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PR Newswire
19-11-2011, 11:18 PM
Hi Thriftville,
under the following questions:
Q2. How did COGS consistently decline more than the fall in revenue? You attribute this to better
management in cost savings. May you elaborate further on this? For instance, what kind of cost
savings has OKP implemented & will such practices be easily copied by your competitors?
A2. The drop in COGS translates into improvements in gross profit. These were mainly due to better
project management eg. proper site planning, detailed planning in the construction processes,
effective site management; and tighter cost controls eg minimise construction material wastage at
site, employ effective methodologies in every stage of construction. In addition, recent contract wins
hold clauses which allow OKP to renegotiate prices in the event of materially higher material costs,
protecting our margins. In addition, for design & build projects, like the CTE project, gives OKP
autonomy and flexibility in design, project management and labour management, helping to boost
margins further. Other reasons include variation orders and changes in design and we have been.
under the following questions:
Q2. How did COGS consistently decline more than the fall in revenue? You attribute this to better
management in cost savings. May you elaborate further on this? For instance, what kind of cost
savings has OKP implemented & will such practices be easily copied by your competitors?
A2. The drop in COGS translates into improvements in gross profit. These were mainly due to better
project management eg. proper site planning, detailed planning in the construction processes,
effective site management; and tighter cost controls eg minimise construction material wastage at
site, employ effective methodologies in every stage of construction. In addition, recent contract wins
hold clauses which allow OKP to renegotiate prices in the event of materially higher material costs,
protecting our margins. In addition, for design & build projects, like the CTE project, gives OKP
autonomy and flexibility in design, project management and labour management, helping to boost
margins further. Other reasons include variation orders and changes in design and we have been.