Cycling boom: project management experience of “TEC Consulting” helps keep pace with demand

September 13, 2021
The challenging year of 2020 has led Europeans to swap holidays abroad for exploring their home countries. One of the best and most environmentally friendly ways to do this is with bicycles. According to the bicycle trade, last year bicycle sales in Europe increased by around 40%. This has encouraged companies to expand and to pay more attention to the transport and storage of bicycles. “JW Trade”, a company that sells bicycles, parts and accessories, operates the “” e-shop and physical stores, is keeping up with market trends and is preparing for the construction of a new warehouse in Šiauliai. Julijus Zaura, Head of “JW Trade”, talks about the development method chosen for the project.


Impact of market trends on development

In Lithuania, as in Europe as a whole, the popularity of bicycles grew between 2020 and 2021, and so did their sales. The last few years have therefore been a golden age for bicycle traders. In 2019, “JW Trade” turnover was €2.5 million, rising to €4.5 million in 2020. “Every push forward, successful growth and improvement encourages expansion both in terms of range and logistics. We strive for excellent service quality – to ensure that our customers’ goods are stored in a convenient and secure location and delivered quickly. With the rapid pace of development and the shortage of suitable buildings in Šiauliai, we need to react quickly and take immediate action. Therefore, it was decided to construct a warehouse building with a total area of 2400 m², including administrative and domestic premises, in Šiauliai Industrial Park in 2022,” says the representative of “”. “We have brought in “TEC Consulting” to help us implement the project, which is expected to cost up to €1 million,” he adds.

“TEC Consulting” developed the project concept, drafted the design brief and selected the designers. “We organised the tender, analysed the proposals and came up with the conclusions, and drew up the project budget. We are currently coordinating the project works, coordinating the solutions, supervision and analysis, and selecting the company that will carry out the project’s expertise,” says Ovidijus Andrijauskas, Project Manager of “TEC Consulting”, the company that is carrying out the project.

The company also coordinates the procedure for obtaining the building permit, tendering for contractors and analysing bids. “The building will be constructed in such a way that it can be easily adapted in future phases of expansion by installing high-bay racking systems (storage up to 8.5 m high) and expanding the storage area by building an extension of up to 5,000 m²,” explains the specialist.

The direct contracting method: features and benefits for the client

“We were looking for the best option, the most suitable for us, and after considering all the options, we decided to choose the direct contracting method,” says the Head of “JW Trade”. Direct contracting is a way of developing a project by breaking down the design, contracting and construction management scope into packages and entrusting their execution to a qualified project management company. “In recent years, this method of construction organisation has become more and more popular in Lithuania, allowing the client to be more involved in risk management and decision-making,” says the “TEC Consulting” specialist.

Direct contracting approach of “TEC Consulting” offers advantages such as:

  • speed – shorter project development time;
  • efficiency – saving up to 12% of the total construction cost;
  • collaboration – the advice of a team of professionals during the design and construction period helps the customer to facilitate the decision-making process.

“This approach has proved particularly attractive because of its ability to minimise the involvement of internal resources. We didn’t want any of our employees to be interrupted when they moved to another area. That’s why we entrusted this task to professionals. Although they cost money, they compensate for internal losses and help optimise the use of construction funds”, explains Julijus Zaura.

“However, we are actively involved in the process. Firstly, because we are interested, secondly, because there is a need, and thirdly, because our existing expertise and the specifics of the project solutions allow us to do so. Of course, we leave the technical issues to the specialists,” he adds. The project manager of “TEC Consulting” supports him: “The client is involved in the project, especially in the design phase, and makes sure that the design and the building are in line with the company’s specific activities. When making decisions, the client looks at the possible solutions for the project and takes into account the recommendations of specialists. Only by working together can we achieve the best results. This is one of the core values of TEC Group.”

By creating meaningful projects that meet business needs, “TEC Consulting” not only sought to meet “JW Trade” need for more storage space for bicycles, but also to optimise the company’s logistics processes for a smoother and more efficient operation. “TEC Consulting”, UAB is part of the TEC Group of Companies which also includes the companies “TEC Industry” and “TEC Infrastructure”.  The companies of the Group provide design, consulting, maintenance, project and construction management and other engineering services for transport infrastructure and industrial objects as well as energy facilities.