VORM’s Story: How the Champion of Affordable Housing Stays in Control of Its Projects

The 105-year-old VORM is a top player in construction and development. Known for leading urban projects in cities like Rotterdam, Amsterdam, The Hague, Eindhoven, and Utrecht. Under the motto A Good Neighbourhood For Everyone, VORM operates across the entire construction sector with a focus on affordable, unique homes in liveable, sustainable neighbourhoods. We speak with (interim) CFO Marc Springvloed about the company’s unique challenges, such as working smarter with suppliers and maintaining control over costs. How does the company manage to achieve so much with a relatively small team? And how does Emixa help to get the most out of their brand-new ERP system?

What kind of company is VORM?

We are one of the largest building project developers in the Netherlands and are active in various areas of expertise: area development, real estate development & construction, transformation, sustainability and renovation, and real estate maintenance. In the development branch, we purchase land and develop new housing plans. VORM is very skilled in urban construction; we can come up with very creative solutions for building with many constraints. We also have a lot of experience with everything involved, such as municipal conditions, participation processes, permits, nitrogen regulations, etc. Our business model runs throughout the entire chain. We aim to deliver as much added value as possible. Innovation is our driving force. We continue until everyone has an affordable, sustainable home in a liveable neighbourhood, even if we have to pull the entire chain along with us.

What innovations is VORM currently working on?

We have high expectations for smarter collaboration with suppliers, for example, through prefab solutions. For a student housing project in Utrecht, High 5, we are using prefab bathrooms. These can be installed very quickly in the 900 shell apartments. This results in a 20% cost reduction and 50% faster completion. We think we can go even further, for example, by making all plumbing and electrical work in a prefab form. This could also make buildings modular and therefore circular.

What are the biggest challenges for VORM?

Like in other sectors, the construction industry is dealing with staff shortages. In recent years, with low interest rates and a booming economy, many new construction projects have been developed and started. Builders are now fully booked for the execution of these projects. Recent inflation is also a factor. With higher interest rates, people face higher mortgage costs, while construction costs have also risen. We are seeing fewer project tenders and slower start times. Our challenge is to work even smarter and keep housing as affordable as possible. Additionally, there are increasing sustainability requirements, such as energy consumption in homes, the environmental impact of building materials, and climate adaptation measures. We are consistently exceeding the standard in these areas. Every day, we work hard on sustainable and affordable housing, which is sorely needed in the Netherlands!

VORM is a relatively small company. How do you manage to perform so well?

Indeed, VORM has about 500 employees. Compared to larger competitors, we are highly focused. We are also selective about which projects we develop and take on. We choose projects where our inventiveness is truly needed. That’s where we add the most value, making the project more profitable and more interesting for our people. Since VORM is a family business, we can make those kinds of decisions. It’s a financially healthy company that can plan for the future.

What does your role at VORM involve?

As CFO, I am ultimately responsible for the finances. I joined VORM on an interim basis in March 2023. After years of growth, we needed to gain more control over costs. Since VORM wants to be the champion of affordable housing, this will remain important in the future. Working more efficiently and learning from our projects is essential.

How did Emixa become involved?

When I joined, VORM was already working on the implementation of a new ERP system. The plan was to go live soon, but I wasn’t comfortable with that yet. Not because the implementation partner, 4PS, was doing a bad job, but there just hadn’t been enough thought given to the impact such a new system has on all business processes. The impact is simply huge with a central system like this. I had already had very good experiences with Emixa at VolkerWessels, so I wanted you on board as a process partner. Your SBOS model (Strategy-Business Processes-Organisation-Systems) is rock solid.

What did we do for VORM?

You bring a fresh perspective and knowledge, which is valuable in itself. Your team guided the go-live process with professional project management and effective change management. You involved our people before the go-live and trained them in using the new system. You also guided the post-implementation phase and brought all parties to the table to quickly resolve unexpected problems. We are still working together on further optimisations. You can’t predict everything in advance, so we continue to learn and optimise. We want to use this new system as smartly and efficiently as possible.

What value has the project delivered to your company?

This system has given us more control over our administration. Previously, a lot was also recorded decentrally in Excel. Now, all offers, contracts, orders, invoices, etc. are in the system. This saves a lot of manual input and checking work. The planning of engineers, installers, electricians, etc. is also done through the system, which saves our project managers a lot of time spent on calls and emails. It might be a cliché, but everything depends on how well the system is used. Emixa has done a great job of guiding that change.

What are the next steps for VORM?

Now that the foundation is in place, we want to work more data-driven. Can we link the system with that of others to improve planning? Can we make even better project cost estimates based on past data? With these insights, you can make better decisions.

What makes the construction industry interesting for you?

Each project is unique and involves a lot of considerations, including financial ones. The environment also constantly changes due to new laws, regulations, and market conditions. You need to do your homework well and stay adaptable. That makes it challenging.

Rolf de Klein: "It's incredibly gratifying to hear that Marc is happy with our work. VORM is indeed a remarkable company that wants to learn and innovate quickly. It's great to contribute to that in our way."

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