Cost v Quality

[XyZspineZyX]

I'm hoping I'm not alone in thinking this, so you're all about to rally round and agree with me, okay?

Cost vs. quality. Sometimes it's better to pay more than you have to, to get a better standard of work or quality of service, right? Cheapest doesn't necessarily mean most cost-effective...

I've just had a bit of a chewing from my boss for authorising too much money being spent on one of my projects. There was a cheap contractor available, and I chose a more expensive firm to do the work instead. I was still within budget (just), but I've had it pointed out to me that we could've saved some money there, which could later have offset unexpected costs, or (hopefully) been converted to additional profit. He was really going on about it. He's not best pleased.

But I still think I did right. I put together my budget for the project, which tied in with our contract value and maintained our margins for profit. I had this budget approved by the board of directors. I then authorised a subcontract that was within my authorisation limit, and, although not the cheapest bid, was still within the approved budget. So what's the problem?

What does everyone else think??? Cheer me up, I'm feeling a bit pi$$ed off about this!

[XyZspineZyX]

I'm hoping I'm not alone in thinking this, so you're all about to rally round and agree with me, okay?

Cost vs. quality. Sometimes it's better to pay more than you have to, to get a better standard of work or quality of service, right? Cheapest doesn't necessarily mean most cost-effective...

I've just had a bit of a chewing from my boss for authorising too much money being spent on one of my projects. There was a cheap contractor available, and I chose a more expensive firm to do the work instead. I was still within budget (just), but I've had it pointed out to me that we could've saved some money there, which could later have offset unexpected costs, or (hopefully) been converted to additional profit. He was really going on about it. He's not best pleased.

But I still think I did right. I put together my budget for the project, which tied in with our contract value and maintained our margins for profit. I had this budget approved by the board of directors. I then authorised a subcontract that was within my authorisation limit, and, although not the cheapest bid, was still within the approved budget. So what's the problem?

What does everyone else think??? Cheer me up, I'm feeling a bit pi$$ed off about this!

[XyZspineZyX]

i suppose it could be said that if ud used the cheaper contractor there would have been money to put aside for future unexpected costs like................
oh yeh when the work needed repairs because the job was done to a shabby standard lmao
of course we all know any future repairs would have cost more than the original savings /i/smilies/16x16_smiley-wink.gif

id just ignore him mate he prob not had any fun latly so needed to have a moan about something random lol

<center>http://www.mhdl17675.pwp.blueyonder.co.uk/wsd2.jpg (http://clik.to/wsd)</center>

[XyZspineZyX]

He's a boss. He's paid to moan.

Unfortunately, he's also paid to sack any of his project managers that spend too much money... /i/smilies/16x16_smiley-very-happy.gif

[XyZspineZyX]

That's management dude....

Trained to kick downwards! /i/smilies/16x16_smiley-happy.gif (and lick upwards)



PME a.k.a. SPIK@

"Are you feeling lucky today,..punk?!"

SPIK@'s - GR Weapon Models:
http://www.villagephotos.com/pubbrowse.asp?selected=435646

[XyZspineZyX]

Kick down and lick up?? Like it... Pretty good summary, actually. /i/smilies/16x16_smiley-very-happy.gif /i/smilies/16x16_smiley-very-happy.gif

You ever thought of writing a management techniques textbook? You'd have to have written in that stupid English language though - I don't think many people would buy the Dutch version. Well, not outside of Holland anyway...

[XyZspineZyX]

Work produced vs cost, I think you went the right way myself. Sure you could have gone with the cheaper firm, but you would have gotten cheaper results. Its like buying a car, sure you could have gotten a cheaper car, but if you can affored a better one get it.
I use to tell the men in my squad " Pay the extra nickle to go first class" You did right bro.

http://team-increment.com/forum/uploads/photo-9.jpg
"Nemo Increment impune lacessit."

[XyZspineZyX]

Gav, Copenhagen got a subway last year.
Italian manufacturer who got the contract.

Put an add in a Danish newspaper and ask the Copenhagen population what they think of this cheapest offer. LOL.

When it started snowing (strange in Scandinavia in wintertime isn't it?) the doors did open or they closed when they were not supposed to.

Some weeks ago they opened a new traject. First day one of the trains derailed, Fortunately it was empty.

And when a journalist asks: "Is this normal?" The answer is:"No comments we are investigating the matter and make a report" LOL.

The days, the subway is running, it never runs on time and I really regret I did not bet with an UK bookmaker as he had good odds. Today you probably have to pay him money if you wanna bet that the subway isn't on time.

You were right with your decision but I'd say: You don't need to pay more than you have to. You get what you pay for.

Edit: two days ago the subway didn't run. Not at all.TV commercials had an add: It's with a couple of those parking guards (or what you call them). They are yelled at etc. And at the end of the commercial they say: "We thing people should take the subway. For the sake of us, parking guards". An the bloody thing didn't even run that day!





http://home20.inet.tele.dk/famjourdan/GRsig.jpg


Message Edited on 01/29/0409:59PM by GreyHaired

[XyZspineZyX]

I would /i/smilies/16x16_smiley-wink.gif

Gav80 wrote:

I don't think many people
- would buy the Dutch version. Well, not outside of
- Holland anyway...





http://home20.inet.tele.dk/famjourdan/GRsig.jpg

[XyZspineZyX]

To Gav,

As a business man myself owning a construction company and with many life experiences in these matters that I will not go into due to it boring the readers. It would be another long winded post by me and I know I get ragged on from time to time for doing it so I will attempt to keep it short.

This is what I see! You have kept within budget including your margins/profits along with gaining the necessary board approvals and have made decisions where needed. The company hasn't given you these powers and reasonability's because they don't care but more because you have earned the right to make such decision even if your still have to answer to higher authority. I'm sure there has been many times that a project has been costed and on completion it is well under the allocated budget so a larger profit for the company was made even using a contractor who was more expensive than other tenders.

I do not know your boss but from your post the following I have deducted. You boss is a number cruncher and has his head up not only his own azz but those further up the corporate ladder and is a yes man. Your boss is someone I see as being too afraid to make a decision and would much prefer someone else to take reasonability so if things go wrong his butt isn't the one getting kicked and hanging in the noose. He is the one that needs to pull his head out someone's butt and smell the roses because in my way of thinking he has no respect and is not liked by most of the workers under him (I bet I'm right). He appears to be someone that looks over your shoulder every two seconds making sure that your doing your job correctly and hasn't got what it takes to trust those below him that like him have risen up the companies rank structure. I believe that if you have been given the reasonability and have made all the set down criteria that your board of directors have laid out in company policies, along with making decisions on who's tenders will be accepted for the work to be completed on time along with safety/quality of workmanship then you have fulfilled your reasonability.

I'm sorry Gav but your Boss is one large toss bag and if I was in your shoes and I don't want you doing this, but I would have told him to shove his comments where the sun doesn't shine. As you can see I'm not one for beating around the bush and could never work for anyone because I'm too out spoken when I see issues/decisions that are wrong. He is a boss that would like a few after work drinks and everyone just goes home because no one gives a crap about the stupid butt sniffing tosser and properly has very few friends except those that have there head up is azz kissing it.

Well done Gav on completing your project and return to work with your head held high knowing you have given 110% and for you to never take the same path as that butt hole in your career.


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[XyZspineZyX]

Well I'm sure they would have prefered if you got the cheapest of the bids. Then the company had to pay for cost overruns and possibly get another contractor to fix the mistakes of the past contractor.

[XyZspineZyX]

You have to look at it from his point of view, I'd probably be coming up with every excuse I could to sack you too, no matter how trivial /i/smilies/16x16_smiley-wink.gif

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[XyZspineZyX]

Snipe, Inc Doc, GH et al, thanx. Except Digger. /i/smilies/16x16_smiley-very-happy.gif

That's what I thought. It was within the agreed budget, so what's the problem? On one of our other projects (not mine, thankfully) a guy went with the cheaper firm that I discounted after their tender came in â£25,000 (that's about $45,000 US) cheaper than the subcontractor I gave the work to. This other project manager has now spent over â£100,000 trying to get the kit that was in their scope of supply to work properly.

I didn't fancy doing the same...

EDIT: funny thing is, my boss is normally alright. He's quite well liked (as much as any boss is!), and is certainly well-respected. Maybe he was having a bad day...

Message Edited on 01/30/0409:28AM by Gav80

[XyZspineZyX]

Gav80 wrote:

- EDIT: funny thing is, my boss is normally alright.
- He's quite well liked (as much as any boss is!), and
- is certainly well-respected. Maybe he was having a
- bad day...


have you just found out hes in here reading posts or something??? /i/smilies/16x16_smiley-indifferent.gif

[XyZspineZyX]

No, he's not here today. He's not in again until Thursday next week. And I'm not in that day.

And they don't read my posts/emails etc. Otherwise they'd have had something to say to me about them by now! /i/smilies/16x16_smiley-wink.gif

[XyZspineZyX]

lol that bad huh

[XyZspineZyX]

Some of them have been! But only to ladies I know very well! /i/smilies/16x16_smiley-wink.gif