Pricing Work

If you don’t get it right here it’s up hill all the way and you may as well forget about profit.

 

We put a lot of faith into someone else to get it right and you have to wonder if they take into account the complexities and subtleties of each individual job i.e. weather, environment, access, staff expertise, ground type etc etc. You know this stuff matters because it’s your Intellectual Property and knowhow, but does the person pricing your job know it, and if they do, are they applying it. It’s like getting an accountant to run your business because basically, a big percentage of them sit behind a computer working numbers all day. Do they know how these numbers relate in the real world and on the building sites? Fact is they don’t! The following example illustrates this clearly because to achieve accuracy and efficiency you cannot rely solely on tables, meter or room rates.

 

There must be a break down costing approach or you must ‘tag’ the price with assumptions and when the assumptions are wrong you need to force a variance.

The difference is the first scenario has a perimeter of 40Lm, the second a perimeter of 202Lm. 
There is 5 times as much edge, preparation and wastage likely in the second scenario. The folly of pricing by area, length, count or any other unit rate using rates per that unit, is clear to see. Breakdowns, tagging and keeping a finger on the pulse through accurate reporting will help you avoid this trap.

 

Third Parties do not know your business like you do, even a QS. Not acknowledging this can create risk. We provide you with the ability to create a quote that is based on assumptions, meaning that if an unforeseen circumstance occurs, then a cost increase due to this variance will be covered – mitigating the risk for you.