CREJ - Multifamily Properties Quarterly - January 2015
We live in a changing world, but true principles never change in the midst of time. “It is unwise to pay too much, but it’s worse to pay too little,” said John Ruskin, English author, architect and economist, who lived from 1819 to 1900. “When you pay too much, you lose a little money. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.” By now budgets are set. Many of you have a line item for your landscape. However, in most cases, your landscape budgets are a lump sum and often it is spent with little remaining when there is the greatest need. The result typically is sending out a request for proposal and being placed in a position in which the bids come in over budget. Now what? Based on the quote referenced at the beginning of this article, you are faced with a decision: Do you select the lowest bidder or study your options? The first thing that is necessary is an evaluation. It should be broken down by risk, need, responsibility and, finally, cost. Risk. Evaluating risk and the safety of your tenants and property should be your highest priority. Lawsuits due to negligence will cost you the most, not only financially but also in bad publicity. Once on your property, a qualified arborist has a duty and responsibility to alert clients of any potential risk that he or she notices. This is often a difficult task since it is impossible to make a complete assessment from the ground. However, any obvious visible risks should be included in his or her proposal. Need. The evaluation should be based on need. Not every tree on the property needs to be pruned at the same time. Pruning trees that pose a risk first and then prioritizing the remaining trees in the landscape can save money. Responsibility. Responsibility ultimately is on the owners of the property. As an on-site manager, it is difficult to convey the message to the owners concerning the risks on the property and the need to spend money. The difficulty often is increased with out-of-town owners. However, the responsibility is not mitigated in either case of risk or need. With that said, it is a good and valuable practice to inspect your trees several times each year. During the winter months while the leaves are off of the deciduous trees is a great time to inspect your trees. The spring is also an effective time for an inspection after the last snowfall. (Yes, I realize we live in Colorado and that can be well into the month of May.) The manager of the property has responsibilities that work in both directions; a responsibility to keep owners informed and tenants safe. Cost. Finally, we come to the evaluation of cost. I understand for many, costs are considered the first and primary responsibility. However, it is a true axiom that there is a marked difference between cost and price. This brings us full circle to John Ruskin’s point. Price is what you pay at the time of the service. Cost is what you pay over time. If you choose the lowest bidder, you may falsely believe that you are getting the best deal. We all know and understand that “you get what you pay for.” It is easy to justify selecting the lowest price. Similarly, at first it can look good to owners that a manager saved X amount of dollars with his or her decision. However, invariably when the same trees need to be pruned the following year or two due to a lack of quality, the cost over time has increased. Now the manager is put in a position of explaining why more money is needed to perform the same task. As a second-generation arborist and operating in the green industry my entire life, I have worked with both the tenured and new manager. I have seen this process implemented and tens of thousands of dollars saved by following these principles. In fact, this same approach can be applied to the decisions you make each day, regardless of what aspect of the property it affects.