Great teamwork and strong contract management cuts costs in half

A new distribution centre in Nigeria for a major consumer goods manufacturer has been completed at half the cost of an initial quote and meets quality requirements.
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Project facts

  • Client
    Major consumer goods manufacturer
  • Location
    Nigeria
  • Challenge
    Design of a new distribution centre at a lower cost
  • Solution
    Completion at half the cost of initial quote while meeting all quality requirements

The challenge

Local presence and experience key to engagement

Having recently opened a factory building in Nigeria, our client needed a new distribution centre alongside the factory. They asked us to identify a contractor and to provide support during construction. In particular our client wanted a lower cost solution than that proposed by their original contractor. They approached us because we have a local presence and experience with similar projects.

We worked with our client to identify a shortlist of possible contractors - local and international. Having sent out tender documents, we handled clarifications and price evaluations before negotiating the award of the contract. A local contractor was selected.

The solution

Hands-on support for local contractor ensured project success

To ensure the success of the project, we provided considerable construction management and supervision support. This needed to be hands-on, helping the contractor organise the work in a safe and timely way. We knew, from previous experience, that assistance with quality standards and deadlines was particularly important. The centre was handed over to the client with quality standards reached and costing half the price quoted by the original contractor with just 0.5% additional costs.

The result

A new distribution centre in Nigeria has been completed at half the cost of an initial quote and meets quality requirements.

The real success factor was the trust placed in us by our client, enabling us to work together as one team resolving issues. They really made the best use of our capabilities.

Ivar WoudenbergAssociate Director – Project Management and Consultancy Multinationals Royal HaskoningDHV
Patrick Ramakers - Global Business Development & Associate Director

PatrickRamakers

Global Business Development & Associate Director