About the Client
A mid-sized engineering and manufacturing company that handled project-based work across industries. They had a clear goal — to scale operations and become a large enterprise.
The Problem
As they started taking on bigger projects, they noticed something worrying — profit margins were shrinking.
Here’s what we found:
- Quotations were sent without clear breakdowns of parts, materials, or project scope
- When actual work exceeded the basic estimate, extra costs were paid by the company, not the client
- Erection and commissioning timelines were delayed, increasing site expenses
- Travel, stay, and manpower coordination were mismanaged, leading to cost overruns
- Heavy fixed costs and overheads were not being tracked or allocated properly
Despite having the capacity to grow, their financial structure was not ready for scaling.
What We Did
Our approach was to tighten documentation, cost control, and project planning — without slowing down their operations.
We worked with their team on the following key areas:
- Included a clearly defined project scope in every client proposal
- Helped them prepare detailed quotations that included parts, labour, and provisions for possible escalations
- Limited and defined the scope of erection and commissioning work to avoid overwork without compensation
- Carried out a detailed overhead cost analysis to identify non-essential expenses
- Separated fixed costs and variable pay components for better financial visibility
We also advised them on how to communicate these changes to clients without affecting relationships.
The Result
The difference was clear in the very next few projects:
- All costs were clearly defined and recovered
- Delays reduced due to better planning and scope clarity
- Site teams and vendors worked within clear budgets
- The company had better control over cash flow and working capital
- Most importantly, their project profitability improved, even as their business scaled to a larger size
The owner and finance team now had greater confidence in taking on larger projects without worrying about margin pressure.
What You Can Learn
If you’re growing fast but losing profits, the problem might be inside your project structure — not the market. By fixing documentation, defining project scope, and understanding your costs, you can grow without losing control.
If you’re in a similar situation, reach out to our team. We’ll help you streamline your numbers, systems, and project processes — step by step.
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