Business Relocation - Top 10 Complaints about contractors

Business Relocation - What to look out for when hiring contractors.
By: Whitehead Francis Associates
 
BANSTEAD, U.K. - Oct. 8, 2013 - PRLog -- The most common complaints we hear about contractors (in no particular order of importance) are:

♦ DIDN'T SHOW UP ON TIME OR BEGIN WHEN PROMISED
♦ DID NOT RETURN PHONE CALLS
♦ DID NOT OBTAIN THE APPROPRIATE PERMISSIONS ON TIME
♦ DID NOT APPLY ENOUGH MANPOWER TO STAY ON SCHEDULE
♦ SUFFERED PARTS OR EQUIPMENT BACK-ORDERS THAT DELAYED
   COMPLETION
♦ FAILED TO COMPLETE THE JOB ON TIME
♦ EXCEEDED PROPOSED COSTS THROUGH EXCESSIVE CHANGE ORDERS
♦ CUT CORNERS TO SAVE MONEY
♦ DELIVERED A POOR QUALITY FINISH
♦ DID NOT FURNISH AGREED-UPON DELIVERABLES (TEST
  DOCUMENTATION, AS BUILTS, ETC.)

Selecting Competent Contractors

Selection of competent contractors & suppliers always seems easier than it really is. Most novice 'operations managers' will resort to the "price and three references" method of selection.

This means that potential contractors & suppliers are invited to submit a price for goods and services. Since it is assumed that all contractors are created equal, the temptation is to hire the one submitting the lowest price. Just to cover themselves these 'operations managers' will also require three references of "satisfied customers" who have successfully used these suppliers.

Simply by 'phoning those references and asking them if they were satisfied with the suppliers should yield a risk-free selection, right?

Nothing could be further from the truth! Do they really believe that any supplier will furnish names of dissatisfied customers? They will ONLY supply good references. Now, what do you do?

"Price and Three References Approach"

There are many areas of focus that will help you find the right supplier or contractor and they go way beyond the "price and three references" approach.

First, you need to determine the typical project size and scope in which your potential contractors & suppliers have the most experience. You want to match your project as closely as possible with your supplier's experience.

Does the contractor work on projects of your size, or do they suit a different size of customer? What about the scope of the project? Have they performed many very similar projects successfully, or is this one a stretch for them?

Is your supplier a specialist in this specific requirement, or are they a generalist who attempts to satisfy many needs?

The choice is ultimately yours, and there is no right or wrong answer. Experience is the key factor here.

And Then There's Alaways 'Under bidding'!

What's 'under bidding' you may well ask!
Under bidding has become much more prevalent in the industry during the past few years of recession. In a nutshell, it's the somewhat dodgy practice of submitting tender prices at cost (or even LESS than cost at times) to try to knock out the competition to make sure they win the job.

But how can these contractors survive if they're putting in tenders at prices below what it costs them to buy-in the basic materials & labour to do the job I hear you ask? Well, the short answer is of course that some don't survive after doing this for a while and will eventually go to the wall. (Very messy indeed if it's in the middle of YOUR project!)

For those contractors who do survive, briefly, they attempt to 'claw-back' every possible penny, at every opportunity to turn their initial loss-making position into either a break-even position or, if they're really adept, into a wafer-thin profit margin. (Perhaps only a half or full percentage point!)

They do this by firstly going through all the tender documents, contracts, supplier costings, etc. with a fine tooth comb to uncover as many loopholes as they can. Then, with a combination of additional charges to the client via `change orders' as the project progresses, to screwing-down the sub-contractors and suppliers and/or holding up legitimate payments to the bitter end. (Sometimes even until the sub-contractors/suppliers go bust!

Is it any wonder then, that these projects can so easily exceed their initial budgets or go completely 'off the rails' as a result of such understandable sub-contractor/supplier dissention.

Again, the answer to avoiding this situation is to ensure that you employ an external specialist Project Manager/Cost Consultant firm who are fully aware of this practice and who have the experience and knowledge to counteract all of the 'dodgy tricks' employed by such contractors.

Why Re-Invent The Wheel?

Notwithstanding the above, if you are still intent on trying to re-invent the wheel' in such a relatively short space of time before your project 'goes live' - at which point it really is akin to "holding a tiger by the tail" - then you really ought to re-consider hiring outsourced experts.

Contrary to the popular belief about the 'extra expense' of hiring-in outsourced experts whose costs could be better spent elsewhere on the project, working with specialist project managers and cost consultants to run the project from start to finish will, at worst, cost you nothing at all (the savings made will more than cover their very modest fees) and at best could save you potentially £000's in 'lost' directors and staff time (which would be better spent on running your own business) not to mention the potential additional costs from your contractors via 'change orders' etc.

Still Thinking Of `Going It Alone'?

Before taking the final plunge - and before it's too late - why not have a brief, no-obligation chat with a friendly, knowledgeable expert in the fields of business relocation and interior fit out. Experienced consultants will not only be able to point you in the right direction from 'Day One', they may also be able to advise on the most cost-effective and efficient means of getting the work done with the least amount of hassle & heartache for you.
End
Source:Whitehead Francis Associates
Email:***@whiteheadfrancis.co.uk Email Verified
Tags:Project Managers, Cost Consultant, Office Fit Out, Office Refurbishment, Business Relocation
Industry:Real Estate, Property
Location:Banstead - Surrey - England
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