Articles Category

Does not get you ahead

The topic raised is why does everyone from the architect to the engineer get paid to work on pricing a job but not the builder? There appears to be a pre-meditated aspect to this that is yet to be confirmed. He now tries to invoice the client (an accountant from out of town) but gets a “no way Jose” response with lots of legal terms in the letter. 

Top Marks to Mike Fox

If you didn’t see the article by Mike Fox in the Masterbuilders 'Building Today' mag this month you should go find it.

The topic he raised is why does everyone from the architect to the engineer get paid to work on pricing a job but not the builder? There appears to be a pre-meditated aspect to this that is yet to be confirmed. He now tries to invoice the client (an accountant from out of town) but gets a “no way Jose” response with lots of legal terms in the letter. 

The Cost Of Quoting?

Why in particular does this occur on the bigger jobs where many thousands of dollars’ worth of time and resources can be burned in in pursuit of submitting a tender. I can remember a friend of mine telling me he chewed up $50k x 3 times before he was awarded a government tender on a large building project. (Fortunately he got it but some others missed out.)

Can the Industry Afford This?

You have to wonder. Particularly when in desperation to be awarded the job some new players allow themselves to be negotiated even lower. And if you allow yourself to be negotiated below the bottom line then how on earth are you going to carry the 10 years of liability that goes with the job?

So What Should You Do?

These are the industry professional thoughts on the matter:

  1. Don’t get the price wrong;
    use a very good Quantity Surveyor and don’t do it yourself
  2. Pay for professional advice; 
    It’s cheaper than the potential fall. And you can make it up by staying on the tools rather than taking 3 x as long to do it yourself
  3. Be prepared to walk away; 
    If you know that you are being pushed into negative territory you are better to go fishing than take a fall for someone else. If some other guy gets the job at that low price console yourself that he won’t be around for the next job.

How can ASQS help?

Contact me today to ensure you get the price you need by emailing me or calling us:

  • +64 3 281 7703
  • Lester@asqs.co.nz