- 1. Although competitive bidding is a safeguard against overpricing, it fails when contractors form alliances.
- 2. All norms should be reviewed regularly and updated if necessary.
- 3. An outside pair of eyes can reveal weaknesses in your systems, which you yourself are too close to observe.
- 4. Benchmarking is a powerful tool for assessing comparative performance.
Without in-house capability for making realistic estimates, there is no way of knowing whether you get value for money from your contractors.
Externally-enforced maintenance cost reductions can hurt the long-term viability of the company, cutting away some flesh and bone along with the fat. Internal audits of current practices can help identify out-dated procedures that add costs without adding value. Some of these practices may have started off as well-intentioned streamlining exercises, to improve efficiency of repetitive work. Periodic audits will demonstrate that controls are constantly reviewed, and thus minimize external pressures.