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New Business

Expansion of factory for insulation material producer


The demand for high-quality insulation products in the construction sector is constantly increasing. To meet this demand, a leading manufacturer of insulation material wants to expand the factory facilities at a new location in Germany. The new factory consists of a production and storage hall, office spaces, a tank park, truck unloading stations, and associated infrastructure.

An important success factor in the construction of the new factory is finding contractors. The client saw this as a challenge due to market tightness, limited resource availability, and the time-driven project schedule, and therefore sought a partner to assist.


Due to experience in multidisciplinary projects, the client selected KH Engineering as the Owners Engineer for this project. On behalf of the client, KH Engineering was responsible for managing processes from permit application, planning, design, and tendering. Additionally, detailed engineering for electrical, HVAC, CCTV & site security, ICT, and interface management was carried out.

KH Engineering brought together the Procurement & Contracting and Marketing & Communication departments to develop an effective strategy for procurement, tendering, and communication for this project. Due to market challenges, it was important to generate contractor interest, requiring a different approach than usual.

Interest in the project was aroused not only by a Solicitation of Interest but also by active market outreach and a project promotion presentation. KH Engineering held information sessions and visited the project site with interested contractors and the client. This proactive approach provided valuable market insights into resource availability, planning, and project approach.

Based on market information and client needs, a single Request for Proposal (RFP) package was compiled for the disciplines civil, structural, infrastructural, HVAC, fire fighting system, and electrical and instrumentation. This multidisciplinary RFP package was then marketed. KH Engineering closely monitored the RFP process on behalf of the client, evaluated the proposals, and ultimately selected the most suitable offer.


The procurement and tendering strategy also included the drafting of the engineering, procurement, and construction (EPC) contract according to German law, including the selection and award criteria. This also involved developing a negotiation strategy to manage the process effectively.

Benefit for the client

By collaborating with KH Engineering, the client was able to strengthen its internal capabilities for this project. The added value lay in KH Engineering’s understanding of the various processes required to successfully execute an engineering, procurement, and construction management (EPCm) project. This enabled focus and translation of complex processes into feasible solutions.

The multidisciplinary and innovative approach of this project attracted a large number of interested contractors. Ultimately, the client signed a Letter of Intent with a party selected and approached by KH Engineering during the market exploration. After concluding this agreement, KH Engineering successfully handed over the project to the client.

Activities by KH Engineering

KH Engineering performed the following tasks for this project:

  • Acting as Owners Engineer
  • Detailed engineering
  • Accelerating permit application
  • Project management and procurement for and on behalf of the client
  • Developing procurement and tendering strategy
  • Drafting EPC contract in accordance with German law
  • Compilation of RFP packages
  • RFP response management, evaluation, and selection of proposals
  • Due diligence and contract negotiations
  • Communication during project launch and market assessment

Project Manager: Romano Bouterse

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