Our client, the third-largest construction and civil engineering company in the world, has completed over 25,000 projects in 160 countries on all seven continents. The company’s projects often result in a wide range of surplus construction, transportation, and plant assets, which it aims to efficiently sell and remove from project sites so it can quickly demobilize while maximizing profit.
Under the lump-sum turnkey model through which many of its projects are executed, the company is responsible for all surplus and is highly motivated to achieve optimal recovery. Efficiently selling and removing surplus also helps the client demobilize and close lump-sum projects as quickly as possible, maximizing profit margins.
Considering these challenges and that surplus asset management is not a core business focus, the company sought a trusted partner that could leverage proven best practices and expertise to expeditiously manage and sell its surplus.
Since early 2012, Liquidity Services has partnered with the client to maximize value for its surplus. In our global agreement, we support the client globally on a wide range of projects, which have included the expansion of Washington, DC’s subway system, the building of power plants across North America, and six major LNG construction project. We’ve also helped the client sell pipe fabrication surplus from Turkey and mining surplus from a project in Chile.
Liquidity Services’ proven asset management process ensures maximum value. Throughout the client’s project and as the project winds down, we visit the site to identify all surplus assets and collect detailed information and photos to create lot listings that resonate with buyers. We sell the client’s surplus on a variety of Liquidity Services marketplaces – including GoIndustry DoveBid, (manufacturing and industrial surplus), Network International (energy surplus), and Government Liquidation (government surplus) – based on the product category and which market will bring the best return. With marketplaces representing virtually every asset category and nearly three million buyers in almost 200 countries and territories, we achieve optimal levels of interest and recovery for the client’s surplus.
Liquidity Services sells most of the client’s surplus through online auction, the proven optimal sales method for high-demand assets. We also use sealed-bid auction and private treaty methods as appropriate, ensuring client surplus is always sold through the best possible sales channel. As needed, we manage and supervise the inspection and removal of assets by buyers.
Since 2012, we’ve generated over $45 million in total sales for the client. We’ve sold more than 18,000 assets across nearly 50 asset categories including pipes, valves, construction supplies, and plant support equipment. Our global reach has attracted over 12,000 bidders from 20 countries, ensuring high bid levels and recovery. Highly satisfied with our partnership, the client recently extended our contract for several more years.
By partnering with the client to effectively manage and sell surplus resulting from a wide range of projects, we remove this burden from the project team while maximizing value through a safe, auditable, and compliant process. Our partnership allows our client to optimize profitability while focusing on its core business of delivering landmark engineering and construction projects.