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Minimize Costs by Planning Early for Division 11 Equipment

By CME Corp Staff | September 3, 2024

When it comes to medical construction projects, every detail counts. Yet the detail of including Division 11 equipment in early planning is often overlooked even though early planning and procurement of this equipment can lead to substantial cost savings and smoother project execution.

Understanding Division 11 Equipment

Before discussing the benefits of early planning and procurement, let’s take a moment to recap Division 11 healthcare equipment. This category includes equipment that requires mounting or integration with plumbing or electrical systems. In hospitals and clinics, Division 11 equipment might encompass laboratory equipment such as fume hoods or medical grade refrigerators, large sterilization units, operating room equipment like surgical lighting, clocks, and some endoscopy equipment, as well as scrub sinks.

CME Corp branded logoShop CME for Division 11 Healthcare Equipment

 

Cost Benefits of Planning Early for Division 11 Healthcare Equipment

One of the most significant advantages of early planning and procurement of Division 11 equipment is reducing costs. When equipment needs are identified early, last minute, expensive, expedited orders and the associated, increased, shipping costs can be minimized, if not eliminated altogether.

In addition to helping avoid the sometimes-steep costs associated with eleventh hour orders, early planning and procurement of Division 11 equipment offers several other ways to help medical construction projects contain costs and stay on budget.

Prevention of Delays: By identifying and ordering equipment early, construction teams can ensure that all necessary items are available when needed. This prevents the costly delays that are the result of late deliveries, missing parts, or back-ordered items.

Coordination with Trades: Early planning can facilitate better coordination between the different trades involved in the construction process, plumbing, electrical, and structural work for example. Coordination with the trades ensures the necessary connections and supports are integrated into the facility design from the start, reducing the need for expensive adjustments or rework later as well as all but eliminating the fees that some states or localities attach to the resubmission of drawings after the initial approval.

Lock in Pricing: Conversations with manufacturers’ representatives or equipment distributors early in the planning enables the project manager to lock in prices for equipment, thereby safeguarding the budget from potential price increases associated with market fluctuations, inflation, or supply chain disruptions.

Minimize the Number of Change Orders: When equipment needs are identified early, the chances of discovering unexpected requirements later in the project can be diminished. And, fewer undiscovered requirements, by extension, reduces the number of costly and disruptive change orders.

Equipment Compatibility: Preliminary identification of Division 11 equipment requirements supports a more thorough vetting of the equipment options to ensure the equipment is compatible with the facility’s design and operational needs. By reducing the risk of purchasing incompatible or unsuitable equipment, replacements or modification costs can be decreased.

 

Cost Benefits of Warehousing Division 11 Medical Equipment

With early planning and procurement of Division 11 medical equipment comes the potential need for equipment storage. Offsite warehousing can help to minimize storage costs in several ways:

Minimize On-Site Storage Cost: On-site storage can be limited and expensive, especially in urban construction areas where space is at a premium. Warehousing off-site reduces the need for on-site storage space, lowering or eliminating costs related to temporary storage solutions, such as expensive on-site storage containers.

Prevention of Storage Damage: Proper warehousing facilities offer secure, climate-controlled environments that protect equipment from damage or loss. This can reduce the risk of costly repairs or replacements due to damage from poor storage conditions.

Improved Coordination with Installation Schedules: Warehousing also allows for better coordination with construction schedules. Equipment can be delivered to the site exactly when needed, reducing downtime for contractors, and minimizing labor costs associated with handling equipment multiple times.

 

The Financial Impact of Including Division 11 Equipment in Early Planning

Conversely, projects that fail to plan Division 11 equipment early often come face-to-face with hidden costs and budget overruns. Expedited procurement of timeline sensitive healthcare equipment incurs the actual cost of significantly higher unit prices, shipping fees, and additional labor, as well sets the stage for a delayed opening (and lost revenue), through disrupted project flows and extended timelines.

 

Partnering with CME for Division 11 Healthcare Equipment

Planning for and seamlessly procuring Division 11 healthcare equipment can, in many ways, help set the stage for a medical construction project. Partnering with a healthcare equipment distributor who specializes in helping general contractors procure and receive Division 11 equipment included in the construction bid and associated award runs a close second to planning in terms of laying the groundwork for a successful medical construction project.

By partnering with CME Corp., you can leverage our project managers’ expertise during the early planning conversations and through to procurement and delivery to help save money, meet critical milestones, and ensure compliance with all necessary standards.

Our project management teams proactively communicate and collaborate with contractors, vendors, and logistics teams to streamline the procurement process, ensuring the timely delivery of equipment critical to the initial stages of medical construction projects.

In-house Logistics and Direct-To-Site service teams are other invaluable services provided by CME. Our teams receive, inspect, assemble (if needed), and deliver equipment as scheduled based on the timeline established by the construction project manager. If during the incoming inspection at our warehouse damaged or defective items are identified, logistics will work through the PMs to resolve the issue with the manufacturer.

Partnering with CME, the only one-stop-shop healthcare equipment distributor nationwide, during the planning stages of medical construction projects is a strategic choice that can contribute to ensuring a healthcare facility is properly equipped and meets all regulatory and safety standards when it opens the doors to patients

 

CME Corp branded logoClick CHAT to begin a conversation about planning for and procuring Division 11 healthcare equipment.

 


About CME: CME Corp is the nation’s premier source for healthcare equipmentturnkey logistics, and biomedical services, representing 2 million+ products from more than 2,000 manufacturers. With two corporate offices and 35+ service centers, our mission is to help healthcare facilities nationwide reduce the cost of the equipment they purchase, make their equipment specification, delivery, installation, and maintenance processes more efficient, and help them seamlessly launch, renovate and expand on schedule.

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