Strategic targets in project business

In project business, we seek growth particularly by increasing the share of Design & Build projects and by strengthening our technical expertise and product development. We also aim to improve the efficiency and profitability of our operations.

Improved business mix

In 2014, sligthly more than a third of our project business revenue came from Design & Build projects. In these projects, Caverion is involved in the project from the very beginning, responsible for the design and delivery of the systems, project management and subcontractors.

It is our goal to increase the share of these projects in our business. We also aim to increase the share of comprehensive, multi-discipline deliveries and system integration. Caverion has the ability to deliver long, extensive projects that require a lot of resources. Our strategy for winning projects lies with our special expertise and experience in demanding project implementations, instead of offering the lowest price.

By granting the responsibility for the whole project to one contractor, our clients can considerably reduce their project-related risks. In addition, partially simultaneous planning and installation work reduces the duration of the implementation. Project costs are foreseeable, because they can be specified during the planning stage. By being involved in the process from planning, we can also influence the choice of systems and technologies and, thus, improve the quality and efficiency of the final delivery.

Read more  

 

 

 

Strengthening technical expertise and R&D

Continuous product development and own solutions are essential for the success of our business, and we continue to invest in this area also in the future. Our aim is to strengthen our technical expertise especially in advanced solutions for technology-wise demanding properties such as hospitals, laboratories and cleanrooms. In our product development, we focus on disciplines such as cooling, automation, and security and fire safety systems, among others.

Our aim is to increase the share of own in-house products and solutions in our offering. Our own research and development centre supports this development, and R&D activities are also carried out in divisions. 


Improving efficiency, profitability and risk management

Careful project selection and monitoring is a prerequisite for improving the efficiency and profitability of our project business. We choose projects carefully with regard to risks, profitability and our own expertise and resources. To enable this, we have set a strictly defined process with approval right limits for project selection: agreements with a value exceeding EUR 100 million are approved by the Group Board of Directors, agreements of EUR 20–100 million by the Group President and CEO, and agreements of EUR 5–20 million by the head of business segment.

Each project phase is closely monitored in order to be able to address any deviations and risks at an early stage. In major projects, a steering group is established to oversee progress.

Our aim is to have a coherent operating model, project processes, tools and procurement in all divisions. Development of business is carried our centrally at the Group level with divisions’ active participation.

In divisions, special expertise related to delivering demanding projects will be concentrated in specified project offices responsible for the management of large Design & Build projects and other projects involving Design & Engineering services. The purpose of these offices is to support other projects carried out in our 280 local offices.

Key targets

 

Developing business mix

  • Increasing the share of Design & Build projects
  • More comprehensive, multi-discipline deliveries
  • Utilising competence in system integration
     

Strengthening technical expertise and R&D

  • Developing in-house products and solutions and increasing their share in our offering

 

Improving efficiency, profitability and risk management

  • More careful selection and monitoring of projects
  • Coherent operating model and project process
  • Developing procurement
  • Securing negative working capital by means of more efficient invoicing