Practus’ assisted the design and consulting firm in implementing a time sheeting tool within 10 weeks of engagement commencement and reducing TAT to provide price quotations to customers from ~6 days to ~2 days.

Client NameIndustryOwnershipManagementNo. of EmployeesROI On Fee SizeProject Duration
A design and consulting firmEngineering and Designing ConsultingPrivately Held Owner Managed 2005.5x$35 million4 months

About The Company

Project Freddo is a design and consulting firm in the Engineering, Procurement and Construction (EPC) for HVAC industry.  Manpower constituted ~55% of the revenue.  ​​

Practus’ Role

  • Employees were classified according to their function (design, drawing, bidding/contracting, procurement, and delivery), involvement (committed to single projects, supervisory across projects), and location (onsite, regional offices, head office).​
  • To begin with, time was recorded in a Google Doc, which later evolved into a SaaS-based time sheeting solution.​
  • “Standard” output documentation and management sign-off for key positions in all functions.​
  • Timesheet data is reviewed weekly to discover data mistakes and inconsistencies.​
  • Creation of a time-code to track time by activity.​
  • Creating an Excel application to combine time data with payroll data in order to calculate project-level costs.​
  • The rationale for the cost allocation for the shared head office and regional offices to be documented.​
  • Design and deployment of a dashboard to track budget and actual project expenditures.​

Impact Delivered

  • A time sheeting technology was installed within 10 weeks of the engagement’s start.​
  • Accurate project-level profitability led to price discussions on ~11% of customer contracts by number and ~27% by value, increasing realizations by ~6% and gross margins by $3 million.​
  • Within four months, we had completed project-level profitability assessments for 100 percent of high-value projects and 65 percent of mid-value projects.​
  • The TAT for providing price quotations to customers has been reduced from ~6 days to ~2 days.​
  • The time it took to create quotations was decreased from ~8 to ~4.5 man-days, saving the FP and A team about $260,000 in yearly wage expenditures.​
  • Within four months of the engagement’s start, Practus successfully developed a cloud-based time tracking application and covered it with a strong marginal costing system, initially on Excel and subsequently on the cloud .​
  • The involvement of Practus significantly enhanced visibility into the true cost of developing and delivering projects, employee productivity, and project level profitability.​