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How do life sciences companies plan investments in production facilities strategically and in a GMP-compliant way?

We guide pharma, biotech, MedTech and IVD companies through CAPEX projects for regulated production facilities, from needs assessment through User Requirement Specification and tendering to qualified, GMP-compliant commissioning. The limiting factor is rarely the budget, but the sequence: those who lock down GMP requirements, the URS and the qualification plan before contract award avoid the renegotiations and requalifications that ultimately make CAPEX projects more expensive than a low bid ever was.

  • Pharma
  • Biotech
  • MedTech
  • IVD

Overview

Which CAPEX challenges arise in life sciences?

Support from needs assessment to qualified commissioning · EU GMP Guide (Eudralex Volume 4), EU GMP Annex 15, EU GMP Annex 1

Last updated: 2026-06-13

Investments in regulated production facilities rarely fail because of the technology, but because of gaps between the investment decision, requirements definition and qualification. Four levers where CAPEX projects most frequently get stuck:

  • GMP requirements must feed into the facility design before construction begins (Design for GMP). The EU GMP Guide (Eudralex Volume 4) and, for sterile processes, Annex 1 set requirements for cleanability, material flow and prevention of cross-contamination that can only be corrected later at considerable cost.
  • The User Requirement Specification (URS) is incomplete or not demonstrably linked. Under EU-GMP Annex 15, the URS is the starting point of qualification; whatever is missing there cannot be demonstrated in DQ, IQ, OQ and PQ and triggers findings at acceptance.
  • Projects run over budget and schedule because supplier responsibility, scope and interfaces are not contractually fixed. Unclear responsibilities between the equipment supplier, GMP ownership and validation lead to renegotiations rather than defined acceptances.
  • Qualification and validation are planned too late. If FAT, SAT and qualification under Annex 15 are only set up after delivery, commissioning is delayed because defects become visible at the final site rather than at the supplier.

Services

How we support you

Needs Assessment & Investment Strategy

Structuring make-or-buy, capacity and site assessment into a robust business case. Deliverable: a decision document for management and investors with capital requirements, an options comparison and an assessment of regulatory consequences.

URS & GMP Requirements Management

Preparation of complete User Requirement Specifications with GMP requirements integrated from the outset under the EU GMP Guide, for sterile processes under Annex 1 and for cleanroom classes under ISO 14644. Deliverable: a verifiable URS as the basis for tendering and qualification.

Tendering & Supplier Selection

Development of technical tender documents (RFQ, RFP), technical evaluation of bids and support during contract award. Deliverable: a documented supplier comparison and a contractually fixed scope with clear GMP and validation responsibility.

Project Controlling & GMP Compliance Review

Ongoing controlling of milestones, budget and scope with regular GMP compliance assessments during the construction phase. Deliverable: status reports and deviation tracking throughout the course of the project.

FAT, SAT & Qualification

Support for Factory Acceptance Test and Site Acceptance Test as well as setting up qualification (DQ, IQ, OQ, PQ) under EU-GMP Annex 15. Deliverable: accepted FAT and SAT protocols as a precursor to documented facility qualification.

Learn more

What it comes down to

A CAPEX project for a regulated production facility is at its core a question of sequence. The User Requirement Specification comes first, because under EU-GMP Annex 15 it is the starting point of qualification: whatever is not stated there cannot be demonstrated later in DQ, IQ, OQ and PQ. Only once the URS fully captures the GMP requirements from the EU GMP Guide (Eudralex Volume 4) and, for sterile processes, from Annex 1 does the tender provide a benchmark against which bids can be compared and suppliers contractually bound. Those who reverse this sequence and award the contract first shift the clarification into the construction phase, where every correction runs through change orders.

The second bottleneck lies at the transition from the supplier to the company's own site. A Factory Acceptance Test verifies against the URS before the facility is delivered; the Site Acceptance Test and the subsequent qualification under Annex 15 turn this into the documented evidence for GMP-compliant commissioning. Defects identified in the FAT are cheap to resolve at the supplier, the same defects at the final site delay commissioning. Precisely for this reason the qualification plan belongs in the early planning and not at the end of the project, and precisely for this reason we review the regulatory consequences of a new facility or a new site already in the business case, before capital is committed.

Our approach

Our approach

01

Needs Assessment & Business Case

Decision document with capital requirements, an options comparison and identified regulatory consequences.

02

URS & GMP Requirements

Complete, verifiable URS with integrated GMP requirements as the basis for tendering and qualification.

03

Tendering & Award

Documented supplier comparison and contractually fixed scope with clear GMP and validation responsibility.

04

Construction & Project Controlling

Tracked milestones, budget and scope with ongoing GMP compliance assessments.

05

FAT & SAT

Accepted acceptance test protocols against the URS, documented as a precursor to qualification.

06

Qualification & Commissioning

Facility qualified under Annex 15 and commissioned in a GMP-compliant manner.

Common pitfalls

Where projects commonly fail

The URS is written after contract award or remains incomplete.

Since the URS is the starting point of qualification under EU-GMP Annex 15, without it there is no benchmark for DQ, IQ, OQ and PQ. Defects only surface at acceptance and lead to renegotiations with the supplier.

GMP requirements are retrofitted only after the design is finalized.

Cleanability, material flow and prevention of cross-contamination under the EU GMP Guide, and for sterile processes under Annex 1, can only be corrected afterwards at considerable effort.

Responsibility for GMP compliance and validation is not governed in the supply contract.

If it remains open who delivers the qualification documentation and who is liable for GMP-compliant execution, gaps arise between the equipment supplier and the operator that become expensive over the course of the project.

Qualification and FAT are scheduled too late.

If the FAT at the supplier is skipped, defects only become visible at the final site, where rework delays commissioning instead of being resolved at the supplier before delivery.

Regulatory consequences of the investment are overlooked.

A new manufacturing site or a modified facility may require a variation to the marketing authorization or an update of the technical documentation under MDR (EU) 2017/745 or IVDR (EU) 2017/746. If recognized late, this blocks market supply despite a completed facility.

FAQ

Frequently asked questions

The User Requirement Specification (URS) defines all technical, functional and regulatory requirements for a facility. Under EU-GMP Annex 15 it is the starting point of qualification and the basis for tendering, supplier comparison and subsequent DQ/IQ/OQ/PQ. Gaps in the URS regularly lead to renegotiations and qualification problems.

Sources
  • EU GMP Guide (Eudralex Volume 4), primary text incl. Annex 1 and Annex 15
  • Regulation (EU) 2017/745 (MDR) and Regulation (EU) 2017/746 (IVDR), primary texts
  • ISO 13485:2016, ISO 14644, primary standards
  • Writer material capex-planung-qualifizierung (entourage-website-writer)
  • https://theentourage.de/expertise/capex-planung-qualifizierung/ (existing page content, revised)

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Regulations & standards considered

  • EU GMP Guide (Eudralex Volume 4)
  • EU GMP Annex 15 (Qualification and Validation)
  • EU GMP Annex 1 (Manufacture of Sterile Medicinal Products)
  • Regulation (EU) 2017/745 (MDR)
  • Regulation (EU) 2017/746 (IVDR)
  • ISO 13485:2016 (QM system for medical devices)
  • ISO 14644 (Cleanrooms and associated controlled environments)

Have a concrete project?

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