How Stemcon Protected Their Construction Profit Margins with Newforma Project Center

This is part of our Essential Strategies to Protect Your Construction Profit Margins, this section focuses on effective tactics to avoid profit erosion and manage costs. Learn how to handle contracts and change orders efficiently to maintain a healthy bottom line and secure financial success in your projects.

With over 25 years of experience in the Melbourne property market, Stemcon provides seamless, full design and construction solutions. Stemcon recognizes that each project can be unique and by assessing the design brief, site logistics, timeframe, and macro-environmental conditions, a series of strategic decisions are made to provide a tailored solution. Stemcon continues to grow through strategic planning, risk management, dedicated client service, and a drive to achieve the best outcomes for clients.

By law in Australia, construction firms are required to provide defect-free construction for 7 years. Firms needed to prove there were no structural defects throughout this term. Prior to implementing Newforma Project Center, records were kept in boxes and placed in storage. If questions or issues arose regarding structural integrity, it was extremely difficult for Stemcon to locate the documentation to prove that Stemcon was not liable.

With one project, in particular, Stemcon faced a difficult situation with water leaks that had not only legal implications but also had a negative impact on the firm’s image and reputation. Their risk management was put to the test.

Emmanuel Sfendourakis first became aware of Newforma by attending the popular DesignEx conference and discovered Newforma in the product showcase. He recognized the value that Newforma Project Center could bring to collaboration efforts by incorporating this solution into Stemcon’s business life. Stemcon adopted Newforma Project Center in 2013 and began using it for existing projects. They were also able to upload old project data into Newforma Project Center making it much easier to access than the previous storage box option.

Newforma Project Center’s unique search capabilities enabled Stemcon to enter the keyword “rainwater damage” for the project with water leakage issues. They were able to find an email from 2011 documenting that the water leaks were a result of an ongoing lack of regular maintenance issues by the building owners that contributed to the damages.  By finding this one email through a quick search, Stemcon was able to remediate the issue and avoid unnecessary litigation.

Stemcon used search phrases that are unique to a given project to quickly find information needed to address issues and answer questions.  Newforma Search helps Stemcon not fall victim to the Victorian Civil and Administrative Tribunal (VCAT) process, which is Victoria’s state of Australia’s first stage in the court system.

Emmanuel described his organization as “information hoarders”. They recognized the value of saving information, however, before using Newforma Project Center, they did not know if the information was deleted, lost, or misplaced. Project Center provides Stemcon with an easy way to keep information organized and safeguarded against loss or mishandling.

By having a standardized structure for storing, accessing, and sharing information, Stemcon can protect its firm against litigation claims that previously resulted in a loss in profits and construction ROI.

Stemcon uses Newforma Project Center Action Items in a unique way. Action Items are used as an issue management mechanism to track and document how issues are resolved. Issues are tracked through action item categories, organizing all information and communication related to the issue and the assigned person.

By leveraging the issue management capabilities of Action Items, Stemcon to document the history of the resolution process. They also use Newforma Search and filter by Action Items which are linked to an individual.

Simplifying the process not only allowed Stemcon to save money in avoiding any potential disputes, but also in the time saved in finding the information they need. A simple and yet effective way of improving their Construction profit margins.