by Ed Katz
You’re paying for an office move and need to choose the right mover.
"Simple," you think, while reaching for the phonebook, "I'll let my fingers do the walking."
Better put down the phonebook and keep reading. Tremendous overcapacity in the moving industry leading to a price-driven market has forced many movers to take draconian measures in the last two years to slash costs in order to survive. Some of this cost-cutting has resulted in lower quality service.
Earlier this year, the president of the American Moving and Storage Association (AMSA), Joe Harrison, highlighted the condition of the moving industry in an article for Mobility Magazine.
According to Harrison, pricing pressures and increased costs make sustaining quality and capacity increasingly difficult.
“The challenge facing movers to consistently accomplish quality moves at deeper and deeper discounts is approaching crisis proportions,” Harrison said,
With sales down and the costs of doing business much higher (especially insurance), many movers are lowering labor costs, the one expense they can control, by hiring subcontractors to do their moves.
The present price-driven market encourages sales to underestimate the job and low-ball the competition just to win. To make a profit, the typical subcontractor thinks only of doing the job as fast and as cheaply as possible and subsequently hires low-priced, untrained and inexperienced labor.
Subsequently, profit margins don’t allow for bubble-wrapping sensitive computers, rearranging furniture (at the customer’s request) at the end of the move, or installing extensive building protection for walls, doors, floors, and elevators. They’ll lose money. Such bottom-line tactics place you and your unsuspecting tenant customer squarely in the cross hairs.
But you don’t have to become a “moving target.” To reduce the chances of a moving service failure, follow these steps.
Finding a reputable mover
Instead of playing "Russian roulette" with the phone book, ask fellow BOMA members to recommend reputable movers or look over our list of certified movers, which have successfully completed International Office Moving Institute (IOMI) training. IOMI graduates learn to estimate accurately so jobs finish on time for the price quoted plus they are schooled in the latest techniques for minimizing the risk of damage to furniture, computers, and real property.
Don’t ask for references
Rather than accept references that can be selectively supplied, and to get a true picture of a mover’s performance, ask bidders to supply contacting information for the last five companies they have moved. Call each contact and ask these questions:
1. When did the move occur? (Hint: You’re verifying that it’s recent.)
2. Did the mover protect your furniture, contents, electronic equipment, and office building, or was there a lot of damage? (Hint: If there was damage, did the mover settle the claims in a timely manner under his liability?
After the move is a lousy time to learn about moving insurance. If you’re paying for the move and your tenant’s furniture and computers are damaged and not fully covered by the mover’s insurance, expect your office to become the complaint department.
Most movers’ standard coverage limits their liability for furniture and computers. You may discover your tenant is under insured only after major damage occurs. The safest approach is to pay a little more and buy replacement value insurance from your mover. However, it’s no substitute for a good move. The wait for replacement authorization from the insurance company, which typically has 60 to 90 days to settle a claims, can jeopardize your tenant’s business.
Additional insurance for real property damage is not necessary. All movers are 100 percent liable for damage they cause to items such as carpet, tile, doors, walls, and elevators. What’s not covered, however, is the time spent trying to get someone to fix a door or repair torn wallpaper or polish out the scratches on your elevator.
3. Did the mover minimize downtime (the nonproductive time spent packing and unpacking before and after the move)?
Movers using Space Gobblers™ eliminate the packing and unpacking of desks, credenzas, and flat file cabinets. One with a Spider Crane® allows customers to avoid downtime by moving the contents in the furniture instead of moving the contents and the furniture, which can reduce downtime by as much as 90 percent.
No Spider Crane® or Space Gobblers™? Downtime can still be reduced using Tyga Boxes™, which replace conventional cardboard moving cartons with a pre-built plastic crate system. Tenants still have to pack and unpack furniture contents but save time by avoiding having to build moving cartons at the origin and then break them down at the destination. Also, since Tyga Boxes™ arrive more in the order in which they were packed than convention moving cartons, unpacking is quicker. According to Martin Spindel, president of Tyga Box™, customers using his system report downtime reductions between 20 and 30 percent.
4. Did the mover finish the job on time for the price quoted?
Movers tend to overpromise by scheduling more business then they have resources to satisfactorily perform. Ask bidders to list the number of four-wheel dollies and other pieces of handling equipment they will need to complete your job by the date promised. A list of equipment they own is worthless information. No matter how much they possess, it won’t be enough if they overbook. Before you award the contract, ask the winning bidder to guarantee in writing that he’ll furnish the amount stated as being required in your proposal.
Demand a Scope of Services
Be skeptical of movers submitting only a cost estimate without a detailed Scope of Services. Estimates should spell out specific responsibilities for both your tenant and the mover. Bid packages containing only fancy brochures and a price without specifics for your job often lead to change orders during the move, and a guaranteed price evaporates if your tenant signs change orders.
As the landlord, when you pay for a move, your tenant typically should be responsible for packing and unpacking furniture contents. The Scope of Services should identify who will be responsible for packing the supply room, file room, library, and other common areas in addition to easily overlooked items such as plants, paintings, pictures, lamps and bric-a-brac. Turnkey relocations, where the mover handles packing, unpacking, hanging paintings, and other details, are atypical and can add 50 percent to the cost of the move, To hold down costs, it’s reasonable to expect the tenant to take care of such items.
Before you award the contract, ask the winning bidder to guarantee in writing that he will follow the Scope of Services, and make sure the mover understands the ground rules before introducing him to your tenant.
And what about your building
Be skeptical of bidders who fail to detail exactly how they plan to protect your building. A detailed Scope of Services should address building protection with a line item for floors, walls, doors, and elevators.
Movers dedicated to building protection use Masonite® or Pathrite® for carpeting and a resilient cardboard called Koroflex on walls of main traffic arteries. Mat-A-Doors® protect main entrance doors, lobby-side elevator entrances, and passenger cab interiors. Expect to find bumper pads or plastic corner guards listed to protect door jambs.
Taking steps to screen potential movers will smooth out the move process for everyone. Reputable ones become easier to spot, your tenant's experience will be much more pleasant, and requiring specific measures to protect your building will relieve you of the expense and hassle of repairs.
Ed Katz, founder and former owner of Peachtree Movers in Atlanta, has been called the guru of office moving. He's a member of BOMA/Atlanta and can be reached at 1-800-464-8688 or EdKatz@officemoves.com.
