Procurement Consultancy for the Property Industry
Whether for renovations or new-builds, with professional procurement in building services and facility management, you will get more out of your investment and reap the benefits in your future building projects in the long run.
Investing in renovation is well worth it – for the commercial and residential property industry alike. Technological developments and demographic changes have resulted in new demands emerging, with the focus shifting to investment in the construction industry. More and more office buildings are being equipped with state-of-the-art technology, while residential properties are being renovated age-appropriately.
Thanks to the current low interest rate, there has been a massive boost in investment in property renovations and new-builds across Germany, taking advantage of low capital costs. In many sectors, this has led to drastic price increases and supply shortages, especially in urban areas.
If you want to fix construction and renovation costs based on performance and secure your supply through efficient suppliers and service providers, now is the time to seize the opportunity and set up professional procurement processes within your company.
Make your budget go further and get a bigger return on your investment.
We will help you to build and optimize your procurement process with our consultancy approach that focuses on delivering results – from the potential analysis right through to implementation.
How do we do it?
During a potential analysis, we identify the savings you could make in your procurement. We evaluate your procurement strategies, your suppliers and your contracts, as well as the procurement processes, determining all the areas where costs could be reduced. On that basis, we develop strategies to achieve those savings by drawing up an action plan, which we will gladly implement together with you.
Immediate measures – in your current renovation or maintenance projects for example – can be implemented during the potential analysis itself, delivering visible results in no time.
Implementing sourcing initiatives
In the implementation phase, we identify the suppliers best suited to your projects as part of a comprehensive sourcing approach. We carry out broad market screening and tender initiatives, and actively support you in negotiating supplier construction contracts to get the best deal for you. Moreover, we draft structured framework agreements for repeat services to make sure you have all your supply needs covered. In addition to reducing costs, our focus is on complying with quality and scheduling requirements, as well as ensuring planning reliability.
Building a tailor-made organization and continuous processes
Our job is to increase your profit by optimizing procurement over the long term. And as such, we analyse your procurement organization, existing infrastructure, resources and processes, as well as the underlying rules and regulations, to ensure compliance in your procurement.
Based on the findings, we will develop a concept with you to ensure optimal procurement of construction and facility management services. To successfully implement the defined processes in the organization as a whole, we will also support you with:
- Interim management
- Job advertisement and recruiting
- Integrating new employees (mentoring)
- Developing procurement guidelines (e.g. policies, guide to procurement and checklists)
- Developing procurement controlling systems and creating e-procurement solutions
- Compliance check and process monitoring
- Drawing up sector strategies and tender calendars
- Setting up contract management
Building modular specifications
To maximise planning security and prevent huge discrepancies in performance quality and costs, we recommend developing specifications for repeat construction and facility management services. As part of a single-price agreement, we will help you make fixed price agreements with suppliers and service providers. This is a worthwhile investment, which will increase your bottom line in the long run.
A structured overview of constantly recurring construction services through a modular, single-price specification catalogue for renovation or maintenance projects creates long-term transparency and planning reliability in terms of costs and benefits for clients and contractors. With services now immediately available through the single-price agreements with suppliers, procurement is made flexible and efficient.
This minimises scheduling issues, which are certainly no stranger to the construction sector, and avoids rushing tenders or contracts which, owing to higher tender prices and more expensive add-ons, often lead to inflated construction costs.
To make specifications less complex, the services are specified as modular reusable mixed items where possible and are provided with target prices. Where appropriate, discounts or premiums are applied depending on the location. This allows the building manager to pick and choose the required service modules as needed (even without comprehensive knowledge of the specifics of each service), and commission them directly to the contractor.
With fixed unit prices – set annually, for example – you also benefit from the standard specifications catalogues for your future building projects. Technical planning efforts are minimised and the number of tenders to process is also reduced. The increase in transparency helps to reduce price and supply fluctuations, and tenders are efficiently and quickly executed, even for larger projects.
- Reduced costs for new construction, renovation and maintenance projects
- Planning security based on fixed-price agreements with suppliers
- The best prices for framework agreements for construction and facility management services
- The establishment of a professional procurement organization
- Supply security through efficient procurement processes and a scalable supplier platform
- Compliant procurement activities
Are you looking to make your investments more efficient and get the most out of your budget? Pieter Niehues is at your disposal to answer your questions about our services for the construction and property industry.