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Contracting Considerations, Part 4

Sept. 19, 2017
If you can lower the contractor’s costs, you can negotiate a lower price for the work.

Every maintenance department has a limit on how much it can spend, and contractors are not free. But even if a contractor’s bill seems big, that contractor’s profit on that job was probably slim.

If you can lower the contractor’s costs, you can negotiate a lower price for the work. Here are some things you can discuss ahead of time for potential savings and do before the crew arrives:

  • Go over the project with the contractor’s rep (preferably the job foreman), identifying any possible rework or stoppages. Both are huge cost-generators, so time spent here is time spent wisely
  • Arrange for whatever necessary work equipment you can provide (e.g., scissor lifts, ladders, confined entry PPE, maintenance carts).
  • Handle all access and security issues, sparing the contractor from manhours wasted getting people cleared to enter, gates unlocked, passes issued, etc.
  • Create a job document bundle, including all relevant drawings, safety documents, and technical documents.
  • Set aside an area in the shop for them.
  • Have the work lighting set up for them.
  • Ensure there are no impediments to the work, such as boxes stacked in the way.
  • Conduct a safety walk-through; identify hazards and assign corrective actions.

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