Drive for Efficiency: 4 January 2023
Many moons ago I worked in a corporate role. I was paid a salary and I slowly moved up the ladder into new roles, each more challenging than the previous. One particular role change required excessive hours and seven days per week as I was thrown in the deep end. This was due to the level of the ‘jump’, from a technical role to a blended marketing-technical position encompassing several countries and a new product form. By rights, the work should have been manageable (it was for my predecessor) but not for me. Before long, following some hard work, I had learned the ropes, made some efficiencies and the time/reward function was quite appropriate. I understood that I was on a salary and what was expected of me, I had support and training, and was effective.
This drive for efficiency doesn’t seem to be operating in residential construction due to its fragmented nature and also, recently, serious under resourcing.
In some aspects of the design-council-infrastructure side of my developments, the tension over hourly charges drives me to distraction. Some groups quote a fixed sum, within normal boundaries (so the price is fair) others charge on hours – it is mine to choose fixed price versus hours.
One professional group completely aced my brief and delivered in record time, they probably won on hours, but I also won in having a superb piece of work delivered. They said the brief was good, the discussions were good, and I know that the delivery was well done. This group was fair and their work superb.
Another group quoted a price, it was a standard task and a contract (SFA) was signed. However, the delivery was exceedingly delayed (10 months). We had several exchanges trying to resolve problems. The group calculated all hours spent and they were double what was invoiced. This caused tension. We chose to part ways and a new team delivered the task in under six weeks.
Another example was a specific comment I received when working through a query with an infrastructure provider: “if you require me to review the costs and justify the spend on XYZ, it will just cost you more as I have to charge my hours to you”.
Through my network I have heard two complaints about tender preparation for potential clients. One client came onboard and there was no end of reminders of these costs and even a threat to on-charge those hours as a variation.
In a quote received for building nine months ago, the cost of labour was huge. Going through the details (it was a thorough quote), I noticed that they had assessed it would take two hours to install one panel of Weathertex (or one panel every hour for two people to install). The group had done their work in assessing the cost to build but the rate didn’t fit with my knowledge, the suppliers advice, and the experience of my advisors. The group did not seem to be efficient and I couldn’t afford to run with a group that was not experienced with my choice of cladding.
Overall, I prefer fixed prices unless I know the group really well and understand their competency. Competency, efficiency, and the ability to think critically is vital to me.
My income comes from my ability to be efficient as a principal: to make sure I can assess my position and risks correctly. For this reason, I am sticking to the tried and tested where word of mouth is my best friend, getting a ‘fair’ quote from a provider (not the cheap one), and making a call to part ways if things are not working out.
All comments can be evidenced.
