Option

Option 01: Awarding a portion of the loose furniture works to a subcontractor and other portion to be done by us.

Option 02: Sub-contracting the whole loose furniture package to a

company in china

Sub-contracting the whole work to a domestic sub-contractor.

Advantages
can save time
Can maintain the profit
Difficult to find a good sub-con since our
price is tight

Cost is cheaper than all other options

Time is lesser than all other options due to
their massive capacity

Can keep the profit for the whole package

Less cost for client inspections
Better control than china option

Disadvantages
Control is lesser than in-house
Can arise quality issues
Identification of problems can be late

Less previous experience with the company

Quality issues
Less control than all other options
High cost for client inspections
High advance payment
Difficult to recover if things go wrong
High travelling cost for the staf

Higher dependency than the option 01

Option 01
Advantages
Total duration can be reduced since the load
for the sub-contractor is less
It is easier to find a contractor since the
workload is less
Can maintain a clear profit while having a
better control
In case the sub contractor was terminated,
the unfinished works can be done by us
since our factory is already in the project
If the sub-contactors performs well, some of
retained works also can be awarded.

Option 02
Advantages
Estimated duration is lesser than all other
options
Estimated cost is lesser than alll other
options
Can build up a relationship for any future
projects
Ease the load to factory then the factory can
be occupied with other projects

Option 03
Advantages
Can maintain a clear profit
Required a less coordination than other
options since all works done by the same
contractor
Easy monitoring since the contractor lives in
the same terriotory.

Quality monitoring is easier since daily visits

also possible
Less cost and coordination for client's visits

Option 04
Advantages
Less risk than giving all works to one
contractor
If one contractor underperform and the other
perofrms well, a portion of the work can be
taken and awarded to the good contractor
Quality monitoring is easier since daily visits
also possible
Less cost and coordination for client's visits

Disadvantages
Since our factory is busy, the time taken by us will be more and
hence the project might be delayed
Risk of termiantion if the contractor's performance getting
worst.
Can have quality issues since most small sub-contractor's don't
have latest machineries and qualified staf

Disadvantages
Quality concerns could be arrived
Client might strictly check the quality since they are from china
Cost for client's visits could be higher than expected if number
of trips required goes up
Have to keep a full time Quality Controller which stop his
service to the main factory throughout the production duration
No previous experience in this type of contracts
Have to pay 60% of the price in advance and balnce before
shipment that highly impact for the project cash flow, risk of
getting all materials in good conditions
Risk of any damages or delay during the shipment

Disadvantages
Difficult to find a reputed contractor since the budget is less
Difficult to find another contractor if the appointed contractor
does not perform as expected
More risky than awarding to two contractors

Duration is very tight so the risk of delay is very high

Disadvantages
Monitoring is more difficult than giving all works to the same
contractor

Quality issues can arise since finishes in two companies can be

slightly diferent due to the diference of their workmenship

Parameter

Advantages

Option 01
Disadvantages

Time

Total duration can be reduced since the

load for the sub-contractor is less

Cost

Can maintain a clear profit while having a

better control

Since our factory is busy, the time

taken by us will be more and hence
the project might be delayed

Advantages

Option 02
Disadvantages

Advantages

Option 03
Disadvantages

Estimated duration is lesser than all

other options

Advantages

Option 04
Disadvantages

Duration is very tight so the

risk of delay is very high

Cost for client's visits could be higher

Estimated cost is lesser than all other
than expected if number of trips
Can maintain a clear profit
options
required goes up

Less cost and coordination for client's

visits

Have to pay 60% of the price in

advance and balnce before shipment
Less cost and coordination for client's
that highly impact for the project
visits
cash flow, risk of getting all materials
in good conditions

Can have quality issues since most

small sub-contractor's don't have
latest machineries and qualified staf

Quality

Quality concerns could be arrived

Quality monitoring is easier since

daily visits also possible

Quality monitoring is easier since

daily visits also possible

Quality issues can arise since finishes

in two companies can be slightly
diferent due to the diference of their
workmenship

Client might strictly check the quality

since they are from china

Others

It is easier to find a contractor since the

workload is less

In case the sub contractor was terminated,

the unfinished works can be done by us
since our factory is already in the project

If the sub-contactors performs well, some

of retained works also can be awarded.

Risk of termiantion if the contractor's

performance getting worst.

Can build up a relationship for any

future projects

Have to keep a full time Quality

Controller which stop his service to
the main factory throughout the
production duration

Ease the load to factory then the

factory can be occupied with other
projects

Difficult to find another

No previous experience in this type of Easy monitoring since the contractor contractor if the appointed
contracts
lives in the same terriotory.
contractor does not perform
as expected
Risk of any damages or delay during
the shipment

Required a less coordination than

Difficult to find a reputed
Monitoring is more difficult than
Less risk than giving all works to one
other options since all works done by contractor since the budget is
giving all works to the same
contractor
the same contractor
less
contractor

More risky than awarding to

two contractors

If one contractor underperform and

the other perofrms well, a portion of
the work can be taken and awarded
to the good contractor