Architecture / June 11, 2018 / Oriane
The relationship of quality to cost is often expressed in the saying that you get what you pay for. Cost is a critical factor in most building projects and some clients will seek a low price. Low price and maximum price competition, however, often have negative impacts on quality standards and achieving best value for money overall. In the current economic climate below cost tendering has heightened the risk of contractor insolvency and it may be difficult and expensive to obtain protection from this risk. Unrealistic and inadequate budgets often lead to projects becoming finance driven where cheaper options are preferred to better or more sustainable alternatives. Certain clients may have fixed budgets which may not be exceeded in any circumstances. In such circumstances the client will expect the quantity surveyor to maintain rigorous cost control during the project in order to deliver the project within budget. Designing to achieve such cost limits might curtail the introduction of beneficial features and or variations which may result in excessive running and maintenance costs later on.
Local contractors are usually at an advantage when competing for work. Contractors who have the capacity to construct work from within their own organisation should, in theory at least, be more competitive than those who sub-contract large proportions of the work. Current site management practice however tends to favour the widespread use of subcontractors. Nevertheless, the ability to attract labour and to source materials in the locality is an important factor in ensuring that unnecessary travelling and transport costs are not incurred in carrying out the work. Seeley notes that contractors will have to consider whether management, labour and plant resource requirements can be met from within the contractors own organisation or whether it will be necessary to recruit specifically for the project. The contractor will also have to consider what demands the proposed project would put on own plant, scaffolding and equipment.