Not sure if turnkey is right for you? Here are 3 alternatives to consider for your expansion project…
3 April 2023
We accept that our turnkey approach isn’t right for everyone or every project. You may be wondering what your alternatives are, so we have listed the top 3 below alongside their pros and cons to help you consider the best method for you and your upcoming factory expansion project.
Manage it yourself
If you feel you have the time and experience to commit to the project, one option is bringing in the various subcontractors and managing it yourself.
Pros:
- This will often be a lower cost solution.
- Will give you greater hands-on insight into the day-to-day running of the project.
Cons:
- If you are considering this route don’t underestimate the time and energy this will require!
- Ensure you don’t skip the design process as this is key for a successful project delivery.
- Although on the face of it this may seem a more cost effective option, there are many unseen costs to take into account such as your management time and elements that fall between the main work packages.
- The distraction of this method can have a negative effect on the business and its growth plans and this should be taken into account.
Pay a third party project manager to manage it for you
If you don’t have the time to manage the day-to-day site activities another option is to delegate this to a project manager or a project management company.
Pros:
- These would typically charge a management fee (often as a percentage of the project value) which at face value can be more cost effective than turnkey.
- They act on your behalf coordinating with subcontractors etc to keep the project on schedule which will somewhat reduce the need for your involvement as the business owner.
Cons:
- A project manager or project management company will simply act on your behalf in dealing with the various contractors so they don’t usually guarantee a fixed cost for the project, and you will be liable if costs slip due to price increases or unforeseen pitfalls.
- You will need to take care of the design before the project commences. Not giving this phase sufficient time or attention could result in your finished factory not meeting your requirements.
If you have a competent project manager and are comfortable with the budget risks, this could be a good option for you.
Go down the traditional route
This method is commonly used for larger projects involving construction and involves appointing an architect, QS, and main contractor etc.
Pros:
- This puts you in the driving seat and gives you control over the process as you or your project manager is ultimately responsible to coordinate the project.
- There is a clear division of roles and responsibilities between the different parties involved in the project.
Cons:
- This can be frustratingly slow and inefficient and will often require a lot of input from you as the client.
- A common frustration is a lack of solid food industry specific knowledge and experience with many architects and contractors.
- Although this approach gives you more control, this puts the responsibility for the success of the project on your shoulders.
- The division of responsibilities between multiple parties dramatically increases the number of lines of communication which can create confusion and be very time consuming.
If you have time on your hands, and sufficient expertise to bring to the project, then this may be a viable option for you.
If you are the owner of an SME food manufacturing business considering expansion plans you may be feeling overwhelmed and not sure where to start. If you don’t think the alternatives above are right for you, then our turnkey approach may be the answer for you.
Get in touch with us for a no-obligation chat about your plans and we’ll advise what we think is best for you.
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