Race to the Finish: Getting Your CAPEX Projects Done By End of Year
Back in May, Perry Construction Management published a blog outlining the importance of securing resources for CAPEX spending projects as soon as possible. The COVID-19 pandemic created a significant, compressed “spending coil” for food and beverage manufacturing plants across the country. Unlike other industries that experienced a downturn this year, the food and beverage industry saw upswings, with many facilities running at maximum capacity (and beyond) to keep up with consumer demand. As a result, despite increased revenues, many engineering managers had to push out capital planning initiatives just to continue production.
Well, it’s September, and just as we had anticipated — the coil has officially sprung.
The food and beverage plants that were able to plan and secure contractors in advance are rolling into the fourth quarter knowing they have allocated surplus profits accordingly. However, for the facilities that waited, putting capital spending on hold in hopes of reclaiming some sense of “business as usual,” — the race is officially on.
Three Tips to Accelerate Completion of Your CAPEX Projects
While it’s not too late to complete CAPEX projects before years’ end, it may take some additional planning and strategizing to keep construction moving forward. Three tips to help accelerate completion of your 2020 CAPEX project include:
Involve Contractors in the Planning
Right now, contractor resources are limited, with everyone vying for their attention in an attempt to lock them into multiple CAPEX projects across several plants. Work with trades contractors as early in the planning process as possible to prioritize every build and confirm that there are sufficient resources allocated to each project phase.
Consider Alternative Project Delivery Models
Sometimes food and beverage manufacturing plants rely on engineers to put the project together. Working with an engineering company can prolong the process with added downtimes between funding, bidding, and planning. Now is the time to consider more rapid project delivery models, such as design build, to expedite execution and shave time off of the process as a whole.
Build a Plan
Getting your CAPEX project across the finish line before the looming end of year deadline will require building a solid execution plan as soon as possible. Developing a solid planning foundation that considers your production demand, surplus profits, and necessary contractor resources will allow for multiple projects to be executed simultaneously for expedited completion.
Contact Perry Construction Management for a Free Consultation
Are you struggling to complete CAPEX projects before the end of the year? Perry Construction Management can help. PCM offers site assessments for OSHA compliance, COVID-19 preparedness and other regulatory requirements. Schedule a free consultation today to learn more.