Getting a manufacturing plant from investment to start-up as quickly as possible is a priority in almost every industry. Yet speed-to-market is even more important when it comes to a biotech or pharmaceutical facility. When going online means getting a lifesaving or health-improving solution into the hands of the people who need them, a heightened sense of urgency and care should guide every step of the project. Among the many stakeholders that have a hand in the development of new, expanded or repurposed pharmaceutical plants, a contractor that specializes in building these critical facilities is in the best position to lead the owner stakeholders and decisionmakers to optimize success.
In the construction world, quick and efficient execution is only possible after careful and deliberate preparation. This notable quote by Abraham Lincoln is particularly apt to describe this scenario: “Give me six hours to chop down a tree and I will spend the first four sharpening the ax.”
When the task at hand is building a manufacturing facility, the sharpening in this analogy is a pre-construction phase that will ensure that every team member is fully prepared and each step of the process is clearly defined, all with the aim of achieving the client’s every objective. There is simply no better approach for achieving certainty in cost and schedule than assembling a collaborative team with a focused construction-led preconstruction phase.
Last things first
A great deal of work must be completed before a facility is ready for the manufacturing equipment that will be used to produce product. The structural, mechanical, electrical and architectural components have to be meticulously installed in a manner to allow the integration of vessels, fillers, and packaging equipment. But in terms of optimizing logistics, equipment procurement is most often the first task that should be addressed.
Nothing can derail a schedule faster, and subsequently blow up the budget, than a shutdown in activity while the team waits for the equipment to arrive. Supply chain disruptions lingering from the pandemic are still being felt and increased demand for pharma- and bio-specific equipment in general can stretch lead times out much longer than a typical build schedule.
A construction manager (CM) experienced in this industry will place equipment procurement at the top of the agenda at the very first preconstruction meeting. Working with the owner to determine what pieces are needed to achieve the production volumes targeted, the CM’s procurement experts will then search the market to obtain what is needed at optimal price points and lead times in consideration of the owner’s startup goal.
Once the equipment order is in place, the rest of the project timeline can be populated with more feasible milestones, secure in the knowledge that activities won’t be delayed later in development.
What will it really cost?
Another advantage that a collaborative construction-led approach has over the traditional design-bid-build delivery method is more realistic cost estimates. This holds true not only for manufacturing equipment, but also real estate, building materials, labor, and everything else that will show up on the ledger. Many design consultants, and a good deal of contractors for that matter, rely on a cost database that they maintain themselves to easily calculate estimates into their plans. While this method is well-intentioned and efficient on their end, because these databases are only periodically updated, they very often unintentionally result in inaccurate estimates.
A CM immersed in the pharma and biotech industry will be able to call upon real-time data when determining costs. They will most likely have ongoing projects in various stages of development so their viewpoint is constantly on the pulse of the markets that will impact the budget.
A recent example of this is the uncertainty of the looming tariffs, leading to price fluctuations daily. There is simply no way that a static database could account for this disruption, but a contractor out in the field would immediately feel its impact and recognize the need to communicate this throughout the company.
Nothing can kill momentum for an expansion project faster than presenting unrealistic figures to a company board, and then having to return later to explain why the budget has ballooned. Value engineering, the practice of identifying cost-savings by scaling back or eliminating scope items to get a budget back in line, can be beneficial in some cases. The much better scenario, however, is developing the scope around a more locked-in-place budget so that the owner is not forced to make concessions after the design is set. When design and construction firms work hand in hand in the early phases of the project owners gain cost certainty much earlier and more often meet their program goals within their budget.
Reacting to the unexpected
With enough foresight and the right people at the table, a reliable construction schedule can be developed at the project’s onset. But as everyone in the construction industry knows, surprises can happen that throw things off or shut things down. It could be a natural disaster, an accident or any number of other unsuspected developments. What is critical is how the team reacts when such a situation arises.
The ability to get a project back on schedule after an unexpected delay requires an in-depth understanding of the trades and laborers working concurrently on a project at any moment. Accelerating schedules by extending shifts to evenings and weekends, or even a 24×7 cycle in some cases, cannot be accomplished simply by dictate. There needs to be an understanding of the resources available, how the work being conducted at any moment impacts other work being performed in the vicinity, and the types of incentive that will be needed to motivate a workforce to perform in above-and-beyond mode. The contractor, who will most often have the closest and most trustful relations with the various subcontractors working on-site, is in the best position to orchestrate that work.
Going In with eyes wide open
Accurate cost and schedule estimates are just one part of a larger calculation when it comes to conceptualizing a project that will develop as envisioned once subjected to real-world conditions. It is critical to set realistic expectations at the very beginning and this is best achieved by conducting a feasibility study. This is a comprehensive assessment of every variable that makes up a project so that a highly reliable proof-of-concept can be presented that will achieve the owner’s needs in terms of capacity, functionality, schedule and budget. With this study in hand, the owner’s leadership will have solid data to guide their decision-making, and the project team will have a comprehensive roadmap that will aid in avoiding mistakes and costly scope changes through the course of the project development lifecycle.
Driving success
In recent years, owners and project teams have come to realize that early and comprehensive collaboration with all project stakeholders helps lay the clearest path towards completion of a fast-paced construction project. A collaborative construction-led precon phase takes that approach to the next level by ensuring that a realistic, from-the-trenches perspective informs every decision. From planning to procurement, on to design and construction, the time spent clarifying the client’s needs and aligning them with executable objectives will drive success in a fast-paced high tech construction project.
Brandon Hiatt is Director of Business Development with McCownGordon. He can be reached at bhiatt@mccowngordon.com.
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