How ProEst helped a healthcare giant improve pre-construction workflow
As part of the 37,000-employee Geisinger Healthcare System, in-house contracting team Workplace Design and Delivery provides over $200 million a year in capital improvements to the organization’s healthcare facilities across the country. With an employee base of just 75, the company has recently expanded to include three offices and plans to add a fourth location early in 2020. Within three to five years, Workplace Design and Delivery is projected to grow as much as 300%, reaching a potential annual revenue of $200 - $300 million by 2024.
The company’s plans to expand, coupled with an outdated and disorganized estimating process convinced Ronald Lesher, Director of Preconstruction Services, to seek a new estimating solution that would support greater consistency and efficiency. Moreover, he and Chief Estimator Patrick Jacobs knew that they had to significantly reduce the time and cost of their estimating activities in order to protect the bottom line. As a long-time user of the ProCore management platform, the company was also seeking a solution that would replace their current spreadsheet system and integrate seamlessly with ProCore.
Meeting A Rising Demand For Healthcare Facilities:
As part of the Geisinger organization, Lesher was focused on the future of the healthcare industry as a whole. He pointed to the fact that baby boomers are reaching an age that can require increased medical care, and that Geisinger must be fully prepared to meet the challenge. “There’s a huge demand now for increased facility sizes and additional beds,” he said, “and we project that we’re going to have a significant capital increase over the next 10 years.” For Workplace Design and Delivery project estimators, that means an unprecedented volume of project estimates and the need for a scalable estimating solution that can meet the demands of the next decade and beyond.
Normalizing The Estimating Process For Every User:
For Lesher and Jacobs, ProEst checked all of the boxes, offering the kind of advanced estimating and pre-construction management capabilities that would serve their needs for years to come. Equally important, Lesher said, was the solution’s ease of use. “We have individuals that aren’t super computer-literate,” he said. ProEst was a way for us to normalize the estimating process as well as make it faster.” With a new and improved system, he said, the company can complete significantly more estimates and improve the ratio between time and cost. Lesher also appreciates the anytime, anywhere access the ProEst platform offers his users. “Whenever any of us need to look at it or work on it, it’s always there,” he said. “It’s never hidden in someone’s drive on their computer or some where else. The consistency of just having estimates in an accessible location on the web is really important.”
Exceeding Expectations For Productivity And Revenue:
Since the addition of ProEst, the average hit rate of Workplace Design and Delivery estimates increased by 8%—from 24% to 32%. And within three to five years, the company is projected to grow by 300%, potentially reaching $200 - $300 million by 2024. Most impressive to the estimating team, however, is how efficient and error-free the estimating process has become. “The benefit of the ProEst system being so simple is clear,” said Lesher. “Whether we’re estimating a $500,000 job or a $50 million job, it’s still simple to do.”