Executive Summary and Financial Analysis
Executive Summary
This document outlines the significant cost savings and operational benefits achieved by housing a Client project personnel at the Drive Workforce Camp compared to the traditional per diem model. Our analysis reveals substantial financial advantages, improved productivity, and numerous qualitative benefits, making the camp a strategically superior solution.
Key Financial Metrics
| Category | Detail | Value | Savings |
|---|---|---|---|
| Total Charged to Dec 31 + Demobilization | Finalized actual cost | $10,993,401.66 | |
| Total Available Dorm Nights | Projected capacity | 48,000 | |
| Camp Charge per Night | All inclusive rate (lodging, meals, utilities) | $229.03 | |
| Original Per Diem Rate | Hotel + meals + incidentals | $350.00 | |
| Total Actual Nights Utilized | Recorded occupancy | 39,200 | |
| Equivalent Cost at Original Rate | 39,200 x $350 | $13,720,000.00 | |
| Total Cost Savings | Difference between per diem and camp costs | $2,726,598.34 | 20% cost reduction (compared to per diem model) |
| Additional Project Savings | From occupancy and time saved: 1.5h x 39,200 / 10h/day | 5,880 mandays | 15% productivity boost |
Accommodation Costs Comparison
The following graph illustrates the substantial cost savings achieved by utilizing the Drive Workforce Camp for accommodating the Client’s project personnel, compared to the projected per diem costs. The inclusion of reduced travel and other associated savings further amplifies the total financial benefit derived from the camp solution.
Increased Productive Hours
Housing personnel at the Drive Workforce Camp provides significant operational advantages, primarily through enhanced productivity. Reduced commute times provided an estimated 1.5 hours saved per person per day turned directly into productive time, resulting in approximately 5,880 additional productive mandays, the equivalent of a 15 percent increase in productive time. This improvement translates into enhanced output, reduced fatigue, and better overall morale.
Qualitative Advantages
Beyond the quantifiable financial and operational benefits, the Drive Workforce Camp offers several crucial qualitative advantages:
- Improved Employee Morale: Dedicated accommodation improves work life balance.
- Enhanced Team Cohesion: On site living fosters stronger working relationships.
- Reduced Turnover: Comfortable living conditions contribute to higher employee retention.
- Positive Community Impact: Investing in local infrastructure strengthens community relationships.
Conclusion
The Drive Workforce Camp represents a significant improvement over the per diem model for housing our Client’s project personnel. The substantial cost savings, operational efficiencies, and qualitative benefits clearly demonstrate the strategic value of this approach.
Next Steps
To further maximize the benefits of the Drive Workforce Camp, we recommend a brief walkthrough to review assumptions, methodology, and supporting data.
Contact DRIVE Workforce Lodging to discuss your potential project benefits.
Download: Drive Workforce Camp Cost Savings & Benefits Case Study.pdf
