Robertson View the True Value of Construction
Robertson is one of the largest independently owned construction, infrastructure and support services companies in the UK. With a host of award-winning and high-profile projects delivered by regional and specialist businesses, Robertson Construction has a lot to show for the 50+ years that have passed since its inception.
Challenge
Robertson are a complex multi-regional business with offices located throughout Scotland, the North of England and the Midlands. To support their business into the future they were searching for a construction technology solution to deliver three core objectives: standardise processes throughout their business units, improve cost control through software capabilities and increase efficiency by reducing duplication and removing unnecessary steps.
Solution
Robertson selected COINS as their partner to deliver a construction specific technology solution. This major change project has redefined processes, integrated financial, commercial, operational and management teams, and will deliver impressive benefits for this construction business for many years to come.
Project details
Background
When Financial Director, Phil Talbot, rejoined Robertson in 2011, after previously working with them in 2002, he discovered the financial software they were using seven years earlier was still in use. As well as having become outdated this legacy system was used purely for financial purposes, mainly as a cost reporting and payment system, and they were not exploiting the full capability of a modern construction ERP.
Investment was required in a new construction solution, not purely a financial system but one which could be used across their multiple business, would kickstart them into redefining processes and would open up visibility of project information to a variety of users.
Improving Financial Performance
A key activity of any construction company is to monitor the financial performance of projects. Robertson’s existing Cost Value Reconciliation (CVR) process was disjointed and offline, a time-consuming dual-system approach which restricted the level of detail, information and analysis available.
It was also impossible to assess the true cost of projects as their existing spreadsheet-based purchasing process couldn’t facilitate automated invoice or Goods Received Notice (GRN) matching.
One of the problems that we used to have was that we would receive cost bursts too late, as a result of late purchase orders coming in and invoices arriving that were not forecast. Now we have the knowledge of a commitment as soon as it’s made – which is a huge benefit to managing costs.
Duncan Carmichael, Financial Project Lead
Delivering Increased Control of Costs
Budgeting was a key driver to the change; for Robertson it was vital that processes were put in place to limit spend to within the estimated allowance.
The goal that Robertson wanted to achieve was groundbreaking. Using the original project estimate as a benchmark for performance, they required a granular level of detail, at commodity (unit rate) rather than a broader value-based analysis.
For COINS it became clear that improved governance and reduction of risk were key project outcomes for Robertson. With a system like COINS there is no hiding place - this results in lowered risk, increased visibility and clarity of figures
Tim Allen, COINS Project Manager
An equally important driver was the need for a single version of the truth: a single system into which information could be entered once then accessed, consumed and controlled by multiple users.
With the existing system being used purely by the financial teams Robertson realised that what they really needed was a construction solution which could be used across all areas of their business - not just by the accountants, but also by Quantity Surveyors, operational teams and management teams.
Construction-Specific Software
Robertson were not previously a COINS customer, but various members of the selection panel had used COINS in the past.
COINS were always going to be on the shortlist as we wanted a proven construction specialist. We knew what we wanted, and COINS delivered on everything
Phil Talbot, Project Director and Financial Director, Robertson
Although they considered other construction software specialists Robertson’s decision was influenced by COINS’ impressive list of customers, which include some the world’s leading construction companies.
Trusting the Data
Robertson are quite upfront about the fact that this has been a huge learning process and initially they underestimated the scale of the implementation challenge.
We’re still on a journey with the COINS system in terms of user acceptance and leveraging the benefits. We’ve found that we’re undergoing a constant education process in order for users to both accept and embrace the change
Phil Talbot, Financial Director, Robertson
With this being the first time that commercial, operational and management teams have been able to access key information through a construction solution like COINS, education is essential to ensure everyone completely trusts the data.
This responsibility falls to the core project team which includes a full-time project manager, Linda Heenan, with the support of Project Director Phil Talbot, alongside work leads from commercial, finance, procurement and payroll teams.
It’s not just about the technology, it’s the technology and processes and people; the blend of those three things is what makes a successful project
Tim Allen, COINS Project Manager
A Phased Approach
The implementation strategy has been broken down into regional phases to make supporting this change more manageable.
The first two phases, for Eastern, Northern and Tayside businesses, central Scotland companies and Robertson Partnership Homes are now complete. Phase 3, due to start in August 2020, will focus on it’s three English Construction businesses (North East England, North West England & Yorkshire / East Midlands) followed by Phase 4 in October, comprising their Specialist Division, Civil Engineering and Major Projects businesses.
One of the challenges with a project spanning a number of years is the inevitable staff changes, however Robertson have never lost sight of what they were aiming to achieve.
Increased Commercial Awareness
COINS is beginning to have a positive impact operationally with a raised awareness in people’s understanding of the ‘end to end’ process, as well as the consequences of their actions on commercial activity.
What I have seen over the past 6 months is an improvement in mindset. People who were most resistant at the beginning and didn’t want to engage, are now both adopting and ‘flying the flag’ for COINS and developing stronger processes as a result.
Linda Heenan, Project Manager, Robertson
Improved processes
Purchasing, financial and commercial processes have been reviewed and redefined as part of the implementation, which was always a core objective for Robertson.
From the outset one of our key objectives was to rationalise processes and we knew that COINS would force us to standardise these.
Phil Talbot, Financial Director, Robertson
True Cost Value Reconciliation
Pre-COINS it was very difficult for Robertson to produce a true monthly CVR; now they are able to confidently assess the real-time value of each project, having complete visibility over what commitments have been made, and which costs incurred.
COINS has provided us with the ability to properly control our costs and produce a true cost and value report at each month end - it’s as up to date as the GRN’S received and plant returns.
Phil Talbot, Financial Director, Robertson
Information in an Instant
One of the greatest benefits is easy access to a single source of information for a range of users.
The finance team can now view information across all the Robertson businesses and suppliers on a single platform, and as the data is consistent, can easily run reports.
Quantity Surveyors can access up-to-date details of all subcontract orders, deliveries and outstanding items for a project on a single screen.
Improved Supplier Management
Robertson now have more control over managing supplier behaviour and adherence to contracts: they are easily able to identify differences between quoted prices and invoiced costs.
Next Steps
Following completion of the final phases Robertson aim to fully embrace and make use of new construction technologies and techniques into the future, including the adoption of mobile technology and construction supply chain solutions.
With the scale and breadth of COINS, clearly they are always developing the software and we very much wanted a long-term relationship where we could continue to benefit from new developments as they arose.
Phil Talbot , Financial Director, Robertson
With thanks to:
Phil Talbot , Financial Director, Robertson
Linda Heenan, Project Manager, Robertson
Duncan Carmichael, Financial Project Lead, Robertson
Tim Allen, COINS Project Manager
Case study: Jane Redfern
