Case Study of Capital Improvement Program

Solus Industries evaluated our client’s needs regarding a large reroofing project on a manufacturing plant they recently acquired in Alabama, and several areas of concern were identified.    Our client sought to decrease the consultant costs, achieve competitive bidding through quality contractors, complete project in a limited timeframe, and protect the interior of the facility during the project.

Project specifics and areas requiring special attention:

  • Required project coordination and management
  • Complete roof replacement on an 117,000 square foot section
  • Deck in poor condition requiring a minimum of 30,000 square feet to be replaced
  • Project to be conducted in a limited time period

Summary:

Solus Industries employed management techniques to eliminate the need for a consultant thus reducing the project cost by 10 percent equaling $80,000.00.  An evaluation was conducted to confirm a roof replacement was the only cost effective option for this facility.  In addition, Solus Industries structured the right formula to achieve 4 competitive, apple-to-apple proposals from local, qualified contractors thus reducing the cost by an additional 7 percent. 

The facility open date had already been determined and the demands were to have the roofing project finished in half of the normal expected timeframe.  Project required extreme deck replacement while protecting the interior of the facility.  Solus Industries’ management capabilities were able to complete project in given timeframe and coordinate all necessary actions to protect the interior of the facility.

Client’s success:

  • Elimination of consultant fees: Reduced the project cost by 10% equaling $80,000.00
  • Competitive bidding: Reduced the project cost by an additional 7% equaling $56,000.00
  • Project management:  Completed project in limited timeframe and interior of facility was protected
  • Additional warranty:  Guarantee from Solus Industries above and beyond the manufacturer and contractor warranty
  • Shared risk:  Shared insurance risk with Solus Industries
  • Total cost savings: $136,000.00

Results:

Solus Industries management capabilities enabled our client to achieve competitive pricing, project coordination, project management, an additional warranty, shared insurance protection and ability to focus on other business functions while gaining a higher level of expertise with reduced risk.