Capital Planning: Lessons from the NCIA Summit
August 23, 2019
August 23, 2019
How to Spend Capital Wisely When Developing Your Cultivation & Processing Operations
The panelists shared secrets to cannabis facility design that save time and allow production to start faster. The result is a clear path, no surprises or wasted effort.
Overall: Less budget required for building, a quicker time to production, and on-time delivery.
Here are some top takeaways from the panel:
You’re in manufacturing.”
Cannabis cultivation must be addressed for what it is — an industrial-agricultural manufacturing process. Hiring a commercial builder to start a design-build process for a cannabis facility with a non-industrial approach is a sure path to spending more time and money in the long run. An industrial design / build approach will set you up for a successful project.
“Go slow to go fast.”
Spending time on the front end saves time and money during construction and build out. Front end loading — with a clear scope and schedule — avoids a big mess during construction. Control risk > Increase rate of success.
A 1-hour consultation with engineers on the front end saved one client at least $1 million in buildout because of the electrical configuration.
The client had planned to build out in one section of a 200k sq ft facility. When the engineers were brought in, they noticed during a site visit that a different area was already at spec for electrical needs while the other area was not. Moving the build out area kept the client from spending $1 million on new electrical installation. They spent $50k on engineers, but saved $1 million in construction.
Q & A:
Q: What does “CGMP” mean?
A: “CGMP” is an acronym for “Current Good Manufacturing Practices” regulations enforced by the FDA. At it’s simplest, CGMP involves a cleanable space and a repeatable process — harvest after harvest.