CONTRACTUAL KEYNOTE

MARKETING MADNESS

The modern nonsense of "pre-qualification" certainly screws the tendering Subbie to the floor. A friend of mine supplies boilers for mechanical installations. He recently showed me a huge box full of enquiry documents which had to be read and completed in order to be considered for the privilege of supplying one boiler to a hospital contract. If "successful" he would become a "Works Contractor", with all the attendant rigmarole. I suggested that he ask himself how badly he needed the job, before signing up.

However, even in the above scenario, I sometimes think that Subbies go too far in their promises at pre-award stage. Indeed, as a claims basher, my worst enemy is often the marketing manager. Only kidding, of course. However, when I pick up the files for a typical delayed and disrupted sub-contract, it is with some trepidation that I turn to the Minutes of the Pre-Award meeting. All too often, one finds in these minutes glowing promises regarding the veritable army of engineers and supervisors who are going to be present throughout the sub-contract period. No expense will be spared, it seems.

Such fine words often return to haunt the Subbie when, a year later and a hundred grand poorer, we sit down to discuss his entitlements to reimbursement of additional costs. It's not too easy to claim for having to use a couple of additional engineers when they were both shown in the "family tree" in the first place.

So what is my point? Well, of course, getting new work in today's climate is incredibly hard, and we must certainly put up a good show during the marketing and pre-award stage. However, I suggest that we try to avoid going too far with our promises. Very often, in any successful negotiations, there comes a point at which it is pretty clear that we've achieved our objective. At that point, try to throttle back on any further promises. It is in this final over-egging of the pudding that the subsequent damage is done.

It's very difficult. I know, to strike just the right balance, but if we can be just a little more cautious in our marketing blurb, we'll stand a better chance of getting some of our money back at the end of the job.

Keynote: Try not to "promise the earth".

John Russell

Construction Contracts & Training Consultants (Established 1984)

Cheshire CW4 7DP Tel : 07770 986444

Email : swsubbie@globalnet.co.uk Website: www.jrconsultant.co.uk

“Jack Russell” of the Electrical Times and author of “The Streetwise Subbie”