Another week has passed by at HLP and I had some thoughts about the blog should focus upon.
Should it be the variety of work currently going on? Well we definitely have variety, with a new build student accommodation, medical centre, luxury restaurant design proposals, a couple of swimming pools, a new housing scheme and some sensitive historic projects.
We were also pleased to gain a new client who had been recommended by an existing client. That always brings a smile to the face!
So is the economic recovery coming along? We think it is! It will be good for the whole industry as covered in my previous blog, however, there is a need for sensible pricing by consultants and contractors.
For too long we have seen contractors buying work at negative cost, only then to try and achieve these costs by squeezing the sub-contractors through the contract. This brings pressures on the project. Of Course clients want the best price, however, beware of cheap over good value. I am encouraged to see that contractors are starting (slowly) to price at zero or even a profit margin. This will give better value to clients.
The same applies to consultants. Only this week we bid for some work and the winning firm put in a very low bid. We know it can’t be delivered and ultimately the project will either fail or deliver a poor piece of work due to lack of resource. We must continue to support clients and also tell them honestly how much time a QS, a structural engineer or a specialist actually needs.
A successful project comes together when the right rates apply, the right contractor is picked and dare i say it, the contractor is paid the right price.
Let’s hope we all continue to be busy.
