Thursday, December 3, 2009

hiring contractor-things to be consider

Thursday, December 3, 2009
I think it is a good examples when we looking for supplier on any renovation project..especially those who intend to handle the renovation themselves ...
reason being, the one who quoted you lower price, might consists lots of hidden issue or cost which they will not tell you before you engage them ...And, most of the owner might not have experienced in renovation, therefore the only thing that may attracted you will be the figure...but you will never know, that's lots of hidden cost involve and they may not really quoted you what you expected...by the time you aware of it..it might be slightly too late to regret.
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Yesterday went for a meeting at client's office..meeting up with 2 shortlisted supplier for my client's new office.

2 suppliers, same project, pricing different is up to 200%.

During the meeting....
Supplier A
" i divided the zone into 4, using xxx material"

Supplier B
" i divided the zone into 10, using yyyy material"

"how to justify this zoning?in stead of 3 or 6 or 12..in stead of your proposed zoning?" we asked

Supplier A
" As per my experienced, 4 zone is good enough. But i can't tell u now where the specific zone divide.."

Supplier B
" we calculated the zoning as per formula, and also the lesser zone it is, the bigger machine needed, you might be facing insufficient capacity in future, also sound will b increased . Second, the space for machine installation also requested higher..."

"any nego on the pricing?" we asked

Supplier A
" Emm...nope, the proposed price i believe is much lower compare to others competitors.."

Supplier B
" Emm...actually my profit margin is quite low, i am not sure how much others quoted you, but i believe it is different proposal that's cause the price differently....."

"Future maintenance?" we asked

Supplier A
" can be done by appointment.."

Supplier B
" we include 2 years free maintenance....."
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