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Strengthening Construction Project Management and Increasing Profits

Mechanical Contractor

Case Study

3
On this page:

    A mechanical contractor was in a period of growth, which they wanted to sustain. However, partly
    as a result of this, their management team was too busy with day-to-day issues to spend time
    initiating and driving significant performance improvement programs.​​​

    The client saw the growth as an opportunity to capitalize on their market success by driving the
    organization to a higher level of performance.​​​

    Carpedia was brought on to provide management with the support they needed to be successful
    on this important and time sensitive journey.​​

    %

    Decrease in Direct Labor Costs

    Return on Investment

    %

    Decrease in Indirect Costs

    - CEO

    “The Carpedia project team provided us with the additional resources that we needed to properly identify initiatives and implement them in a comprehensive and timely nature. The program has played out according to plan and I am pleased to confirm that we are on track to realize the promised benefits.” 

    Carpedia was engaged to improve labor productivity across field operations, pre-fabrication shops,
    and indirect support areas. Key changes focused on reducing rework in the field and improving
    efficiency through standardization and better planning. Equipment and material sets were
    standardized for common tasks, while new storage and inventory management techniques were
    introduced. Logistics for material reception on large sites were optimized to prevent delays. ​

    Project planning and scheduling were standardized, helping reduce under-utilization of field labor.
    Additionally, the estimating and drafting functions were re-aligned to focus on acquiring key process
    inputs on time, minimizing downstream waste. Active management capabilities were also
    strengthened through Carpedia College training and on-the-job coaching, ensuring that
    improvements were sustained across all levels of the organization.

    The Results

    Results included:

    • 4.6:1 Return on Investment​​
    • 14% decrease in direct labor cost​​
    • 5% improvement in fabrication shop efficiency
    • 8% decrease in indirect costs​

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