How Lafarge is increasing revenue by up to 2%, cutting tender review time by 87.5%, and reducing risk exposure company-wide — with Provision

Lafarge construction site

The Challenge

Drowning in tender documents without staff to review them

Lafarge is the world’s largest cement manufacturer, and specializes in cement, construction aggregates, and concrete.

Yet their position as the industry’s leader created a big problem — they received more tender documents than they could process.

Because of this bottleneck in their tender review process, Lafarge:

Had to turn down business. They could not bid on a lot of projects they received because they could not meet review deadlines.
Could not cross-sell or upsell. They did not have the capacity to fully understand the contracts they did review, and missed opportunities to offer additional products or services to meet their customers’ needs.
Created contract risks. They lacked the time and attention to address the legal, financial, and operational risks that often get overlooked or unstated in contracts, opening themselves to significant fines.

“We manually reviewed each tender we received, but we just didn’t have enough people who were qualified or experienced enough to go through those documents,” explained Wil Mora at Lafarge.

Lafarge had staff capable of doing this work, but they were overburdened, they sometimes had to rush through their work to meet the incoming volume, and were often playing catch up on the tenders in their queue.

“We knew what we had to do, but we didn’t have enough people to do all the important things on a routine basis,” said Wil. “Everything was on a case-by-case basis, or because of a customer request — and it just wasn’t as good as it could have been.”

The Tipping Point

Adding more people to the process wasn’t the answer

First, Lafarge tried to solve this problem by shortcutting it.

They typically worked with the owner of the property, the developer, and the general contractor, who were all different organizations. The full tender documents would come from the owner, but Lafarge’s point of contact might be the developer or the general contractor.

“We tried asking our point of contact to give us specific requirements for the job,” said Wil. “And then we’d let them know we didn’t do a full review of the tender documents, and we’d just do what they specifically requested.”

This process worked when their point of contact knew a lot about the job and was very experienced. Yet it was inconsistent, and didn’t give Lafarge confidence they knew about all of the project’s potential risks.

Next, Lafarge tried to solve this problem by adding more people to their tender review process.

“We were just looking through the different departments and finding people that might be able to take on the role,” said Wil. “None of them were hired for this work, but they had the technical background and education, and they were high performers, so we moved them up.”

Yet this didn’t work either, for a few reasons:

They couldn’t train new people fast enough. They were too busy to properly teach everyone about every risk and detail to look for.
They were taking good people away from necessary jobs. When they moved someone into tender review, they created a role gap elsewhere.
They couldn’t hire many more people. They forecasted a drop in work volume, so they couldn’t just add the headcount they needed.

The Solution

Looking to AI, and finding Provision

Lafarge had begun to adopt AI tools in other departments — like logistics — to automate internal reporting and efficient delivery to their customers.

“We already had some good programs and platforms we were trying out,” said Wil. “We had reports that used to take a whole day to produce, but with AI we were now making them in minutes. So we started to think about how many other things we could start doing with AI to save time.”

They began to look for AI tools that could solve their tender review problems.

They found and evaluated four tools, but chose Provision for a few reasons:

Provision was accurate. It gave them correct results that they could quickly and easily verify by matching against the original documents.
Provision was complete. Some of the other tools were still in development, while Provision was a fully operational tool.
Provision was proven. It was already being used by large construction companies like EllisDon and Bird, which gave Lafarge confidence.

“Provision gave us features that none of the other tools offered — like exporting to multiple formats, and being able to analyze images and drawings,” said Wil. “Ultimately it was the only tool we looked at that really did what it said it did, and was being used by big industry players.”

Lafarge’s New Process

Addressing their biggest tender review problems

Lafarge automated a large amount of their tender review process using Provision. This has significantly reduced how much time their staff spends reviewing and revising documents, and helped them perform this work more consistently, and at a higher quality.

With Provision, Lafarge:

Can take on more business because they are able to review and respond to more of the projects they receive tender documents for.
Finds the risks they care most about by creating custom risk lists that Provision automatically searches for in every tender document.
Quickly and intelligently searches through documents for specific risks or clauses using Provision’s intuitive chat function.
Better understands their documents as Provision finds, underlines and provides definitions for complicated legal terms and clauses.
Finds upsell and cross-sell opportunities as Provision helps them understand requirements that they can sell additional solutions for.
Reduces risks and disputes by finding contradictions between the tender documents and raising those issues with the customer.
Increases customer relationships and collaboration by freeing up time to explain their products and how to apply them properly.
Trains and educates their staff faster by streamlining their review process and making document information more accessible.

Their ROI

Increasing revenue, reducing risk, and saving time

Lafarge has run over 150 projects through Provision. They have already generated significant results, and believe Provision can deliver some even bigger wins in the future.

These current and projected outcomes include:

+0.6 - 2.0% increased revenue projected through upsells and cross-sells Provision helps identify
87.5% faster review time (15 minutes instead of 2 hours)
Reduced potential for claims and disputes

As Wil Mora at Lafarge summarizes:

“Provision is an innovative platform that’s efficient and user-friendly, and it’s improved our day-to-day work. It could save your team a lot of time on manual work — so they can focus on more important things like mitigating the risks they identified, collaborating with your customers, and finding ways to offer more value to every project.”

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