Question

It is Monday morning, and as you set your coffee on your desk and open your email, the first message catches your eye. The subject line is “Your invoice is unacceptable!” “Uh-oh,” you think to yourself, “this is not a good start to the week!” You are the business manager for Catapult Construction Company. The owner, Thrace, is a talented builder who takes great pride in his work, but has trouble communicating with clients. On a recent job, he had renovated a garage loft into a suite for a client who had hired Thrace previously. The work was done while the client was out of town. The job was completed last week, and on Thrace’s behalf, you had sent out the $42,000 invoice to the client on Friday. The client’s response reads as follows:

Hi Thrace, I got your invoice and almost fell off my chair. I thought I had been clear that my budget was $35,000. I asked you for a firm estimate several times prior to your crew starting the work, but you never did give me an answer. When we first started talking about the job, you said that you, Laurie and Harjit would be able to wrap it up within 10 days and that there would probably be about $20,000 in materials. That led me to believe that we were in the same ballpark. Now, don’t get me wrong, the place looks great and I know you didn’t cut any corners. But I told you that the loft is going to be lived in by my teenage son, so I really didn’t need all of the fancy woodwork and fixtures you put in. If you had asked me about it, I would have chosen a less expensive option. We need to talk about this — as it stands I’m not prepared to pay the invoice. I’m out of town again, but you can reach me by email. Regards, Katherine

When Thrace arrived in the office, you read him the email. “I can’t believe it!” Thrace said emphatically. “What does she expect? We did a great job on that place and in a hurry too, because she said her son wanted to move in during the long weekend. There was no way I was going to cut corners there, because on the last job I did for her, she was very particular that everything be perfect. And that number I gave her for materials was just a guess — it turns out I had forgotten that she wanted a shower put in as well. That woman has some nerve! I’m going to call her now.” You explain to Thrace that Katherine is out of town again, but that she is available by email. You also remind him that the last time he did work for Katherine, she mentioned that she often writes reviews on social media sites of companies she hires and whose products she buys. She had written a very positive review of Thrace’s work on the contractor review website Rate My Builder. To give him time to calm down, you offer to draft an email for Thrace to respond to Katherine’s message.

Required: Use the ACAF Method to analyze this situation. Specifically

d. Draft Thrace’s email response to Katherine with your conclusions. (4 marks)

Answer 1

Hi Katherine,

This refers to your response against the invoice sent.

Firstly, I am happy to note that you have appreciated the work done, as always, and acknowledged the effort put in. We did make it a point to ensure perfection is ensured based on your past preferences and made extra effort to be particular about everything we did. We are glad to receive critical acclaim from a client as distinguished as you.

You have referred to the invoice amount as exorbitant and over and above your budget. Please note that the estimated cost given to you of $20,000 was just a rough idea as you wanted the job to be done quickly. The estimate did not involve labor cost and was only a rough estimate for materials that may be needed. An elaborate estimate would have taken some time as it involves meticulous cost calculations with measurements and material specifications taken into account. Besides, labor cost and time taken. We used the best available materials and took great care to ensure everything would pass the eyes of a very distinguished and accomplished client as you. I am sure you do acknowledge that cutting corners on materials and job work would have not given the finish that would have passed your scrutiny based on past experiences.

I would therefore request you to look at the invoice and work done rationally and clear the payment. I am also sure that you will continue to acknowledge our efforts by way of rave reviews which will help us patronize more distinguished clients as you.

Thanks and regards,

Thrace