More on O&M Manuals

Cost Justification

How to cost justify our service to your boss/directors/shareholders.

The details of the cost justification will depend on your particular circumstances, but we are happy to work with you to make the case and here are a few of the key places where you might look.

1. On a typical £3m project you will be paying over £15,000 to your sub-contractors for them to produce their own O&Ms. Not all this can be saved since they still have to do this work, but once they are used to working with our system they will find it a lot easier to deliver what is needed. Let’s assume a 20% saving
   --> £3,000 per project.
   
   
2. One of the hardest jobs that a project manager has to cope with is the production of the O&M manuals at the end of the job. It happens at just the moment when the project is under its greatest pressure completing final snagging issues, with the team being dissolved, and often in an environment where the site office is being physically dismantled and all the paper work being put into storage. We, on the other hand, are sitting in our quiet offices using dedicated tools and can focus exclusively on getting the O&Ms complete – not surprisingly, we can do it more efficiently and you gain in two ways:-
   
   
   1. Project Management staff can move on to the next job more quickly and can focus on getting that next job off to a good start without being constantly distracted by trying to tie up loose ends from the last job. Let’s be conservative and assume that it saves just 1 week per project. What is the cost of a Project manager and their support? Lets say
      --> £2,000 per project
      
      
   2. Some of the best project managers are not great at managing the O&M component of their work. Sub-contracting out the service to us is a lot cheaper than hiring an admin assistant for them. Eg a saving of
      --> £4,000 per project.
      
      
3. Retentions: As we move further into the economic downturn and the pressure on cash flow that will automatically be part of it, the pressure on Retentions will inevitably increase. What level of retentions are currently attributable to poor O&Ms? Again we should be conservative, but the cost of a £1m retention for just 2 weeks (at 8% pa interest costs)
   --> £3,000 per project.
   
   
4. And all this is on top of the benefits of producing a better O&M that is actually useful to your client and may therefore contribute to their using your service again next time.
   --> Priceless