Organisational capital price determination

A guide to outsourcing FM services  December 24, 2010 – 11:22 am
Fee of EMBA at University of British Columbia. July 18, 2012 – 07:06 pm

A guide to outsourcing FM services is provided by RICHARD NEUMAN, partner at Relocation Management Solutions.

British author, John Ruskin once said, “It is unwise to pay too much, but it is worse to pay too little. When you pay too much, you lose a little money. When you pay too little, you sometimes lose everything because the thing you bought was incapable of doing the thing it was bought to do. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”
When the decision to outsource facility services is made both parties must be immersed in the partnership with high levels of trust on both sides. Both need to create a seamless organisation that focuses on outstanding service that avoids the ‘them and us’ and promotes the team.
Outsourcing should not be awarded based on price. Never discard the contractor with the higher price as that contractor might save you money in the long term and there is always room for negotiation. Where you can, negotiate fixed costs and ensure the contractor will get in touch with you before they do any work outside the scope of the contract. If you are aware of a potential additional costs in advance,

Source: FM Magazine

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(conclusion)

I have been speaking only of oppression overseas, but it need hardly be emphasized that there is a domestic analogue. The reaction to the suffering of oppressed minorities at home is not very different from the brutal apathy towards the misery we have imposed elsewhere in the world. Opposition to the war in Vietnam is based very largely on its cost, and on the failure of American power to crush ... the proletariat paved the way not for a socialist society but for the most primitive type of bureaucratic state capitalism and a reversion to political absolutism which was long ago abolished in most countries by bourgeois revolutions."
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