Page 12 - 53_PBC to Begg (Crime OCR)_12-7-16 (33pp)

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afford the workings you have requested of them to quote for, again since day one. No other reason. WADE, or indeed any of our other contractors/quotes, hire in sub-contractors for specialist works, be that scaffolding or Terrazzo floor cleaning. It's normal practice.
What is also normal practice is that the main contractor (example WADE) loads (meaning adds on an amount/percentage) to sub-contractors prices. It's normal.
As an example, I attach WADE's quote for Terrazzo Floor cleaning etc totalling £13, 802 plus VAT.
Also attached in the same pdf are the various quotes, FROM THE VERY SAME SUB CONTRACTOR, MARBLE SHINE, that we have sourced independently.
You will note that our independent quotes are IDENTICAL TO THE WORKS THAT WADE's QUOTE ITEMISES.... IDENTICAL (see the two pages dated 5th November 2012).
You will also note that our 5th November 2012 quote from Marble Shine totals £10,820 plus VAT
That's a difference of £2982 plus vat, meaning a 27.5% loading. Quite normal.
But do you really consider Management to be incompetent in saving a TOTAL of £3578.40 (£2982 plus vat) by retaining Marble Shine independently.
Also consider, that the above situation is just ONE of a few other sub=contractor costs.
We cannot get too involved in the EXTERNALS costs, be that sub-contractors or main contractor costs/quotes because those works are out of our area of expertise (scaffolding etc), but when it comes to INTERIOR works, it is very easy indeed to have specialist contractors independently retained (flooring, painting & decorating etc) and make SUBSTANTIAL savings, as the above WADE TERRAZZO FLOORING Quote adequately evidences.
I hope that is now made abundantly clear and you will now desist in accusing Management of incompetence and unprofessional arrangements, unless of course, you still wish to pay these additional percentage premiums adding anywhere between 20-40% to SINGLE CONTRACTOR QUOTES FOR ALL WORKS, as opposed to Management's sensible savings by retaining independent contractors WHO ARE EXACTLY THE SAME CONTRACTORS, DOING EXACTLY THE SAME WORKS AS THOSE SPECIFIED by the main single contractor, but for far less outlay!!!
BUT..... because you have caused so much trouble over all quotes since day one, and scuppered the schedules,(I refer to Management's original £27,000, then £35,000 Interior budgets, scheduled to commence September 2012), we are now in a situation where we cannot afford to proceed as originally planned without requesting of all lessees seriously large amounts of additional funding, as previously explained, of approx £12,210 or £13,320 EACH LESSEE.....
And just so there can be NO argument over available funds in RESERVES, I can confirm that INCLUDING THE SEPTEMBER QUARTER, (ie after works commence) we will have £98,262.75 available (YE Accounts 31/12/13 had £92,700, plus 4 Quarters in 2014 totalling £2700 x 4 (£10,800) but LESS Surveyor's Invoices (at- tached) x 2 totalling £5237.35). [part payments to date of Surveyor’s fees]
WADE's Internals/Externals quote is double what we have in the bank. Our cheapest Internals/Externals quote (A & R Lawrence) is (almost) exactly what we have in the bank....but as we have already indicated, that small over-budget can be fixed! WADE's other alternative Internals quote of £60,000 is even more extensive and unaffordable and as previously stated, I'm still not sure which you are still insisting on using (the full very extensive works in the £60,000 or the slightly lesser works in their recent Internals/Externals quote....), let me know please.
I've NOT copied this to your fellow lessees, including Flat 9 who seem, like you, incapable of understanding what Management have been saying for well over a year regarding making sensible housekeeping economies and exactly how much money we have in the bank to spend without having to do an Oliver Twist, and ask Lessees for more! But if you wish to forward to them, I have no objection.
I would insist again that Flats 1, 3, 4 and 8 make comment (especially 4 and 8) as I cannot believe for one moment that they agree to your's and Flat 9's ideas and comments, but if they do, let them confirm to you in email/writing before our meeting that they are willing to contribute approx £12,210 or £13,320 either this year or next to adopt WADE as preferred contractor for Internals/Externals given the facts as presented.
And seeing as you appear to be utilising Steve Brown at Scots Group as your advisor, I am also copying him in as I sincerely hope he too might confirm our thinking as being quite correct and help explain to you the veracity