CASE STUDY
How OverDrive Services helped a construction services company eliminate staff turnover, optimize their workstreams, increase profitability and reduce administrative expenses.
"OverDrive streamlined our in-house operations and gave us the engineering, accounting, estimating, vendor development, bidding and project administration talent we needed. Where we had turnover and training problems before, their team is solid. Clearly the best outsourced group we’ve ever worked with. Our operations are efficient now, so we are adding new projects much more easily.”
CEO
Confidential Construction Services Company
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Highlights
60%
Reduction on Labor and Administrative Expense
70%
Increase in Operational Efficiency
100%
Bidding Success
Eliminated Professional Staff Turnover
Overview
In the Spring of 2020, a leading Texas-based construction services company approached us with a number of problems they were unable to solve which were inhibiting their ability to compete and win new projects.
The Challenge
Turnover: This client faced a number of challenges, primarily in three areas. The first of these was Turnover. Unlike many organizations where staff turnover is primarily among the general administrative or technical staff, this client experienced over 60% annual turnover among its key team of senior engineers, estimators, finance and project administrators. This turnover was stripping the firm of its most tenured, experienced and highly paid staff. Thus, hiring and training new professionals has become a significant impediment to bidding and winning new projects.
Sub-optimal Operations and Workstreams: Though the company had engaged consultants and implemented project management software, the business was managed largely with spreadsheets. Lack of effective workflow management was creating confusion and redundant, overlapping workflows. The impact of these inefficiencies was creating stress on the culture, numerous project losses and reduced profitability.
Cost Containment and Disappointing Profitability: In addition to the costs associated with inefficient operations and high turnover, this client wished to reduce labor cost across the company. The firm’s in-house staff expenses were three to four times that of the investment in our team not including labor burden, healthcare, retraining and the HR risk associated with W2 staff. Our team of seven professionals replaced 12 outsourced staff from another firm, three senior engineers and reduced in-house costs in the areas mentioned by over 60%, not including cost savings due to substantially more efficient workstreams.
By leveraging a virtual team of professionals from OverDrive Services, they are able to capitalize on the most desirable project opportunities. This strategic partnership and our proactive risk management has been essential for sustaining growth and competitiveness in this very competitive construction industry landscape.
Results
The key focus of integrating the OverDrive Services professional team into the client’s operations was to drive efficiency, productivity and project win rates. This integration has led to a 70% increase in the client’s operational efficiency as measured by faster bidding turnaround times, more accurate project costing and streamlined project administration.
Secondly, by leveraging the expertise of OverDrive Services' team of professionals, the client is realizing cost savings of 60% and rapid subcontractor recruitment which has resulted in more wins and greater profitability per win. With OverDrive Services' support, they have experienced very nearly 100% success rate of every project bid.
OverDrive Services now does all the project administration as well as directs and manages its staff and a portion of the client’s W2 personnel.
Finally, enhanced collaboration, communication and knowledge sharing among team members has helped create a culture of innovation and continuous improvement. This is manifested in greater client satisfaction, an enhanced brand and sustained growth.
The OverDrive Solution
OverDrive Services offered a comprehensive solution tailored to the specific needs of this construction services enterprise. Leveraging a highly skilled and diverse talent pool, OverDrive Services provides experienced professionals proficient in various aspects of construction project management, bidding, estimating and logistics coordination. Through seamless integration with the client’s improved workflows and processes. One example is OverDrive’s efficient handling of the volume and array of workflow tasks such as reviewing drawings, generating bid lists, conducting follow-up calls and recruiting, qualifying and coordinating with subcontractors.
Implementation Strategy
The implementation strategy for integrating OverDrive Services' virtual team into the client’s operations included a structured approach focused onboarding, efficient resource allocation, performance monitoring and flexibility. At the onset, OverDrive Services produced a playbook, strategy and operational guidelines for each of the client’s workstreams. This resulted in greatly improved operations, a reduction of wasted of lost labor and other costs. It also produced a competitive advantage in that the firm was able to bid more efficiently and in a timely fashion on every project of interest to the client.
Resource allocation is carefully managed with a designated OverDrive team lead overseeing coordination and communication channels established for real-time collaboration. Performance monitoring mechanisms were implemented to track productivity and quality of work, with regular feedback sessions conducted to address any issues or areas for improvement.