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Budgeting for Commercial Painting Projects
If your maintenance budget for the current operating year has a taken a hit, you may be wondering how to get a commercial painting project accomplished along with everything else. Two possible solutions to project budgeting are purpose driven spending and changing the contracting process.
Purpose Driven Spending
The most common view of a commercial painting project is simple maintenance and facilities up-keep. Justifying painting and coating projects as preventative maintenance is relatively easy because the surface treatment can prevent damages to the underlying structure. If the budget separates preventative maintenance funds from operating costs, you could package and combine the painting project according to its true purpose to get the funding from your management team.
However, painting and coating can be a lot more than simple up-keep. In a retail setting, the appearance of a structure can a have a direct impact on the amount of business the facility is able to attract. If the current maintenance budget cannot support a painting project, perhaps the marketing budget could.
Changing the Contracting Process
As a commercial painting budget solution, changing the contracting process may seem like using a sledgehammer to crack a walnut. However, the savings from a new way of administering contracts can be significant, especially if your facility does a lot of outsourcing.
Many large organizations adapt a job order contracting system (JOC ) to handle their contracting process. A JOC system is a type of indefinite demand and indefinite quantity contracting system which relies of pre-defined base prices for services. Contractors bid by multiplying the base prices by a selected co-efficient.
JOC systems are often used by schools, government agencies and other organizations to streamline their contracting process. The real savings come from reduced advertising costs, reduced administrative needs, and a quicker RFP to finished project time. According to a white paper published by Centennial Contractors Enterprise, Inc., the savings associated with a JOC system can be up to 21 percent of standard costs.
The advantage of a JOC system is that once in place to cover a painting project, the system is equally applicable to virtually every other outsourced aspect of facilities budgeting. However, if you are not currently using a JOC system, you should strongly consider hiring an expert consultant to help you implement the program.
Final Words
Facility budgets are not likely to increase anytime soon, so creative solutions are a must to find room in the budget for commercial painting, construction and maintenance projects. In the end, whether your company chooses purpose driven spending or changing the contracting process, the ability to establish a companywide logical decision-making process and get management buy-in is critical to the company’s success in managing your commercial painting budget.
About the Author
Steve Parker, Sr. Estimator.
RaiderPainting.com is the preferred painting contractor for building owners and facility managers of
commercial and industrial properties nationwide. Call 877-724.3371 for a free Estimate and read my daily Blog.
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