And should clients question overly low bids?
According to local media reports, the unplanned roof collapse on the Olympia site in Dundee caused no injuries which is a relief to the workers involved, local people, and the wider demolition industry. It will also be quite a relief to Central Demolition, the company charged with the works.
Of course, the company and the Health and Safety Executive will carry out a thorough investigation of the methods employed, the safety measures in place, and the procedures followed.
But does that actually cut to the real heart of the matter?
According to a local news report dated 19 April 2013, Bonnybridge-based Central Demolition won the contract against competition from local rivals Safedem and Reigart, boasting that it could do the work for £200,000 less. City development director Mike Galloway recommended that the council hire Central Demolition for the work based on that price.
Now there is a possibility that Central had devised a fast-track or cost-effective methodology that its rivals had overlooked. And Central is, supposedly, a reputable company – Like Safedem and Reigart, the company is an NFDC member and has, therefore, presumably been subjected to the same rigorous auditing process as both its local rivals.
But under CDM Regs, clients have a responsibility to make adequate provision for health and safety and safe methods of work, all of which comes at a cost. So a £200,000 on a contract worth less than a million pounds still seems like a price difference too far.
Personally, if I went to buy a new TV and was quoted £1,000 by the first two suppliers and £700 by the third, my first reaction would be “wow, that’s a big difference”. My second would be “yes, but why?”
It will be interesting to see if Mr Galloway experienced a similar pause for thought or whether his recommendation was clouded by the attractive cost saving. It would be equally interesting to know if that £200,000 saving now feels quite so attractive.
