Construction

Construction Contractor: Shifting a contract from loss to profit

The Challenge

A performance-based contract was consistently loss-making

Similar projects were profitable, but this could not be replicated

Opportunities to increase the scope of work had been seized

They needed immediate and continuous efficiency improvement

A leading engineering and construction company was awarded a prominent infrastructure contract framework. Even though it was already running similar projects and attempted to manage overheads, the contract was still loss-making. The organisation needed to find a way to delight its clients while also maximising framework revenue opportunities and minimising costs. In order to do this, they needed a new operating model to improve efficiency.

The Results

The contract became profitable within one year

Increased scope of work won, doubling revenues

A rapid assessment identified short- and longer-term improvements

A way-of-work was adopted to be used across other projects

+100%

Additional profitable revenue within one year

Starting with a 6-week rapid work assessment, Arca Blanca created an organisational action plan to give a clear, unified view of the client’s pipeline and the competencies needed for projects. In less than a year, the contract was profitable. Revenues doubled as the client was able to increase its scope of work. Standardised ways-of-working were adopted and applied to other projects. The client continued to improve performance, building on Arca Blanca’s initial work.