Faithful+Gould identified an opportunity for a global pharmaceutical company to change the way in which they procured small project and maintenance works in their northern UK sites. Through reviewing their term service contracts and simplifying their operating model, it was established that transition would significantly reduce their costs.
We were able to determine that these significant cost savings could be achieved by:
Obtaining up-to-date competitive tenders to eliminate cost creep in current contracts.
Changing from a reimbursable regime to Measured Term Contract (MTC); placing the onus on the contractor to manage productivity and resource.
Greater commercial gains through bundling the MTCs and letting as larger value packages.
The exercise resulted in the successful transition of new incumbent contractors for various MTCs across the company's northern sites. In addition to developing and overseeing the transition plan, on completion we carried out a capture savings exercise which identified savings in the region of 20%. We are still involved in auditing the contracts implemented on site to this day to ensure continual improvement and value for money.