Least Cost Framework

Least Cost Framework [practice]
» Construction Industry

Our strategic least cost to build + supply chain framework have solved some key challengers in today’s construction industry by aligning key outcomes –
» Supply;
» Lead-time;
» Industry Compliance; and
» Cost
to deliver LCB (least cost to build).

3 Step LC Framework

Step 1: Take-off Assessment

We undertake a CBA (cost benefits assessment) to understand –
• Material Cost
• Labour Cost
• Equipment + Transport Cost
• Wastage Cost

Step 2: Benchmarking

Applying the Six Sigma framework, benchmarking delivers further clarity –
• Key material suppliers and cost
• Labour skills and cost
• Cost of equipment and transport
• Key Areas of Risk: Wastage, leaks and risk barriers – onsite and off-site.
• Key Areas for Improvement – onsite and off-site

Step 3a: Single Item Price-book
i.e. Framing

By applying ‘value-based pricing’ to the cost of framing across a project plan, or in the case of project builder, across multiple plans, HERM Logic takes a holistic approach to apply strategic + tactical sourcing / outsourcing managed services (MS) to deliver least cost to build (LCB) for framing.

Step 3b: Bundle Items Price-book
i.e. Framing + Doors and Windows

Apply value based pricing to bundling, we take a more inclusive approach to streamlining the processors across the supply chain – from managing project risk and issues -to- fabrication and transport logistics -to- ensuring all KPIs’ and KSIs’ are fully addressed.
» Compliance to SoW;
» On-time delivery; and
» Lower cost to build.

LC Framework in Practice
Light Gauge Steel Framing

Together with HERM Built, we offer a full steel framing solution with a team of specialist structural steel fabricators to ensure fabrication and building is constructed to the high standard set out within the BCA (Building Codes Australia) and AS/NZ Standards.
» 4600/2005: Cold-formed steel structures
» 4100: Steel structures
» 3623: Domestic Metal Framing [Industry Standard: >0.75mm]; and
» 1397/2001: Steel Sheet & Strip-Hot-dip Zinc Coating – comprising of,
• G550 Grade Steel with Guaranteed minimum yield strength >550MPa
• AZ150 Aluminium Zinc coating @ 150/M2
» While we use >0.95mm as our standard Steel Sheet to produce our SmartFrames – Wall, Joists, Roof – we will also produce in >0.75mm (Industry Minimum Standard), or in 1.05mm on request.

All of our work is carried out by a professional coded workforce, all of whom are experts in their field, so that you can put your trust in a reputable, committed team from HERM Group.

How We Produce Your SmartFrames

The Light Gauge Steel Frame (LGSF) Building Process

How We Assembly The Steel Frame

The Construction of a Residential Building

Bella Rise Estate, Riverstone, NSW

» Download LGSF Information Brochure