A written offer is always drafted for additional work and alterations

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A written offer is always drafted for additional work and alterations

When large and complex buildings are constructed, it may be necessary to carry out work that was not anticipated in the original plans. Earlier, the problem was that additional work and alterations could not be priced correctly during projects, or deciding on the changes delayed project progress. This impacted on project margins and thereby also on SRV’s profitability.

SRV tackled this problem by revising its operating model for additional work and alterations. It was launched at all SRV sites in 2017.

“The operating model has significantly improved project margins. When SRV recognises the need for additional work and alterations, it prepares a cost estimate for the client. This keeps clients better informed of the prices of additional work and alterations, and the amount of work required, as they are always reviewed at a separate meeting with the client”, says Production Director Kimmo Kurki.

SRV does not start additional work and alterations before receiving a written confirmation from the client. “One of the changes we’ve made is that the client accepts the offer within the target schedule — and in writing, of course.”

This operating model also enables more effective monitoring of numerical targets, such as the value and amount of additional work and alterations, and the time required to draft and approve offers.

The story was originally published in the 2017 Annual Report

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