Pay Peanuts, Get Monkeys...

I honestly just can't believe some people sometimes.

OK, this is going to be a bit of a rant, and it may get a bit ugly...

I've been working with a potential client for about 3 months now. She approached me to build her duplex project for her. I met with her one evening, went through her plans with her, went through her wants and needs etc...and then I asked the magic question..."what is your budget?"

She gave me a figure of $1m.

One always wonders about someone's honesty at this point, and I have to confess that I wondered whether she was bull-shitting me with this number...

Now, her plans were brilliant! Completed by an excellent architect at a cost to her of about $25k. One would assume that if they've spent THAT much money on architectural plans alone, then they'd pretty much want to ensure that the building that ends up the final product is a fair and honest representation of those plans? I thought that was a very fair assumption to make....afterall, why spend that much bloody money on plans if you don't intend on creating what's been drawn?

Anyway...I ring her a few weeks later after spending countless hours pouring over the plans, getting quotations and the like, and I tell her it's not going to come in at her magic million figure and would she still like me to proceed with the quotation? Yes, she would.

So, I arrange to meet with her a week or so following that conversation and present to her a complete 20-odd page quotation complete with provisional allowances specified, photographs, individual costing blah blah...the whole lock, stock and barrel.

The first question I asked her at this presentation meeting was "How much did your architect tell you this would cost?" Her reply was $2,500 per square metre. With a smile on my face I showed her my breakup that came out to $2,560 per square metre! My price came out to about $1.4m including GST.

I went through the quote and each individual item with her, showed her the corresponding quotes from relevant sub contractors so she could ascertain for herself that the price I've given her is an honest price that accurately represents the plans she's provided to me.

Her plans were brilliant - and the level of detail was fabulous. The project included open tread stairs with solid timber treads, shadow-line detail around every single ceiling, skirting and architrave, custom wardrobes and joinery, timber floors, built in fireplaces and all sorts of other bits and pieces to make a spectacular property. It's a job I could really sink my teeth into.

So, anyway, I call her a few days after our presentation and she tells me she's a bit surprised at the price. And that she really only has $1.1m to spend, and that she's already received a quotation for $960k!!!

WTF? How on earth can I be $500k more than someone else, I wondered. Then I wondered...didn't you tell your architect what your budget was?

Subsequently, I rang her architect to get some intel on this, and he confirmed that he did tell her it would cost between $1.2m and $1.4m to build.

I asked her if she would like me to have a look at it, and come up with some suggestions as to how to reduce the costs. I also told her that it's virtually impossible for the project to be built for that price. We all buy the same steel, we all buy the same concrete, we all buy the same bricks blah blah blah, so this other person must be cutting some corners somewhere.

So, back to the drawing board and another few weeks spent combing over the plans the see where costs can be cut, construction methods changed so that her (tight) budget can be accomodated.

I did it!

I removed all the shadowline detail, I included tiles instead of timber in some areas, I made the stair cases concrete instead of open tread (would you believe the open tread stair cases came in at $20k each???), and made a raft of other changes that all have an effect on the bottom line.

I managed to get the cost down to $1.135m...and at our meeting on the weekend I told her I'd wear that additional $35k so she hits her magic (revised) number. She brings along her 26year old nephew to the meeting as well, who has apparently had some experience in the construction game as a client.

Anyway, the meeting goes very well and I walk away thinking I'll get the job.

I ring her this morning and she says my price is still too high and her other quote includes everything!! I haven't included air conditioning (excuse me love, but you're NOT allowed to put air con in this project due to Basix commitments), I haven't included demolition (excuse me love, you told me NOT to), I haven't included Section 73 works (love, that's a developer expense, not a builder expense) and I haven't included open tread stairs.

Those 4 items alone add up to around $100k!

I was fine with her comments about the demolition. I told her on the weekend that if it were a deal breaker, I'd talk about it more. I was fine with her comments about the air conditioning; I'd told her several times that she can't have it and if she put it in she will be told to take it back out again.

BUT...when she told me about the open tread stairs I honestly wanted to jump through the phone line and ram her f*****g head against a brick wall. Can you tell I'm angry now?

YOU STUPID WOMAN!

You asked me to cut costs to meet your budget. Those stairs cost $20k EACH...that's $40K I've saved you...and now that's a deal breaker? This is what I was thinking, I wouldn't dare talk to someone like that.

What I did say though, was, "Now, I don't believe that. I'd really like to see that other quote". Mind you, I've asked to see it before, but she's always rebuffed me, and I've never insisted. But, when she started talking about those open tread stairs, then...I'm seeing red. Naturally, I remain calm and talk to her normally. She replies "well, when I sign the contract I'll send you a copy of it"!

So, she's going with someone else.

People are F****D! Seriously. Champagne tastes on beer budgets.

When are people going to realise that the cost of something is the cost of something?

Anyone heard the old adage "you pay peanuts you get monkeys"? Well, same applies to the construction industry. You want quality...good quality...then it costs money.

Do you honestly expect me to turn up to work everyday for the hell of it, because I've got nothing better to do? NO! It doesn't work that way. I need to get paid too, and if I don't get compensated for my time, expertise and knowledge adequately, then guess what? I don't get HOME WARRANTY INSURANCE...If I don't get Home Warranty Insurance, I can't work!!

Sure, I'll cut my margins, I've done it before, and I'll continue to do it where necessary, but there's only so much one can do this before the better alternative is to sit on my arse doing nothing other than collecting a government hand-out.

So, she's off to employ some stinking builder from the western suburbs who hasn't got any clients in the western suburbs looking to employ a dodgy builder who cuts corners.

REALITY CHECK PEOPLE...things cost what they cost; there is NO escaping that.

I need a drink!

.../rant off