Prioritizing & Planning
All companies prioritize projects that are critical to maintain the ordinary operating condition. Once those are handled, the focus shifts towards proposed CapEx projects that will drive efficiency or productivity.
At Global Construction, we want to set you up for success from the get-go. We understand that before undertaking a large scale CapEx project, standard functionality and maintenance issues must be addressed. We know that trust must be earned before a large investment can be justified which is why we have an entire department dedicated to building repairs and maintenance should you require these services prior to any capital expenditure.
By bringing in our team early on, we can help identify and correct any problems now that might lead to expensive and time-consuming issues down the road. We can also make maintenance and repair recommendations based on future objectives at these early stages, reducing the potential for unnecessary spending.
From the standpoint of owners, investors, operators, and asset managers, capital expenditures must fulfill the strategic and operational objectives of the business and deliver a return on investment for more than one fiscal year.
Careful planning and execution of CapEx projects can make a substantial difference in the project’s bottom line almost immediately and in the long-term as well. At Global Construction, we approach all of our CapEx projects from the standpoint of a partner which is why it is crucial for us to qualify the type of work required and understand the project’s scope and objectives.
A professional assessment of the facility’s current condition is essential to accurately budget the project. Valid projections on materials, labor, and code compliance costs can only be formulated by experienced general contractors who are dealing with these numbers every day. Failure to precisely account for the true costs associated with a CapEx project in the very beginning can prove disastrous down the line.
We understand the proper scope for a capital improvement will depend on a number of factors including:
- Market forecasts
- New technology
- Industry trends
- Price and availability of equipment and materials
- The impact of interruption on operations, occupancy, and resulting revenue loss
- Whether the intended work will increase property value
- What competitors are doing to enhance their properties
- When the asset is likely to be sold
Unlike most general contractors, we have the expertise to guide and manage the project in a way that is most beneficial for the ownership team. From material selection and procurement to resource allocation, to packaging the schedule, our ability to view the project holistically allows us to make suggestions that reduce costs and speed up the construction process.
Execution of CapEx Projects
We are not just following orders, armed with a clear understanding of the business, where it is going, what opportunities it will pursue, and how it will flourish in the future, we become invested in the success of the project. Our general contractors go above and beyond, helping to steer the ownership team in the right direction for achieving the project’s goals, and easily adapting to changing market conditions.
“We are looking out for everyone’s success. The owners, the investors, the future clients, the subs, and ensure our focus remains on the revenue-enhancing components.” – Bill Bryant, Senior Project Manager
Property capital improvements we excel at performing include:
- Fixing a defect or design flaw
- Creating an addition, physical enlargement or expansion
- Rebuilding property after the end of its useful economic life
- Replacing a major component or structural part of the property
- Adapting property to a new or different use
We understand the large costs and many risks associated with capital expenditures. Successful management and execution of a CapEx project are essential to the positive growth and success of the company while mismanaged and poorly executed projects can lead to its demise.
With over 4 decades of combined industry experience, our seasoned project managers are ready to tackle your large or small CapEx project ensuring you get the maximum return on your investment.
Many new and unprecedented challenges continue to appear for CapEx projects as we move toward the new post-COVID world. We are excited to be involved in the opportunities presented for ingenuity and contribute to a future of better, value-adding capital projects.