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When customers tell you they would “like to upgrade” but “can’t get project approval,” what is your response?
Some contractors will ask what the magic number might be for project approval, then lower their bid to just meet it. This is a recipe not only for failure, but for disaster.
If your end user customer (e.g., the plant engineer or facilities manager) is looking for a way to get the lighting upgraded but just can’t seem to get there, suggest trying a different approach.
A common issue is the corporate office trying to smooth out cash flow by deferring (sometimes indefinitely) projects that require additional financing beyond X dollars. A big lump expenditure is a target for rejection. But the same money spent over time is often acceptable. Chances are your company isn’t in the position to provide zero interest installment payments, so what can you do?
Generally, small projects are easier to get approval for than large ones. If the facility lighting upgrade project doesn’t get approval, plan it out as a series of monthly mini-projects. Find some logical way to break the job down. For example, you can count the number of lighting circuits that need upgrading, then group them into mini-projects. Or upgrade a room or area one at a time.
Even though total project cost might be higher versus one big project, the smoother flow of capital might help the upgrade sail past the bean counters.
Source: Mark Lamendola | Mindconnection