Project Case Studies

Risk Management Used in Commodity Contracts

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Cost Savings: 15%
Contractor Change Orders: 0%

Schedule Delays: reduced to 5%

Satisfaction: 40% increase

Total # of projects: 1,115


Type: Furnishing services

Manufacturers: Knoll, Herman Miller, Steelcase

Location: Statewide in Arizona


Contract: $7,700,000 / annually


Start Date: July 2009

Finish Date: July 2012

Tri-University Furniture Consortium

The Tri-University Furniture Consortium of ASU, U of A, and NAU was experiencing unsatisfactory performance from their furniture providers. The consortium turned to our group to apply the Best Value Model for dealer selection, contract development, and contract management support for risk and performance measurement.

The results have been impressive. The Best Value approach challenged the traditional process of commodities contract procurement by evaluating the suppliers on their ability to identify and minimize risk. Dealers now monitor their project delivery performance on a weekly basis, in terms of cost and schedule deviations. The contract has saved the Universities approximately $2.9M, with 0% cost increases, and an overall 5% schedule delay over the past three years.

REFERENCE: John Riley, Executive Director of Purchasing at Arizona State University | | 480-965-6532

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