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The cost for product protection under the measures fee is extremely troublesome!

2019-09-06View Original

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The cost for product protection under the measures fee is extremely troublesome! Q&A Example: Why is the amount of material used for finished product protection per unit area much less than the actual area? Answer: There’s nothing you can do about it; once such fees are charged, they’re non-refundable. Result: Highly unsatisfactory. Correct answer: Have the property owner apply for the visa and cover the shortfall. It’s frustrating; whenever there are issues related to contingency costs, what people really want to hear is some solution similar to that of the rat putting a bell around the cat’s neck. A whole bunch of solutions are proposed, but in the end, which rat will actually carry out that solution? Explanation of the finished product protection fee document: The basic price in the budget quota already includes the costs associated with general finished product protection during the construction process. When preparing the bill of quantities, it should be included in the sub-item bill of quantities ; The costs of measures taken to protect the completed works and equipment prior to completion acceptance shall be included in the list of measure items. Returning to the topic at hand, let’s take a real-life example: Recently, Mr. Yang, a resident of a residential complex in the provincial capital, contacted our newspaper and said that after having his home renovated by “City Home”, he found an item in the cost breakdown titled “finished product protection”. He was confused by this – after receiving the keys to his new home, Mr. Yang wanted to find a reputable decoration company to turn it into a cozy home. After repeated comparisons, he finally chose “Urban Family”. Unexpectedly, the result of careful selection was still “sadness”. After the renovation work was completed, Mr. Yang felt that the charges were not right: in addition to charging a management fee of as high as 28.88%, the company also charged him over 3,000 yuan in a so-called \"finished product protection fee\". In his view, entrusting the renovation of a house to a decoration company means handing over the entire process; aside from the visible construction tasks, those \"invisible\" tasks should be carried out by the contractors, and should not be imposed on the consumers. Even if fees are to be charged, they shouldn’t be this high. Only 10 gypsum boards were used to protect the floor, and some plastic sheeting was used to protect the doors and windows; the total cost should not exceed 300 yuan. There’s no way they can charge several thousand yuan for that. It seems like the decoration company is coming up with various excuses to collect money. However, Cao Wenxing, the general manager of “Urban Family,” believes that this is merely a difference in the way quotes are presented. During home renovation, it is important to protect the finished products and keep the construction site clean; these measures require certain costs and resources, and they inevitably incur expenses. As for some companies that claim to charge no fees during the process, it’s possible that these fees are spread across other items, making things seem quite affordable at first glance. In fact, it’s necessary to carefully examine their quotes, and even check whether all the costs are included in them. General Manager Cao Wenxing further explained that the \"finished product protection fee\" is part of the \"process,\" but it requires cost investment from the decoration company; without this expense, there would be no place to allocate such costs. This cost cannot be allocated to other expense items. The quotes provided by decoration companies are completely transparent; no additional fees will be charged beyond those listed. By listing separately the costs related to the protection of the finished work, the decoration company demonstrates its honesty and integrity. In this regard, through interviews, the author learned that during the renovation process, some companies, under the guise of transparent pricing, keep adding extra services and charging consumers fees such as “machine wear and tear fees,” “on-site management fees,” “material delivery fees,” and “finished product protection fees.” Industry experts believe that since each decoration company operates in its own way, the various pretexts they come up with are also numerous. At a supervision agency, the person in charge there told the author that it is unfounded for home improvement companies to charge a \"finished product protection fee\"; it is simply an additional charge created by those companies. Most homeowners choose branded home decoration companies largely because they have a comprehensive management system, and ensuring the proper protection of finished products is one of the obligations and responsibilities of such companies. Although protecting the finished product also incurs some costs, home improvement companies cannot pass these costs on to consumers. We would like to remind all readers that the practice of charging a \"finished product protection fee\" is becoming increasingly common; consumers should be vigilant, and we also urge home improvement companies to charge such fees reasonably. As an industry professional, I know better than anyone the tactics used by renovation companies to deceive people and steal their money. However, regarding the issue of the protection fee in this case, I firmly support the renovation company’s position for the following reasons: The homeowner believes that since the renovation company used only 10 sheets of gypsum board and a few pieces of plastic sheeting, it is unreasonable to charge 3,000 yuan for protection services when the actual cost is only 300 yuan. But here’s the question: If the renovation company damages the homeowner’s floors, carpets, or furniture because of this protection fee, should they be held accountable and forced to compensate? Is 3,000 yuan in compensation enough? Here, could the homeowner consider viewing the finished goods protection fee as a type of renovation insurance fee? The entity that provides this insurance is not an insurance company but rather the renovation company; in the event of any damage to property, the homeowner can receive compensation more quickly than through an insurance company. Most property owners do not accept the cost for finished product protection, believing that decoration companies are coming up with various pretexts to charge high fees! It is believed that protecting finished products is a responsibility that decoration companies ought to fulfill; since it is you who is carrying out the renovation work, it is your duty to ensure their protection. The separate fees charged for management and finished product protection are too high, and these costs relate to things that are intangible – something that cannot be seen or touched. In reality, these are fees invented by decoration companies on purpose. This way of thinking is common among Chinese people: anything that cannot be seen or touched is considered to have no value. This mindset is evident everywhere, from issues related to intellectual property to the costs associated with various construction measures. In future finish decoration projects, the costs associated with protecting the finished products will continue to rise, as labor and material prices increase, leading to higher direct costs. Additionally, the standards for inspection are becoming more stringent; even a single scratch or minor defect can result in the inability to complete the inspection and hand over the property. The quality risks for decoration companies are increasing, and the scope of what needs to be protected is also expanding. Previously, protection was limited to the floors only, but now that furniture is brought in, there is also a need to protect the walls and other surfaces. Renovation companies use these fees as a means to offer discounts, which ultimately leads to a vicious cycle in which both parties end up suffering losses. How should the cost for finished product protection be calculated? How much should be taken? First and foremost, it should be clear that the cost for finished product protection should not be calculated using a coefficient; regardless of the source of such a coefficient, it is not applicable in today’s market. Instead, the cost for finished product protection should be determined based on the actual construction organization plans. Special circumstances may require the entire process to be reversed, such as having carpenters work first and plumbers work later; in such cases, the cost for protecting the finished product will increase significantly ; There are also significant differences in the costs for protecting finished work in apartment and villa renovations, as well as in office and school renovations; these differences depend on the specific circumstances. The cost of protecting finished work is originally a factor that can be subject to competition. Budget planners should approach the calculation of such costs in a practical and realistic manner, without being influenced by claims such as the fact that the area covered by the costs for protecting finished work during bidding is smaller than the actual area. As mentioned earlier, the Chinese people refuse to acknowledge anything that is intangible; even if the property owner agrees to cover the additional costs, the auditors will still deduct them. Not to mention the difficulties in adding such costs, even those organizational measures costs that have been included in the bid price are subject to attempts by auditors to reduce them. Regarding such costs, the budgeters on the construction side must stick to their principles: whatever should be included must not be omitted in any way. Even if the bid is not successful, these costs cannot be given away as discounts, because it’s not possible to do so. These invisible costs will eventually turn into actual expenses, and once they occur, the employer’s first reaction will be to seek back the corresponding revenue. Yet, obtaining this revenue is even more difficult than chasing a mirage. The situation faced by budgeters at that time will surely be extremely uncomfortable. Summary: The costs of the items to be included must not be overlooked. As for how much to allocate for each item, it should be determined based on the acceptance standards, the materials used, and the quality level of the renovation. It may be difficult to calculate this accurately at the time of bidding, but simple formulas can be used for estimation, such as floor area * N yuan, wall area * M yuan, number of doors * Q yuan, etc. In fact, the more complex the budgeting process, the simpler it becomes to handle things. Some people might ask foolishly, \"What is the basis for these formulas?\" ”Let me tell you a secret: when bidding, as long as it’s not a mandatory, non-negotiable fee, all the data you provide will serve as the most important basis for settlement in the future. There is no such thing as right or wrong here; only reasonable and unreasonable interpretations exist. To avoid losing your job in the future, what you need to do is strive as much as possible to ensure that your actions are reasonable. In summary: There is no document that specifies how much the cost for product protection should be; bidders are not bound by such rules. It’s only the foolish thinking of budgeters that causes them trouble. In essence, the cost for product protection is nothing other than insurance for the finished products. It is only natural for the contractor to earn income while assuming responsibility for these products, regardless of whether others consider this cost to be a form of profit Management fee? Or measures fees and so on
Reply #22019-09-06
Due to reasons such as low quoted prices or the pursuit of maximum profits, the costs associated with protective measures are already factored into the profit margin. Taking measures to protect finished products is a sign of professional integrity; however, neglecting such precautions is quite common.

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