Cookie Use Notification

This site uses cookies to provide you with a more responsive and personalised service.

By using this site you agree to our use of cookies as set out in our cookie notice. Please read our cookie notice for more information on the cookies we use and how to delete or block the use of cookies.

Outsourcing Services to C&W Results in Major Cost Savings


Click to Enlarge

The Challenge

Grontmij is the third-largest engineering consultancy in Europe, with approximately 10,000 professionals in almost 300 offices across the region and 50 offices globally.

Following a long period of rapid merger and acquisition activity, Grontmij made a corporate decision to engage Cushman & Wakefield to help rationalize its property portfolio and identify cost savings. Grontmij had no centrally held real estate data or processes in place, nor a Corporate Real Estate team to manage this area. Before engaging Cushman & Wakefield, local businesses managed Grontmij’s real estate strategy on an ad-hoc and local basis.

With a new focus on cost reduction, central oversight of real estate matters, and cost-reduction targets required by the executive board, Cushman & Wakefield was engaged to deliver in the third quarter of 2011.

 


The Solution

Cushman & Wakefield first supported the Grontmij project team, gathering the international real estate data required to create a portfolio overview. Then, an in-depth portfolio analysis and benchmarking exercise identified savings opportunities, and established space metric and cost reduction targets. The analysis identified a potential €3.5 million in annual savings. Our firm’s international broker network widely supported the Cushman & Wakefield account team to complete the analysis.

Cushman & Wakefield also created a bespoke FUSION site for Grontmij to include a database, transaction process toolbox, project folders, and Work-in-Progress schedule. Grontmij can access this site 24/7 by an Internet connection and is regularly updated by our account team.
To meet the aggressive cost-reduction targets set by Grontmij, the account team provides an important Transaction Management and central reporting function. A dashboard report, created specifically for Grontmij, shows portfolio metrics, and progress is updated quarterly and circulated to all country management teams within the business.

 


The Results

To date, Cushman & Wakefield has completed a consolidation project in Sweden, a lease renegotiation project in the Netherlands, and two lease renegotiations in Denmark. Furthermore, there are 14 projects either ongoing or in the pipeline. Savings achieved have been approximately €235,000 per annum or €990,000 over the lease term, and we are progressing steadily towards the 30% cost reduction target by 2015.

Additionally, Grontmij now has access to a comprehensive database showing headcount, square-meters-per-headcount, and cost-per-headcount to drive new space metrics. This will take time to achieve as it requires a company culture shift, but we have seen positive results in the UK, achieving a 12 sq m average per headcount.

With a clear portfolio overview and its associated costs, Grontmij’s Executive Board has embraced the need for greater central control, and appointed an internal Program Manager to support Cushman & Wakefield’s activities with local businesses.