The open book accounting, contract and billing principles

Everybody who is familiar with the Bulgarian construction sector knows that the builders have countless ways to increase the profits by compro-mising the quality and the contractual terms.

Skandinav Construction Services offers a new way of contracting, ac-counting and billing. We call it “Open Book”. This principle is a result of the Scandinavian traditions for trust, partnership and problem solving in relation with clients. Combined with focus on quality, the most important factors for successful projects are present in this way of working. We be-lieve that this system will breed quality instead of suboptimal solutions.

The “SCS” way of working    
We give you full access to all contracts with sub-suppliers, direct access to contact persons, access to all invoices, the possibility to check on prices or the possibility to supply the building materials on your own.

Investor pay for the materials, consumption of energy, labour and other resources spent 1:1. You as investor get exactly the quality standards you pay for and you are in full control to make changes in the choice of materials and legal changes in the project at any time without any discussions. Only salaries for the workers and managers can not be negotiated. We have a highly qualified staff to guarantee quality work and they need security and incentives, but of course you will get full information about the salaries also.

To cover management, risks, investments in machines, equipment and profit for the company, SCS calculates and adds 20% on top of all costs no matter if you buy the materials yourself or we handle that for you. SCS implements control systems to be sure that the employees stay loyal to the principles of “open book”.

We still give you a budget before you accept SCS as builder calculated in a detailed way for all known and foreseeable elements.

How the system works
When we start to work together, you will receive a total project calculation done by a certified construction calculator expert for the usage of re-sources and capital for the operating phases of the whole construction period. This will include a more detailed budget for the first phase of usually one month. When the overall and first phase calculations are ac-cepted or adjusted according to your wishes, you will as an investor trans-fer the first instalment and SCS starts construction. A few days before the end of the month, you receive a new specification with a forecast pay-ment – this time covering a period of 14 days depending on the project. We continue to work in this way until the construction is completed. The specific accounting and documentation is decided in each individual case between SCS and the controller of the client. The financing can also be done by competitive EUR loans via bank guaranties from your bank to the bank of SCS. This requires of course the ability to provide financial security that will be accepted by the bank of SCS.

Benefits for you
• You can not be “cheated”
• You get exactly the quality that you pay for – you save resources on control
• You do not have to “fight” with the construction company for trying to choose suboptimal solutions in order to save money            
• Flexibility in the construction
• You don’t have to make a big preliminary payment

Get a demonstration of open book system
We can give you our “Open Book” quotation or traditional quotation - it is up to you. In the traditional quotation, a margin is added on top of the ex-pected use of materials and “hide” extra costs under different headlines such as “mechanisation”, “transport” etc. Get an offer from a traditional builder and let us demonstrate how the traditional system performs in comparison to the open system. In this way the profit for the constructer will be at least 30 %, not 20 %.

You are free to choose which method you prefer. If the traditional method is used, we will ask for a 30 percent down payment of the expected con-struction price. In general we do not recommend the traditional method because this system is heavier to work with for all parties and basically based on the assumption, that the parties can not trust each other.

Skandinav Construction Services –“constructing together”