Combining multiple projects can maximise results

One of the challenges faced by many of our clients is how to manage a large portfolio of small, discrete capex projects all of which take time and resource to manage. We have found a solution to this challenge by rolling up all of these projects into a single framework agreement that has a number of benefits as outlined here.

Cost savings: By consolidating multiple small projects into a single framework agreement, companies can take advantage of economies of scale, streamline procurement processes and reduce transaction costs. This can lead to significant cost savings in terms of procurement, contracting, and project management.

Improved project coordination: Combining several small projects into a single framework agreement allows companies to better coordinate project activities and resources, reducing the risk of delays, conflicts and other issues that can arise when managing multiple projects separately.

Enhanced project management: Consolidating multiple projects under a single framework agreement enables companies to standardize project management practices, procedures, and tools. This can lead to better project planning, tracking, reporting, and control, resulting in improved project outcomes.

Improved supplier relationships: A framework agreement can help build stronger relationships with suppliers, enabling companies to negotiate better terms, pricing and conditions. This can lead to more favourable supplier relationships, which can translate into better quality, faster delivery, and reduced project risks. The economy of scale also enables clients to work with larger contractors – for example the resin flooring required on one small project might be too small a job for some of the larger players, however combining the flooring requirements across five projects into a single contract makes it a more attractive proposition.

Simplified contracting: A framework agreement can simplify the contracting process, allowing companies to avoid the need for multiple contracts, and reducing the administrative burden of managing multiple vendors, legal documents, and invoices.

Overall, combining several small capex projects into a single framework agreement can help companies streamline procurement processes, reduce transaction costs, improve project coordination, enhance project management, build stronger supplier relationships and simplify contracting.

DDK works as a trusted strategic partner to our clients, handling full project portfolios and advising on capex strategies. Get in touch for a free, no-obligation consultation.