Since 2005, NRES has been actively involved in the development of a $70 million flashlight factory in Ontario, CA. Due to the broad scope of work and direct involvement of the client/owner, cost control was a top priority. Additionally, it was imperative to remain on schedule so as not to disrupt the firm’s manufacturing process. The project involved construction of facilities for fabrication, finishing, assembly, machining, warehousing, shipping, and receiving.

NRES’s experience dictated that savings on this large scale project would best be realized through two distinct strategies: value engineering and creating a competitive contracting environment. Diligent value engineering generated savings of $7.1 million, or over a 10% reduction in project costs. By contracting directly with the structural concrete and reinforcing steel subcontractor, NRES saved the owner an additional $2 million.

With the help of NRES, the savings realized were converted to working capital for the owner; in other words, from opportunity cost to opportunity for new product research and development.