Case Study
$30M Project Turnaround - 12% Margin Recovery
Challenge: Large infrastructure project experiencing schedule slippage, margin erosion, and declining customer satisfaction
Initial assessment identified:
- Scope creep increasing due to lack of sound contract management
- Subcontractors had low bid their scope and weren't getting enough change orders to compensate for their backfired strategy
- Delays due to lack of "boots on the ground" to oversee field testing and validation
Turnaround Plan:
- Focus on reducing scope creep and increase contract management resources
- Restructure project management team and teamed up with local partners to increase oversight of contractors in the field
- Negotiated change orders, schedule acceleration and faster payments to improve subcontractor's cash flow
- Rebuilt relationship with customer and regained trust. Shared turnaround plan and got buy-in. Tracked and communicated progress among stakeholders regularly
Results:
- Margin: 12% → 24%
- Timeline: 6-month slip recovered
- Customer trust regained. Subsequent contracts awarded