There’s no doubt we’ve all noticed things are getting expensive – from energy costs to raw materials, fuel and shipping charges, labour shortages, and environmental fees – both figuratively and literally – most things.
Steel suppliers seem to be updating prices weekly. Similarly, just as timber, glass and textile industries raise their costs, we’ve seen new results in a sort of volatility that has been unseen for a generation. While this change hasn’t been the most welcoming part of our new normal, a new understanding needs to be realised and greeted with agility and calm.
“TRUE VALUE MANAGEMENT IS ENGINEERING PROJECTS THAT MEET BUDGET CONSTRAINTS AND REDUCE LEAD TIME RISKS THROUGHOUT PROJECT LIFECYCLE.” – PINO CARROZZA
“Value management,” says Pino Carrozza, “and options.” Clients expect it to be an integral part of every job today, and fairly so. We must engineer projects in order to reduce lead time risks, meet budget constraints and find creative ways to deliver maximum value throughout the project lifecycle.”
As McCormack’s Estimate and Procurement Manager, Pino Carrozza has the unenviable task of keeping clients as happy as the directors. The position requires a nimble mind and constant information. This new world applies to everyone, with very few exceptions, so Carrozza is regularly finding ways to ensure McCormack is taking care of business while also taking outstanding care of our clients.
“It used to only be a few clients looking for options (on value management), but now it’s almost everyone. We work with architects, suppliers, and asset owners to help manage expectations, so the rising costs coupled with supply chain issues have forced us to think outside the box and find ways to deliver more value while keeping costs down.
Carrozza explains that spec suites were $800 per sqm only a few years ago, but these days identical suites are approximately $1200 per sqm. Of course, some of the blame for high prices can be shouldered on the changing expectations of quality and increased competition between asset owners wishing to lease vacant spaces. However, in a short period, inflation and global supply chain issues have had a significant effect on all facets of our lives, professional and private.
So how is McCormack truly finding value for our clients while uplifting the quality of projects?
“We’re increasingly sourcing local or Aussie-made to manage lead times where possible,” says Carrozza, which is great for the miles and, naturally, its impact on the environment. However, when traditional costs blow out, or shipping and freight become untenable, difficult decisions must be made, and a balance is to be struck. At every step of the way, McCormack is using value management and Carrozza’s industry nous to ensure our projects are mitigated for risk with global and domestic issues, or logistical holdups. We continue to look for ways to deliver every project’s uncompromised vision, and McCormack is focused on producing quality work for every client.
With this new normal in mind, flexibility is crucial and Pino Carrozza, working closely with our directors, is bringing agility and stability to an unstable commodity market while providing suitable solutions for all our clients and projects.