Businesses massively underestimate the costs of moving office with a new survey revealing that 82% of refurbishments are completed over budget.
The study by move management firm OfficeMan.co.uk also discovered that despite the higher than expected costs almost half of managers – 48% – were disappointed by the results.
OfficeMan.co.uk asked 1000 senior executives from across the UK questions about their last office move or refurbishment. Almost three quarters - 73% - said both the costs and the time to deliver the job had spiralled despite their best efforts to maintain a budget and keep to schedule.
Many business owners and senior executives expressed frustration that there is little incentive for suppliers to provide a good service or value for money as they aren’t seeking repeat custom. With businesses moving offices only once every five to ten years many suppliers operate to maximise profits on each job rather than building a long term relationship with the customer.
OfficeMan.co.uk MD Jonny Peace said moving offices is one of the most stressful times for any business.
He said: “There is a general feeling that businesses tend to underestimate the costs involved in a refurbishment but we were surprised to find that the figure was as high as 82%.
“There are so many parts to an office refurbishment that need co-ordinating and usually many different suppliers to juggle. Often firms report that suppliers are operating on the basis of making as much money as they can from each job rather than nurturing a relationship. It makes it very difficult for businesses to get value for money.”
“Obviously in a recession it’s essential for companies to be able to budget and manage their costs efficiently. It’s important for all businesses but for small companies operating in the current marketplace, going over budget could be fatal.”
He added that OfficeMan.co.uk was created to ensure that businesses only hire reputable suppliers, who are accountable for the work they deliver.
“On OfficeMan all suppliers are vetted. There is also the additional safeguard of a user review system where businesses can get direct feedback on every provider.
“Businesses can easily review all suppliers and discover how they managed their previous jobs – from the clients themselves.
“If jobs went over budget then decision makers can be armed with that information. We think it will help businesses to make better decisions and to plan their budgets much more efficiently.
“We make it possible for clients to make an informed decision on their preferred contractors based on previous customer feedback.
“We also make it impossible for suppliers to survive on the site without providing high quality work. All of our suppliers rely heavily on receiving good quality client feedback to help them win future work through the site.
“As more and more customers look to the web for business reviews, it will soon be very tough to survive in the construction industry unless you provide an impeccable service leading to positive client feedback.”
