Engineering & Construction Services
Engineering and construction program managers, integrators and providers of engineering, structural, environment or architectural services need to quickly turn around accurate and compelling proposals for their services. Due to the nature of construction, these projects often last many years, requiring adjustments for inflation, cost of living and resource availability as part of the pricing structure or built into the risk-adjusted margins. Competition, supply chain disruptions, safety regulations and restrictions in skilled labor makes it harder to predict a project's profitability years into the future, yet that is precisely what your customers are demanding. Twenty5 will help you to more accurately cost and price project-based proposals, across a combination of labor, materials and equipment rental, with scheduling, escalation, compatible-unit, risk management and confidence-based estimating algorithms based on actual performance history from your SAP ERP system, all from our central database.
Problem
Planning out a multi-year engagement spanning a complex construction project in detail is a major undertaking, something which few engineering and construction service providers want to undertake during the proposal-stage. As a result, Excel-based assumptions and over-simplifications result in a cost and pricing model underpinning the proposal which does not stand the test of time, and questions asked about who/how the estimate was calculated, when the project is overrunning, go unanswered. Engineering service providers need a project management tool which allows rapid top-down planning of complex construction projects, importing of bills of service (labor categories/hours) and bills of material (parts lists) from prior history, and systematic and rapid calculation of multi-dimensional costs and mark-ups over time, including risk, cashflows, confidence, depreciation/amortization and proposal P&Ls.
Solution
Project Knowledge Base
Mine existing proposal and project data from your SAP ERP, define best practice templates, and set-up new proposals faster, directly from your CRM based on prior knowledge and performance history.
Materials & Equipment Estimating
In addition to labor, estimate materials and equipment using bills of material imported from SAP, PLM or Excel, costed out using catalog, prior history or SAP cost estimates, adjusted for inflation and quantity/lot-sizes and other factors, with optional parametric or questionnaire-based sizing input costing.
Forecast Estimate to Complete
During project delivery, forecasting estimates to complete based on actuals from SAP S/4 and cyclical roll-over of actual vs. forecast estimates from last period, with simple adjustment of percent complete or remaining work at any level of the project WBS or resource hierarchy.
All the Pricing Strategies
Price using T&M, cost-plus, fixed/incentive or outcome/benefits based strategies. Model pricing inputs and elements such as discounts, technology charges or service taxes, and configure your own pricing strategies by contract line item or deliverable.
Estimating Cockpit
Make planning simple and intuitive with our Excel-like resource planning interface, allowing you to plan by task, week or month, based on hours, days, FTE or calculating effort from questionnaire-based sizing inputs and machine learning.
Proactively Manage Uncertainty
Manage risks and opportunities which impact both cost and revenue from the proposal phase. As you engage with more fixed price or outcome based bids, understand risk and opportunity adjusted cost, price and margins at different confidence levels using Monte-Carlo.
Manage Global Bids
Support proposals across onshore/offshore teams with our multi-currency, multi-country, multi-entity, multi-calendar and multi-language tool, with collaboration and workflow built-in, all from one central database.
Contract & Project Set-Up in SAP
At contract award, seamlessly convert Twenty5's proposal into an SAP contract, billing plan, project, WBS labor/material resource plan, and cost/revenue by fiscal period, for execution and actual cost collection in SAP, retaining your estimated cost and revenue baseline for future comparison.
Benefits By Role
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Quickly digest key proposal stats
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Compare proposals across product lines or divisions
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Understand pipeline profitability by quarter
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Compare actuals to estimated during project delivery
