Tool Solutions Case Study
Optimized Tooling for an Optimal Project Outcome
Turnkey tooling solution manages complexity and increases efficiency on a large stadium construction project.
Summary
An Indianapolis-based electrical contractor leveraged United Rentals’ managed tooling solutions to streamline tool management, reduce costs, and improve efficiency during a large stadium construction project. By utilizing a mobile tool trailer, on-site coordination, and cloud-based tracking, the contractor minimized tool loss, avoided over-tooling, and adapted seamlessly to delays, ultimately completing the project on time and under budget.
Challenge
The difficulty of managing tools efficiently on large construction projects, including high upfront costs, significant tool loss (30-50%), co-mingling of tools among contractors, and ensuring the right tools are available at the right time to avoid costly delays makes projects like this challenging.
Large stadium construction projects often come with tight timelines and challenging jobsite conditions. For electrical contractors, efficient management of tooling solutions can make the difference between a smooth and efficient project delivery or costly losses and potential delays.
One Indianapolis-based electrical contractor found an optimized custom tool solution using United Rentals Tool Solutions group on a recent stadium construction project.
The Challenges of Tool Management
Having used United Rentals for equipment rental needs in the past, the electrical contractor decided to consider a managed tooling solution based on some of the challenges inherent in larger construction project asset management.
Many electrical contractors purchase the estimated required tooling at project start, incurring significant expense and creating the need for ongoing tool management for the duration of the project. Industry average for tool loss ranges between 30 and 50% of initial tool purchase, with some estimates coming in even higher. Achieving efficiencies in asset purchase, maintenance and management can be tricky on large construction projects.
Further, with variable numbers of electrical workers required at different stages of construction and multiple contractors represented, co-mingling of tools can also add to the complexity. Ensuring specific purchased tools stay with their owners for the duration of construction is an ongoing challenge and can distract from focus on the job at hand.
Worse yet, when tools aren’t where they need to be when they need to be there, construction delays are often the result.
Optimized Tooling for More Efficient Operations
Understanding that upfront tool purchase for the electrical contractor would likely exceed $1 million, United Rentals Tool Solutions presented a managed custom tooling program that would allow for minimized initial expense and more efficient tool usage for the run of the project.
Working from an initial tooling list, the United Rentals team proposed an onsite Mobile Tool Trailer to provide maximum flexibility in tooling as needs built from project start and ramped down toward project completion.
As an integral part of the tool trailer program, a full-time Tool Trailer Coordinator would also be onsite 24/7 for the duration of the project. The Tool Trailer Coordinator would act as the day-to-day manager for tooling needs, helping to manage and maintain the correct mix of tools for the specific stage of construction
The goal of the custom tooling program was to create a flexible, reliable, and actively managed tool provision so the electrical contractor could focus on the work at hand, leaving tool management to United Rentals.
Reduced Over-Tooling, Increased Tool Accountability
The risk of not having enough tools, or not having the right kind of tool at the right time, will often result in contractors over-estimating their need from project start. Over-tooling is an inefficiency which can have a direct impact on the bottom-line.
United Rentals brought decades of large construction project experience to the stadium project. Using a consultative, data-driven approach, an optimized tool program was put in place so that the right tool at the right time could be provided.
United Rentals’ lean model for tool consumption management was an important component of the rental tool program. Using lean principles to understand what is and isn’t being utilized and then adjusting according to varying degrees of demand, United Rentals was able to provide tools without over-tooling and wasted expense, virtually eliminating tool-related downtime.
Further, United Rentals’ cloud-based tool tracking software provided full visibility to location and utilization information in real-time. In addition to the significant reduction in initial tool expense, with United’s tool tracking program tool loss for the entire project came in under 7%.
Flexibility in Tooling to Accommodate Unforeseen Construction Delays
Unforeseen construction project delays happen. What’s often most important is how contractors adjust to timeline changes that they can’t control.
On the large stadium project, the electrical contractor experienced just such a delay. With timeline changes originating from concrete, rebar and steel delays, the project quickly went from on-time to multiple months behind schedule. Flexibility in tooling became an increasingly important consideration.
With the help of United Rentals, utilization was managed during the delays to ensure the electrical contractor wasn’t paying for assets that were sitting idle.
On Time, Under Budget, and Ready for the Next Project
Large construction projects present a range of potentially challenging conditions to electrical contractors. Managing project expenses while focusing on the job at hand can be difficult. Using an experienced tooling solution partner able to offer a consultative managed tooling approach can have big impacts on overall project efficiency. It can also have a direct effect on the bottom line.
United Rentals’ Tool Solutions group was able to reduce overall tool spend, ensure the right tool was available at the right time, and provide data-based reporting to demonstrate the gains in productivity and efficiency. With the successful stadium build project completed, the electrical contractor asked United Rentals’ Tool Solutions to provide a custom tool program for one of their next large projects.