MEP Resourcing was assigned to deliver a project in Lancaster, Lancashire. The project was a 550 bedroom student accommodation scheme which involved full M&E install. To control the client’s previous overspend on labour, MEP offered to provide labour on a fixed price basis to ensure budgets were not exceeded. In order to make this successful the client signed to use MEP exclusively for all the labour on the project.
Previous projects had resulted in the client exceeding budgeted spend on labour. The client led us to believe this was typical on many projects due to unforeseen circumstances that can crop up within the challenging world of construction.
After the initial consultation, we realised there had to be time invested in getting the pricing structure right. We spent time with the client and went into great detail breaking down the project into approximately 200 different elements.
We then calculated prices that would offer the client the required saving but also ensure it attracted the best installers to the project. Upon completion, the client analysed the spend and predicted that they saved approximately £27,000, which of course, ended up sitting on the client’s bottom line profit margin.