving cost reductions without reducing employee headcount. Based on data collected during a cost analyzer workshop, the company found they were paying multiple contractors different rates for the same services and could reduce their annual spend approximately 20-25% leveraging a support-as-a-service operating model.
Project Support Centers
The construction company engaged Darby Consulting to provide three Project Support Centers (PSCs) focused on schedule, cost and document control processes. Each of the PSCs were staffed by construction industry specialists and designed to increase the people-to-project ratio from 1:1 to 1:2. Achieving the desired efficiency ratio required that the PSCs be located at Darby Consulting’s offices in close proximity to the construction company’s headquarters and equipped with cloud-based technologies and real-time collaboration software. Lean sigma processes were also designed in coordination with project management to ensure that support processes would be both efficient and effective. A fixed monthly fee to provide support-as-a-service was approved by the leadership team ensuring cost reductions would be achieved within the first year.
A 26% savings was realized in the first year due in part to Darby Consulting’s support-as-a-service model. Significant cost reductions were achieved as a result of increasing the people-to-project ratio from 1:1 to 1:2, improved process efficiency, and transferring the technology and workspace overhead costs from the projects organization to Darby Consulting as a fixed fee managed service. Surveys distributed to project managers indicated a high degree of due in part to the ability to contact Darby Consulting’s project support specialists directly and the close proximity of support centers located near regional offices.
“Darby Consulting helped to support the design and construction of several projects in various stages of design and construction. Darby continuously brings new ideas and perspectives based on research and real-world experience. To date, they have implemented a number of forward-thinking tools and processes that have improved our ability to execute projects at a much lower cost than what we were doing before.”
Construction Projects Manager
Financial Services Division