I talk about Personal Growth, Management, Infrastructure and More | C-Suite Executive | Mentor, Coach, Strategic Consultant | Real Estate Investor | 👇JOIN +2k readers 👇
Real conversation. No words.
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Imagine the conversation. ​ “How are you doing to calculate the cost of the project?” “Easy, we have divided it in 3 sections” “But, have your consultants done a project of this size before? Or at least a project similar to it in scope?” “No” “So, how do they calculate the cost?” “We divide the packages into small packages, so that they are easier to handle and calculate cost” “Seriously???” “Yes, what’s wrong?” “Imagine that you want to replace the switch on that wall… who much is to change it for a new one… do you know?” “Not exactly… but around 35$, I assume”. “Right. Now, if this room has 4 switches, and this floor has around 20 offices plus the open space, I calculate around 200 switches. Does it seem reasonable?” “Yes”. “Good… now, your building has around 30 floors, right?” “Yes” “So, what you’re telling me is that just installing the switches of the building would have cost around 200 x 30 x 35 = 245.000… around a quarter million dollars… do you see that reasonable?” “It seems a lot” “Don’t you think more reasonable to account for a crew of 4 electricians working for a few days in installing the switches? Let’s say, 1.000 each per day, 4 guys, 5 days, 5 dollars of materials… does it seem reasonable? If so, the cost would be 4x5x1000 + 5x200x30 = 20.000 + 30.000 = 50.000$. “Wow, that seems like quite a lot of difference”. “That’s the problem of putting consultants that have not done a project of this size before, that’s the problem of cutting this in small packages”. ​ Real conversation. No words. ​ For a different way to deliver infrastructure, you have the link below. ​
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Vicente Valencia
I talk about Personal Growth, Management, Infrastructure and More | C-Suite Executive | Mentor, Coach, Strategic Consultant | Real Estate Investor | 👇JOIN +2k readers 👇
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