A better way to procure utilities infrastructure

What’s the most frustrating and dangerous phrase in construction?

“That’s how we’ve always done it.”

Costs are going up, construction programmes are tightening and the demand for new buildings in all sectors is sky high.

And yet – a huge number of developers, contractors and building owners stick with old methods that cost the client time and money.

That’s especially true for utility procurement. Clients are paying more than they should and enduring programme delays because utility companies are complacent.

At Zenit, we offer smart planning and a lean management model which provides a decisive break from that old fashioned approach and is fit for the modern world.

Payment structure

The way it’s always been done

Most utility providers will ask for a large sum up front without explanation as a matter of course – a substantial financial burden for any project to take on at the outset before anyone has lifted a finger.

What is that fee for? Why do they need half up front? There is nothing to procure at design stage and most expenses come later, so what is the client paying for?  

There never seems to be an answer to those questions or any justification for the standard payment structure utility companies use.

They will also struggle to justify it when challenged as most of the time that sum will sit in their bank account doing nothing until designs are approved at a later stage.

Not only is this an inefficient way to allocate your funds, but it also risks those funds being spent on other projects that are nothing to do with yours.

The Zenit way

Instead of asking for as much as 40-50% up front as standard, even on jobs where that isn’t necessary or justifiable, we offer granular payment terms for most jobs in line with key programme milestones.

The up front sum is comparatively small and you will know:

• Exactly when more funds will be required
• What each payment is needed for
• How those payments fit into the overall picture

It’s transparent, reliable and relates to what’s actually happening on site – rather than being an arbitrary number pulled from thin air.

We never take money we don’t need and leave it sat in our bank account for no reason.

Design

The way it’s always been done

The established method in the sector is to do a full design once the job is accepted. That means you, the client, would only be able to see a design after you have appointed a utilities firm.

Also, after you have paid them a substantial sum up front in most cases.

It makes very little sense and explains why so many utility providers end up going over budget, or fail to meet deadlines.

It’s also why most utility contractors end up being subject to contractual variations. The scope isn’t clearly defined at the start and the contract presented at the start ends up not being fit for the job once it encounters reality.

How can they give you an accurate cost and timeline if the design isn’t even drawn up until after you’ve agreed to a speculative quote and paid for half of it?

It all costs you time and money.

The Zenit way

We create a design and functional specification at pre-construction so you can see exactly what the plan is, what it involves, how long each stage will take and what everything will cost.

You will be able to…

• See upcoming pain points
• Plan solutions ahead of time
• Avoid costly surprises

By operating transparently and working with you from the earliest pre-construction phase, we guarantee solutions that are fit for purpose and give you the outcome you need.

All that, and at only a fraction of the cost up front rather than a 50% lump sum.

Contract terms

The way it’s always been done

The client has to accept the full utility procurement contract up front. You’re locked in with one supplier and can’t go elsewhere if they prove to be inadequate for the task.

No matter what goes wrong, you’re tied to them and have to rely on them to fix it even if that solution turns out to be expensive or time consuming.

This complete lack of flexibility and inability to put the needs of the client first is a hallmark of utility procurement as it works today.

The Zenit way

We can design a contract that suits your job and provides flexibility to minimise delays.

For example, we can offer contract terms such as non-contestable and design being split from the overall offer.

This allows us to lock those in and obtain design approval while you wait to receive funding, appoint a main contractor and deal with all the other early stage work.

Once that’s done, having the design and non-contestable work in place already means the job can proceed immediately.

Substation procurement

The way it’s always been done

Substation procurement regularly takes up to 24 weeks from ordering. That’s after you accept the quote and the utility provider then goes away and creates their design for your site.

That’s a hard timeline that can’t be accelerated, and it can stop a job in its tracks.

In part it’s down to how late a standard utility procurement company will put their plans in place. By waiting to do that, they end up ordering substations later and the 24-week countdown doesn’t start until after your project is already well underway.

The Zenit way

Creating a design and functional specification at the pre-construction stage means we can get that substation countdown started much earlier than other utility companies.

That ensures…

• We know exactly what’s needed at the outset
• The substation procurement process can be kicked at a much earlier stage
• A big chunk of time in the construction programme is eliminated
• Your project stays on track

Time is money, and our accelerated process means that you won’t spend yours waiting six months for substations to be delivered, installed and connected.

Progress updates

The way it’s always been done

It’s common practice for utility companies to only offer updates when asked. Their plans, schedules, procurement process, installation timescales and everything else are all opaque and separate from your workflow.

It’s part of the general lack of transparency in the sector and it means you’re going to be constantly chasing just to understand what’s going on.

You can’t run a site effectively when you don’t have visibility over key infrastructure.

The Zenit way

We offer a fully integrated delivery plan from the pre-construction stage onwards that programme is coordinated in Monday.com, offering the following benefits:

• A utility procurement schedule that is very similar to a standard build programme
• Can be overlaid on your own construction programme
• Builds transparency and helps clients arrange their on-site works

Aligning our plans in this way ensures that you never need to chase project updates or wonder where the utility work is up to – it’s all there for you to see on demand.

Improved processes at every stage

Utility procurement isn’t a simple process, but it doesn’t have to be as hard and frustrating as most utility companies make it.

We’ve designed our process at every stage from the ground up and the result is a client-friendly method which saves you time and money.

We provide feasibility works, reports and asset maps that enable us to be involved in the project much sooner and define the utility infrastructure requirements at a much earlier stage (RIBA stage 0 to 3).

Other utilities companies don’t offer this as they are very much focussed on construction only. That approach builds in guaranteed delays to your project and makes cost overruns more likely.