Procurement consultancy for the real estate and construction 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.

 

Procurement optimization in real estate and construction

Investments in modernisation are worthwhile for the commercial and private real estate industry alike. Technical progress and demographic developments are changing the requirements and thus the investment focus in the construction industry. Office properties are increasingly being equipped with high-quality technology and residential properties are being converted to meet the needs of the elderly.

The current low interest rate level enables modernisation and new construction of properties at low capital costs, which has massively increased corresponding investment volumes in Germany.

Particularly in conurbations, this is leading to sharp price increases and supply bottlenecks in many trades. In order to fix construction and modernisation costs in line with performance and to secure a supply from efficient suppliers and service providers, you should now take the opportunity to professionally set up procurement in your company.

This will give you more performance for your investments and allow you to use your budget in a way that maximises returns. We support you in setting up and optimizing your procurement with our results-oriented consulting approach, from potential analysis to implementation.

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How do we proceed when advising in the real estate sector?

Within the scope of a potential analysis, we identify the existing savings potential in your procurement. In doing so, we evaluate your procurement strategies, suppliers and contracts as well as the procurement processes in order to identify all possible levers for cost reduction. Based on this, we develop strategies to realise the potentials and develop an action plan, which we are happy to implement together with you.

 

Immediate measures, e.g. as part of your ongoing modernisation or maintenance projects, can already be implemented by us during the potential analysis, which quickly produces visible results.

Within the scope of a potential analysis, we identify the existing savings potential in your procurement. In doing so, we evaluate your procurement strategies, suppliers and contracts as well as the procurement processes in order to identify all possible levers for cost reduction. Based on this, we develop strategies to realise the potentials and develop an action plan, which we are happy to implement together with you.

In the implementation phase, we identify the suppliers best suited for your projects in the course of a comprehensive sourcing approach. We conduct broad market screening and tendering initiatives and actively support supplier negotiations to conclude cost-optimised construction contracts. In addition, we design structured framework contracts for repetitive services to ensure nationwide coverage. In addition to reducing costs, the focus is on ensuring quality and deadline requirements and creating planning security.

Our goal is to increase your company’s results in the long term by optimising procurement. Accordingly, we analyse your procurement organisation, existing infrastructures, resources and processes as well as the underlying regulations to ensure procurement compliance. Based on the findings, we work with you to develop a concept that ensures optimal procurement of construction and facility management services. In order to successfully implement the defined processes in the overall organisation, we also support you with the following measures:

 

  • Interim management
  • Job advertisement and recruiting
  • Induction of new employees (coaching)
  • Development of guidelines in procurement (e.g. guidelines, procurement manual, checklists)
  • Development of a procurement controlling system and the establishment of e-procurement solutions
  • Compliance check and process support
  • Establishment of trade strategies and tendering calendars
  • Establishment of contract management

To maximise planning security and avoid highly fluctuating performance qualities and costs, we recommend setting up service specifications for repetitive construction and facility management services. Within the framework of unit price agreements (EPA), fixed price agreements are made with suppliers and service providers. This is a worthwhile investment with long-term impact on your bottom line.

 

A structured inclusion of constantly recurring construction services in modular service specifications catalogues (EPA catalogues), e.g. for modernisation or maintenance measures, creates long-term transparency and planning security with regard to costs and services for clients and contractors. Due to the immediate call-off of services via the unit price agreements concluded with suppliers, procurement is agile and efficient.

Time problems, which are common in the construction sector, can thus be minimised and overhasty tenders or awards can be avoided. As a result, these often lead to excessive construction costs due to high bid prices and cost-intensive supplements.

 

In order to keep the complexity of the bills of quantities low, the services are specified as modularly usable mixed items and provided with target prices. If necessary, it is advisable to introduce mark-up and mark-down rates depending on the location. Finally, the services can be fully selected by the project supervisor (even without complete expertise) according to the modular principle and ordered directly from the construction supplier.

 

Thanks to fixed unit prices – e.g. at annual level – you will also benefit from the standard service catalogues for your future construction projects. In addition, the technical planning effort is minimised and the number of tenders to be carried out is reduced. With the transparency gained, price and supply fluctuations can be cushioned and awards, even for larger construction projects, can be implemented efficiently and quickly.

Results of procurement optimisation

  • Cost reduction within the scope of new construction, modernisation and maintenance projects
  • Plan security due to agreed fixed price agreements with your suppliers
  • Price-optimised framework agreements for construction and facility management services
  • Establishment of a professional procurement organisation
  • Securing supply through efficient procurement processes and a scalable supplier platform
  • Compliance-compliant procurement activities

Selected clients from the real estate & construction industry

 

Our experts in the real estate industry

Pieter Niehues

Principal

pieter.niehues@inverto.com Contact

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