Constructly Control increasing profit by 3.5% a year for top-2 developer in Europe

Samolet Group Russia

Top-2
‍Developer in construction vol. in EU
$2 bln.
‍Estimated cost of projects
240+ contractors
On 23 projects

Challenge

Multiple projects with dozens of contractors and subcontractors at the same time. Aim to be the leader of the industry by the project volume, quality and client satisfaction.

Goals

Grow profit, decreasing amount of reworks and costs
with timely defect management. Deliver quality to the clients and increase customer satisfaction rates.

Solution

Construction defect management software allowing to digitally capture and manage defects even offline, assign
them to responsible parties and track contractors’ performance.

Impact

64%
Decrease in avg defect resolution time
3.5%
Saving on QC supervision

Samolet Group story snapshot

Defect management is a daily routine for contractors, however, this process
was not digitized. This led to lost defects and deadlines met with significant
budget overruns and reworks causing delays, profit reduction and quality issues.

Realizing that defect management is a starting point to improve quality,
Samolet invested in digitizing this process at the construction site.
Pilot time
2 months
Projects
‍3
Contractors
‍15
KPIs
‍Quality control engineers were asked to create at least 2 defects on the App every week. Subcontractors had to meet deadlines or at least have no more than 30% delays in their works.

The focus during the pilot was on moving defect management
and all communications associated with them to the App.

  • On-site training for contractors
  • KPIs for users and weekly tracking
  • Weekly reports for the management
  • Dedicated adoption of the tool and user assistance
Yearly construction costs reduced by an average of 3.5% due
to reduction of reworks and quality control expenses decrease.
In particular, labor costs for defect management decrease by an average
of $2 mln a year with quality control managers’ productivity increased
from 20 000 to 45 000 m2. Amount of reworks reduced by 2 times.
CSI of refurbishment rose from 20% to 64% reaching
the highest position in the market through timely location
of defects and their assignment to responsible contractors.
Average defect resolution time decreased from 20 to 5 days with a single
information environment for quality control engineers and contractors.
In 2023 the solution is actively used across 23 Samolet Group projects
with 243 contractors and 181 quality control managers involved.

Since 2020 it has been implemented across 39 projects.
After the successful pilot the solution was rolled out
to another 5 projects in the next 6 months.
Andrei Ivanenko
CEO at Samolet Moscow

“Quality of the works done at the site influences overall business performance drastically. So we realized that to improve EBITDA and CSI we actually have to work with quality control more thoroughly.

This construction defect management software definitely
does the trick. We have been using it since 2020 resulting
in 3,5% construction cost reduction every year.

Our company’s mission is to improve the quality of life for
its residents and one of the key metrics for us is the CSI,
which increased significantly. In the last 3 years we’ve gained
the highest CSI on the market reaching 64%.”

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