Background

An established petroleum contractor was offered a long-term opportunity to implement a multi-site image upgrade for a major oil company.  Because of their long-standing relationship with the client, they wanted to accept the contract, but their internal resources were stretched thin with their primary business.

 

The Challenge

Can Woods provide the necessary project oversight, staff and organization to execute the work? 

 

Observations

• The project would consist of 30 to 40 image upgrade projects annually across the country

• The client was rightfully demanding of strict adherence to their brand standards

• Competitive quoting and a strong safety mindset were critical components to every project

• Each project would, to a greater or lesser degree, interrupt the business of the retail outlet being upgraded

 

Solutions

• Woods developed a network of competent contractors across the country to execute the projects

• Woods developed checklists and other project management tools to track project progress and monitor safety compliance

• Woods established regular coordination calls with the client, suppliers and contractors to quickly solve issues and manage bottlenecks

• Woods was relentless when communicating with the individual business owners regarding schedules, down-time and ways to mitigate impacts on their business

 

The Payoff: A network’s image is greatly enhanced

Over 250 re-imaging projects were completed, the vast majority of which were accomplished as planned.  There were some difficult projects and some surprises along the way, but a constant and honest communication strategy was effective at keeping everyone informed and comfortable that everything possible was being done to keep things on track. Very positive feedback was received from the site owners and the oil company client, enhancing both Woods’ and the Petroleum Contractor’s reputation.

​

​

​

Due Diligence Pays Off

Walking Away is Sometimes the Best Course of Action

 

Background

The owner of a small multi-site company was looking to expand into a highway commercial market on a major north-south artery connecting Southern and Northern Ontario. 

 

The Challenge

Can the market support the construction of a new gas station/convenience store?  Alternatively, can an existing station be purchased and renovated?

 

Observations

Through the analysis of traffic counts, estimates of existing site volumes and future growth projections (which were negative) it was determined that the acquisition of land and the construction of a new station would not be profitable.

 

Solutions

It was recommended that the owner try to acquire one of two existing facilities at prices that would afford an acceptable return on investment after renovations.  A preliminary offer to purchase was negotiated with one of the two target properties.  While performing detailed due diligence on the property, a significant issue was discovered with the property boundaries in relation to the location of certain structures on the property.  The issue was significant enough that a renegotiated purchase price was necessary.  An acceptable revised number could not be reached with the existing owner.

The owner of the second target property was approached.  A preliminary review of the condition of the property and the potential redevelopment costs resulted in a purchase price range that would satisfy the client’s desired return on investment.  An offer to purchase could not be reached with the existing owner within the desired price range.

 

Results

Despite the client’s desire to expand into this market, a cost-effective way to do so could not be found.  The client abandoned their plans to expand into this market.  Interestingly, within a year of this decision, the second target station closed for financial reasons.

Lesson - Sometimes the best course of action is to walk away.