Case Study - Concrete Contractor

Case Study # TCC06

CLIENT:    
$17,000,000 Concrete Contractor – Southeast

SITUATION:

After successfully moving the company management of the day to day operations was being passed to the next generation. Slowing the process, however, were three years of losses as the result of an increasingly competitive environment.

ACTIONS TAKEN:
It became apparent that the problem was the lack of clearly defined responsibilities and accountability, poor operating procedures, the lack of key performance metrics, and a costing process that was not integrated into an estimating and financial reporting system. Key performance metrics and cash flow forecasting processes were as well as a Pay for Performance plan tied to the respective metrics. Procedures were developed with respect to equipment maintenance, field reporting, crew mobilization, labor scheduling, purchasing, as well as revenue and job cost forecasting. In addition, fully burdened labor costs for each division were calculated to aid in estimating and costing.

RESULTS:     
As a result of the team effort between company employees and Paradigm Management annual cost savings of approximately $750,000 per year were implemented.