We are currently experiencing a
sudden surge in quality assurance
(QA) systems in New Zealand. This
is somewhat hard to fathom as the
traditional kiwi attitude has been
“she’ll be right”
and “if it ain’t broke,
don’t fix it”. And,
of course the traditional “binder
twine and # 8 wire” mentality.
Nine Methods
Of Tendering
Using
a combination of several
of the following methods,
it is possible to gain
extreme accuracy - perhaps
within 2% of what the
Principal expects.
Time,
tonnes and kilometres
(most primitive method)
Contractors
Blue Book
Competitive
Pricing (CCP)
Weighted
attributed
Brook’s
Law – two envelope
method
Target
pricing range
Transit
NZ pre-qualification
Contingent
sum
Liquidated
damages
Having your business monitored for quality
assurance standards will not only 99% bullet proof
you from OSH but will also provide you with tangible
business growth and profit benefits.
We can easily give examples of companies that
have benefited from the adoption of quality assurance
accreditation and certification.
High quality systems can substantially
reduce your wastage and improve company profits
by up to 15%. Quality assurance can help you get
business that you cannot otherwise get without
certification. Most Local Governments and Government
Departments and major Corporations now require
quality assurance for civil works, and purchase
of services.
Profit Margins
Allocated For
Quality Assurance
This is the hottest topic of all.
How could there possibly be a profit
margin for quality assurance? You
might well say “this simply
cannot be the case! You are lying!
Don’t be so foolish, there
is no more profit than 5% in our
work, don’t tell me otherwise
as I cannot believe you”.
We are now going to tell you that
we are sorry but you simply do not
understand. We will further tell
you that the margins can be 5%,
10%, 20% or even 50% depending on
the critical nature of the work.
Since you do not want to hear any
of that, we will need to explain
how this money is actually paid
out.
Preferred
Supplier Status
Why is it important? Firstly, it
is not commonly known and even less
understood. It is a status given
to a small number of suppliers to
large organizations in Government,
Local Government and the private
sector. Secondly, the average business
does not believe in preferred supplier
status because they have “their
own market” and “their
own customers”. They “fly
on the seat of their pants”
continuing to do what they have
done for several years, without
wondering if they might be able
to do it better.
