For customers, granting project responsibility to one contractors means less project related risks, shorter time needed for implementation and more predictable costs.
We have a thorough expertise in all building systems technologies, and can thus ensure that the final result is an efficient assembly of compatible systems.
Business model and goals
Our aim is to grow as a provider of Design & Build projects and to strengthen our technological expertise and product development.
Our project business mainly consists of a high volume of smaller projects that typically have an individual value of up to a couple of million euros. Our largest target markets - and thus also our largest individual projects - are located in Central Europe, especially in Germany. In 2013, the individual value of our largest orders there was more than 30 million euros. In the Nordic countries, the focus of Caverion’s operations was more on smaller project deliveries and service and maintenance.
Design & Build projects: involved from planning to implementation
Currently approximately two-thirds of our project business revenue comes from tender-based projects, that typically include the delivery of one or more building systems often based on the ready-made plans from the customer. In these projects, customers may purchase the property’s building systems from several different suppliers chosen through tendering processes.
Approximately one-third of our project business revenue comes from Design & Build projects, in which Caverion is involved in the project from the very beginning, responsible for the design and delivery of the systems and for subcontractors. Our goal is increase their share, as projects that require extensive competence are where we excel.
By granting the responsibility for the whole project to one contractor, customers can considerably reduce their project-related risks. In addition, partially simultaneous planning and installation work reduces the duration of the implementation. Project costs are foreseeable, because they are specified during the planning stage.
By being involved in the process from the very beginning, we can also influence the choice of systems and technologies in the planning phase and, thus, improve the quality and efficiency of the final delivery. After the project delivery, we can provide the customer with service and maintenance as well as energy efficiency services.
Main differences between Design & Build and tender-based contracting
Comprehensive services a competitive advantage
Caverion’s key strengths are related to its special technological expertise and comprehensive services that cover all areas of building systems. Caverion has competence in extensive, multi-discipline projects that are long-lasting and require a lot of resources.
We have a thorough expertise in all building systems technologies, and can thus ensure that the final result is an efficient assembly of compatible systems. We provide services throughout the lifecycle of the property. This allows us to use the information we receive from service and maintenance operations also in designing the building systems in project deliveries.
Smaller contractors can deliver individual solutions, but cannot provide comprehensive expertise and services that combine all building systems and the whole life cycle of the building.
Our strategy for winning projects is special expertise and proven track record, instead of offering the lowest price. By focusing on this we will also take care of our margins. We aim to choose projects carefully with regard to risks, profitability and our own expertise and resources.
We develop common processes and tools
We are developing our project business competence strongly across borders. By exploiting this synergy, we will improve our efficiency and, consequently, our profitability.
We aim to share the best practices, process expertise and tools from individual countries, so that they benefit all the countries at the same time. By forming an international network of our project business experts, we can use the competence and experience accrued in different countries for steering individual projects.
Our research and development centre in Aachen, Germany, will continue to promote our special technical expertise and product development in all the countries where we operate.
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