Why Is Our Service Worth It?

In our industry price is important, as proven by this being the determining factor on many projects we have won and lost over time.

With this in mind we thought it would be prudent to provide insight into how we approach the pricing of our work, and why sometimes we are more expensive than others. Of course every project is carefully considered in house before we submit our costs so this article has been put together to help articulate the reasons we price the way we do.  

Setting Our Pricing

When pricing work we have to consider and include what our experience tells us is good for the client, as well as what our business needs to continue to trade. Sometimes our clients have thought of everything before getting in touch and are very knowledgeable about their requirements. 

On the contrary, sometimes clients only know they need something done to improve their site but need guidance to highlight areas they may not have considered. In this situation we guide the client through the process to avoid additional costs, alterations or to suggest cost saving ideas at the beginning of the project.  

This in the long run saves time and money for us all. 

Our Operating Costs 

We then have to consider how to cover the costs that incur for D Squared to undertake the job. This includes the costs of covering insurance, accreditations, programs to run the business, accountants, bookkeepers, office running costs, plus the costs to keep the fleet of vehicles on the road. 

All of this before we consider the wages for staff both on site and in the office. On top of this, we need to make profit to ensure the business can survive, strive and last through the business cycles during the good  times and the bad. 

We have grown from a 1-man-band working out of his flat, to 12 vans, unit and over 15  employees without investments. This process has led to profit being the lifeblood to allow us to grow and support the local community with wages alongside using services of other companies to survive.  

Competitor Pricing

Then we have to consider the competition as, depending on the project, we can compete with various other businesses. Sometimes it’s a one man band and other times it may be a large building contractor quoting on multiple sections of the same build. With every different type of competition there are pros and cons.

When you’re competing with a large building contractor, they are capable of covering the whole project in-house, meaning they know how the project will be managed and how to keep the momentum of the project moving. With this, they may have more general managers, bigger overheads, and more projects on at the same time. As a result of this they may possibly have less specific knowledge in the industry that we are quoting.  

Each project comes with its own idiosyncrasies, so it is integral to understand the clients demands and how to achieve them within our knowledge base in the most cost effective way. This means  you’ll get a fuller, more comprehensive service by picking an electrical contractor over a main building contractor generally.  

When competing with the one-man band, there are benefits to working with both, one of which being that their overheads are considerably lower than ours meaning they can provide a leaner cost, however, you may not get the full comprehensive service. We have a project  team that completes the design, drawings and quotation to meet clients specifications. They can then create the job with all of the applicable information to be passed on to our highly skilled workforce to complete the  job at hand.  

In addition to this, they may not have the same insurance as we do. One example is public & product liability, which is quite a general insurance policy (we currently have £10 million cover). Other examples include professional indemnity (£250,000), employers liability insurance (£10 million), as well as contractors all risk (£650,000) which covers our client for all eventualities. 

Newer companies are also statistically more susceptible to shutting down, going bankrupt or suffering with a downturn so they may not stay in operation for ongoing work or future projects.  

Utilising a company with a proven track record means if there are issues going forward the company has a better chance of being able to support you years down the line.  

Insurance Policies

In addition to the insurance policies, we also are highly accredited. Chas has a yearly method of ensuring the businesses that carry their accreditation are operating with the correct procedures, or their guarantee of the work may have to be used. Constructionline gold has hundreds of hoops to jump through to ensure your  paperwork, insurance and policies are current and up-to date.  

We recently took the jump and acquired ISO 9001, 14001 and 45001 to add to our constant improvement motto, which has highlighted areas we could improve on and ensures we monitor these improvements over time.  

NICEIC approved contractor is something we have held for over 10 years which gets inspected on site every year. This ensures we have kept our knowledge up-to-date and our sites are being run correctly and have been executed in the best manner possible. 

We always find these visits insightful, providing the ability to allow us to keep learning and improving.  

Employee Training

Lastly, we have training for the employees, which is one of the areas we strive to improve on. 

Whenever we hire a new engineer we make sure to put them through various courses to ensure they have the sufficient knowledge required to work at heights, look out for asbestos and manual handling to ensure they are aware of their health and safety responsibilities as an individual.

We also put the site managers  through their SSSTS and MEWP and PASMA to ensure they can run jobs correctly and safely whilst operating any equipment they may require.  

Conclusion

D Squared have over 10 years of experience and along the way have grown in skills, team, understanding of projects from small to large, and grown a team who, when taking a job, are centred around developing a thought to a perfectly executed building project.  

With all of these points considered, the costs can sometimes seem higher than clients expect, but a lot of these are aspects not everyone is aware of. When employing someone to work on your car that you depend on every day, you would not want someone who completed their training last week, instead you would opt for an experienced, qualified engineer that has worked on multiple cars, and has a proven track record.