On today’s show we’re talking about the mental game of handling sticker shock.
It doesn’t matter how often I remind myself that a high quote from a subcontractor is nothing more than a high quote. I still experience an emotional reaction. It takes some time to work through all of the second guessing that happens when you experience sticker shock.
Am I out of touch? Is my budget at risk? Did I make a budgeting mistake? All of those self doubts are normal. Dealing with the uncertainty can be stressful and anxiety provoking. Do I work through the budgeting problem, or share it as a risk with the project stakeholders?
Through the process of value engineering, you will discover the true cost of the most efficient solution. These high quotes happen with alarming regularity. I’m not talking about the quote that is 5-10% higher than expected. I’m talking quotes that are 70%-100% higher than expected.
Host: Victor Menasce