Wondering how you can control spiraling costs in your upcoming expansion project? Read the top 4 reasons why costs can get out of control…
15 May 2023
There are many options on how to take on your upcoming expansion project and you may be worried about the cost implications of each. In this blog we discuss the common unforeseen costs that typically arise in a factory expansion project when it is managed in-house or by a partner without food industry specific knowledge.
Overlooking the design phase
Without working alongside a knowledgeable food factory design team, you may not be able to determine the size of building you require or the amount of production space you need. This can lead to the amount of space being overlooked and result in you spending a significant monetary investment as well as investing a lot of your time into a new production facility which you are going to grow out of very fast!
Not having done a comprehensive design process, can also mean that details of layout and finishes have to be decided whilst works are happening, which often lead to misunderstanding and elements of the project being finished incorrectly. This can result in contractors charging extra due to elements of work being carried out twice.
Lack of food industry knowledge
Using the cheapest subcontractors or general subcontractors with no food industry experience might be a tempting way to cut costs, but this is very likely to lead to poor quality of work and not up to the higher standards required for food production. This can result to you having to do your project twice!
With little knowledge in certification criteria (eg. BRC/SALSA), production areas may be built to a lower spec than required, meaning you then have to further upgrade later on creating more unforeseen costs.
Lack of experience
With a lack of project management skills, friction can be created between teams as there can be a lack of coordination and structure to the project. This can lead to delays and contractors charging for failed site visits and extra transport costs.
With little experience in running a project of this nature you may find it difficult to give attention to smaller elements of work that are often overlooked because of the larger elements of the project. This can happen when projects are dealt with in-house and lead to budgets slipping further due to not having one fixed cost and not allowing contingencies for risks such as a rise in material costs.
Lack of time/headspace
When choosing to manage a project yourself, you are taking on another responsibility which will require a lot of time and energy if you want the project carried out to your liking! If you are struggling to manage your priorities between your usual business activities and managing your expansion project, you may not be able to give contractors the attention they need. This can result in work being done twice and additional costs because of it.
Oakley’s strong reputation is built on solid food factory design experience coupled with a unique turnkey approach that removes the stress and risks from food factory expansion. Get in touch with us for a no-obligation chat about your plans and we’ll advise what we think is best for you.
Visit our stand (E72) at the PPMA Show!
We are excited to announce that next month we are exhibiting at the Foodex Manufacturing Solutions 2023 show!
What does the construction phase of a turnkey project look like?
If you are confident in our turnkey approach and happy with the design, we can then proceed with the building and fitting out of your new food factory according to the detailed design. This enables you to completely step back from the project, allowing you to focus on running and growing your business, knowing it’s in safe hands.
The importance of aligning food certification requirements when planning and designing the build of a new factory facility
If you don’t think turnkey is the correct route for your upcoming expansion project, you will need to bear in mind who will take on the role of principal designer and contractor. This is an important factor as this will expose you to risk including ensuring your new factory facility is built to the requirements of necessary food certifications such as BRC and SALSA.