Budgets revisited
Jakarta-Singapore, 23rd May 2014
On my way back to Singapore for the weekend after a busy travelling week…
One of the key issues that I have had to deal with is quality and budget, the ever recurring challenge when dealing with our clients. The thing with budgets is that it is as good as your input, nearly as with computer calculations. There are so many variables that at times your guess is as good as mine…no probably not 🙂
In our designs we already differentiate between what we call A, B or C Grade fittings in which A is your top of the line high quality product, B is your middle of the road basic quality product with C being your “China” made product in which China is meant metaphorically. We try avoid the C Grade fittings at all costs as they generally spell trouble with a capital T, so we focus our selection as a balance between A and B depending on the importance of the areas and the direction (budget) from the client. Applying A Grade fittings is generally a tough fight as specifically the LED budgets can grow sky high. With many budget planners still in the conventional technology pricing mind, it is often a tough sell.
The thing with budgets is that you obviously have to look at the bigger picture; overall project need, return on investments, savings in other areas and so on. But even when you have educated your client on that aspect there is still the discrepancy between what the manufacturer/ supplier will quote you for your budget compilation and what in the end turns out the “real” cost figure. Many a times we have found that to be much, much higher sometimes even double or triple (!) what we budgeted. Our budgets generally focus on the equipment costs, but when you have to cost in the installation costs, the mark-ups, you find yourself in a hornets nest with so many unknowns…no wonder that some contractors multiply the costs of your fitting to cover themselves for these. In my discussions today I decided to turn things around to move forward. I managed to agree on a total lump sum between the client and the supplier basically instructing the supplier to work within this amount, all fitting selections to my satisfaction and approval. Pheewww…
Light Watch 5-87: Budget thoughts in images…enjoy your weekend!
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