This document provides 15 cost management strategies for controlling finances during industrial construction projects in Mexico. It outlines strategies for each stage of a project: site selection, design, construction, beneficial occupancy, and ongoing operations. Case studies are presented for each stage to illustrate lessons learned. The overall message is that partnering with an experienced industrial construction firm can help ensure costs are controlled and the project remains on budget throughout the process.

1. Financial Control of Industrial
Construction in Mexico
15 cost management Strategies every decision
maker should implement when building an
industrial facility
By Rodolfo Valenzuela
Industrial Construction Expert & Facilitator in Mexico

2. Contents
• The Challenge for Industrial decision makers
with expansion plans
• 7 drivers for controlling financial resources
• 5 steps to control Industrial Construction
Finance
• The 15 budget control strategies
• Next Step: Get a Free Assessment
• About Rodolfo Valenzuela & COPACHISA

3. The Challenge for Industrial decision makers with
expansion plans
How would you like to have a very cost-effective industrial building, not only at the
design and build stage but also during the ongoing operation?
As an industrial construction project manager, CFO or business decision maker for
your manufacturing or distribution center in Mexico, you face financial challenges
when you take your operations to any new country. Especially if you do not take
control of the different factors that will have a direct impact on the cost of your
project in Mexico: sometimes at the construction stage, sometimes at the ongoing
operation stage.
Would you like to remain in control of your financial costs for your industrial facility in
Mexico from a construction standpoint?
If so, this ebook was especially crafted for you.
As a decision maker, you will be able to leverage on key lessons learned from the
more than 400 construction success stories from Copachisa, Mexico’s leading
industrial construction company.
We have comprised the most important lessons learned from over 50 years of
experience on this Financial Control of Industrial Construction in Mexico pathway.
In the next section, we will cover 7 reasons why you need to control these 15 key
budget savings strategies.

4. 7 drivers for controlling financial resources
How would you like to be certain that you:
1. Will find the most cost-effective land for your industrial building in
Mexico?
2. Will be able to design a very functional and efficient industrial facility
according to your specifications and local adaptation?
3. Will be able to start bringing in machinery and equipment into your
facility without delays or surprises?
4. Will be able to have a building fully compliant with safety standards and
local regulations that will allow you to operate as fast as you need to?
5. Will be able to bring in raw materials and get finished products out of
the facility due to a well located and connected facility with
transportation?
6. Will be able to save on the ongoing operation due to building efficiency
construction from day 1?
7. Will be able to concentrate on the operation side of the business and
not on the facility problem solving track, making your project a revenue
center instead of a cost center?
Of course, there are more than these 7 drivers that as a business decision
maker you should care about.
These are some of the reasons why an industrial construction partner in
Mexico can be a great solution for you.
In the next section, we will show you the path you have to follow that will help
you to fulfill your expectations on these previous drivers.

5. 5 steps to control Industrial Construction Finance
There are 5 key stages in which you can make critical decisions that will
determine the cost of your industrial construction project in Mexico:
1.Site Selection
2.Design
3.Construction
4.Beneficial occupancy
5.Operation
Based on our experience, there are 3 key strategies on each stage that
you will have to consider to remain in control of your finances for your
industrial building in Mexico.
Let’s get inside each stage to learn about those top 15 strategies to have
a cost-efficient industrial construction project.

6. The 15 budget control strategies
for Industrial Construction in
Mexico
Strategies & Case Studies

7. 3 Finance Control Strategies at the Site Selection Stage
1. Strategy 1: Look for sites that have
Access to all utilities. Water and power
feed services may be expensive.
2. Strategy 2: Prefer sites where the land
has good bearing capacities: avoid clay
soils, so you can save on foundations.
3. Strategy 3: Look for accessible sites, both
for labor and trucks.
Now let’s see a Site Selection Case Study…

8. Site Selection Case Study
The Challenge:
• A food processing company was looking for a site in the Bajio area.
The Process:
• They had 3 different preselected sites, but one of them was the most
economic of them.
• They committed to it without the proper soil investigation. Utilities was
note the problem as they were both available and sufficient, but the
soil couldn’t support the loads. The final solution was to use piles 15
meters deep, four per footing.
The results:
• The final cost of the foundation was almost as expensive as the entire
steam system.
Lessons learned:
• To avoid losing control of your expansion project, partner with a field
expert that will apply the 3 strategies needed on this stage: Utilities,
Bearings and Accessibility.
Next Step: 3 Financial strategies at the Industrial Building Design stage

9. At the Design Stage
1. Strategy 4: Check that your specifications
are set for Mexico’s weather (freezing is very
rare here!).
2. Strategy 5: Try to be as specific as possible
with your loads and utilities requirements.
Oversizing costs everywhere!
3. Strategy 6: Try specifying all the things you
need in the building for your production
process, but let the designers work for you to
get economical solutions in Mexico.
Now let’s see a Design Case Study…

10. Industrial Construction Design Case Study
The Challenge.
• An automotive German company solicited a bid based in a design made
in Munich.
The Process:
• German engineers did take in account the weather conditions the design
the HVAC systems, but not in the insulation design, since they use the
common practices in Europe.
The Results:
• The result was a building way over budget. Once we were selected as
the GC we reworked the specifications and the selected systems to
have a final improvement on costs of almost 25% letting them more
budget to invest their resources in better productive equipment.
Lessons Learned
• To avoid losing control of your expansion project, partner with a field
expert that will apply the 3 strategies needed on this stage: climate
specifications, adequate specification for loads, process oriented design.
Next Step: 3 Financial strategies at the Construction stage

11. At the Construction Stage
1. Strategy 7: Always be clear that all prices
are all inclusive. The money you are being
charge for the construction of your facility
includes risk management.
2. Strategy 8: Check that your contractor
provides both bonding for your down payment
and performance, and that they carry the right
insurance to protect your property.
3. Strategy 9: Track the Social Security
payments for your GC: you may be liable if
they fail to pay!
Now let’s see a Construction Case Study…

12. Construction Stage Case Study
The Challenge
• A US based company was establishing its second operation in
Mexico. Therefore they thought they could manage the project by
specialty.
The Process:
• We were invited for all trades and won the structural and civil
scope. The electrical we were not assigned the job as they told us
“you are higher than 50%” Two month later we were asked to
quote the electrical installations for the productive equipment.
The Results:
• To our surprise much of the original scope of the shell building that
we lose was also included. We asked why they were doubling that
and they say it was not double, that the other contractor didn’t
include all the electrical original scope, as some equipment were
just furnished, not installed.
Lessons Learned:
• To avoid losing control of your expansion project, partner with a
field expert that will apply the 3 strategies needed on this stage:
construction costs estimates, bonding and insurance from
contractor, social security for construction workers.
Next Step: 3 Financial strategies at the Beneficial Occupancy stage

13. At the Beneficial Occupancy Stage
1. Strategy 10: Check that all equipment
complies with the submittals delivered to you
during design.
2. Strategy 11: Review that all the maintenance
manuals includes the direct vendors’
warranties for all equipment.
3. Strategy 12: Take your time to make only
one punch list, but ensure it is solved in an
expedite manner.
Now let’s see a Beneficial Occupancy Case Study…

14. Beneficial Occupancy Case Study
The Challenge:
• We were building a new facility for an automotive stamping group. The
project included a scrap recovery tunnel and 4 stamping presses
foundations.
The Process:
• At the time of closing the contract, BO was established 5 months after
signature, and Substantial completion in 6 months. The Owner requested
us to confirm this timing, and we did so. 5 months later, in the BO date,
the walk thru took place, and the tunnel, bases and building were
completed. But the Owner, due to a previous experience with another
contractor, did not believe we would comply. So he scheduled the
equipment and installation crews to arrive a month later!
The Results
• He said that it was the worst mistake of his entire career as a director! We
have expanded two times his building since, but now he schedule his
following steps according with our schedule.
• Lessons Learned:
• To avoid losing control of your expansion project, partner with a field
expert that will apply the 3 strategies needed on this stage: machinery
and equipment submital on time, review maintenance and warranties
manuals, make one single check list to review your plans.
Next Step: 3 Financial strategies at the Ongoing Operation stage

15. At the Ongoing Operation Stage
• Strategy 13: Always keep track of your potency
factor. Big bills can be delivered if you do not
complies with the Power Company requirements.
• Strategy 14: Before the general warranty
expires, make an appointment with your
contractor, to review the building, and solve any
issue before you release his warranty bond.
• Strategy 15: Follow the maintenance and operation
procedures delivered in your facilities’ manuals, so
you can take preventive measure instead of
corrective actions.
Now let’s see an Operation Case Study…

16. Operation Case Study
The Challenge:
• A bottling company has a hose fire protection system which included a
diesel driven pump.
The Process:
• As the installation was FM approved the pump was set to test itself
automatically in a weekly manner. It also included a low water level in
the tank. But the maintenance crew disconnected the low water level
alarm my mistake. Two years latter during maintenance service to the
water line the tank was empty and the pump tested itself and burn.
The results:
• The warranty was available but the manufacture did not cover as the fail
was related to an improper use of the pump. A new pump was reorder
and installed with an additional cost to the owner.
Lessons Learned:
• To avoid losing control of your expansion project, partner with a field
expert that will apply the 3 strategies needed on this stage: potency
factor, warranties and building preventive control manuals.
Next Step: Request a Free Assessment and Consultation Call

17. Will You be our Next Success Story?
You will get a committed partner to
your success in Mexico at all stages
of your construction project.
Let COPACHISA help:
• Get Site Selection Assistance
• Get a Free Desing & Build project
Assessment
• Get a Construction proposal
Go to: http://ConstructionHelp.COPACHISA.com
Or contact us personally:
By Phone: +52-614-439-3906
By Email: constructionhelp@copachisa.com