Thursday, May 18, 2006

Money (never enough)

The bids have been opened, and the project is around 7% over budget. The city council didn't scream and cry, nor did they abuse and insult us; but they did express their eager anticipation of our proposed solution to this problem.

Sorry, guys, but there is no solution. Since demolition has already started on the old buildings, you cannot even cancel the project and let things ride.

Welcome to democratic free-enterprise capitalism: Sellers have the right to set whatever price they wish, and buyers have the right not to buy from a particular seller. And that's all there is to it. The only control that exists, is to refuse to do business.

We calculated the cost to be X, based on comparable projects over the last few years, but that has no influence on the bidding process. Put it this way: I might tell you that a particular car is only worth 11 thousand dollars, and I might even be right; but my statement is worthless unless you can find a dealer willing to sell at that price. If the dealers all want 12 thousand, then that is what you will pay.

The recession has been hard on the building industry, many firms went broke and those that survived did so by sacking their workers downsizing; now that things are apparently picking up, there is more work around than there are workers to do it, so they can ask whatever price they wish.

Memo to the mayor: yes, life is a bitch, and yes, the companies are taking advantage. Pay the bill and be happy. (Better than paying the bill and being unhappy, and you're going to pay either way.)

1 Comments:

Blogger brooksba said...

It is tough during times of recessions. Yikes.

May 20, 2006 at 2:49:00 a.m. GMT+2  

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