Wednesday, September 20, 2017

Company Profile - ALEMCO

Candy shoppers

 

 

When ordering materials for projects, ALEMCO often found that there was either too much or too little being delivered, impacting negatively on profits and understandably causing concern.

 

That was when they turned to Construction Computer Software’s leading integrated cost management products: Buildsmart and Candy. Candy provides the industry’s most effective estimation tool and dynamic link between budgeted cost and timewhile BuildSmart manages the complete procure to pay cycle and reports all project costsin the same cost and activity matrix used in Candy, to allow a one-to-one match between budget and actual for all cost codes, resources and activities.

 

Ben Swart, then commercial manager at ALEMCO,elaborates: “The Candy ‘shopping list’changed our business and added a whole new dimension, giving us complete control of what we purchased” adding: “The system restricts and red flags differences between tender and actual requirements and once a full measure has been carried out after the engineering phase of works has been completed, there is little room for error when procuring materials and issuing allowable amounts to the contract teams or sub-contractors.”

 

Swart continues: “What we do control, we can change, and by implementing a system that can communicate on a live, real-time basis with our current estimation, engineering, commercial, procurement and accounts systems has an immediate effect on our project deliverables. We found that by implementing and utilising both Buildsmart and Candy we now have systems that control all of the processes from the estimation sheet to the final deliverable.”

Swart outlines some real and practical examples of the savings benefits identified through the implementation of the CCS Integrated Cost Management System:

  • A request for material of 15 lengths of piping when the allowable was for 15LM and each length is 3m - saved the over ordering of triple the amount of material.
  • Stopping a material submittal requested by the client’s engineering team for an item not allowed for in the Tender Allowable. Re-engineering of the item and the method of construction to comply with the engineer’s specification and requirements and in line with what we had already priced highlighted a potential loss on allowable of $8m, which without ordering from a shopping list would have been submitted for approval and forced to be ordered. Should the engineer have insisted on the material and rejected our alternative a variation order could be identified and claimed.
  • Fast tracking our procurement process by giving our procurement team an efficient and reliable medium to send out enquiries on materials specific to the project and specification securing better compliant prices, rather than estimated quotations subject to the unknown.
  • Automatic generationof long lead and information scheduleby dynamically linking our “shopping list” to the execution program, highlighting required contractual notifications of potential delays and mitigating these claims before you spend time, effort and money on rectifying the delay.

 

Currently ALEMCO is utilising the Candy and Buildsmart platforms successfully on all of its large projects in all of its regions of operation, including at the Dubai International Airport, and airports at  Abu Dhabi and Muscat.

 




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