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Paul71

How does this possibly happen!

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On 10/02/2019 at 11:06, GenBr said:

That is just how the construction industry works. There is so much competition with bazillions of construction companies these days that are essentially the same in virtually every respect. The only way to stand out is to bid super low to try and win the work - usually with razor thin profits or making a loss. The company then plans to make enough money from compensation events and other extras to try and make it profitable.

Not just the construction industry - exactly the same in most industries that tender work.

The company I work for implemented an IT system for the customer, got it working, all was fine. Did an upgrade project a year or two later - again, all pretty much fine. The customer then wanted to do another upgrade, but another IT consultancy underbid us so much that it was a no brainer for the customer to choose them. We knew full well that there was no way they could do it for what they bid. Because they didn't have the experience of doing the original install, the previous upgrade or any of the knowledge of the customer's general IT infrastructure

Lo and behold they got stuck - the customer had to then hire us as well to assist them, and it's been a nightmare, as they now try and blame us for everything that they get wrong and all the incumbent politics of a project with two competitors having to play nice. No surprise that it's already a year overdue.

 

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On 07/02/2019 at 17:20, Paul71 said:

https://www.derbytelegraph.co.uk/news/derby-news/a52-roadworks-wont-finished-till-2518204

The road works on the A52 now won't be finished until summer 2020.

And the cost has gone from 15 Million to 42 Million.

How can this happen? 

Is it that whomever is doing the work has the council over a barrel?  Pay up or we leave it as it is?

 

Dare I be so bold as to say.

Someone would have sat down and worked out the length of road v resources and come up with a figure.

What he would have based it on would have been how much manpower v time taken + (materials).

Obviously in this case he might not have banked on British workers who seem to spend more time drinking tea, reading the news paper and standing around watching one person work. Ergo the time will be extended by a good few months, thus increasing the cost

Awaiting incoming 😁

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2 hours ago, StivePesley said:

Not just the construction industry - exactly the same in most industries that tender work.

The company I work for implemented an IT system for the customer, got it working, all was fine. Did an upgrade project a year or two later - again, all pretty much fine. The customer then wanted to do another upgrade, but another IT consultancy underbid us so much that it was a no brainer for the customer to choose them. We knew full well that there was no way they could do it for what they bid. Because they didn't have the experience of doing the original install, the previous upgrade or any of the knowledge of the customer's general IT infrastructure

Lo and behold they got stuck - the customer had to then hire us as well to assist them, and it's been a nightmare, as they now try and blame us for everything that they get wrong and all the incumbent politics of a project with two competitors having to play nice. No surprise that it's already a year overdue.

 

This is exactly it. It's the whole concept of tendering that's at fault. Tendering is the root cause and suppliers all 'play the game' because that's the only way they can win these deals.

Instead of this kind of arms length pitching, there such be a much closer collaborative process with two or three suppliers where trust and a productive working relationship can be properly established.

You soon learn who id REALLY offering the best deal.

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27 minutes ago, therealhantsram said:

This is exactly it. It's the whole concept of tendering that's at fault. Tendering is the root cause and suppliers all 'play the game' because that's the only way they can win these deals.

Instead of this kind of arms length pitching, there such be a much closer collaborative process with two or three suppliers where trust and a productive working relationship can be properly established.

You soon learn who id REALLY offering the best deal.

Probably at the root of it is the fact that (very often) those putting out to tender don't ever really know 100% what they want, so they devolve the responsibility for that to the bidders to interpret. That's clearly a dangerous situation as it becomes a race to the bottom.

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