Wednesday, 20 May 2009

Undercover: SI Con-struction

The Cloughite has uncovered financial irregularities in SI Construction's stadium maintenance billing system that has serious implications for all UFFA members. Rather than charging customers a fixed rate per percentage degradation, the company's rates are variable based on the condition of the stadium -- as condition decreases the base cost of repair (ie. the cost to repair 1% degradation) increases, this is clearly a deliberate attempt to take advantage of club's who are not able to perform regular maintenance on their stadium.

Exclusif installed in 2-Tier Ospitalita II:
Capacity: 240
Maintenance cost: x4.0
Degradation: 24%
Repair cost: £448
Cost per 1% degradation: ~ £18.67

Another Exclusif installed in a different 2-Tier Ospitalita II:
Capacity: 240
Maintenance cost: x4.0
Degradation: 12%
Repair cost: £128
Cost per 1% degradation: ~ £10.67

As you can see, the same block type installed in the same stand type costs twice as much per percentage degradation to repair. The Cloughite approached SI Construction with our findings, but at the time of writing has received no response.

This means that the more regularly you repair your stadium the lower your overall running costs will be. In simple terms, as illustrated by the example above, if you switch from a 2 week repair cycle to a weekly schedule you will reduce your daily stadium running costs by half. Ideally you should undertake repairs on a daily basis to minimize costs.

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