A new interior fit-out standard is entering the Polish market – the Open Book approach. Its aim is to eliminate understatements and underestimations that may result in additional costs incurred by organizations refurbishing their offices or opening new ones. Paweł Brodzik, the managing director of Tétris, tells us more.
What does Open Book mean? It’s not a new concept…
In the fit-out business, where the cost assessment is difficult and labor-intensive, this approach is very rare. Open Book means working on open books from the very start of the project. As a result, the client is informed about the prices of all products and services, they agree on a markup negotiated with the contractor, which is then added to each invoice for goods and services. Remuneration levels for individual staff members engaged in the project are frequently negotiated. All this is to rule out any potential grey areas in the budget context, and to effectively define scopes of responsibilities.
Which means that the contractor is responsible for what is specifically defined in the scope. What happens when the client has inadequately assessed his needs?This is the secret of the new approach to Open Book, promoted by Tétris. Working on open books refers to the scope negotiated in the framework of the Guaranteed Maximum Price. Speaking in plain language, we, as a contractor, help our clients estimate the total cost of a project. This is much easier in the Design&Build model, which includes both the design and the actual works. We take the responsibility for the final result – a high-quality space. Clients may work directly with us (new Stanley Black & Decker offices) or employ external consultants as project managers (Sage offices). In both cases the completion of the project in the required scope and time frame is guaranteed.
The new offices of Stanley Black & Decker are a flagship project of the Open Book approach in Poland…
Our largest Open Book project last year was the JLL offices (13,700 sqm). However, the Stanley Black & Decker project was the first one. We were responsible for its entire scope in the Design&Build model. We completed the arrangement of three floors within three months, which was possible, in part, thanks to working on open books. Time was of the essence to our client, as was the design. Open Book procedures allowed us to complete the project under the estimated budget.
How was that possible?
Thanks to our effective negotiations with suppliers. And our client, having access to detailed prices and products, was able to choose between the desired materials and their less expensive replacements. Thanks to the Open Book approach, everything was clear throughout the project.
Is it an isolated case? Project costs are typically underestimated by 10-20 percent, not vice-versa.
With the Open Book approach, the issue of underestimation does not exist. Tétris analysts make sure that the project valuation is realistic, as do the client’s consultants. The strength of this solution lies in the reliability and transparency of actions. In one case our client awarded us 50 percent of the amount that we saved during our negotiations with suppliers. With GMP, clients are fully protected.